Hi Susan,

If you choose to import a physical inventory count with both the Quantity on Hand and 'physical count' fields, this will create an adjustment to quantity for the difference between the two values. It doesn't matter what the quantity on hand value is stored as in the program, it will simply be changed by the net difference. This is why the help says you can process transactions - orders and invoices can be posted in OE and not throw the count off. But the shelf has to be frozen from the time the report/file is generated and actually counted, so that the net difference is correctly determined.

If you choose not to export/import the Quantity on Hand field, then the only qty value is Physical Count. Whatever value you enter here will overwrite the qty on hand in the system, and an adjustment posted for the difference. This is different than above in that you can't post OE transactions for this item, as otherwise the wrong adjustment qty will be calculated when the physical inventory is posted.

In both scenarios, the shelf should be frozen, so that there are no timing issues with when the report is generated, the count is taken, and the physical counts posted.

Hope this helps out.