Manufacturing · Infor CloudSuite Distribution (SX.e)

How to Run Cycle Counts and Approve Variances in Infor SX.e

Cycle counting checks a small set of parts every day instead of stopping the warehouse 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 post; 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 Infor CloudSuite Distribution (SX.e): reviewing ABC tolerances, selecting parts in Cycle Count Entry, issuing blind tags to handhelds, calculating variance in Excel, recounting out-of-tolerance parts, getting manager approval, and publishing an inventory accuracy report to SharePoint and Outlook.

  • Who does itInventory control runs the count; the inventory manager approves out-of-tolerance variances
  • How oftenDaily
  • Steps14 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 Infor CloudSuite Distribution, reviews ABC Class Setup and builds cycle 20 for warehouse MAIN on 09/28/2026. It selects 12 parts (8 ABC due, 4 variance risk), generates tags 1001–1012 and issues them as a blind count to handhelds HH-03 and HH-05. When counts return it calculates variance in Excel: 8 are within tolerance and are approved and posted (net -$16.81), and 4 go to an independent blind recount on HH-01. Two recounts match and post with no change; the other two, SRV-750 (-$824.00) and CU-12AWG (-$259.50), go to the inventory manager, who approves the first and rejects the second. The agent posts the approved variance, holds the rejected one, saves an accuracy report (83.3%) to SharePoint and drafts the summary email in Outlook.

  1. 1:27Review ABC classes and tolerances
  2. 1:51Select parts for today's cycle
  3. 2:15Generate tags and issue them to handhelds
  4. 2:33Start the count and let counters scan
  5. 3:09Import the returned counts
  6. 3:21Calculate variance by part and bin
  7. 3:39Is every variance within tolerance?
  8. 4:09Approve and post in-tolerance counts
  9. 4:27Issue blind recounts to an independent counter
  10. 5:09Is the recount within tolerance?
  11. 5:15Post acceptable recounts
  12. 5:33Inventory manager approves or rejects each variance
  13. 6:03Post approved variance and hold the rejected one
  14. 6:57Build, save and email the accuracy 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.

  • Infor CloudSuite Distribution (SX.e)ABC Class Setup, Cycle Count Entry, Count Tag Entry and Count Variance Approval
  • 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
  • OutlookInventory accuracy and variance report email to the inventory team and operations

What you start with

  • ABC classes with count frequency and percent and value tolerances
  • Variance-risk signals: recent adjustments, negative on-hand, reversed or corrected receipts, high pick activity
  • Frozen on-hand quantities
  • Returned handheld counts and recounts
  • Inventory manager approve/reject decisions

What you end with

  • 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 and variance report email

The workflow at a glance

Action Decision Human review Select a step to jump to how it's done.

  1. 01 Action · Infor CloudSuite Distribution (SX.e) (ABC Class Setup) Review ABC classes and tolerances
  2. 02 Action · Infor CloudSuite Distribution (SX.e) (Cycle Count Entry) Select parts for today's cycle
  3. 03 Action · Infor CloudSuite Distribution (SX.e) (Cycle Count Entry) Generate tags and issue them to handhelds
  4. 04 Action · Handheld scanners Start the count and let counters scan
  5. 05 Action · Infor CloudSuite Distribution (SX.e) (Count Tag Entry) Import the returned counts
  6. 06 Action · Excel Calculate variance by part and bin
  7. 07 Decision · Excel Is every variance within tolerance? Yes Approve and post the count in Count Variance Approval. No Generate a blind recount tag before anything is posted.
  8. 08 Action · Infor CloudSuite Distribution (SX.e) (Count Variance Approval) Approve and post in-tolerance counts
  9. 09 Action · Infor CloudSuite Distribution (SX.e) (Count Variance Approval) and handheld scanners Issue blind recounts to an independent counter
  10. 10 Decision · Infor CloudSuite Distribution (SX.e) (Count Variance Approval) Is the recount within tolerance? Yes Approve and post the recount with no change. No Send the variance to the inventory manager for approval.
  11. 11 Action · Infor CloudSuite Distribution (SX.e) (Count Variance Approval) Post acceptable recounts
  12. 12 · Human review · LaunchAI Portal (Reviews) Inventory manager approves or rejects each variance
  13. 13 Action · Infor CloudSuite Distribution (SX.e) (Count Variance Approval) Post approved variance and hold the rejected one
  14. 14 Action · Excel, SharePoint and Outlook Build, save and email the accuracy report

Step-by-step: how to do it

  1. Action · Infor CloudSuite Distribution (SX.e) (ABC Class Setup) · 1:27 in the video

    Review ABC classes and tolerances

    Search for ABC Class Setup and open it for the warehouse. Check each class's count frequency, percent tolerance and value tolerance, and make sure no class is excluded from cycle count. These settings decide which parts are due today and how much variance can post without review.

    In the video

    ABC cycle count classes for the warehouse.

    Warehouse
    MAIN | Acme Industries - Columbus
    • 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

  2. Action · Infor CloudSuite Distribution (SX.e) (Cycle Count Entry) · 1:51 in the video

    Select parts for today's cycle

    Open Cycle Count Entry for the warehouse, schedule and cycle date. Tick the ABC classes due and the variance-risk criteria, set the maximum parts and selection method, then click Select Parts and read the Selected Because column for each line.

    In the video

    Cycle 20 schedule and selected parts.

    Schedule
    MAIN-2026-09
    Cycle
    20
    Date
    09/28/2026
    Max parts
    12
    Method
    Oldest last count first
    Cycle Detail
    12 parts, 8 ABC due, 4 variance risk
    • SRV-750 Risk - negative on-hand 09/21
    • CU-12AWG Risk - receipt reversed 09/24

  3. Action · Infor CloudSuite Distribution (SX.e) (Cycle Count Entry) · 2:15 in the video

    Generate tags and issue them to handhelds

    Click Generate Tags, then Issue to Handhelds. Choose the counters' devices (tags are split by bin zone), keep one handheld free for recounts, and tick the blind-count option so the scanner hides the on-hand quantity.

    In the video
    Tags
    12 count tags generated (1001-1012)
    Banner
    12 tags issued to HH-03 and HH-05, as a blind count
    • HH-03
      Tags
      6
    • HH-05
      Tags
      6
    • HH-01 Reserved for recounts

  4. Action · Handheld scanners · 2:33 in the video

    Start the count and let counters scan

    Click Start Count so on-hand is frozen, then counters scan the bin, scan the part and key the quantity. Watch the task list until every tag shows as counted and synced.

    In the video

    Handheld count tasks - Cycle 20, blind count.

    Result
    All 12 counts returned
    • Tag 1006 · ORG-2-214
      Bin
      C-12-3
      Counted
      650

  5. Action · Infor CloudSuite Distribution (SX.e) (Count Tag Entry) · 3:09 in the video

    Import the returned counts

    Open Count Tag Entry for the cycle and click Refresh Returned Counts. Confirm every tag has a counted quantity, counter and device before calculating variance.

    In the video
    Screen
    Count Tag Entry
    Cycle
    20
    Date
    09/28/2026
    Count type
    Blind count
    Tags
    12
    Devices
    HH-03 and HH-05

  6. Action · Excel · 3:21 in the video

    Calculate variance by part and bin

    Build a working file with frozen quantity, counted quantity, unit cost, variance quantity, variance value and variance percent for each tag. Compare each line with its class's percent and value tolerance and mark it auto-approve or recount.

    In the video

    Cycle Count Variance - 2026-09-28.xlsx

    Auto-approve
    8 (-$16.81)
    Recount first
    4 (-$1,936.10)
    • HF-0412 Recount
      Frozen
      120
      Counted
      12
      Variance
      -108
      Value
      -$739.80
    • SRV-750 Recount
      Variance
      -2
      Value
      -$824.00

  7. Decision · Excel · 3:39 in the video

    Is every variance within tolerance?

    A count is auto-approved only when the variance is inside BOTH the percent and the value tolerance for the part's ABC class. Anything outside either limit is held for recount.

    • If yes Approve and post the count in Count Variance Approval.
    • If no Generate a blind recount tag before anything is posted.
    In the video
    Within tolerance
    8 of 12
    • Tag 1001 · HF-0412 Out of tolerance
    • Tag 1002 · BRG-6205 Out of tolerance
    • Tag 1003 · SRV-750 Out of tolerance
    • Tag 1004 · CU-12AWG Out of tolerance

  8. Action · Infor CloudSuite Distribution (SX.e) (Count Variance Approval) · 4:09 in the video

    Approve and post in-tolerance counts

    Open Count Variance Approval, filter to In tolerance, select the counts and click Approve, then Post Counts. Check the transaction date, reason code and net adjustment in the confirmation before posting.

    In the video

    8 counts approved and posted.

    Transaction date
    09/28/2026
    Reason code
    CCV - Cycle count variance
    Net adjustment
    -$16.81

  9. Action · Infor CloudSuite Distribution (SX.e) (Count Variance Approval) and handheld scanners · 4:27 in the video

    Issue blind recounts to an independent counter

    Filter to Out of tolerance, select the lines and click Recount Tags. Send them to a different counter's handheld and tick the option that hides both the frozen quantity and the first count. Nothing is posted for these parts yet.

    In the video

    4 recount tags (1013-1016) to HH-01, the senior inventory auditor.

    Result
    All 4 recounts returned from HH-01 and synced to Infor
    • HF-0412
      Recount
      120
    • BRG-6205
      Recount
      48
    • SRV-750
      Recount
      8
    • CU-12AWG
      Recount
      11

  10. Decision · Infor CloudSuite Distribution (SX.e) (Count Variance Approval) · 5:09 in the video

    Is the recount within tolerance?

    Refresh the approval screen so recounts are applied and variance is recalculated. Recounts that now match the frozen quantity are within tolerance; ones that still differ need manager approval.

    • If yes Approve and post the recount with no change.
    • If no Send the variance to the inventory manager for approval.
    In the video

    Recounts applied: variance recalculated

    • HF-0412 In tolerance on recount
      Variance
      0
    • BRG-6205 In tolerance on recount
      Variance
      0
    • SRV-750 Out of tolerance
    • CU-12AWG Out of tolerance

  11. Action · Infor CloudSuite Distribution (SX.e) (Count Variance Approval) · 5:15 in the video

    Post acceptable recounts

    Approve and post the recounts that came back in tolerance. Because the recount matches the system, no quantity changes.

    In the video

    "2 counts posted: net $0.00"; posted total now 10.

  12. Human review · LaunchAI Portal (Reviews) · 5:33 in the video

    Inventory manager approves or rejects each variance

    Give the manager the part, bin, frozen quantity, first count, recount, variance and tolerance, plus the evidence for why the part was selected. Approve posts the variance with a shrink reason code; Reject posts nothing, puts the variance on hold and tells inventory control to investigate.

    In the video

    Manager decisions on the two remaining variances.

    • SRV-750 · tag 1003 Approved
      Qty
      -2 EA
      Percent
      -20.0%
      Value
      -$824.00
      Tolerance
      ±1% / $50

      Two damaged units were scrapped on 09/21 without a transaction. Post as shrink.

    • CU-12AWG · tag 1004 Rejected
      Qty
      -3 EA
      Percent
      -21.4%
      Value
      -$259.50

      Receipt for PO 40877 was reversed on 09/24. Hold until receiving confirms.

  13. Action · Infor CloudSuite Distribution (SX.e) (Count Variance Approval) · 6:03 in the video

    Post approved variance and hold the rejected one

    Post the manager-approved variance and click Hold on the rejected one so it stays unposted. Confirm the final status of every tag in the All view.

    In the video

    Manager decisions received for 2 variances

    Held
    1 variance held for investigation: not posted
    Final
    11 Posted, 1 on hold
    • CU-12AWG Hold - investigate

  14. Action · Excel, SharePoint and Outlook · 6:57 in the video

    Build, save and email the accuracy report

    Create an accuracy workbook with key figures, accuracy by ABC class, and each exception's outcome and root cause. Save it to the cycle count folder in SharePoint, copy the link, and email a summary to the inventory team and operations.

    In the video

    Inventory Accuracy and Variance - 2026-09-28.xlsx

    Record accuracy
    83.3%
    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%
    Saved to
    Inventory Control > Cycle Counts > 2026-09 (and emailed)

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 = counted minus frozen on-hand; a count is auto-approved only inside BOTH the percent and value tolerance of its ABC class.
  • Parts with variance-risk signals are counted now, whatever their ABC cycle.
  • Counts and recounts are blind, and the recount is done by a different counter on a different handheld.
  • An out-of-tolerance count is never posted until it has been recounted, and approved by the inventory manager if it still differs.
  • Approved variances post with a shrink reason code; in-tolerance counts post with reason code CCV - Cycle count variance.

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 12 behind the front row on recount.
  • Real shrink: SRV-750 damaged units scrapped without a transaction, approved and posted as shrink (SHRK).
  • Receiving issue: CU-12AWG receipt for PO 40877 reversed on 09/24, rejected and held for investigation.

Controls and audit trail

  • On-hand is frozen when the count starts, and counters never see the system quantity.
  • Recounts are done independently on a different handheld with the first count hidden.
  • Variances still out of tolerance after recount need inventory manager approval with a note.
  • Rejected variances stay on hold and unposted until investigated.
  • The variance working file and accuracy report are saved to SharePoint for each cycle.

Practitioner tips

  • Add parts with recent adjustments, negative on-hand or reversed receipts to the daily cycle; they are where record 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.
  • Keep one handheld and counter in reserve for recounts so the recount is truly independent.

About this recording

In the recording, the agent selected parts, issued tags, imported 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.

See it on your workflow

Frequently asked questions

How do I set up cycle counting in Infor SX.e?

Define ABC classes with count frequency and percent and value tolerances in ABC Class Setup. Then open Cycle Count Entry, choose the classes and risk criteria, select parts, generate tags, issue them to handhelds and start the count to freeze on-hand.

How are cycle count variances approved in Infor CloudSuite Distribution?

In Count Variance Approval, 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 the inventory manager before posting or put on hold.

Why recount before posting a cycle count variance?

A large variance is often a keying error or misplaced stock. In the recording a blind recount fixed a 12-for-120 keying error and found 12 misplaced units before either was booked as shrink.

What tolerances should ABC classes use for cycle counts?

Tight limits 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 do cycle counts in Infor SX.e?

Yes. As shown in the video, the agent works the same Infor, Excel, SharePoint and Outlook screens a person does, while people do the physical counts and the inventory manager approves or rejects each remaining variance.

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