Cycle Count Plans with D365


The average business spends between 25-35% of their operational budget on inventory costs. With so much working capital tied up in inventory, business leaders are adopting analytic tools, like Power BIto help manage supply and demand.  

Unfortunately, these analytics are worthless if the inventory data doesn’t match your physical inventory counts. This article explains the types of inventory counting, what cycle counting is, and how to effectively use cycle count plans in D365 Supply Chain Management.

Full vs. Cycle Inventory Counting 

Many companies perform regular physical inventory counts as part of their yearly financial accounting practices. For smaller operations, this count may take a few hours. Large companies with thousands of items typically halt operations for up to a week or more to perform a full physical inventory count.   

But in a fast-paced supply chain, your business probably can’t afford to bring your operations to a halt just to count the number of products you have on hand.  

Cycle counting is an inventory management option allowing you to count items in a designated area of the warehouse without stopping operations to perform a complete physical inventory. 

Cycle Count Plans 

Creating a cycle count plan helps ensure your inventory control team is counting the right items/location, the necessary amount of times per year.  

Using Microsoft D365 Supply Chain Management, you can create multiple cycle count plans for items or locations. This plan, managed through D365, will ensure inventory gets counted weekly, bi-weekly, monthly, bi-annually, and annually to improve or sustain a high inventory accuracy.  

Cycle counting with D365 is pretty straightforwardYou navigate to the cycle count plan form and select the plan you want to run. D365 creates the work. This work appears on the all work form or the open cycle count form.  

Your warehouse teams can perform the cycle counts two ways: 

  1. Using system directed work via a mobile device 
  2. User directed with paper and barcode scanner for the work ID 

You can also run cycle count plans via batch jobs.

Cycle Count in D365 Supply Chain Management 

Cycle count plan configurations are setup from D365’s warehouse management module (WMS). Here’s how: 

Cycle Count Plan form

  1. Navigate to the Cycle Count Plan form
  2. Create the new Cycle Count Plan by clicking New in the ribbon
  3. Enter the Cycle Count Plan ID, Description, and Work Pool ID
  4. Set your maximum number of cycle counts and the days between cycle counts 
  5. Choose if you want to exclude/include empty locations from the counts 
  6. Choose a work template if applicable  

Set the Locations on the Cycle Count Plan 

Setting the location query allows your teams to count specific zones where certain products may be located 

  1. Select locations  Select Locations Screenshot
  2. The user can now set the warehouse and the location(s) they want for this particular plan. You can also set the query by zone, instead of location. 

Setting Locations Screenshot

Setting Field Screenshot

Set the Product Query on the Cycle Count Plan 

Here's how to define a product query for the Cycle Count Plan. 

  1. Click New 
  2. Set number sequence and enter a description 
  3. Select product query or product variant query 
  4. Click Define product query 

Defining the Product Query Screenshot

5. Select Item number/numbers 
6. Click OK 


Product Query

Cycle Count Plans in D365 

D365’s cycle count planning is big step forward in ensuring your business’s physical inventory matches the data in D365. Confirming the data you have in D365 against the physical product in your warehouse helps you meet customer demand and streamline operations. This data accuracy can help you make smarter supply decisions while controlling costs.  

More resources on inventory management: 

ERP and Physical Inventory 

Inventory Planning: Forecasting in Uncertainty 

Inbound Inventory Quality with D365

System Direct Picking with D365

How to Set Work Header Breaks in D365 Supply Chain

Cluster Picking with D365

Optimizing supply chains with D365

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