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Understanding Cycle Count Recounts

A recount occurs when a second user counts a SKU to confirm a discrepancy identified during an initial cycle count. ShipHero flags these items until two consecutive counts confirm the same variance, ensuring high inventory accuracy.

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How Recounts Work

If the expected quantity of a SKU in a location is 10, but a user counts 8, a discrepancy of 2 is recorded. With the Cycle Count Recount setting enabled, a different user is directed to count that SKU in the same location.

If the second user also counts a variance of 2 units, ShipHero closes the recount and updates the inventory balance accordingly.

If the second count does not match the first discrepancy, the SKU remains flagged for another recount until consistency is achieved between two consecutive counts.

Inventory Changes During Recounts

ShipHero uses the discrepancy amount (the variance) rather than a static number to compare counts. This allows warehouse teams to continue picking, packing, and shipping orders without disrupting the recount process.

Example Scenario

  1. Initial State: Expected amount is 10. User counts 8. The discrepancy is -2.
  2. Warehouse Activity: 3 units are picked and shipped; the new expected amount becomes 7.
  3. Recount Execution: If the second counter finds 5 units remaining, the discrepancy of -2 is confirmed (7 minus 5 = 2 variance).
  4. Result: The system validates the count because the variance remained consistent despite the change in total stock.

Enabling Cycle Count Recounts

By default, inventory variances do not require a recount by a second user. To increase accuracy, you can enable this setting to flag all discrepancies for verification.

Cycle Count Recount Setting Toggle

Types of Recounts

Recount Type Description & System Action
Unit Discrepancy Occurs when the physical count provided by the user does not match the expected quantity in ShipHero. This triggers a mandatory second count.
Unexpected SKU in Location When counting by Location, any item found that is not assigned to that bin triggers a recount. The system will prompt a counter to check all locations associated with that SKU. (Does not apply to SKU-based counts).
Lot Discrepancy Occurs when the identified Lot ID does not match the system record. The system flags the item, but a manager must manually verify and transfer incorrect lots.
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