Physical Inventory process stupid question...

Hi, I'm wondering if someone can help me. I've gone brain dead regarding as aspect of Physical Inventory.

I've a customer who opened a new Physical Inventory for various suppliers back in February. They've counted everything within a couple of days but are only now inputting the figures- don't ask me why. There are a couple of days between the opening dates and the count dates on each sheet- 02/02/08 and

Here's the stupid, brain dead part- is this count going to set the quantities in the database to what was on the count sheet on that day or is it going to take into account movement- sales and POs received- since that date?

Any insight would be great!

Thanks, T.