Tips & Tricks: Performing a Successful Year End Inventory Count in Comsense

As the year winds down, it is time to ensure your inventory records are accurate and up to date. A thorough year-end inventory count is essential for financial reporting, operational efficiency, and planning for the new year.

Comsense provides powerful tools for managing inventory counts, but success depends on preparation, disciplined execution, and proper follow up.

This guide highlights best practices and step by step instructions to help you perform a smooth and accurate count.

Why Inventory Counts Matter Especially at Year End

Performing a physical inventory count confirms that the quantities recorded in Comsense match the physical stock on your shelves.

Over time, discrepancies can occur due to receiving errors, damaged goods, unrecorded transfers, or misplaced items.

Key reasons to perform a year end count:

• Ensures accurate financial statements since closing inventory impacts cost of goods sold and profitability
• Identifies stock discrepancies before audit season
• Highlights obsolete, damaged, or slow moving items that may require write offs or markdowns
• Establishes a clean baseline for next year’s cycle counts and forecasting

Before You Begin: Pre Count Preparation

A successful inventory count begins long before you start scanning or counting. The following steps help ensure accuracy and minimize disruption.

1. Complete All Open Inventory Transactions

Make sure all pending purchase orders, transfers, shipments, and returns are finalized. Open transactions during a count can distort data and create unnecessary reconciliation issues.

In Comsense:

• Navigate to Inventory/Purchasing and confirm no transactions are in progress
• Clear or park incomplete items before the count begins

Tip: Schedule your count during a period of low activity to reduce operational interruptions.

2. Communicate the Count Schedule

Inform your entire team of the date, time, and scope of the count well in advance. Specify that no inventory transactions such as shipments, receipts, or transfers should occur during the designated count window.

Sample message:

“An inventory count will take place on Friday, December 13, from 8:00 AM to 12:00 PM. No inventory transactions are to be processed during this time.”

Best practices:

• Send reminders one day prior and again at the start of the count
• Designate count coordinators for each warehouse or location

3. Verify System Readiness and Past Counts

Before creating a new product count:

• Ensure all previous counts are marked Completed in Comsense
• Check that products are properly assigned to the correct stock pool or warehouse

Tip: Perform a quick spot check of high value or fast moving items to identify potential issues before starting the count.

Performing the Inventory Count in Comsense

Step 1: Create a New Product Count

1. Go to Enterprise → Inventory/Purchasing → Product Count
2. Click New to create a count record
3. Select the Warehouse to be counted
4. In the Warehouse Product Selection window, choose items by area, supplier, or category
5. Enter a descriptive Note such as Year End Inventory Count December 2025

Tip: For large inventories, divide counts by zone or product type to improve focus and reduce data entry fatigue.

Step 2: Release the Count and Generate Reports

Once items are selected:

1. Change the count Status to Released to lock in your system’s quantity released
2. Export or print the Product Count Report as a PDF or Excel file
3. Distribute reports to counting teams

Tip: Keep digital backups of reports in case questions arise during reconciliation or audits.

Step 3: Physically Count and Record Quantities

• Have staff physically count each item and record the results on the printed report
• Enter the actual quantities into Comsense under Quantity Counted
• The system automatically calculates the variance between the released and counted quantities
• Fill in the Counted By, Date Counted, and Notes fields for accountability

Best practices for physical counting:

• Use two person teams with one counting and one recording
• Label completed areas to prevent duplication
• Flag and review large variances immediately

Step 4: Review and Validate Variances

Once all counts are entered, review the results directly in the Product Count window. The quantity variance is shown for each item based on the difference between the released and counted amounts.

Before completing the count, it is strongly recommended to print the Product Count report to identify and review any large variances. This allows you to verify potential errors, recount questionable items, and confirm that all discrepancies are understood before posting.

Tip: Investigate large or unusual differences before completing the count. Confirm adjustments with supervisors or accounting where appropriate.

Step 5: Complete and Post the Count

When validation is complete:

• Change the Status to Completed
• Comsense automatically adjusts on hand quantities and posts journal entries to the general ledger
  • Decreases use first in first out costing
  • Increases use replacement cost

Tip: Print and save the final count report for recordkeeping and audit purposes.

Quick Reference Checklist

Pre Count

•  Complete all open transactions
•  Communicate count schedule
•  Verify previous counts are completed
•  Assign teams and areas
•  Print count sheets or reports

During Count

•  Record accurate physical quantities
•  Review variances within Product Count
•  Track who completed each section

Post Count

•  Print and review Product Count report before completion
•  Validate and approve variances
•  Complete and post the count
•  Archive reports and communications
•  Summarize results and share with management

Final Thoughts

A year-end inventory count is not just a compliance exercise. It is an opportunity to confirm inventory accuracy, clean up your data, and strengthen your internal controls.

By following the Comsense workflow and applying these best practices, your team can complete the process efficiently and confidently, ensuring accurate financials and a strong start to the new year.