Blind count vs verified count in a small warehouse

A blind count and a verified count differ in what the counter sees, and everything else follows from that. In a blind count the counter sees the item and the location and writes down the quantity found. In a verified count the counter also sees the book quantity and confirms or corrects it. "Verified count" is not a fixed industry term. It is the working name for a count where the counter sees the book quantity.

A count sheet shows the same split. A blind sheet has a blank quantity beside each item, and a verified sheet prints the book quantity there. The how to do a physical inventory count guide covers the full process, and the physical inventory count entry defines the complete count both methods serve.

What the counter sees is the whole difference

Your books and your sheets are built differently. QuickBooks Online does not track inventory by location within a warehouse, and Plus and Advanced keep one quantity on hand per item. Your sheets are made per location.

Suppose one item sits in an aisle rack and in an overflow zone of the same warehouse. The book quantity covers both. A counter standing at the rack would be shown a number that does not describe the rack. In a warehouse counted by location, that is why the main pass cannot sensibly be a verified count.

When a blind count is the right choice

Use a blind count for the main pass of a complete count, for any location where the book quantity may be wrong, and for any recount. A counter who cannot see the expected number cannot count toward it. A blind sheet suits a cycle count as well as a complete one.

The supervisor holds the book numbers. After the pass, the supervisor compares the counted totals with the books. Then the supervisor picks the locations to recount. Nobody tells a counter what a location's difference was.

Recount a location when the supervisor doubts a result, or when a counter notes something odd about a location or an item. A blind sheet shows no difference, so doubt is the trigger. Give the recount counter a fresh blank sheet. Show that counter neither the first count nor the book number.

Before you book a difference as a loss, shortage or shrinkage, check for transactions that were never entered or were entered with the wrong date. The check comes first and the adjustment second.

When a verified count is the right choice

A verified count suits a quick check of one item where the book quantity has been reliable and the question is whether it still holds. The check counts every location the item sits in, because the book quantity covers all of them.

A verified count is a check, not a replacement for the main pass. A confirmed number can still be wrong when the book quantity was wrong, because a counter who sees the book quantity can stop at a number that agrees.

Using both on one count day

Run the main pass on blind sheets. Add a verified check later. Do it only for items whose count someone doubts, once each blind recount has agreed with the first blind count. Count every location the item sits in and add them up before comparing with the book quantity. The supervisor decides which items get the check.

If the checked number still differs from the books, run the same transaction check described above before you adjust. The physical inventory count checklist lists the rest of the day's work.

Where Count fits

On the phone, the counter sees no expected quantity and no variance number for what they count. The counter confirms the location by scanning or typing its label before the item step appears. InventoryWare Count is built for one complete physical inventory count, and posting adjustments to QuickBooks from a partial count is not available.