Difference between Cycle Counting and Physical Inventory



S.No
Cycle Counting
Physical Inventory
1
cycle counting can be done  on specific items or selective items 
physical inventory we have to count all items
2
cycle counting can be done multiple time in an year , like monthly or quarterly for high value items
physical count is done once an year or at the most twice for all the items.
3
We can schedule the count
We cannot schedule this
4
We cannot have a snap shot
We can have a snap shot
5
We can view the qty in the system
We can not view the qty in system
6
We cane select the items using ABC analysis
It is done for all the items.
7
We need not to freeze inventory transactions
Need to freeze inventory transactions
8
Recount is possible
Recount is not possible
9
We can maintain recount history.
No recount, hence no history
10
Adjustments can be processed on approval.
Can be done using adjustment concurrent program


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