If you manage inventory in Microsoft Dynamics 365 Business Central, you’ve likely faced this decision: stick with ongoing cycle counts or schedule a full physical inventory?
Both approaches have their place. One isn’t better than the other—it depends on your goals, your warehouse setup, and how you manage resources. This article walks you through each method, explains when to use them, and demonstrates how the right tools make the job more manageable.
Why Inventory Accuracy Matters
Staying accurate reduces delays, supports smoother operations, and helps teams work with confidence.
Accurate inventory drives everything, including order fulfillment, production planning, and financial reporting. When counts are off, you risk missed shipments, delays on the shop floor, or issues closing the books.
Inventory errors often result from timing, tracking, or gaps in the handling of counts. That’s why many teams now use a combination of cycle counts and full physical inventory to stay accurate without creating unnecessary disruption.
Cycle Counting: A Steady Approach for Day-to-Day Accuracy
Ongoing cycle counts keep your inventory reliable without interrupting daily operations.
Cycle counting spreads inventory checks over time. Instead of counting everything at once, you focus on specific items or categories on a regular schedule.
When Cycle Counts Are a Good Fit
- You want to monitor high-value or fast-moving items frequently.
- The warehouse must remain operational during counts.
- You’re maintaining ongoing accuracy between larger counts.
Full Physical Inventory: A Deeper Checkpoint
A full count helps reset your inventory baseline and uncover issues that cycle counts might miss.
A full inventory count involves reviewing every item across the business. Many companies perform one at the end of the fiscal year, before audits, or after significant system changes.
When a Full Count Makes Sense
- You’re closing books or preparing for an audit
- The last cycle counts showed unexpected discrepancies
- You’ve made changes to warehouse processes or systems
Full counts require more planning but provide a comprehensive snapshot of stock levels. Reporting tools help surface missing items and track discrepancies by bin, lot, or serial number.
Supporting Both Methods with the Right Tools
When the right tools are in place, you reduce manual work and increase visibility into inventory performance.
While the methods differ, the supporting processes share many commonalities. Whether you’re running a full count or daily cycle counts, it helps to have tools that support the following:
- Filtered count sheets based on shelf, bin, or item data
- Multi-user entry so several team members can enter data in parallel
- Recount workflows to review any high-variance items
- Validation reports to catch posting issues ahead of time
What Fits Best?
Matching your count method to your operational needs helps you stay efficient without sacrificing accuracy.
Cycle counts are effective for maintaining ongoing accuracy and conducting quick checks. Full counts provide a clean slate when you need one.
Many businesses combine both, using cycles to stay current and full counts for major checkpoints. Your warehouse layout, staffing model, and compliance requirements all influence which approach makes sense—and how often to use each one.
Wrapping Up
Both cycle counts and full inventory counts solve different problems. The key is to build a structured, consistent process—one that your team can trust and repeat.
The proper process, paired with the right technology, makes inventory counting more efficient, accurate, and less stressful.
Learn more at InventoryForDynamics.com
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