Annual Physical Inventory

Step-by-Step
Prior to closing the financial records, the School Transportation Garages need to take an actual physical inventory of all materials and supplies. School Transportation Garages will use the attached Transaction Guides to perform the annual physical inventory. An inventory can be taken at any time using this process; however, a full inventory must be taken in June to have a reconciled inventory for the fiscal year and to provide data for the TD 1 Annual Report. To perform a physical inventory, inventory documents must be created for use during the counts and for auditing purposes. These documents are created, in a batch process, by plant and storage locations. All materials extended to a specified plant/storage location will be listed on the inventory document(s). The created inventory documents are then printed and used to perform the inventory counts. Prior to doing the inventory, a posting block must be set on all materials to be inventoried. This prevents any good movements from occurring while the materials are being counted. The posting block should not be set until the day of the inventory count. BSIP inventory counts are performed “blind”; i.e. the current stock quantity does not display on the inventory documents. All materials, including those with zero difference between current quantity and counted quantity, must be entered into BSIP. After the manual count, the results are entered into BSIP. To finalize the inventory, review the List of Inventory Differences to ensure that all materials on the list have been counted, recounted, deleted and/or differences have been posted. A hardcopy of the reconciliation of each inventory document should be made and attached to the inventory document. Also, an IVLD-Inventory report (ZMB21) should be created and printed as
DPI Physical Inventory Transactions 1 April 2004 Revised 3/2006

the permanent record of the reconciled inventory for the fiscal year. This report can be downloaded to Excel to provide data for the TD-1 Annual Report. Creation of the inventory documents, entering the counts and posting of inventory corrections/directions must be completed in the same accounting month.

Transactions Used to Perform Physical Inventory in SAP
Inventory Preparation: • • • • MI31 MI24 MI02 MI21 Create Physical Inventory Documents in Batch Display Physical Inventory List Change Physical Inventory Document Print Physical Inventory Documents

Process Inventory Results: • • • • • • • • MI04 MI06 MI05 MI11 MI20 MI20 MI20 ZMB21 Enter Count Results Display Count on individual Physical Inventory Document Change Count on Existing Inventory Documents Create Recount Document Physical Inventory List/Post Differences Inventory Completion Check Print List of Inventory Differences Reconciled Inventory Report

DPI Physical Inventory Transactions

2

April 2004 Revised 3/2006

Posting block should be set. Document generated by SAP that lists all materials extended to a specified plant/storage location. Block which prevents any goods movements/receipts of items while inventory is being taken. Warning: A notification of important information about a procedure. Helpful Hint: A tip or hint that helps with the procedure.Key Terms Term Book Count Inventory Document Description On hand quantity in SAP. hint or warning: Note: A guideline or practice that applies to the procedure. goods movements must be tracked manually. DPI Physical Inventory Transactions 3 April 2004 Revised 3/2006 . Date on which the inventory is going to be taken. Once the posting block is set. Same as Unrestricted Stock number shown in IVLD (ZMB21). Planned Count Date Posting Block GRAPHIC CONVENTIONS The following graphics indicate important information such as a note.

The default session name is MB_MI01.Physical inventory number .use 99 for main storage location.Create Physical Inventory Documents (in batch) MI31 Use this transaction to create physical inventory documents for multiple materials in your plant and storage locations. . The Selected Data for Phys. .Planned count date . DPI Physical Inventory Transactions 4 April 2004 Revised 3/2006 .enter fiscal year followed by plant number and storage location.Max. Enter or select a value for each of the following required fields: .Name of session Remove the checkmark from the Materials marked for deletion field will exclude items previously marked for deletion from the inventory document. Example: 2004FY60118071. Enter your initials and the session number after the default session name to identify it as your own. enter transaction code MI31. From the SAP R/3 System screen. the posting block should not be set until the day of the actual physical inventory count. .use 300 for truck storage locations.Plant (enter plant code) .Storage location (do one storage location at a time) .enter date of inventory count . 2. Inventory Docmts w/o Special Stock screen displays. 1. however. Inventory documents may be created and printed prior to the count date. Click or press Enter. items/doc . no. Example: MB_MI01_WW1 3.

Erase any variants under “Display options”. .check if count is immediate. 4. 6. and select Plnt- Enter through any system information messages or errors.. Click . Please wait at least 5 minutes before continuing with Step 10. 9. Click in the gray box next to the session name and click The Batch Input: Log Overview screen displays. The Process Session {Session name} dialog box displays. . . do not check if creating batch documents ahead of the inventory count date. The Batch Input Log for Session {Session name} screen displays. Inv. The Batch Input Created for the Creation of Phys. Click in the gray box next to the session name to highlight row. Select the Background radio button. 10. The Batch Input: Session Overview screen 7. Click in the gray box next to the session name and click . Click . Click displays. The following message displays: “X session(s) transferred to background processing”. 5 April 2004 Revised 3/2006 DPI Physical Inventory Transactions .Sorting – click on Stor. It takes approximately 5 to 6 minutes for the system to process a batch session.Set posting block . 8. 11. 5. Click . Docmts screen displays.bin description-Material.

You will need the document numbers to print the inventory documents. If this message does not appear on the last line adequate time was not provided for the batch process to be viewed. 13. 11. Add the material to a physical inventory document using transaction code MI02. can print this list. Click to exit this transaction. A material master record being blocked for updates at the time of processing may cause errors. DPI Physical Inventory Transactions 6 April 2004 Revised 3/2006 . Record the physical inventory document numbers created. Clicking on 12.If the batch processing is completed the last line in the Message column should read “Batch input processing ended”. SAP continues the batch processing in the background. View the log for any errors generated. Use transaction MI24 to retrieve a complete list of Physical Inventory Documents created.

1. 2. The Physical Inventory List screen displays. 6. Scroll to the end to see the last physical inventory document. select Phys. Click . This is the physical inventory document number range you need. 12. On the dialog box that displays. 7. 7 April 2004 Revised 3/2006 DPI Physical Inventory Transactions . Under List Display. Inv. 11. Check the dialog box. From the SAP R/3 system screen. 8. Inventory document. Enter Plant and Storage Location. enter transaction code MI24. Click or press Enter. 9. MI31 will continue running in the background and you can retrieve the document numbers by using this transaction. 5. select Not yet counted. select Group by phys. Under Status Selection. The first data column contains the physical inventory document number and shows all the materials associated with that document.Display Multiple Physical Inventory Documents MI24 Use this transaction if you forget to record your inventory document numbers or if your SAP session times out or you get logged off the system while MI31 is processing. Enter the Fiscal year. Doc. The Physical Inventory List screen displays showing all the physical inventory documents that meet the criteria 10. 4. Click to exit the transaction. on 3.

Change Physical Inventory Documents MI02 Use this transaction to correct an error displayed in the log during processing of an existing physical inventory document. 6.Delete the entire Physical Inventory document. 4. DPI Physical Inventory Transactions 8 April 2004 Revised 3/2006 . Inventory doc. 2. The Change Physical Inventory Document: Initial Screen displays. Field. The following message will display: Physical inventory document XXXXXXXXX changed”. Click to exit the transaction. . Click one of the options below to make changes to the physical inventory document: • • .Change the following fields: Planned Count date. Posting Block (set/reset). 1.Delete item(s) from the Physical Inventory Document Note: Select the material number to be deleted and click . A check appears in the Del column next to the material. to delete items or the entire physical inventory document. • 5. to set the posting block. • Click at the end of option. Enter or select a value for the Phys.Add items to the Physical Inventory Document Note: Enter the material number of the item(s) that you want to add to the Physical Inventory document and click . enter transaction code MI02 Click or press Enter. . From the SAP R/3 System screen. 3.

3. 2. Printer destination should default in. . Be sure that Print Immediately and Delete After Print are checked. you must know the inventory document numbers generated by transaction MI31. Click . enter transaction code MI21. Click Click . The Print Physical Inventory Document screen displays. if you wish to review all documents 5.(process one document at a time or enter a range of physical inventory document numbers) 4.Phys. The Print dialog box displays.Print Physical Inventory Documents MI21 Use this transaction to print the physical inventory documents that are used to record the actual physical inventory quantities and to key the data into BSIP. Enter: . Refer to transaction MI24 if you do not know the inventory document numbers. You can click prior to printing. The following message displays: “Print request completed” to exit this transaction. 6. DPI Physical Inventory Transactions 9 April 2004 Revised 3/2006 . To print the inventory documents. Inventory doc. 1. Click or press Enter. From the SAP R/3 System screen.

The Enter Inventory Count: Initial Screen displays. to advance to the next page. enter transaction code MI04. 5. The current stock quantity does not display. Enter the inventory count for each item. Click or press Enter. Enter or select a value for each of the following required fields: . The Enter Inventory Count XXXXXXXXX: Collect.Phys. 3. Inventory doc. If the count date and the planned count date are different SAP will give you a warning to reconcile the dates.date materials were counted The count date should be the same as the planned count date specified in MI31. click SAP inventory counts are performed “blind”.Enter Results of Count MI04 Use this transaction to process the physical inventory count into BSIP. If all items on the physical inventory document are not displayed.Count date . 2. 1. enter the inventory counted for all items whether or not a difference exists.Processing screen displays. DPI Physical Inventory Transactions 10 April 2004 Revised 3/2006 . . From the SAP R/3 System screen. 4. Click or press Enter.(enter physical inventory document number) .

SAP recognizes a “0” count as blank and not counted unless this checkbox indicator is active. Click or press Enter after the count has been entered for all items. to save the entries. 6. Inv. If you get “Obsolete w/warning” message click Enter to continue. 8. Doc. 9.Always click the checkbox for ZC when the count is zero. Click to exit this transaction. The following message displays: Click “Count entered for phys. You should remove the P2 code on the Purchasing view in ZMM02Z if item is not actually obsolete. XXXXXXXXX” Repeat steps 3 – 7 for all inventory documents. DPI Physical Inventory Transactions 11 April 2004 Revised 3/2006 . 7.

From the SAP R/3 System screen. Click to exit this transaction. Click or press Enter. – physical inventory document number 4. 2. DPI Physical Inventory Transactions 12 April 2004 Revised 3/2006 .Display Physical Inventory Count MI06 Use this transaction to display the count entered on a physical inventory document. inventory doc. Review the inventory count in the Quantity field for each item. enter transaction code MI06. 3. 1. 5. The Display Inventory Count XXXXXXXXX: Overview screen displays. 6.Phys. The Display Inventory Count: Initial Screen displays. Click . Enter: .

The Change Inventory Count: Initial Screen displays. 3. 2. 6. Click or press Enter. 5. Click DPI Physical Inventory Transactions 13 April 2004 Revised 3/2006 . deleting the incorrect amount and entering the correct amount. Inventory doc. Physical Inventory Document must not have been posted. The following message displays: “Count changed for Physical Inventory Document XXXXXXXXX” to exit this transaction.Correct Physical Inventory Count Input MI05 Use this transaction to correct keyboard errors made when entering data on MI04. 4. 1. Enter: .Phys. – (enter document to be changed) Correct the appropriate line(s) by clicking in the white box under “Quantity”. or if additional material has been located. From the SAP R/3 System screen. enter transaction code MI05. Click to save the changes.

2. for example. it might be better to uncheck all the items.Create a Recount Document MI11 Use this transaction when an entire physical inventory document must be recounted. Only items or documents that have not been posted can be recounted. From the SAP R/3 System screen. This transaction creates a new physical inventory with reference to the original physical inventory document. Check only the items to be recounted. 5. the posting month has closed and data cannot be entered. 1. the new count must be entered into SAP using MI04. DPI Physical Inventory Transactions 14 April 2004 Revised 3/2006 . When the physical recount document has been created. Enter of select a value for the following fields: • Phys. If a long document. Click or press Enter. The Enter Recount: Selection List screen displays. Inventory doc – enter number of original physical inventory document. enter transaction code MI11. Use menu path Edit>Deselect all. Click . 3. Uncheck items that are not be recounted. The Enter Recount: Initial Screen displays. • Planned count date – date inventory is planned to take place (accept default if data to be entered that day) • Document date – date of original document • Posting block – block inventory during posting from goods movements 4.

DPI Physical Inventory Transactions 15 April 2004 Revised 3/2006 .6. Click to exit the transaction. 7. Record the new inventory document number 8. The following message displays: Physical inventory document XXXXXXXXX created. Click .

Be sure that the Inv. radio button on the List display section of the screen. The List of Inventory Differences screen displays. Inventory documents checkbox under Status selection for. Doc. 6. Inv. Value and Pos.Post Inventory Count MI20 Use this transaction to post the inventory count.Phys. Click or press Enter. The List of Inventory Differences screen displays. Value. Inventory doc. 9. 3. DPI Physical Inventory Transactions 16 April 2004 Revised 3/2006 . This updates the inventory and financial information for the plant. Review the items for Difference amount and neg. Enter: . Click . dff. Select the Group by phys. use transaction MI05 to change the inventory count entered before completing the rest of this process. diff. Status for each material is “Counted”. 7. If errors are detected. enter transaction code MI20. From the SAP R/3 System screen. 1. Click the Phys. The Status of Physical Inventory It dialog box displays. 8. 5. 2. Click (on the dialog box). (process one document at a time or enter a range of physical inventory documents) 4. Click all the checkboxes.

14. Click or press Enter. If multiple documents were selected. 12. Click .10. Phys. Click to exit this transaction. Repeat steps 8 – 11 for each inventory document. Click to select all items. Record this number. field. Differences XXXXXXXXX: Selection Screen displays. Inventory doc. doc. Click to update inventory counts. 13. 49XXXXXXXX. Posting must be done separately for each document. Differences: Initial Screen displays. to post the inventory count. XXXXXXXXX posted with m. to post differences. Continue review the document and click processing all documents until the List of Inventory Differences screen displays. DPI Physical Inventory Transactions 17 April 2004 Revised 3/2006 . The Post Inv. the next physical inventory document number will appear in the Phys. Doc. The following message Click displays: “Diffs. Inv. The Post Inv. 11.

(process one document at a time or enter a range of physical inventory documents) Click the Phys. Inv. Make corrections and rerun transaction MI20 until the appropriate status displays. The status should read “Counted. adjusted” or “Counted. Inventory doc. radio button on the List display section of the screen. The List of Inventory Differences screen displays. 3. If the status reads “Not yet Counted”. recounted”. Click . Inventory items checkbox under Status selection for. Review the Inv. 2.Phys. Select the Group by phys. Enter : . Click to exit this transaction. Status column. Click . 9. The List of Inventory Differences screen displays. 6. 5. 1. Click or press Enter. enter transaction code MI20. Click all the checkboxes. 4.Inventory Completion Check MI20 Use this transaction to review the list of inventory differences and verify the status of each line item. The Status of Physical Inventory Items dialog box displays. DPI Physical Inventory Transactions 18 April 2004 Revised 3/2006 . 7. From the SAP R/3 System screen. the process is incomplete. Doc. 8.

Follow standard printing procedures. Inventory items checkbox under Status Selection for. Click the Phys. Inv.Phys. Click . Doc. The Status of Physical Inventory Items dialog box displays. Click . Inventory doc. 4. Click Enter: . Click all the checkboxes. or press Enter. The List of Inventory Differences screen displays. You may total the columns by highlighting the column heading and clicking the icon. 5. Click . 11. 7. 6. enter the transaction code MI20. Select the Group by phys. 2. 8. Click to exit this transaction. The Print dialog box displays. 1. (process one document at a time or enter a range of physical inventory documents). 10. From the SAP R/3 System screen. 3.Print List of Inventory Differences MI20 Use this transaction to print the list of inventory differences. The List of Inventory Differences screen displays. 9. Attach this printout to the physical inventory document. DPI Physical Inventory Transactions 19 April 2004 Revised 3/2006 . radio button on the List display section of the screen.

Time of entry . The Display Material Document XXXXXXXXXX: Details xxxx/xxxx displays. Movement type 702 is caused by the actual amount inventoried being less than the book (SAP) inventory. .Data entered by Return to “Overview” screen. DPI Physical Inventory Transactions 20 April 2004 Revised 3/2006 3. Click on .Posting date of the document . Click or press Enter. by clicking on green arrow. Click or press Enter. 2.View Results of Inventory Reconciliation MB03 Use this transaction to display the material document generated by posting the inventory count.Document date . 4. The Display Material Document: Initial Screen displays. The Display Material Document XXXXXXXXXX: Overview screen displays.Transaction Type . enter transaction code MB03. Movement type 701is caused by the actual amount inventoried being greater than the book (SAP) inventory. From the SAP R/3 System screen.Fiscal year . System generates a Goods Issue deducting the difference from the book inventory. 1. Enter Material Document number. . enter line item to be reviewed. 5. This screen displays general information about the Material Document. On Position Cursor dialog box. Click on . System generates a Goods Receipt adding the difference to the book inventory.

Also download ZMB21 to an Excel spreadsheet in order to provide data for the TD1 Annual Report.Transaction ZMB21 will show the current inventory after the physical inventory has been done. DPI Physical Inventory Transactions 21 April 2004 Revised 3/2006 . Print ZMB21 as your permanent record of your end of fiscal year inventory.