How To: Adjusting Inventory Levels (Physical Inventory) In Microsoft Business Central

At the end of a fiscal year, companies need to run a physical stock count to check the differences between their physical inventory and the inventory registered in their system.

Apart from the once per year required stock take you might want to count some of your stock more often or even adjust the inventory level of a single item. Dynamics 365 Business Central has all the functionalities to help you manage and control your stock takes.

Starting with the physical inventory count, there are three steps that you need to complete. First calculate the inventory level as register in Business Central, then print the report for the stock counting and finally enter the results in the system and post the differences.

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To start a physical inventory count, choose the search icon at the top right of the screen, type “Physical Inventory Journal” and choose the Physical Inventory Journal link on the search results.

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Keep in mind that this is the process when using the basic warehouse configuration, if you are using the advanced warehouse features then the process is a bit different. From the Physical inventory Journal press Prepare and then Calculate Inventory.

The Options page for the Calculate Inventory process will open.

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Set the Posting Date which is the date that the journal will be posted, then define a document number for the journal. The next two check boxes define whether you want to include Items not on Inventory and Items with no transactions.

In the Item filtering part you can filter which items to calculate but more importantly you can define the Location filter if you are running the stock take for a specific location.

Press OK to run the process. When the process is done, the journal will be populated with the items’ quantity in stock.

To print the Physical Inventory Count report, Press Post/Print and then print. On the Options page you can define whether you want the Calculated Quantity to show as well as the Serial/Lot numbers of the items. 

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