Answer / muthur

Cycle counting is the periodic counting of individual items
in your inventory throughout the year based on their
ranging.

Count items of higher value more frequently than items of
lower value.

You can perform cycle counting instead of performing
physical inventory, or your can use both techniques to
verify the accuracy of on-hand quantities and values.

Cycle Count is divided into two primary functions: ABC
Analysis and
Defining a Cycle Count.

ABC Analysis:
ABC analysis is a method of determining the value of items
in your inventory, ranking your items according to a
criterion and then grouping items into classes. "ABC"
refers to the rankings you assign your items as a result of
this analysis, where "A" items are more valuable than "B"
items and so on.

Answer / raghu.nandana

Cycle count is a procedure in which selected lists of items
are physically counted and verify the on-hand quantities of
those items.
But in Physical inventory all inventory items in an
organization once a year

If i want to map a organization structure, where i hv 1 operating unit that is looking after only purchasing and payables activities, whereas another operating unit is looking after OM as well as receivables. I hv one more warehouse or say plant, where i am manufacturing & despatching the goods. Wiil it be solved by setting up purchasing at one OU and OM at another OU. Do I need to perform any additional setups? Please Suggest.

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