Inventory Cycle Count is a well thought out Organizational audit policy to ascertain the accuracy of the physical stock of the Items in the warehouse. Inventory discrepancies do arise between system stock and Physical stock levels due to various missed transactions such as receipts, issues, transfers, returns, data entry errors OR unfortunately it could be due to pilferage. Periodic cycle counts help organizations catch discrepancies and correct the Inventory on-hand balances
The Inventory cycle count process starts by creating a Counting Event. The user has the capability of creating Counting Events using multiple options such as Item ID, Storage Location, Item Family, negative on-hand balances and all Items that are due to be counted in the defined cycle or period. For an Event ID the user reconciles and updates the stock of each Item after verifying physical stock.
Our customers have been requesting ability to provide an option to choose Items by their status for Cycle Counting. Perhaps customers may want to pick active Items only for counting more frequently than Items on hold. This suggestion from the PeopleSoft Inventory Idea Space on My Oracle Support has been provided as an enhancement in PeopleSoft Update Image #38. Warehouse managers now have the flexibility to create counting events by filtering Items by “Status”: Active, Inactive, Hold or Discontinued.
User can utilize this feature by choosing the option “Yes” in the new “Cycle Count by Item Status” option in the Inventory – Business unit option page. 
For the selection of “Yes” the Item Status option now gets displayed in the Count Event creation page as shown in the example below.
The User can choose whichever Item Status they wish at the time of creating Cycle Count Event.
The new provision helps the user, target Items for counting by the Item status. If your choice is to count active Items more often, you now have a capability available in PeopleSoft Inventory.
Refer to https://blogs.oracle.com/peoplesoft/inventory-counting to understand how to leverage User-Defined-Fields (UDF) in the manual counting process.