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Cycle Count in Inventory Management

Ahmad Alagbari Chartered Accountant > Blogs > Finance > Cycle Count in Inventory Management
  • March 20, 2022
  • admin
  • Finance
  • 0

Cycle Count in Inventory Management

  • Does your business sometimes experience delays in order fulfilment, resulting in dissatisfied customers?
  • If your inventory count does not consistently match what you physically have in your warehouse, your company could benefit from cycle counting

Cycle counting is an inventory auditing process where a small subset of inventory, in specific locations, are counted at regularly scheduled time intervals. Over a designated amount of time, all the inventory is cycled through and accounted for and this process can be repeated as frequently as required.

Any discrepancies found during these incremental counts would be adjusted within the accounting system, both for the quantitative data to ensure accurate numbers for stock on hand and its financial value to the business.

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