Cycle counts can be performed selectively on specific high-value items multiple times per year, with scheduled counting and the ability to view quantities in the system during counting. Physical inventories must count all items once or twice per year, do not allow scheduling or viewing quantities during counting, require transaction freezing, and use concurrent programs to process approved adjustments instead of a recounting history. The key differences are that cycle counts are more flexible but only for some items, while physical inventories provide a full snapshot of all inventory but are less frequent and involve more restrictive counting and adjustment processes.

1. Oracle Inventory - Difference between Cycle Count and Physical Inventory
Refer: http://learnoraclecsbscm.blogspot.com
Few Differences of Cycle Count & Physical Inventory:
S no Cycle Count Physical Inventory
1
Can be performed on specific items or
selective items
Have to count for all items
2
Can be done multiple time in an year ,
like monthly or quarterly for high value
items
Can be done once an year or at the most
twice for all the items
3 Scheduling the counting is possible Scheduling the counting is not possible
4 Snapshot is not available Snapshot is available
5
During counting, the quantity can be
viewed in the system (though option
available to restrict)
During counting, the quantity cannot be
viewed in the system
6 Can select the item using ABC Analysis It is possible for all items
7
Inventory Transaction freezing is not
required
Inventory Transaction freezing should be
done
8 Recounting is possible Recounting is not possible
9 Recounting History can be maintained Recounting is not possible, no history
10
Adjustment can be processed based on
Approval Process
Adjustment can be processed based on
Adjustment Concurrent Program

2. Please refer my blog for more details: http://learnoraclecsbscm.blogspot.com