Cycle Counting
Cycle counting is the practice of regularly counting a portion of your inventory rather than doing a single, disruptive full warehouse count. By spreading counts across the year, you maintain accurate stock records while keeping your warehouse operational.
How It Works
Instead of shutting down operations to count everything at once, cycle counting divides your inventory into groups and counts each group on a rotating schedule. This approach:
- Keeps the warehouse running — only a small section is being counted at any time.
- Catches errors early — frequent counts mean discrepancies are found and corrected quickly.
- Improves accuracy over time — regular counting builds discipline and reveals systematic issues.
Cycle Count Programs
A cycle count program defines the rules for how and when counting happens. Each program is linked to a specific warehouse and has a counting strategy and schedule.
Program Types
| Type | Strategy | Best for |
|---|---|---|
| ABC Analysis | Count high-value items (A) most frequently, medium-value (B) less often, and low-value (C) least often. | Organizations where a small percentage of products represents a large percentage of inventory value. |
| Location Based | Count all items in specific locations on a rotating basis (e.g., Aisle A this week, Aisle B next week). | Warehouses where location accuracy is critical and items are fixed to specific zones. |
| Random | Randomly select a percentage of items or locations to count each period. | A simple approach that provides a statistically representative sample. |
| Exception | Target items that have shown discrepancies, negative stock, or unusual activity. | Focused correction where specific problem areas are already known. |
| Velocity | Count fast-moving items more frequently than slow-moving ones. | Businesses where high-turnover items are most likely to have counting errors. |
Program Settings
| Field | Description |
|---|---|
| Frequency | How often counts are scheduled: Daily, Weekly, Monthly, Quarterly, or Annually. |
| Target Percentage | What percentage of the relevant inventory should be counted each cycle. |
| Tolerance Percentage | The acceptable variance between system and physical quantities before a discrepancy is flagged. |
Automatic Scheduling
Cycle count programs are automatically scheduled based on their frequency. You do not need to set dates manually — the system handles it:
- When you create an active program, the first count is scheduled immediately.
- After each count, the system automatically schedules the next one based on the frequency (e.g., a Weekly program schedules the next count 7 days later).
- If you change the frequency, the schedule resets and a new count is scheduled right away.
- If you deactivate a program, scheduling stops. Reactivating it starts a fresh schedule.
The system checks for due programs every hour. If previous count tasks for a program are still in progress, the system waits and notifies you — it will not create overlapping tasks.
You can see the scheduling status on the program’s page: Next Count Date, Last Count Date, Scheduler Status, and Last Scheduler Run.
Setting Up a Program
- Go to Cycle Counts in the sidebar under Inventory and click Add Program.
- Choose a name (e.g., “Monthly ABC Count — Algiers Warehouse”).
- Select the warehouse this program applies to.
- Choose the program type and frequency.
- Set the target percentage (e.g., 20% means one-fifth of inventory is counted each cycle — so with a monthly frequency, the entire inventory is covered in five months).
- Set the tolerance percentage (e.g., 2% means a variance of up to 2% is acceptable before requiring an adjustment).
- Choose whether the program is active — active programs begin scheduling immediately.
- Save.
Count Tasks
A count task is an individual counting assignment generated from a program or created manually. Each task tells a warehouse worker exactly what to count, where, and when.
Task Fields
| Field | Description |
|---|---|
| Task Number | A unique identifier (e.g., CNT-2026-042). |
| Warehouse | Where the counting takes place. |
| Location / Zone | The specific area to count (optional — can be the entire warehouse). |
| Assigned To | The person responsible for performing the count. |
| Priority | High, Medium, or Low — helps workers prioritize when multiple tasks are pending. |
| Scheduled Date | When the count should be performed. |
| Item Count | The number of items or lines included in this task. |
| Instructions | Special instructions for the counter (e.g., “Count only items on top shelf”). |
Task Lifecycle
| Status | What it means |
|---|---|
| Assigned | The task has been created and assigned to a worker but not yet started. |
| In Progress | The worker has begun counting. |
| Completed | The worker has finished counting all items in the task. |
| Reviewed | A supervisor has reviewed the count results and any variances. |
| Cancelled | The task was cancelled before completion. |
Performing a Count
- Go to Count Tasks in the sidebar under Inventory to see your assigned tasks.
- Start the task — the system records when you began.
- Count each item at the specified location and record the actual quantity.
- Note any discrepancies or unusual findings.
- Complete the task when all items have been counted.
If the count reveals variances beyond the tolerance, an inventory adjustment is created to correct the system quantities.
Tip: For the best results, use blind counting — where the counter does not see the system’s expected quantity. This prevents bias and produces more accurate counts. The system will compare the counted quantity against the expected quantity after the count is submitted.