How to Run Cycle Counts and Approve Variances in Epicor Kinetic
Cycle counting checks a small set of parts every day instead of shutting the plant for a full physical inventory. Parts are chosen by ABC class and recent risk signals, counted blind, and compared with the frozen on-hand quantity. Counts inside tolerance are posted; the rest are recounted and, if the difference holds, approved by the inventory manager before they touch the books.
This guide follows a recorded daily cycle in Epicor Kinetic: reviewing ABC tolerances, building the count cycle, issuing tags to handhelds, calculating variance in Excel, recounting out-of-tolerance parts, getting manager approval in Outlook, and publishing an inventory accuracy report to SharePoint.
- Who does itInventory control runs the count; the inventory manager approves out-of-tolerance variances
- How oftenDaily
- Steps13 steps · 5 systems
- By hand8–30 hours per day across inventory control
Watch the full workflow
every click in this recording is an AI agent — no one is touching the keyboard.
In the recording, an AI agent opens Epicor Kinetic, reviews the ABC codes and tolerances, and builds Cycle 20 for warehouse MAIN on 09/28/2026. It selects 12 parts (8 due by ABC class, 4 flagged for variance risk), generates tags 1001–1012, issues them to handhelds HH-03 and HH-05 and freezes on-hand for a blind count. When the counts return it calculates variance by part and bin in Excel: 8 are within tolerance and are approved and posted, and 4 go to an independent blind recount on HH-01. Two recounts agree with the system and are posted. The other two, SRV-750 (-$824.00) and CU-12AWG (-$259.50), are emailed to the inventory manager, who approves the first and rejects the second. The agent posts the approved variance, holds the rejected one, and saves an accuracy report (83.3%) to SharePoint before emailing it.
- 1:50Review ABC codes and tolerances
- 2:10Build the daily count cycle
- 2:50Generate tags, issue them and freeze on-hand
- 3:05Count blind on the handhelds
- 3:45Load the returned counts
- 4:00Calculate variance by part and bin
- 4:40Post in-tolerance counts
- 5:15Issue blind recounts to a different counter
- 5:45Post recounts that agree; escalate the rest
- 6:05Inventory manager approves or rejects each variance
- 6:20Post the approved variance and hold the rejected one
- 6:55Build the accuracy and variance report
- 7:20Save to SharePoint and email the report
Systems involved
You need access to each of these before you start. In the recording the agent works in all of them from one desktop, signed in as the user.
- Epicor KineticABC Code Maintenance, Count Cycle Maintenance, Count Tag Entry and Count Variance Approval
- Kinetic handheld scannersBlind counts on HH-03 and HH-05 and the independent blind recount on HH-01
- ExcelCycle Count Variance working file and the Inventory Accuracy and Variance report
- SharePointInventory Control > Documents > Cycle Counts > 2026-09 folder holding both workbooks
- OutlookManager approval email with Approve/Reject per variance, and the final report email
What you start with
- ABC codes with count frequency and percent and value tolerances
- Variance-risk signals: recent adjustments, negative on-hand, reversed receipts, high pick activity
- Frozen on-hand quantities
- Returned handheld counts and recounts
- Inventory manager approve/reject decisions
What you end with
- Count cycle 20 with 12 tags counted
- 11 counts posted: 8 in tolerance, 2 confirmed by recount, 1 manager-approved variance
- 1 variance (CU-12AWG, -$259.50) held for investigation
- Cycle Count Variance and Inventory Accuracy and Variance workbooks in SharePoint
- Accuracy report email
The workflow at a glance
Action Decision Human review Select a step to jump to how it's done.
- 01 Action · Epicor Kinetic (ABC Code Maintenance) Review ABC codes and tolerances
- 02 Action · Epicor Kinetic (Count Cycle Maintenance) Build the daily count cycle
- 03 Action · Epicor Kinetic (Count Cycle Maintenance) Generate tags, issue them and freeze on-hand
- 04 Action · Kinetic handheld scanners Count blind on the handhelds
- 05 Action · Epicor Kinetic (Count Tag Entry) Load the returned counts
- 06 Action · Excel Calculate variance by part and bin
- 07 Decision · Epicor Kinetic (Count Variance Approval) Post in-tolerance counts Yes Within both tolerances: approve and post the count. No Outside either tolerance: do not post; send it to a blind recount.
- 08 Action · Epicor Kinetic / handheld scanners Issue blind recounts to a different counter
- 09 Decision · Epicor Kinetic (Count Variance Approval) Post recounts that agree; escalate the rest Yes Recount within tolerance: post it. No Variance confirmed: send it to the inventory manager for approval.
- 10 · Human review · Outlook Inventory manager approves or rejects each variance
- 11 Action · Epicor Kinetic (Count Variance Approval) Post the approved variance and hold the rejected one
- 12 Action · Excel Build the accuracy and variance report
- 13 Action · SharePoint / Outlook Save to SharePoint and email the report
Step-by-step: how to do it
-
Action · Epicor Kinetic (ABC Code Maintenance) · 1:50 in the video
Review ABC codes and tolerances
Open Inventory Management > ABC Code Maintenance and check each class's count frequency, percent tolerance and value tolerance. These settings decide which parts are due today and how much variance can be posted without review.
In the videoABC cycle count classes for the plant.
- Site
- MfgSys - Main Plant
- Class A
- Frequency
- every 30 days
- Tolerance
- 1% / $50.00
- Parts
- 142
- Class B
- Frequency
- every 90 days
- Tolerance
- 3% / $100.00
- Parts
- 318
- Class C
- Frequency
- every 180 days
- Tolerance
- 5% / $25.00
- Parts
- 1,206
-
Action · Epicor Kinetic (Count Cycle Maintenance) · 2:10 in the video
Build the daily count cycle
Open Count Cycle Maintenance for the warehouse and date. Tick the ABC classes due and the variance-risk criteria, set the maximum parts and selection method, then run Actions > Perform Part Selection and review why each part was picked.
In the videoCycle 20 selection for warehouse MAIN.
- Warehouse
- MAIN
- Cycle
- 20
- Date
- 09/28/2026
- Max parts
- 12
- Method
- Repetitive, oldest last count first
- Result
- 12 parts selected for cycle 20 - 8 ABC due, 4 variance risk
- SRV-750 Risk - negative on-hand 09/21
- CU-12AWG Risk - receipt reversed 09/24
-
Action · Epicor Kinetic (Count Cycle Maintenance) · 2:50 in the video
Generate tags, issue them and freeze on-hand
Run Actions > Generate Tags, then Issue Tags to Handhelds, then Start Count Sequence. Starting the sequence freezes on-hand quantities so the counts are compared with a fixed snapshot and counters never see the expected quantity.
In the videoTags generated and issued for a blind count.
- Tags
- 12 count tags generated (1001-1012)
- Issued
- 12 tags issued to HH-03 and HH-05 - blind count
- Sequence
- Count sequence started - on-hand frozen for 12 parts
- HH-03
- Tags
- 1001–1006
- HH-05
- Tags
- 1007–1012
-
Action · Kinetic handheld scanners · 3:05 in the video
Count blind on the handhelds
Each counter scans the bin and part and keys the quantity found. The system quantity stays hidden, and counts sync back as they are submitted.
In the videoCounts returned from the handhelds.
- Result
- All 12 counts returned
- Tag 1002 · BRG-6205
- Bin
- A-03-2
- Counted
- 36
- Tag 1011 · GSK-150-2
- Bin
- C-09-2
- Counted
- 120
-
Action · Epicor Kinetic (Count Tag Entry) · 3:45 in the video
Load the returned counts
Open Count Tag Entry, click Refresh Returned Counts and confirm every tag shows as entered with a counted quantity, counter and device.
In the video- Status
- Counts Entered
- Returned
- 12 of 12
- Tag 1001 · HF-0412
- Counted
- 12
- Device
- HH-03
-
Action · Excel · 4:00 in the video
Calculate variance by part and bin
For each tag, variance equals counted minus frozen on-hand, valued at unit cost. A count is auto-approved only when it is inside both the percent and the value tolerance for its ABC class; anything else is marked for recount.
In the videoVariance by tag against frozen on-hand.
- Auto-approve
- 8 · -$16.81
- Recount first
- 4 · -$1,936.10
- 1001 · HF-0412 Recount
- Frozen
- 120
- Counted
- 12
- Variance
- -$739.80
- 1003 · SRV-750 Recount
- Frozen
- 10
- Counted
- 8
- Variance
- -$824.00
- 1004 · CU-12AWG Recount
- Frozen
- 14
- Counted
- 11
- Variance
- -$259.50
- 1005 · SCR-M6-20 Auto-approve
- Frozen
- 2,400
- Counted
- 2,388
- Variance
- -$0.96
-
Decision · Epicor Kinetic (Count Variance Approval) · 4:40 in the video
Post in-tolerance counts
In Count Variance Approval, filter to In tolerance, select the lines, click Approve and then Post Counts. Leave out-of-tolerance lines unposted.
- If yes Within both tolerances: approve and post the count.
- If no Outside either tolerance: do not post; send it to a blind recount.
In the video8 in tolerance, 4 out of tolerance; the 8 are approved and posted.
-
Action · Epicor Kinetic / handheld scanners · 5:15 in the video
Issue blind recounts to a different counter
Filter to Out of tolerance, click Generate Recount Tags and assign them to a different counter's handheld, keeping both the frozen quantity and the first count hidden. Wait for the recounts to sync back.
In the video4 recount tags sent to HH-01 (senior inventory auditor).
- HF-0412
- Recount
- 120
- BRG-6205
- Recount
- 48
- SRV-750
- Recount
- 8
- CU-12AWG
- Recount
- 11
-
-
Decision · Epicor Kinetic (Count Variance Approval) · 5:45 in the video
Post recounts that agree; escalate the rest
Refresh the approval screen. Recounts that agree with the system show the first count was wrong, so post them with no change. Recounts that confirm the variance stay out of tolerance and go to the manager.
- If yes Recount within tolerance: post it.
- If no Variance confirmed: send it to the inventory manager for approval.
In the videoRecount results.
- Posted
- 10
- 1001 In tolerance on recount · approved and posted
- 1002 In tolerance on recount · approved and posted
- 1003 Out of tolerance on recount · awaiting manager approval
- 1004 Out of tolerance on recount · awaiting manager approval
-
Human review · Outlook · 6:05 in the video
Inventory manager approves or rejects each variance
Send the manager one email listing each remaining variance with frozen quantity, first count, recount, value and evidence. The manager approves or rejects each line with a comment and submits the decisions.
In the videoApproval needed: 2 cycle count variances after recount
- SRV-750 Approved
- Variance
- -$824.00
damaged units scrapped on 09/21 without a transaction, post as shrink.
- CU-12AWG Rejected
- Variance
- -$259.50
receipt for PO 40877 was reversed on 09/24, hold until receiving confirms the 3 spools.
-
-
Action · Epicor Kinetic (Count Variance Approval) · 6:20 in the video
Post the approved variance and hold the rejected one
Select the approved line and Post Counts with a reason code. Leave the rejected line unposted with a status that shows it is held for investigation.
In the video- Posted
- 11
- 1003 · SRV-750 Posted
- 1004 · CU-12AWG Manager rejected · held
-
Action · Excel · 6:55 in the video
Build the accuracy and variance report
Create the daily workbook with key figures, accuracy by ABC class, and each exception with its root cause.
In the videoAccuracy summary for cycle 20.
- Accuracy
- 83.3% (10 of 12 within tolerance after recount)
- First pass
- 8 of 12
- False shrink avoided
- $852.60
- Net adjustment posted
- -$840.81
- Held
- -$259.50
- Class A
- 80.0%
- Class B
- 66.7%
- Class C
- 100.0%
- HF-0412
- Root cause
- keying error 12 vs 120
- BRG-6205
- Root cause
- stock behind the front row
- SRV-750
- Root cause
- damaged units scrapped
- CU-12AWG
- Root cause
- receipt reversed
-
Action · SharePoint / Outlook · 7:20 in the video
Save to SharePoint and email the report
Save the workbook in the month's Cycle Counts folder next to the variance working file, then email the inventory manager and controller a summary with a link.
In the videoReports saved and summarised by email.
- Folder
- Inventory Control > Documents > Cycle Counts > 2026-09
- Report
- Inventory Accuracy and Variance - 2026-09-28.xlsx
- Beside
- Cycle Count Variance - 2026-09-28.xlsx
- Accuracy
- 83.3%
- Posted
- -$840.81
- False shrink avoided
- $852.60
- Held
- 1 part (-$259.50)
Rules, exceptions and controls
Rules to follow
- Class A is counted every 30 days at 1% and $50 tolerance; B every 90 days at 3% and $100; C every 180 days at 5% and $25.
- Variance is counted minus frozen on-hand; a count is auto-approved only inside both the percent and value tolerance.
- Parts with variance-risk signals (recent adjustments, negative on-hand, reversed receipts, high pick activity) are counted now regardless of ABC due date.
- Counts and recounts are blind, and the recount is done by a different counter.
- An out-of-tolerance count is never posted until it has been recounted, and approved by the manager if it still differs.
When something doesn't match
- Keying error: HF-0412 entered as 12 instead of 120, caught by recount and never booked as shrink.
- Misplaced stock: BRG-6205 found behind the front row on recount.
- Real shrink: SRV-750 damaged units scrapped without a transaction, approved and posted.
- Receiving issue: CU-12AWG receipt for PO 40877 reversed, rejected and held for investigation.
Controls and audit trail
- On-hand is frozen when the count sequence starts, and counters never see the system quantity.
- Recounts are done independently on a different handheld.
- Out-of-tolerance variances after recount need manager approval with a comment.
- Rejected variances stay unposted until investigated.
- The variance working file and accuracy report are stored in SharePoint for each cycle.
Practitioner tips
- Add parts with recent adjustments or reversed receipts to the daily cycle; they are where errors hide.
- Require both a percent and a value tolerance so a small-percent miss on an expensive part still gets reviewed.
- Always recount before booking a large variance; in the recording two of four disappeared on recount.
- Record a root cause for every exception so the accuracy report shows why counts were wrong, not only how often.
About this recording
In the recording, the agent built the cycle, issued tags, loaded counts, calculated variance, posted in-tolerance counts, routed recounts and manager approval, and published the accuracy report. People did the counts and the inventory manager approved or rejected each remaining variance.
Documented the way you'd train a new hire — and the same way an agent learns it.
Frequently asked questions
How do I set up cycle counting in Epicor Kinetic?
Define ABC codes with count frequency and percent and value tolerances in ABC Code Maintenance. Then create a cycle in Count Cycle Maintenance, perform part selection, generate tags, issue them to counters and start the count sequence to freeze on-hand.
How are cycle count variances approved in Epicor Kinetic?
Use Count Variance Approval to filter counts by tolerance. In-tolerance counts are approved and posted; out-of-tolerance counts get recount tags and, if the variance holds, are approved by a manager before posting.
Why recount before posting a cycle count variance?
A large variance is often a keying error or misplaced stock. A blind recount by a different counter finds these before they are booked as shrink.
What tolerances should ABC classes use for cycle counts?
Tight tolerances for A items and looser ones for C items are common. The recording used A 1%/$50 every 30 days, B 3%/$100 every 90 days and C 5%/$25 every 180 days, with both limits required.
What is a blind cycle count?
The counter records what is in the bin without seeing the system quantity. It stops counters from confirming the expected number instead of counting.
Can an AI agent run cycle counts and variance approval in Epicor Kinetic?
Yes. As shown in the video, the agent works the same Kinetic, Excel and Outlook screens a person does, while people do the physical counts and the inventory manager approves variances before they are posted.