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0.5em;width:100%}.mw-parser-output .ambox .mbox-image{border:none;padding:2px 0 2px 0.5em;text-align:center}.mw-parser-output .ambox .mbox-imageright{border:none;padding:2px 0.5em 2px 0;text-align:center}.mw-parser-output .ambox .mbox-empty-cell{border:none;padding:0;width:1px}.mw-parser-output .ambox .mbox-image-div{width:52px}@media(min-width:720px){.mw-parser-output .ambox{margin:0 10%}}@media print{body.ns-0 .mw-parser-output .ambox{display:none!important}}</style><table class="box-Unreferenced plainlinks metadata ambox ambox-content ambox-Unreferenced" role="presentation"><tbody><tr><td class="mbox-text"><div class="mbox-text-span">This article <b>does not <a href="/wiki/Wikipedia:Citing_sources" title="Wikipedia:Citing sources">cite</a> any <a href="/wiki/Wikipedia:Verifiability" title="Wikipedia:Verifiability">sources</a></b>.<span class="hide-when-compact"> Please help <a href="/wiki/Special:EditPage/Physical_inventory" title="Special:EditPage/Physical inventory">improve this article</a> by <a href="/wiki/Help:Referencing_for_beginners" title="Help:Referencing for beginners">adding citations to reliable sources</a>. Unsourced material may be challenged and <a href="/wiki/Wikipedia:Verifiability#Burden_of_evidence" title="Wikipedia:Verifiability">removed</a>.<br><small><span class="plainlinks"><i>Find sources:</i> <a rel="nofollow" class="external text" href="https://www.google.com/search?as_eq=wikipedia&q=%22Physical+inventory%22">"Physical inventory"</a> – <a rel="nofollow" class="external text" href="https://www.google.com/search?tbm=nws&q=%22Physical+inventory%22+-wikipedia&tbs=ar:1">news</a> <b>·</b> <a rel="nofollow" class="external text" href="https://www.google.com/search?&q=%22Physical+inventory%22&tbs=bkt:s&tbm=bks">newspapers</a> <b>·</b> <a rel="nofollow" class="external text" href="https://www.google.com/search?tbs=bks:1&q=%22Physical+inventory%22+-wikipedia">books</a> <b>·</b> <a rel="nofollow" class="external text" href="https://scholar.google.com/scholar?q=%22Physical+inventory%22">scholar</a> <b>·</b> <a rel="nofollow" class="external text" href="https://www.jstor.org/action/doBasicSearch?Query=%22Physical+inventory%22&acc=on&wc=on">JSTOR</a></span></small></span> <span class="date-container"><i>(<span class="date">December 2009</span>)</i></span><span class="hide-when-compact"><i> (<small><a href="/wiki/Help:Maintenance_template_removal" title="Help:Maintenance template removal">Learn how and when to remove this message</a></small>)</i></span></div></td></tr></tbody></table> <p><b>Physical inventory</b> is a process where a business physically counts its entire <a href="/wiki/Inventory" title="Inventory">inventory</a>. A physical inventory may be mandated by <a href="/wiki/Financial_accounting" title="Financial accounting">financial accounting</a> rules or the <a href="/wiki/Tax" title="Tax">tax</a> regulations to place an accurate value on the inventory, or the business may need to count inventory so component parts or <a href="/wiki/Raw_materials" class="mw-redirect" title="Raw materials">raw materials</a> can be restocked. Businesses may use several different tactics to minimize the disruption caused by physical inventory. </p> <ul><li>Inventory services provide <a href="/wiki/Labour_(economics)" class="mw-redirect" title="Labour (economics)">labor</a> and <a href="/wiki/Automation" title="Automation">automation</a> to quickly count inventory and minimize shutdown time.</li> <li><a href="/wiki/Inventory_control_system" class="mw-redirect" title="Inventory control system">Inventory control system</a> software can speed the physical inventory process.</li> <li>A <a href="/wiki/Perpetual_inventory" title="Perpetual inventory">perpetual inventory</a> system tracks the receipt and use of inventory, and calculates the quantity on hand.</li> <li><a href="/wiki/Cycle_count" title="Cycle count">Cycle counting</a>, an alternative to physical inventory, may be less disruptive.</li></ul> <p>The Finance or Business Manager of the unit is responsible for ensuring the annual physical inventory is properly performed, inventory records reflect actual quantities on hand, inventory valuation methods are appropriate, and adjustments are entered in the business's accounting system on a timely basis. In addition, the Finance or Business Manager is responsible for ensuring that segregation of duties is maintained throughout the inventory process to promote the safeguarding of the assets, protection of employees, and objective reporting of inventory. Specifically, no one person should be able to authorize a <a href="/wiki/Financial_transaction" title="Financial transaction">transaction</a> (e.g., a purchase or sale), record the transaction, have custody of the inventory, and perform the related reconciliation. </p> </section><div class="mw-heading mw-heading2 section-heading" onclick="mfTempOpenSection(1)"><span class="indicator mf-icon mf-icon-expand mf-icon--small"></span><h2 id="See_also">See also</h2><span class="mw-editsection"> <a role="button" href="/w/index.php?title=Physical_inventory&action=edit&section=1" title="Edit section: See also" class="cdx-button cdx-button--size-large cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--icon-only cdx-button--weight-quiet "> <span class="minerva-icon minerva-icon--edit"></span> <span>edit</span> </a> </span> </div><section class="mf-section-1 collapsible-block" id="mf-section-1"> <ul><li><a href="/wiki/Logistics" title="Logistics">Logistics</a> – Management of the flow of resources</li> <li><a href="/wiki/Inventory_control_system" class="mw-redirect" title="Inventory control system">Inventory control system</a> – Ensuring the correct level of stock<span style="display:none" class="category-annotation-with-redirected-description">Pages displaying short descriptions of redirect targets</span></li> <li><a href="/wiki/Inventory_management_software" title="Inventory management software">Inventory management software</a> – Software for tracking stock levels and flow</li> <li><a href="/wiki/Stock-taking" title="Stock-taking">Stock-taking</a> – Physical verification of the quantities and condition of items held in an inventory or warehouse</li></ul> <div class="navbox-styles"><style data-mw-deduplicate="TemplateStyles:r1129693374">.mw-parser-output .hlist dl,.mw-parser-output .hlist ol,.mw-parser-output .hlist ul{margin:0;padding:0}.mw-parser-output .hlist dd,.mw-parser-output .hlist dt,.mw-parser-output .hlist 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