• Preparing for inventory is an important step in the inventory process.
• This includes preparing the store, the hardware and the data.
• Use the checklists to help you in the preparation process.

Preparation of hardware and store

1. Setup, program and test the inventory hardware (PDTs, EDAs, or PDAs, iPhone/iPod with Mobile Toolkit) at least a month prior to your physical inventory. Each separate handheld device to be used in the inventory count should be tested. If there are any bad cords, batteries, scanners, or other inventory hardware issues, contact PrismCore Support or System Sales (800-869-0366) as soon as possible.
2. If using a company to count your inventory, an inventory validation report can be added to your PrismCore system to be given to your inventory company. The file that is given from supplied by the inventory company of your inventory counts(strike) has to be compatible with our physical inventory import. Call Support for details.
3. Map a fixture/area layout of the store and prominently display fixture and area labels in the store prior to counting. Familiarize the inventory staff with the fixture and areas. Ensuring that fixture/area locations are used while counting makes it easier to find items in situations requiring a recount or verification of an item before posting. Every spot in the bookstore needs BOTH a fixture and an area, even if one of the fields is a placeholder (i.e. a store may set up their map so the fixture changes but the area is always '1'). All counting devices should be set to the same batch number (i.e. everything set to batch 1) for every fixture, area, and location.
   1. If there is more than one store location doing an inventory in the same timeframe, make each location's fixture/area record names unique. Also check WPAdmin, Store Setup, Store Locations for your store number to enter on your counting device.
   2. Have a plan for items not recognized by PrismCore during the inventory ("Not Found" items).
4. Set guidelines for the inventory staff in consistent inventory practices. This would include counting shelves from top to bottom and left to right.
5. Items that are not to be counted during the inventory (i.e. consignment or store use items) should be prominently labeled as such.
6. Check the PrismCore Server data backups to ensure the nightly backup and the tape backup are running without errors or problems.

Preparation of Data

Make sure all information has been entered into PrismCore ICS that is pertinent to inventory counts or the value of your inventory.

1. Verify all sales that were incurred prior to taking physical inventory are posted.
2. Receive all items that are going to be counted (including merchandise transfers).
3. Enter and post all available invoices.
4. Enter all miscellaneous stock adjustments.
5. Post buyback totals and post all buyback invoices.
6. Ensure that all Merchandise Transfers done before the inventory count are generated, received, and that the invoice and credit memo have been closed.
7. If there are pending returns or sales to wholesale, decide if they will be counted. If they are NOT going to be counted, post the return or sale to wholesale prior to starting the inventory count.
8. Enter and post any credit memos that are ready to be posted in Resolve Credit Requests (including merchandise transfers, discrepancies, and sales to wholesalers).
9. Ship all Mail Orders that are complete and verify mail/web sales are posted.
10. Print an Inventory Value report from the Physical Inventory module choosing the Type of Detail to ensure that the current margins, costs, retails, and stock on hand are within reasonable expectations. Fix any values that are noticeably incorrect (i.e.$1,000,000 pencil or SOH of 9782343295234 of a book).
11. Troubleshoot items with negative SOH and, if possible, correct any issues that caused it to become negative. The Inventory Value Report in the Physical Inventory module with Negative Inventory set to Only can show the negative SOH items by DCC.
12. There should be no items with SOH that have a cost or retail of $0.00. Run the PHYSICAL INVENTORY-COST OR RETAIL OF $0.00 from Report Generator to show the SOH with cost or retail of $0.00. Please contact Support for assistance if the report does not exist in your system.
13. If referencing reports in the Stock Ledger reports module, run a spreadsheet report(s) for all DCCs to be counted. Verify the margins and/or totals look normal and correct anything that is obviously incorrect.
14. Run the PHYSICAL INVENTORY-ELEVATED COST/RETAIL, found in Report Generator and correct any problems. This report shows all items with a cost or retail above $500.00. The $500.00 is an arbitrary threshold set by support, which you can adjust in Report Generator if the threshold at your store is different. The report generator is available on our portal (https://portal.nebook.com). Please contact Support for assistance if the report does not exist in your system.
15. Run the Duplicate Barcode report found in Item Maintenance and correct any duplicates.
16. If the store is open while doing the physical inventory, make sure that there is a plan to deal with the sales that occur during inventory and whether or not to post those sales before or after posting the inventory. Prior to posting physical inventory, print item detail sales reports for the days of physical inventory. If all of the items were sold after they were counted, post sales after posting physical inventory. If you have a combination of items sold before and after they were counted, your options are to post sales and adjust the count in physical inventory or adjust the count in physical inventory and then post sales. Contact Support if there are questions.
17. Discuss with your auditors/business office the expectations they have for the store before, during, and after your inventory, including what reporting they need.
18. Prior to counting your inventory, ensure that the Physical Inventory and PDT Data Maintenance modules do not have any records for the locations to be counted. Delete any old or test fixture/area records that are no longer valid or needed.

Jumpbooks

• All Jumpbooks should have a stock on hand of zero at the time the Physical Inventory is posted. If Jumpbook items have a positive stock on hand to allow availability on the website or a negative stock on hand due to sales, adjustments should be done to get the Jumpbook items to a zero stock on hand.
• The stock on hand can be restored to the original amount if needed after the entire inventory process is completed. If counting a full store inventory, the stock on hand should not be restored until after closing the sales month and all reports needed are complete.

Rentals

• Textbooks and other items that are rented to customers with bookstores using Store Managed Rentals or the NBC Partnership1 Program are not physically in the store, but are part of the store's inventory value. The amount of stock rented DOES NOT need to be counted as existing stock on hand to make the total inventory count correct for a full store inventory.
• The books that are rented to customers are still the property of the bookstore and will automatically be added to the physical inventory count when inventory is posted. For bookstores using NMRP or Partnership2 rental programs, stock on hand is adjusted at the time of the rental so physical inventory will not need to adjust for the rental quantity.
• If you have store managed rental textbooks with rental stickers placed over the textbook ISBN, they can be counted in the same fixture/areas as non-rental textbooks. PDTs are limited to 19 digits so if your rental xref contains 20 digits, you will want to enter the XREF or SKU of the textbook in the PDT and then enter the quantity of rental textbooks rather than scanning the store managed rental XREF.

Partial/Complete Inventory and Rentals:

• When clearing SOH for selected DCCs that include rental items, the clearing process will reduce the SOH to the currently outstanding rental amount.
• An inventory value report printed before clearing stock on hand will show the quantity and value your inventory will be reduced. Rental items should not be counted in the fixture/areas when doing a Partial/Complete inventory posting.