Cycle counts are a critical part of maintaining accurate inventory and asset records. They allow your team to verify the quantities of assets on hand, identify discrepancies, and ensure your inventory system reflects reality. In environments like bitcoin mining facilities, accurate asset tracking is vital for operational efficiency, financial reporting, and regulatory compliance.

This step will walk you through starting from scratch: setting up your cycle counts in Foreman, running them, finalizing results, and applying best practices.

Goal: The Cycle count process is established, and the first count is completed successfully.

Cycle count configuration created in Settings

Frequency and scope defined based on operational needs

Team members assigned to counting responsibilities

First cycle count started, and data entered

Discrepancies identified and documented

First cycle count finalized

Calendar created for future cycle counts

What is a Cycle Count?

A cycle count is a partial, regular audit of inventory rather than a full inventory count at year-end. It focuses on segments of inventory—such as high-value items, fast-moving assets, or a particular location—and allows for smaller, more frequent checks. Benefits include:

• Improved Asset Accuracy: Ensures Foreman reflects the true physical inventory.
• Early Discrepancy Detection: Identifies errors before they become larger issues.
• Reduced Year-End Workload: Spreads the counting effort across the year.
• Enhanced Internal Controls: Provides documented verification of asset movements.

Configure Cycle Counts

1. Access Settings
   • Click Settings in the dropdown at the upper-right corner of Foreman.
   • Go to the Assets tab.
2. Open Cycle Count Configuration

   • Scroll to the Asset Cycle Count Configuration section. This is where you define parameters for all future cycle counts.

     

3. Define Frequency and Scope
   • Inventory Types: Select which inventory types will be included in the cycle count. You can select multiple types, including customer inventory types.
     • Example: Count all spare mining rigs and high-value ASIC components quarterly.
   • Timeframe: Choose either a Calendar Year or Rolling Year to define the period for cycle counts.
   • Counts per Timeframe: Specify how many full counts occur within the selected timeframe.
     • Example: 1 count per calendar year = once per year.
   • Cycles per Count: Specify how many smaller cycles are included in each count.
     • Example: 4 cycles per count = one cycle every 3 months.
4. Organize Inventory
   • Segment your inventory into logical categories like type, location, or usage frequency. This ensures cycle counts focus on the most critical assets first.
     • Example: Separate high-value ASICs from consumables like power cables.
5. Assign Responsibilities
   • Assign team members to count each segment of inventory. This ensures accountability and avoids confusion.
     • Example: Technician A counts racks in Row 1, Technician B counts Row 2, etc.
6. Save Configuration
   • Click Save at the bottom of the page to ensure your settings are applied.

Start a Cycle Count

Once the configuration is set:

1. Navigate to the Assets page.
2. In the Cycle Count section, click Actions → View Current Cycle.
3. Click Start Cycle in the modal.
4. Your team can now enter counted quantities directly into Foreman.

Review and Finalize the Cycle Count

1. Export Results
   • Use the Export function to download the current cycle’s results. This allows offline review or sharing with your team.
2. Investigate Discrepancies
   • Compare counted quantities with Foreman’s recorded inventory.
   • Document any discrepancies and resolve them before finalizing.
     • Example: If a rack shows 5 rigs but only 4 are physically present, investigate before finalizing.
3. Finalize
   • Click Finalize Cycle Count and confirm with Okay.
   • After finalization, counts cannot be edited.
4. Document Findings
   • Keep a record of key observations, discrepancies, and adjustments. This supports auditing and internal control processes.

Resolving Discrepancies: Step-by-Step Process

Discrepancies between physical counts and Foreman's records are common, especially during initial setup or in high-activity environments. Here's how to investigate and resolve them before finalizing your cycle count.

Step 1: Identify the Discrepancy

After completing a cycle count, compare:

• Physical Count: What your team counted on the floor
• System Count: What Foreman shows as the recorded quantity

Example: Foreman shows 50 spare hashboards in Warehouse-A, but the physical count is 47.

Step 2: Investigate the Root Cause

Before making adjustments, determine why the discrepancy exists. Common causes include:

Step 3: Document Your Findings

For every discrepancy, create a record that includes:

• Item name and original system count
• Physical count and variance amount (e.g., -3 units)
• Root cause identified
• Resolution action taken
• Date and person who investigated

Why this matters: Discrepancy documentation helps identify patterns (e.g., one location consistently has mismatches), supports audit requirements, and improves future cycle count accuracy.

Step 4: Decide on Adjustment Authority

Establish clear rules for who can approve inventory adjustments:

Minor Discrepancies (e.g., ±1-5 units, low-value items)

• Can be adjusted by: Inventory Coordinator or Warehouse Lead
• Documentation: Note in the cycle count export with a brief explanation

Major Discrepancies (e.g., ±10+ units, high-value items like miners)

• Requires approval from: Operations Manager or Finance Team
• Documentation: Formal discrepancy report with investigation summary and photos, if applicable

Example Approval Workflow:

1. Technician identifies 10 missing miners during count
2. Warehouse Lead investigates and confirms they were moved to Repair Bay but not updated
3. Warehouse Lead updates locations for all 10 miners in Foreman
4. Recount shows resolved discrepancy; Warehouse Lead approves cycle finalization

Step 5: Make System Adjustments

Once you've investigated and documented:

1. Navigate to the inventory item in Foreman
2. Click Edit
3. Update the quantity to match the verified physical count
4. Add a note in the custom field (if configured) explaining the adjustment: "Cycle count adjustment - 3 units used in emergency repairs not logged to tickets"
5. Click Save

For bulk adjustments across multiple items, use the Bulk Edit feature to update quantities simultaneously.

Step 6: Implement Process Improvements

After finalizing your cycle count, review all discrepancies and ask:

• Are certain locations or item types consistently off? → Increase count frequency for those areas
• Are technicians forgetting to log inventory usage? → Provide refresher training on ticket workflows
• Are items being moved without updating locations? → Create a checkout/check-in procedure for inventory transfers
• Is theft or loss occurring? → Implement additional physical security or access controls

Pro Tip: Track your discrepancy rate over time. Calculate: (Total Items with Discrepancies ÷ Total Items Counted) × 100. A healthy operation should see this rate decrease with each cycle as processes improve. Aim for a less than 5% discrepancy rate after your first few cycles.

What If Discrepancies Can't Be Resolved?

In rare cases, you may not be able to determine the root cause before the cycle count deadline. In these situations:

1. Document the discrepancy as "Under Investigation"
2. Finalize the cycle count with the physical count as the source of truth
3. Continue investigating after finalization
4. If the cause is later discovered, document it for the next cycle count review

Never skip finalizing a cycle count due to unresolved discrepancies—the point of the cycle is to correct your system to match reality, even if you don't know why the mismatch occurred.

Best Practices for Effective Cycle Counting

• Create a Calendar: Schedule counts in advance, spreading them across the year to reduce operational disruption.
  • Example: Count Row 1 in January, Row 2 in April, Row 3 in July, etc.
• Automate Reminders: Notify responsible team members a few days before their assigned cycle.
• Provide Training: Ensure all team members understand Foreman’s counting process, how to handle discrepancies, and the importance of accuracy.
• Maintain Documentation: Keep written procedures for how to conduct cycle counts and finalize results.
• Continuous Improvement: Use findings from each cycle to refine frequency, scope, and responsibilities.

Step Complete

You’ve now set up your first cycle count from scratch, started counting Assets, reviewed results, and finalized the cycle. Your inventory data in Foreman is accurate, discrepancies are documented, and your team is prepared for ongoing cycles.