A cycle count path is an access path used only to guide the physical counting of inventory in a warehouse. Cycle count access paths specify the order of warehouse areas on a count sheet. This order is referred to as the cycle count sequence.

A count sheet is a worksheet used for the physical counting and recording of inventory in a warehouse. One count sheet is printed for every cycle count path to be physically counted. When counting inventory, warehouse personnel begin by counting the items in the warehouse area listed first on the count sheet. All of the inventory items in this warehouse area are listed on the count sheet. These items are listed numerically by item number. The warehouse personnel then count the items in the next warehouse area listed on the count sheet and so on. This process of physically counting inventory is important for checking system-maintained item balances against physical item balances.

A cycle count path helps you ensure that every area in a warehouse and the items in that area are counted as required. Cycle count paths can be established for your entire warehouse or only for certain warehouse areas. Each cycle count path has a counting interval or number of days between cycle counts. Generally, warehouse areas on a cycle count path are counted annually or semi-annually. However, if accurate item balances are critical, the cycle counting process for a cycle count path can be initiated more often. The cycle count interval for cycle count paths is defined on the Access Path Entry (APE) screen when the cycle count paths are established.

Cycle count paths are useful for tightly controlling inventory. Cycle count paths help a warehouse manager to discover when an item has been misplaced due to a pick, move, transfer, or receipt. In addition, cycle counts can also help to find a misplaced item.