You use the Phys. Inventory Journal window to maintain an up-to-date record of your inventory at different locations. The physical inventory feature can also assist you in taking a physical inventory by comparing the actual quantity on hand, as determined by the physical count, with the quantity on hand calculated by the program. If there are any differences, you must record and post them.
When you post the journal, the program creates a physical inventory ledger entry for every journal line and an item ledger entry for each journal line on which the actual quantity on hand, as determined by the physical count, is different from the quantity on hand calculated and recorded by the program. If you are using bins for the location, the posting also creates warehouse entries for the lines on which the actual quantity on hand is different from the program's calculated quantity on hand.