Procede Software — What’s New — Best Practices — Parts Physical Inventory Process Refresher Parts Physical Inventory Process Refresher If you are new to performing an inventory count on Excede v9.22, or if you simply haven’t evaluated your overall inventory processes in some time, then continue reading for an inventory process refresher and reminders of available resources. Keep in mind that the inventory process can change from one Excede version to the next, and the steps below are specific to Excede v9.22. Inventory Preparation The first step of the parts physical inventory process is Managed Parts clean-up. This process should begin 4-6 weeks prior to your actual inventory count and should, ideally, be part of a continuous effort throughout the year. During this clean-up process you’ll use Excede’s smart filtering capabilities to identify and take action on parts in the following categories: Parts with NO Cost (Zero) Fix these parts so they have an accurate cost Parts that have multiple Bin locations Verify accuracy and update as needed Parts that are setup to default No Bin location Verify accuracy and update as needed Parts that are in the system default Bins (typically NOLOC) and have On-Hand quantity Move these parts to their correct bin(s) Cores with Bin location of NOLOC and have On-Hand quantity Move these parts to their correct Bin(s); many dealers have a separate CORE bin Once these parts have been cleaned up, we suggest updating your Bin and will-call areas. All parts awaiting pickup should either be delivered to the customer or shipped on customer invoices so these items are removed from inventory. Any remaining items should be placed back into inventory and assigned the appropriate Bin locations. NOTE: With Excede v9.22 and beyond, you can now save advanced filters. Many of the filters above are built into Excede’s standard filter drop-down options, and others can be saved. All filters referenced above can be found in the Customer & Resources Portal. Inventory Process Preparation – Excede Configuration 1-2 weeks prior to the count Ensure you have downloaded and updated your Excede Count Sheet and Variance Recount reports and loaded them to the proper workspace(s), located here: https://support.procedesoftware.com/hc/en-us/sections/204128817-Parts-Inventory Approximately 2 days prior to the count Ensure all Memo-Posted Parts Adjustments are fully posted. Within Parts Controls, check the box for “Annual Count in Progress” for all appropriate branches. Within Parts Controls, change the Prefix for Adjustment documents to something other than the default value (for example, “INV”) to distinguish inventory adjustments from other, regular adjustments. Remove the Rank 1 form from the adjustments folder to avoid unnecessary printouts upon posting. Inventory Count Process Approximately 2 days prior to the count Sort all bins within your branch in descending order, highlight all, right-click and select “Count” > “All Parts.” NOTE: Many dealers skip the system default (NOLOC) and core bins and treat those as write-ins (see below). Run the “Count Sheet” report, entering the appropriate branches, and print the count sheets. Count Begins We recommend identifying your current parts pad to GL variance prior to starting the count. Some dealers have an Excel variance report, others may utilize the KPIs, or the variance can be calculated by looking at the current inventory GL vs. the inventory status (PAD) plus WIP values. The variance amount is informational only and provides a starting benchmark. Highlight all count adjustments, right-click and select “Reset all Counts” to reset all starting quantities that have changed in the last 2 days since the count sheets were created. This step should only be performed once immediately prior to starting the count.* Perform counts and enter count values in each adjustment. Right-click and select “Mark As” > “Counted.”** For write-ins and cores, manually enter line items and counts on a separate, manual adjustment, and mark as counted. Confirm all counts are completed, confirm all adjustments are marked as counted, highlight these open adjustments, and post. Refresh the adjustment screen (F5). If any inventory adjustments remain unposted, research and re-enter counts, and post. Recounts After the adjustments are all counted and posted, run the Inventory Variance Report. The report will display the parts that need to be recounted. Create a manual “Variance Count” adjustment to correct the count quantities, mark as counted, and post. Continue this process, running the Inventory Variance Report, until all re-counts have been completed. Wrap Up and Reconciliation Turn off the “Annual Count in Progress” in Parts Controls and reset the Parts Adjustment document prefix. After the adjustments are all counted and posted, run the final Inventory Reconciliation reports. Cycle Counting Procede’s Professional Services team has introduced cycle counting functionality to allow automated adjustments to be created based on your organization’s desired count frequency for slow, medium and fast-moving parts. A Procede expert will provide guidance on identifying and classifying the parts inventory and establish the automated routine. Once enabled, a single count sheet (adjustment) will automatically be created each day for the associated parts that are due for counting. Additional details on the Cycle Counting process can be found in the Customer & Resources Portal here: https://support.procedesoftware.com/hc/en-us/articles/217717558-Professional-Services Important Notes *For dealers running earlier versions of Excede, the “sync” step is different and may require additional files, or Procede assistance. **Take care to avoid including already posted adjustments when you highlight and Mark As > Counted. Doing so will have undesirable affects and will likely require advanced assistance from Procede for correction. Only memo-posted adjustments should be included.