Inventory counts are a best practice that keeps your stock levels accurate and your business running smoothly. By assigning count intervals, you can stay on schedule with regular counts and catch inventory issues before they snowball. Let’s jump right in and get started!
Setting Up Items for Inventory Counts
Imagine you’ve been tasked with setting up items for inventory counts and kicking off the process. The first step is to review the item record and assign the necessary details.
Here, I’m working with an assembly item—an all-terrain mountain bike. If you scroll down to the Purchasing and Inventory section and look under the Locations tab, this is where you’ll configure inventory count settings by location.
In our case, we’re focusing on the Dagobah location. Here, you’ll find:
- Next Count Date: When the next inventory count is due.
- Count Interval: How often the item is counted.
- Classification: Used for grouping items (e.g., A, B, C).
- Last Count Date: When the item was last counted.
When you complete a count, NetSuite automatically adds the interval (say 30 days) to the last count date to schedule the next one. You can adjust this interval depending on your business needs—maybe A items get counted every 30 days, B items every 90 days, and so on.
Creating the Inventory Count
Next up, creating the actual inventory count. To do this, navigate to:
Transactions > Inventory > Create Inventory Count
Here, you’ll fill in the required fields (marked with a red star), including:
- Subsidiary
- Location
- Expense account (usually defaulted)
You’ll also set your count start date and end date. This helps filter the items that need to be counted within that period.
You can filter by classification or other criteria to narrow down the list. In our example, we’re going to count our bikes again at the Dagobah location. Once you select the items, hit Submit to generate the count.
Ready to Simplify Your Inventory Process?
Performing and Approving the Count
Once the count is created, someone else can begin physically counting inventory.
- They go into the count record and edit it to enter the quantity they physically found.
- Notice they won’t see the system’s current quantity—this prevents just copying numbers without checking.
- For example, if there were 23 bikes recorded but only 21 counted, they’ll enter “21” and save.
At this point, the count status changes to Started.
From Start to Approval and Inventory Update
After the count is done, the next step is approval.
- The warehouse manager or designated approver reviews the count.
- If everything looks good, they approve it.
- Once approved, NetSuite updates the inventory immediately—from 23 down to 21 in our example.
You can verify the updated inventory levels right in the item record for the Dagobah location.
Keep Your Counts Accurate, Always
Maintain Accurate Stock Records
Frequently Asked Questions (FAQs)
An inventory count in NetSuite helps ensure your physical stock matches your system records. It’s a key process for maintaining accurate data and preventing costly stock discrepancies.
Count frequency depends on item classification. For example, high-value “A” items might be counted every 30 days, while lower-priority “C” items can be counted quarterly or annually.
Yes. When you complete a count, NetSuite automatically adds the defined interval to the last count date to schedule the next one—keeping your process consistent and hands-free.
Typically, warehouse staff conduct the physical counts, while managers or supervisors review and approve results to update system records accurately.
Absolutely. NetSuite allows you to filter counts by location, subsidiary, or classification—making it easy to manage inventory across multiple warehouses or business units.
Once approved, NetSuite automatically updates your inventory quantities and valuation in real time—ensuring your data stays accurate across all modules.
During the count entry, users don’t see the system’s expected quantity. This prevents “copying” system numbers and ensures the accuracy of physical verification.
Yes. NetSuite records each count, its date, approver, and adjustments, so you have a full audit trail for compliance and reporting purposes.
Yes. If a count is in progress, authorized users can pause or edit it to correct item quantities or adjust filters before final approval—helping prevent data errors.
When a difference is found, NetSuite automatically adjusts the on-hand quantity once the count is approved, ensuring your financials and inventory reports remain accurate.
