---
title: "Physical Inventory - The Process"
canonical: "https://wiki.soft1.eu/space/SS5EN/858488833/Physical%20Inventory%20-%20The%20Process"
format: markdown
---
**Physical Inventory **is a process that is usually carried out 1) in new installations 2) at the end of each Fiscal Year, or 3) whenever there’s a need to count the company’s W/h Stock Balance. The goal of this process is to accurately update the accounting balance of the W/Hs.

---

---

:check_mark:** ****<span style="color: #4c9aff">Note that:</span>**

In SOFT1 ERP, you have two options for creating the Physical Inventory:

- You can either save the [Physical Inventory Documents ](https://wiki.soft1.eu/space/SS5EN/451411969/Physical+Inventory)and then proceed with the [Physical Inventory Documents (zero quantity)](https://wiki.soft1.eu/space/SS5EN/451477505/Physical+Inventory+Documents+(zero+quantity)) job to zero out the balance for items that were not found in stock.
- or you can zero out the Stock Items balance entirely and then update SOFT1 ERP with the actual recorded physical counts. To use this method, follow these steps:
  - Run the [Physical Inventory Documents (zero quantity)](https://wiki.soft1.eu/space/SS5EN/451477505/Physical+Inventory+Documents+(zero+quantity))** **job to automatically create Docs. with zero recorded physical counts for all items.
  - Run [Create Physical Inventory Documents](https://wiki.soft1.eu/space/SS5EN/456065025/Create+Physical+Inventory+Documents) job, choosing to permanently zero out Stock Item balances.
  - Save the [Physical Inventory Documents](https://wiki.soft1.eu/space/SS5EN/451411969/Physical+Inventory) with the actual recorded physical counts.
  - Run again [Physical Inventory Report](https://wiki.soft1.eu/space/SS5EN/456065025/Create+Physical+Inventory+Documents)** **job, to update SOFT1 ERP with the actual recorded physical counts.

Find out how to manage and save the **Physical Inventory **in SOFT1 ERP.


> Macro (rw-ui-children)