# How to Run Cycle Counts in QuickBooks Desktop Enterprise Advanced Inventory

> Create a cycle count in QuickBooks Desktop Enterprise, count on a mobile scanner or a spreadsheet, then post every difference in one adjustment.

- URL: https://logistify.ai/guides/quickbooks-desktop/cycle-counts-advanced-inventory/
- Section: QuickBooks Desktop Guides, Inventory
- Applies to: QuickBooks Desktop Enterprise
- Steps checked against: Intuit's QuickBooks Desktop help articles, updated August 2026
- Updated: 2026-10-19

**Short answer:** In QuickBooks Desktop Enterprise with Advanced Inventory, go to Inventory > Cycle Count and select Create new cycle count. Pick the site and items, count them on the QuickBooks Desktop mobile app or a spreadsheet, and get the counts onto the cycle count dashboard. To post the differences, select Batch Actions > Adjust Quantity/Value on Hand, which opens one adjustment with every difference filled in.

## Before you start

- You need QuickBooks Desktop Enterprise with Advanced Inventory turned on.
- Set up an adjustment account first. Intuit suggests a Cost of Goods Sold account named Inventory Adjustments, created in Company > Chart of Accounts.
- Decide how you'll count: on the QuickBooks Desktop mobile app, on a printed spreadsheet, or on a tablet.
- If you track bins, each item in each bin becomes its own line on the count.
- One cycle count holds up to 5,000 lines. QuickBooks splits it into counts of 200 lines each.

If sites and bins aren't set up yet, start with [How to track inventory by site](https://logistify.ai/guides/quickbooks-desktop/track-inventory-by-site/). For the adjustment account, see [How to adjust inventory quantity and value](https://logistify.ai/guides/quickbooks-desktop/adjust-inventory-quantity-value/).

## Step 1: Create the cycle count

1. Go to Inventory > Cycle Count.
2. Select Create new cycle count.
3. Choose the Site, if you track more than one.
4. Select Find & Select Items and use Find to pick the items. You can search by custom fields to pull in a group at once.
5. Check the items to count, then select Add Selected Items.
6. Assign the count to a warehouse person if you want.

An item kept in three bins shows up as three lines. A selection of 400 item and bin lines becomes two counts of 200. Over 5,000 lines, take items off the count until it fits.

## Step 2: Count with the mobile app

1. On the cycle count dashboard, select Send to device.
2. On the scanner or Android phone, open the QuickBooks Desktop mobile app and select your name.
3. Select Cycle Count, then choose the counting task.
4. Scan each item, or tap its name and type the quantity counted.
5. Select Finish to send the counts back to QuickBooks.
6. Refresh the dashboard if the counts don't show yet.

Setting up the app and linking a device is covered in [How to set up and use barcode scanning](https://logistify.ai/guides/quickbooks-desktop/barcode-scanning/).

### Or count on paper or a spreadsheet

1. On the dashboard, select Send to Excel.
2. Print the sheet, or open it on a tablet.
3. Count each item at each bin and record the total.
4. If you counted on paper, type the counts into the spreadsheet.
5. On the dashboard, select Import from Excel and follow the prompts.
6. Or skip the import: type the counts straight into the dashboard and select Save.

## What the cycle count statuses mean

| Status | What it means |
| --- | --- |
| Open | The count is still in progress. |
| Complete | Every count matches the quantity in QuickBooks. |
| Pending review | At least one count doesn't match QuickBooks, so there's a difference to post. |
| Closed | You marked it done. It can't be edited. |

## Step 3: Post the differences

1. On the dashboard, select Batch Actions, then Adjust Quantity/Value on Hand.
2. Read the message and select OK.
3. Review the adjustment window. QuickBooks fills in every difference the count found.
4. Check the adjustment date and adjustment account before you save.
5. Select Save & Close to accept the changes.

Saving the adjustment changes your stock, but it doesn't update the dashboard. Close the count yourself once nothing else needs to change.

## Step 4: Close the count and check the result

1. On the dashboard, select the cycle count lines to close.
2. Select Batch Actions, then Mark as Closed. You can't edit a closed count.
3. Go to Reports > Inventory and run Inventory Stock Status by Item to check quantities.
4. Run Inventory Valuation Summary to check the value.

Counts drop off the dashboard 30 days after their last update.

## Edge cases

- No Advanced Inventory: Cycle Count is an Advanced Inventory feature. Count the stock, then key each count into Adjust Quantity/Value on Hand with Quantity as the Adjustment Type.
- In Enterprise, Reports > Inventory also has a Physical Inventory Worksheet. You can add an item category column to it with Customize Report.
- Counts on the dashboard don't change stock until you post the adjustment.
- Intuit suggests a Cost of Goods Sold account for inventory adjustments. Ask your accountant to review the count differences you post.
- The Batch Actions menu also has Export to Excel, if you need another copy of the sheet.

If quantities match after the count but the value still looks wrong, see [how to fix an inventory valuation mismatch](https://logistify.ai/guides/quickbooks-desktop/fix-inventory-valuation-mismatch/).

## Where QuickBooks Desktop leaves the work to you

- Deciding what to count and how often is up to you.
- Someone has to walk to every bin and count every line.
- Paper counts have to be typed back in before QuickBooks can compare them.
- The adjustment records the difference, not the reason for it.
- Each count has to be closed by hand once it's done.

## Frequently Asked Questions

### What is a cycle count in QuickBooks Desktop?

A count of a chosen group of items instead of the whole warehouse. It's part of Advanced Inventory in QuickBooks Desktop Enterprise, under Inventory > Cycle Count.

### How many items can one cycle count include?

Up to 5,000 lines, where an item in several bins counts once per bin. QuickBooks splits the lines into counts of 200 each.

### Does a cycle count change my inventory automatically?

No. Stock changes when you select Batch Actions > Adjust Quantity/Value on Hand on the dashboard and save the adjustment.

### How do I clear old cycle counts from the dashboard?

Mark them as closed with Batch Actions. Counts drop off the dashboard 30 days after their last update.

## Sources

- [Intuit: Cycle Count in Advanced Inventory](https://quickbooks.intuit.com/learn-support/en-us/help-article/inventory-management/cycle-count-advanced-inventory/L5CYYncCK_US_en_US)
- [Intuit: Troubleshoot QuickBooks Desktop mobile app](https://quickbooks.intuit.com/learn-support/en-us/help-article/regular-payroll/troubleshoot-quickbooks-desktop-mobile-app/L7d2SVDyz_US_en_US)
- [Intuit: Adjust your inventory quantity or value in QuickBooks Desktop](https://quickbooks.intuit.com/learn-support/en-us/help-article/inventory-adjustment/adjust-inventory-quantity-value-quickbooks-desktop/L8p8OoeGs_US_en_US)
- [Intuit: Use item categories in QuickBooks Desktop Enterprise](https://quickbooks.intuit.com/learn-support/en-us/help-article/inventory-management/inventory-categories-quickbooks-desktop-enterprise/L9P3ArO3n_US_en_US)
- [Intuit: Turn on Advanced Inventory](https://quickbooks.intuit.com/learn-support/en-us/help-article/feature-preferences/turn-advanced-inventory/L6nkAoZzK_US_en_US)