Everybody loses things, at least once and a while, be it keys or socks.  What if you had 1000 socks, would you know when you lost 1?  How would you know? Easy, you would count them, and after you get a number, you would know, I lost a sock, I now only have 999 socks.

Why not do the same thing with your inventory?  It's not good when something is lost, but wouldn't you rather know about it?  Doing a Physical Inventory can let you know what you've lost (or somehow gained), and can give you a better idea of what you have to sell.

Start by going to IC Physical Inventory, and Generate Inventory Worksheet.  Using the criteria, narrow down what needs to be counted.  Now, print out the Inventory Worksheet, and hand it out to whoever's doing the actual count.

Once you get the counts back, in Physical Inventory Quantities enter in the quantities counted.  The Quantity Variance column will tell you if you have more or less than what's recorded in the system.  Also, if you were unable to count an item, but want to update your quantities for all the other items, change its Status from "Ready to Post" to "On Hold."

Before you post the Inventory, print an Inventory Reconciliation Report to have a record of all the different counts.  Once you're comfortable that the numbers are accurate, go to Post Inventory Reconciliation, fill in the fields (look in F1 help if you're not sure what each field does), and boom!  Your inventory is now up to date!

Check out Chapter 6, Lesson 6 in the Workbook located in the System Manager Online Documentation if you would like some practice doing this.  Now, if only I could find a use for that sock with no pair...