Inventory Cycle Count SOP

Standard procedure for selecting inventory slots, performing blind counts, investigating discrepancies, and completing approved inventory adjustments.

Steps

• Select the cycle count scope
  The inventory controller selects the count scope based on the approved cycle count plan, risk ranking, ABC class, or discrepancy history. - The controller verifies that the selected slots are eligible for counting. - The controller excludes any locations currently blocked by receiving, shipping, quarantine, or active replenishment if the site rules require it. - The controller records the count batch identifier, date, and responsible role.
• Freeze the selected inventory records
  The inventory controller places the selected slots on hold in the system or applies the site-approved freeze method. - The controller prevents quantity visibility for the counter when the system supports blind counting. - The controller confirms that no unapproved transactions will post to the selected records during the count window. - The controller documents any exceptions that cannot be frozen and escalates them before counting begins.
• Assign the blind count to a competent counter
  The supervisor assigns the count to a trained counter who is not shown the expected quantity. - The supervisor confirms the counter understands the location, unit of measure, and count method. - The supervisor confirms the counter has the required access and equipment. - The supervisor records the assignee and time of assignment.
• Perform the blind physical count
  The counter locates the assigned slot and counts the physical inventory without viewing the expected system quantity. - The counter verifies the correct location, SKU, lot, or serial identifier before counting. - The counter counts each unit using the approved method for the item type. - The counter records the observed quantity, unit of measure, and any visible condition issues. - The counter does not change the system quantity during the count step.
• Verify the count entry for completeness
  The supervisor or inventory controller verifies that the count record is complete and legible before comparison. - The verifier checks the location identifier. - The verifier checks the item identifier and unit of measure. - The verifier checks the counted quantity and count timestamp. - The verifier confirms the counter identity and any comments on damaged or missing stock.
• Compare the counted quantity to the system quantity
  The inventory controller compares the blind count result to the system quantity after the count is submitted. - The controller calculates the variance quantity and variance percentage if required by the site procedure. - The controller compares the variance to the approved tolerance. - The controller records whether the result is within tolerance or requires investigation.
• Investigate any discrepancy outside tolerance
  The inventory controller investigates any variance that exceeds the approved tolerance or appears abnormal. - The controller checks for recent receipts, picks, transfers, returns, or production issues. - The controller inspects the location for mis-slots, mixed lots, damaged goods, or unlabeled stock. - The controller confirms whether a second blind count is required by the site rule. - The controller documents the likely cause and supporting evidence.
• Prepare the approved inventory adjustment
  The inventory controller prepares the adjustment request in the system using the approved reason code. - The controller enters the corrected quantity and variance details. - The controller attaches the discrepancy notes, count record, and any supporting evidence required by the site procedure. - The controller submits the adjustment for approval when the site requires pre-posting authorization.
• Escalate unresolved discrepancies as a non-conformance
  The inventory controller escalates unresolved discrepancies that exceed tolerance, lack evidence, or indicate a process failure. - The controller records the non-conformance description and affected item or location. - The controller notifies the supervisor, inventory manager, or quality representative per escalation rules. - The controller places the affected stock on hold if required by the site procedure. - The controller does not post an adjustment until approval is received.
• Post the approved inventory adjustment
  The authorized approver or delegated inventory controller posts the approved adjustment in the system. - The approver confirms the reason code, quantity, and supporting documentation before posting. - The approver verifies that the adjustment is within authorization limits. - The approver ensures the system audit trail captures the user, date, time, and reason for the change.
• Close the cycle count record
  The inventory controller closes the count batch after all counts, investigations, and approved adjustments are complete. - The controller confirms that all required fields are complete. - The controller retains count records, discrepancy notes, and approval evidence according to the document retention rule. - The controller flags any recurring issue for trend review or corrective action.