MANAGEMENT

Detailed explanation-1: -A physical inventory counts all stock in a building, usually once or twice a year. Cycle counting counts small, preselected sections of inventory multiple times a year, sometimes as often as daily.

Detailed explanation-2: -Physical inventory is usually taken at the end of the year. This is done to manually update records after a specific inventory accounting period to account for any discrepancies between the inventory on hand and your POS system.

Detailed explanation-3: -Periodic counts might be once every two months or every three weeks, depending on warehouse size and company needs. This will create better visibility than yearly or seasonal options but it also requires more time and manpower. Workers must ensure they are performing inventory consistently between each count.

Detailed explanation-4: -Taking Year-End Physical Inventory Can Help Ensure Accuracy Even if you use inventory management software or other systems to track inventory throughout the year, only an actual count can reveal what you have on hand and make sure it matches what’s in your system.

Detailed explanation-5: -A physical inventory should be taken at the end of every month. During periods of increasing costs, the use of the FIFO method of costing inventory will yield an inventory amount for the balance sheet that is higher than LIFO would produce. A perptual inventory system is an effective means of control over inventory.