The warehouse manager uses cycle counts to check system-maintained item balances against physical item balances. The warehouse manager can request cycle counts for an individual item or for multiple items grouped on an access path. If the warehouse manager requests a count for an individual item, the stock of the item in each warehouse area is counted. Items grouped on a cycle count path are generally stored in the same warehouse area. When a cycle count is requested for a cycle count access path, all of the items on the path are counted. By initiating cycle counts for both individual items and paths, the warehouse manager ensures that all items and areas in a warehouse are counted. This helps to tightly control inventory.

Most items are counted annually or semi-annually. However, if accurate balances are critical, cycle counts should be scheduled more often. The time between cycle counts, cycle count intervals, are defined for individual items on the Item Warehouse Entry (IWE) screen. Cycle count intervals for access paths are established on the Access Path Entry (APE) screen.

To initiate and complete a cycle count, the warehouse manager must complete several steps.