How To Do a Physical Inventory With Paradigm
The purpose of the Physical Inventory feature of the Paradigm Accounting system is to reconcile the actual inventory in a particular warehouse with the computer records. Different companies will do physical inventories on different schedules but an annual inventory is common. This physical inventory consists of a few basic steps:
- Determine the order in which the inventory will be conducted. For example will the inventory items be counted in groups according to categories like tools, brakes, coils, sealant, etc. The grouping chosen will determine the order in which the items will be counted in the physical inventory.
- Print the physical inventory worksheet
Select “Inventory Items
Choose Filter option: Example “Category/Tools”
Optionally select “Preview Filter” to display number of records and print format.
Select “Print Filter” to print the “Physical Inventory Count” report.
The print format is shown below:
- Count the physical items in stock, then write the actual count in the last column.
- The next step is to enter the actual counts in the computer.
Under the Inventory menu, select the Physical Count Worksheet
The screen will look something like this: Click the “Add” button to start a fresh entry form
Select the correct “Employee ID”, the “Warehouse ID” and the “Product ID” to be counted.
Reference the “Physical Inventory Count” report to find the actual count in hand writing.
Enter the actual count for the product ID selected above;
Continue to select product IDs and enter the counts with any notes.
Take careful note of the Unit of Measure field to make sure that the correct units are being counted.
- When all the entries for actual count have been entered, double check all item counts for accuracy and then lock the worksheet.
Locking the screen prevents double counting or modification of the actual count.
After pressing Lock press YES to confirm that you want to lock.
CAUTION: Once a worksheet is locked it cannot be unlocked!!!
After the worksheet is locked a large red LOCKED sign will appear in the top of the screen
- The next step is to perform a “Physical Count Analysis”
An example screen is shown below:
For the sake of simplicity, we will analyze the data from a single worksheet.
Type in the date on which the worksheet to be analyzed was locked, in this case, 4/10/2012
Select the option called “Items with Worksheet Qty’s”
Optionally: Filter the data by “Warehouse ID” and/or “Category”
Go to the “Adjustments ID” field and select Answer “Yes” to create a new adjustment.
After you select “Yes” to create a new adjustment, Paradigm will generate a new Adjustment ID and automatically fill in the Variance Account field value of 5-1100.
The next step it to add the results of the Physical Inventory Count to the Paradigm data.
1. Verify that the “New Adjusted Quantity” is accurate based on the actual count on the “Physical Inventory Count”worksheet. Enter the correct value in the field.
2. Press “Add”for each record that will be posted. Note that the cost can be adjusted after pressing ADD. “ADD ALL”can also be used with caution.
3. After the “Add” button is pushed, the record is transferred to the right-hand part of the screen. The various fields in the record can be changed but it is essential that the cost field is verified to be correct.
4. To remove a record from the Add List, click the “X”on the leftmost column. The record will then be returned to the left-hand side of the screen.
5. When all records have the correct “Cost”entered, the next step is to “Post”adjustments. Posting will update the quantities of every item to match the results of the Physical Inventory count. and the actual cost of each item.
Click “Yes“to complete the post.
Normally once the data has been posted, the work for that particular worksheet is complete. However, under some circumstances, it may be necessary to check the values again or to do an “Unpost”
Return to the main menu and select “Inventory Adjustments”to find and modify this inventory adjustment.
