Epicor strongly suggests you read the following questions and answers before attempting to do a physical inventory of your store.
Q: What is the most important thing I must do to prepare for a physical inventory of my store?
A: ALWAYS begin by clearing old records from the Count File by running RPI with Reconcile Options R, T, and X.
One of the most common reasons for an inaccurate physical inventory is that counts were skewed by old records left in the count file from previous physical inventories. By clearing the count file, you have the assurance that you are starting with a clean file.
Q: How does POS or receiving activity affect my counts?
A: The Physical Inventory Posting (PIP) file takes a "snapshot" of an item's quantity-on-hand (QOH) at the time the record is loaded into PIP. This snapshot is used later, when the system updates your QOH. Therefore, at the moment you actually count an item, the snapshot in PIP must still be the same as the QOH in the Inventory File (as it was when the snapshot was taken). Thus, no POS or Receiving should take place between the time an item is entered into PIP (either manually or via the Physical Inventory Posting Report) and the actual moment the item is counted.
Q: What happens if I use the Physical Inventory Report (RPI) to load items into PIP in the morning, but don't actually conduct a count until the evening?
A: Remember, there must be no activity between the time an item is entered into PIP and a physical count is completed. Therefore, you must reset the beginning quantity before you begin a physical count. This is done by running RPI with Load Option B. Click here for more information.
Q: What should I do if I only counted a portion of the items I loaded into the Count File?
A: Use RPI, Load Option B to reset the beginning quantity of the items you weren't able to count. Click here for more information.
Q: What if I load count records and immediately count my inventory, but I do not post my counts into the Epicor system until the following day?
A: That's all right. The Epicor Eagle™ system keeps track of your beginning QOH, and will use this amount when calculating a variance.
Q: What should I do when I have only a few items to count?
A: Instead of using RPI to load records, you may want to simply add them in Physical Inventory Posting (PIP). Click here for more information.
Q: How do I use the Physical Inventory subsystem— together with the Inventory Valuation Report (RIV)— to get an accurate inventory valuation at the end of my fiscal year?
A: On the last day of your fiscal year, run the Inventory Valuation Report (RIV). This is the value of your inventory before adjustments.
Then (also on the last day of your fiscal year), run the Physical Inventory History Report (RPH), Shrinkage Options H, T, and P. This will set your current and period-to-date shrinkage history to zero. Use Print sequence 5 or 6.
NOTE: Do not close out your year-to-date shrinkage history at this time! Once the above two reports are run, you may start conducting your year-end physical inventory counts. Any adjustments that you make to QOH at this time will be captured in the current period and PTD fields in Modify Physical Inventory Shrinkage History (MPH).
NOTE: The adjustments to QOH will affect the YTD shrinkage history. You are still working in the prior fiscal year! You will not be able to post adjustments to your inventory value (for the new year) until after you complete all physical inventory counting.
Once you have completed your physical inventory counting, and all final reconciliation reports have been run (RPI, Option F), you are ready to close out your shrinkage history for the year and print the adjustments to your year-end inventory value.
Run RPH, Options H and O. This will give you PTD and YTD shrinkage history. The PTD value is actually the amount of shrinkage that needs to be posted to your ending inventory. Remember, the RIV report that you ran at the end of the year did not reflect the true value of your ending inventory. That was the value of your inventory before you did the physical count. Therefore, you need to adjust your year-end inventory valuation by the amount of PTD shrinkage.
Your true year-end inventory valuation is the amount shown on Report RIV (which ran on the last day of your fiscal year) minus the amount of PTD shrinkage on the RPH report.
Once you have the RPH shrinkage information, you need to run RPH with Shrinkage Option Y, to roll YTD information into "Last Year's YTD" in MPH.
Q: Are there any special considerations when I use Function RCIN?
A: Yes. If your Inventory File maintenance activity is high and you also use Function RCIN (Change Item Number) often, run final audit reports (RPH, Audit Option F) weekly or at least prior to a large RCIN session. By doing so, you will insure RCIN's optimal performance.
Q: Can I temporarily change the Default Shrinkage Type for PIP/QPIP Posting field, in Function MPI, and post to groups of SKUs of a particular shrinkage type?
A: Yes. Let's say, for example, a big storm recently caused weather damage in your store, making it necessary for you to discard 100 items. You want to post the adjusted QOH for these items in PIP or QPIP with the shrinkage type of Weather Damage. But the default field in Function MPI is currently set to Counting, and you don't want to have to manually change the shrinkage type for each of these 100 items in PIP or QPIP.
In MPI, change the Default Shrinkage Type for PIP/QPIP Posting field to Weather Damage. Now, when you post in PIP or QPIP, Weather Damage will display as the default. Remember to change the default back again when you are through.