> ## Documentation Index
> Fetch the complete documentation index at: https://docs.firstresonance.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Cycle counting

> A standard operating procedure for cycle counting part inventory so your digital counts match the floor.

Cycle counting is how you get on the floor, count, and adjust inventory so your physical and digital counts match. This SOP covers how to use ION to pull the data you need and reconcile it quickly.

## Types of cycle counting

There are two main approaches. Both aim to keep inventory records accurate; they differ in what they target.

* **Location-based cycle counting** audits specific storage locations at regular intervals, verifying the accuracy of whatever inventory sits there, regardless of part.
* **Part-based cycle counting** targets specific parts across all locations, chosen by criteria such as value, movement frequency, or historical accuracy.

## Location-based cycle counting

A successful location-based cycle count needs four things:

1. A cycle counting schedule.
2. Trained cycle count staff.
3. Cycle count sheets.
4. The location closed off from inventory changes during the count.

### Create a cycle count schedule

A regular schedule brings consistency to inventory management and lets you target high-value items and frequently accessed locations more often. Base the cadence on two attributes: the consumption rate of the inventory and the value of the parts in each location.

The example schedule below includes a column that calculates each location's next cycle count date from its cadence and most recent count. A schedule also spreads the workload across the year instead of forcing a year-end scramble, and it documents your inventory-accuracy practice.

[Download the example schedule](/images/legacy/cycle-count-schedule.csv)

### Train your staff

Everyone who counts needs clear training on both the concepts behind cycle counting and how to do it in ION. Use hands-on exercises and real examples so staff can handle common issues, and refresh the training periodically to keep skills current.

### Generate your cycle count sheets

To count accurately, you need the part inventory data for the location you're working on. Use the ION API to generate a pick sheet. If you're new to the API, see the [API reference](/api-reference) and generate [API keys](/api-reference/authentication/api-keys) if needed.

Use the [Python examples on GitHub](https://github.com/FirstResonance/ion-examples) to input a cycle count location and generate a CSV of all inventory in that location, excluding installed items. The file includes columns for part number, revision, total quantity, and floor count. Record the quantities you observe in the floor-count column, on screen or printed. To keep the count unbiased, hide the total-quantity column while counting.

### Close off a location

Closing off a location temporarily restricts inventory movement in the area so the count stays accurate. Tell the relevant personnel about the schedule and affected areas, then secure the location to prevent adjustments during the count, with signage, locked entry points, or restricted transactions in your inventory system.

## Adjust inventory after a cycle count

Adjusting inventory is the most important step: you make the digital match the physical through manual adjustment.

1. Keep the location closed until adjustments are finalized.
2. Use the count sheet to reconcile digital and physical inventory.
3. Record major discrepancies.

| Observed discrepancy | Potential causes                                                                                                                                             | Fixes                                                                                                                                                          |
| -------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Digital > physical   | Parts not consumed onto aBOMs; part status incorrect (installed, on order, unavailable); parts scanned to a location accidentally; parts not moved correctly | Confirm higher-level assemblies are consumed; move MRB parts to the correct location; as a last resort, move extra parts to a cycle-count discrepancy location |
| Digital \< physical  | Parts not put into kits correctly; parts in a status that makes them unavailable; parts moved physically but not digitally                                   | Find part inventory at MRB locations and move it to the lineside location; return excess parts to inventory                                                    |