The Physical Inventory Journal is where you compare the quantity counted in the warehouse with the quantity Business Central calculated, then post the difference.
The Physical Inventory Journal supports a stock count. You first let Business Central write its own figures into the journal, then enter what was actually counted, and the system computes the difference. Posting the journal creates positive or negative adjustment entries so that book inventory matches the shelf.
Open it with Alt+Q and search for Physical Inventory Journals. The Calculate Inventory action fills the lines with the calculated quantity for the items, locations and bins you select, and you type the counted figure in the physical inventory quantity column before posting. Locations that use directed put-away and pick are counted in the warehouse physical inventory journal instead; posting that journal corrects the warehouse entries only, and the item ledger follows once you run Calculate Whse. Adjustment in an item journal and post the resulting lines.
On 31 December 2026 you run Calculate Inventory for location BLUE. The journal shows 240 pieces of item BRG-1000 as calculated. The team counts 232 pieces, you enter 232, and posting creates a negative adjustment of 8 pieces. At a unit cost of CHF 12.40 the inventory value drops by CHF 99.20 in the same posting.
The most damaging mistake is posting shipments or receipts between the moment inventory is calculated and the moment the count is entered, because the difference then includes movements that are not a real discrepancy. Another is leaving the counted quantity equal to the calculated one on lines nobody actually counted, which posts a zero difference and makes an uncounted bin look verified. Finally, forgetting to include items that show zero inventory hides the case where stock is physically there but not in the system.
Recurring cycle counts are easier to control than one large annual count: define counting periods on the items so the journal proposes the right items at the right time, and let a scheduled job queue entry prepare the lines. After posting large differences, run the cost adjustment routine and check the inventory valuation report before closing the period.
Calculate Inventory takes the quantity as at the posting date you specify and for the filters you set. A different date, location or bin filter, or postings made after the calculation, will produce another figure.
Yes. Apply filters on item, item category, location or bin when you run Calculate Inventory, so the journal contains only the lines you intend to count.
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