What is a physical inventory count sheet?
A physical inventory count sheet is the list a counter takes to the shelves: every item at every location, with a space for the quantity actually found. Compared with the quantity in your stock system on the cut-off date, it shows what is missing, what is extra and what is in the wrong place, so the store can be corrected before the figures go into the accounts.
In a fleet workshop the stock is spread out: filters and brake parts on shelving, tires on racks, oil drums on a bunded floor, spare tires in the yard and parts carried in service vans. This template gives each of those places one location code so every line of the count points to one spot.
How should you code exact stock locations?
Build the code from the largest area to the smallest, with the same number of characters at each level so codes sort in walking order:
| Level | Example | Typed in the sheet |
|---|---|---|
| Site or warehouse | WH1 | WH1 |
| Zone | A (shelving), T (tire racks), Y (yard), V (service vans) | A |
| Aisle | 03 | 3 |
| Rack or bay | R2 | 2 |
| Shelf or level | L4 | 4 |
| Bin, spot or vehicle plate | B07, F1, BAY3 or 4821ABD | 7, or the text |
The full code becomes WH1-A-03-R2-L4-B07. Levels you leave empty are skipped, so a floor spot is WH1-O-F1 and stock in a service van is WH1-V-4821ABD, using the van's plate number. Print the code on the bin label and use the same code as the default location on Items.
How to run a physical count with the template
- Set the cut-off and freeze movements. Post every receipt and issue up to the cut-off, then stop movements in the area being counted, or tag anything that arrives during the count as not posted.
- Prepare the lines. One line per item per location on Count sheet, with the system quantity at the cut-off and the assigned counter. Sort by location code so each counter walks one route.
- Print the blind count. Choose the zone or counter on Settings and print Blind count. It has no system quantities, so counters write what they see.
- Enter the first count. Add a line with a system quantity of 0 for any item found in a location that is not listed.
- Recount the flagged lines. A second person recounts every line marked Recount needed.
- Investigate and approve. Check unposted receipts and issues, units of measure and nearby bins for each variance, then the approver signs off and you post the adjustments in your stock system.
How are count variance and inventory accuracy calculated?
Using both the % and the value keeps recounts for the lines that matter: one missing oil filter out of three is 33% but small in value, while one tire in eight is 12.5% and worth far more. Set the value threshold to 0 to flag on the % alone. The tolerance and threshold are your own policy; agree them with finance before the count.
Worked example: a year-end count in a fleet workshop
The example workbook counts 17 lines in one workshop store on 31 October 2026, with a 5% tolerance and a value threshold of SAR 100.
| Result | Calculation | Value |
|---|---|---|
| Lines counted | 17 lines, 1 not counted yet | 16 |
| Line accuracy | 8 matched ÷ 16 counted | 50.0% |
| Within tolerance | 11 ÷ 16 | 68.8% |
| System value of counted lines | Σ system qty × unit cost | SAR 63,349 |
| Absolute variance value | Σ |variance value| | SAR 3,652 |
| Value accuracy | 1 − 3,652 ÷ 63,349 | 94.2% |
| Net variance value | Σ variance value | −SAR 556 |
The alternator line (system 2, counted 1) is −50% and −SAR 1,350, so it was recounted and waits for approval at the top of Variances. The fuel filter line is −8.3% but only −SAR 84, under the value threshold, so it is adjusted without a recount. Six oil filters turned up on the PPE shelf with a system quantity of 0: the line is over tolerance and is also listed as found in the wrong location, with a note to move them back to WH1-A-01-R1-L1-B01. Four tires counted in yard bay 3 match the system but are listed in the wrong location as well, because their default is the tire rack.
Common physical count mistakes
- Counting with the system quantity in handCounters confirm the number they expect. Use the blind count sheet.
- Movements during the countA part issued between the system report and the count looks like a loss. Freeze movements or post them before the cut-off.
- Mixed unitsA pail counted as liters, or a set counted as single pads, creates a variance that is not real. Check the unit before approving.
- Writing off without looking nearbyMany variances are items in the next bin or another zone. Check the wrong-location list before adjusting.
- Forgetting stock outside the storeSpare tires in the yard and parts carried in service vans are stock too. Give each a location code.
- No sign-offEvery adjustment needs an approver and a reason, for the auditor and for the next count.
What the count sheet does not do
The workbook compares counts with the quantities you type in. It does not connect to your stock system, read barcodes or post adjustments, and its tolerance and accuracy marks are examples, not standards. To keep stock, reorder points and parts cost per vehicle between counts, use the Spare Parts Inventory Template, which now uses the same location codes and has its own count sheet.