Physical inventory is a critical business process through which a successful enterprise periodically inspects its assets to protect its large capital investments and to comply with auditing requirements. Physical inventory is the process of ensuring that the assets a company has listed in its Production system matches the assets it actually has in inventory. It also ensures that capital assets recorded in the Fixed Asset Accounting and Control System physically exist, determine if unrecorded or improperly recorded transactions have occurred, and identify any excess, defective or obsolete assets on hand. An effective inventory results in an accurate accounting of capital assets, and indicates the reliability of the system of accountability for the acquisition, use, and disposal of those assets.
The frequency of taking an inventory depends on the nature, quantity, and value of the capital assets, and the cost and effort required to perform the procedures.
Oracle Assets is a worldwide best practice tool which automates the physical inventory process minimizing administrative costs. The Physical Inventory feature in Oracle Assets assists you in comparing and reconciling your physical inventory data. To use the Physical Inventory feature, you must first take physical count of your assets. You need to include the following information about your assets while taking :
To know more details on how physical inventory functionality works in Oracle assets, what are all the per-requisite setups required and which reports can we use to reconcile the asset details etc, refer Doc Id 2003290.1