Physical Stocktakes & Cycle Counts

The Physical Stocktakes & Cycle Counts module enables warehouse teams to verify physical inventory against system records. It supports full wall-to-wall audits, targeted zone checks, and rolling bin cycle counts using mobile-friendly barcode scanning, blind count controls, and automated General Ledger reconciliation.

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Stocktake Lifecycle & State Machine

Every stocktake transitions through structured lifecycle states to ensure counting integrity and audit compliance.

stateDiagram-v2
    [*] --> Draft : Create Stocktake (Define Scope)
    Draft --> Open : Release for Counting
    Draft --> Cancelled : Cancel Plan
    Open --> Review : Finish / Pause Counts
    Open --> Draft : Return to Draft
    Open --> Cancelled : Cancel Stocktake
    Review --> Open : Reopen for Recount
    Review --> Submitted : Submit & Reconcile Adjustments
    Review --> Cancelled : Cancel Stocktake
    Cancelled --> Draft : Reopen as Draft
    Submitted --> [*]

State Overview

• draft (Draft): The stocktake plan is configured with location, scope, and blind count settings. Inventory lines and expected quantities are snapshotted.
• open (Open / Counting): Active counting in progress. Warehouse operators scan barcodes, navigate bins, and record physical quantities in the counting terminal.
• review (In Review): Counting is paused or completed. Supervisors analyze variances (matches, shortages, surpluses, and unlisted items) and decide whether to recount specific bins or approve adjustments.
• submitted (Submitted / Reconciled): Final reconciliation. The system automatically creates inventory adjustment entries in the perpetual inventory ledger and posts balancing journal entries to the General Ledger.
• cancelled (Cancelled): Aborted without adjusting inventory levels.

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Count Scopes & Cycle Counting

HeroBM supports flexible counting scopes to accommodate both periodic full stocktakes and continuous cycle counts without disrupting daily fulfillment operations:

1. Full Warehouse (full): Audits all active storage, pick, and bulk bins in the facility.
2. Specific Zone (zone): Limits the stocktake to a designated warehouse zone (e.g. Zone A, Cold Storage, High-Value Cage).
3. Bin Pattern Prefix (bin_pattern): Filters bins matching a prefix pattern (e.g. A01-, RACK-2), ideal for rolling aisle cycle counts.
4. Manual Selection (manual): Allows granular ad-hoc selection of specific bins or products.

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Blind Count vs. Standard Count

[!TIP] Blind Count (is_blind_count: true) hides expected on-hand system quantities from operators in the counting terminal. This eliminates operator confirmation bias and ensures rigorous physical verification.

• Standard Count: Expected quantities are visible to counters for immediate side-by-side comparison.
• Blind Count: Counters see only the product details and bin address. Expected quantities and variance badges remain concealed until the stocktake transitions to the In Review stage or is viewed by authorized supervisors.

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Step-by-Step Workflows

1. Creating a New Stocktake

1. Navigate to Inventory → Stocktakes (/inventory/stocktakes).
2. Click Create Stocktake in the top header.
3. In the slide-over form, configure the stocktake:
   • Enter a descriptive Stocktake Name (e.g. 2026-Q3 Cycle Count - Zone B).
   • Select the Fulfillment Location.
   • Choose the Count Scope (Full Warehouse, Specific Zone, Bin Pattern, or Manual).
   • Specify Zone Filter or Bin Prefix Pattern if applicable.
   • Toggle Blind Count if you want to hide expected balances from counters.
   • Add optional Notes / Instructions for the warehouse team.
4. Click Create Stocktake. The stocktake is created in draft status and opens the detail view.

2. Conducting the Count (Terminal & Barcode Scanning)

1. Open the stocktake and ensure its status is set to Open.
2. Click Start Counting to open the touch- and scanner-optimized counting terminal (/inventory/stocktakes/:id/count).
3. Select a bin from the Bin Navigator or scan a bin barcode label.
4. Record item quantities using any of the following methods:
   • Barcode Scanner: Scan the product barcode using a hardware USB/Bluetooth scanner or the built-in device camera scanner.
   • Increment Mode: Each barcode scan increments the physical count by 1 unit (with audio/haptic chime feedback).
   • Set Quantity Mode: Click or tap the count field to enter the exact quantity directly.
   • Add Unlisted Product: If physical stock is found in a bin but was not expected by the system, click Add Unlisted Item, search the catalog, and enter the physical count.
   • Confirm Empty / Zero Remaining: If a bin has no physical stock, click Confirm Empty or Zero Remaining to quickly set all uncounted lines in the bin to 0.
5. Click Done & Next Bin to advance through the warehouse systematically.

[!NOTE] The terminal automatically saves in-progress count drafts locally in the browser, preventing data loss during network interruptions or unexpected device reboots.

3. Reviewing Variances & Recounting

1. Once counting is finished, switch the stocktake status to In Review or click Review & Reconcile.
2. Filter the lines table to inspect discrepancies:
   • Match: Physical count exactly equals the expected balance.
   • Shortage: Physical count is lower than expected (inventory shrinkage/loss).
   • Surplus: Physical count exceeds expected balance (found inventory).
   • Unlisted: Unexpected item recorded in the bin.
   • Uncounted: Line was never counted.
3. If a variance requires physical re-verification, transition the stocktake back to Open and instruct counters to perform a recount of the disputed bin.

4. Submitting Final Reconciliation & Ledger Posting

1. In the In Review view, click Submit & Reconcile Adjustments.
2. Enter a mandatory Adjustment Reason / Audit Memo (e.g. Annual Physical Stocktake 2026 - Main DC).
3. Click Submit & Reconcile.
4. The system executes an atomic transaction that:
   • Adjusts on-hand bin quantities to match the verified physical counts.
   • Writes detailed movement entries to the Perpetual Inventory Ledger (inventory_ledger).
   • Automatically posts double-entry balancing entries to the General Ledger (debiting/crediting the Inventory Asset account and the Inventory Shrinkage/Variance expense account).
   • Marks the stocktake as Submitted and records full audit metadata (submittedBy, submittedOn).

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Field Reference

Field	Description
Stocktake #	System-generated tracking code (e.g. STK-20260911-0001).
Name	Descriptive campaign title.
Location	Facility where physical count takes place.
Status	Lifecycle state: draft, open, review, submitted, cancelled.
Scope	Scope type (full, zone, bin_pattern, manual).
Blind Count	Flag indicating whether recorded quantities are concealed from counters.
Progress	Percentage and ratio of counted lines vs total lines in scope.
Discrepancies	Number of lines with variance between expected and counted stock.
Expected Qty	Snapshot on-hand quantity in system records.
Counted Qty	Actual physical quantity counted in the bin.
Variance	Delta quantity (Counted - Expected).
Audit Memo	Reason logged on reconciliation and attached to ledger entries.