How to Do a Physical Stock Count

A physical stock count lets you verify that what Vendra shows in the system matches what is physically on your shelves. When discrepancies are found — due to unrecorded shrinkage, theft, or receiving errors — you post an inventory adjustment that corrects the stock and automatically creates the corresponding accounting entries.

Vendra calls this a Physical Inventory adjustment. You open it, select which locations to count, walk the floor, enter what you actually found, and validate. The system handles the rest.

Step-by-step: running a physical stock count

1. 1
   Navigate to Physical InventoryGo to Inventory in the left sidebar, then Operations, then Physical Inventory. Click New Inventory Adjustment to start a fresh count session.
2. 2
   Select the locations to countChoose the storage location or locations you want to count — a single shelf, a section of your warehouse, or the entire stock. You can also filter by product category if you only want to count a subset of products.
3. 3
   Review pre-filled expected quantitiesOnce you initiate the count, Vendra fills in the system's expected quantity for every product at the selected location. This is the number the system believes is there right now. Use this as your reference while you walk the floor.
4. 4
   Walk the location and count actualsPhysically count each product on the shelf. Enter what you actually found in the Counted Quantity column next to each product line. Work methodically — aisle by aisle or category by category — to avoid missing products.
5. 5
   Review the Difference columnAs you enter counts, the Difference column updates in real time. A positive number means you found more than the system expected (surplus). A negative number means you found less (shortage). Investigate any large discrepancies before moving on.
6. 6
   Count lot and serial tracked items per lotFor products tracked by lot or serial number — such as pharmaceuticals, electronics, or any batch-tracked inventory — the adjustment screen shows each lot separately. Count each lot individually and enter quantities against the correct lot record to maintain full traceability.
7. 7
   Validate the inventory adjustmentWhen all counts are entered and reviewed, click Validate Inventory. Vendra posts the adjustment: stock quantities are corrected and accounting journal entries are automatically created to record the value of any increase or decrease in stock.
8. 8
   Print the stock count reportAfter validation, open the completed adjustment record and print or export the stock count report. This serves as your official record of the count, discrepancies found, and adjustments made.

What happens after validation

When you validate an inventory adjustment, two things happen simultaneously. First, the on-hand quantity for every adjusted product is updated to reflect your counted quantity. Second, for every product where the counted quantity differs from the expected quantity, a journal entry is posted to accounting. Stock increases are debited to the stock account and credited to a stock variance account. Stock decreases are reversed. This keeps your inventory valuation and financial reports accurate.

Counting large warehouses efficiently

If you have a large product catalog or a multi-location warehouse, you do not have to count everything at once. You can run separate inventory adjustments per location — count one zone this week and another next week. Each adjustment is independent and posts its own accounting entries. Some businesses run cycle counts on a rolling basis: counting a different category every week rather than shutting down for an annual full count.

Related guides

• How to scrap damaged goods from inventory
• How to set up reorder rules and minimum stock levels
• How to transfer stock between locations