A complete count requires that the inventory being counted, includes all the items that should be present and does not include items that are not part of the inventory. It requires that:
1. No inventory movements (receptions, shipments or transfers) may be recorded in the inventory register during the physical count of the warehouse:
- Everything is shipped before the physical inventory begins,
- No movement of material is made during the count process,
- No order is filled or material is received during the count process.
2. Any items shipped and not picked up or receipts that come in are segregated and labelled "do not inventory".
3. Blind counts are performed. The physical inventory is made without the knowledge of the quantity in the inventory records:
- Batch number, item code, description, location, and other information necessary to perform the count are printed on the counting sheet but not the item quantity information.
4. Each count team has an assigned zone to count. Counting team progression should be as linear as possible. They receive count sheets and tags. In the absence of bar-coding / scanner device, it is recommended that counting is performed by team of two persons:
- One person counts the item and attaches a tag to the inventory items that were counted,
- The second one records on the inventory document the actual quantity counted.
5. At the end of and during the inventory count process, the finance responsible assigned and the inventory manager walk through the warehouse and visually inspect that a count tag is attached to every inventory item to check that all inventory items have been counted and also ensure that the inventory is not counted twice.
