How to configure physical inventory in WM?

No need to do any configuration settings for Phy-Inv

LI01 - Create record

LI11n - inventory count
LI20 - clear differences(WM)
LI21 - Clear inventory (IM)

T.codes regarding warehouse management manual physical inventory process.

The Perform Physical Inventory process includes the activities listed below:

- Generate Count Documents

- Distribute Count Sheets
- Perform Count
- Perform Re-Count
- Enter Count
- Compare Count Results with System
- Clear Differences in WM
- Clear Differences IM

T Codes:

- Select range of locations to be counted – LX15

- Print Physical Inventory Document – LI04
- Enter Stock Take Quantity – LI11
- List & Select Recount bins – LI14
- Print Recount Inventory Document – LI04
- Enter Stock Take Quantity – LI11
- Clear Discrepancies in WM – LI20
- Clear Discrepancies in IM – LI21

T codes

LCO1 Set Up Warehouse Co/Material Docs.

LCO2 Set Up Warehouse Co/Transport Orders
LL01 Warehouse Activity Monitor
LS01 Create Warehouse Master Record LS01N Create Warehouse Master Record
LS02 Change Warehouse Master Record
LS02N Change Warehouse Master Record
LS03 Display Warehouse Master Record
LS03N Display Warehouse Master Record
LS26 Warehouse stocks per material
MB52 List of Warehouse Stocks on Hand OLML
Physical Inventory:

Physical stock is actual stock available in the plant / storage location & is the figure (Nos)
after physical counting is done.

Logical stock is the stock shown in the system at any point of time.

Following is the process of how to match the stock.

1. Creation of Physical Inventory document for which you want to match stock ( T code
MI01)

2. Entry of the physical count in the system (T code MI04)

3. Posting of inventory difference ( T code MI07)ea

AFTER POSTING INVENTORY difference THE QTY & VALUE BASED STOCK IS
UPDATED.STOCK ACCOUNTS ARE UPDATED.

You can do PI in IM as well as WM also.

Inventory Preparation:

MI31 Create Physical Inventory Documents in Batch

MI24 Display Physical Inventory List

MI02 Change Physical Inventory Document

MI21 Print Physical Inventory Documents

Process Inventory Results:

MI04 Enter Count Results

MI06 Display Count on individual Physical Inventory Document

MI05 Change Count on Existing Inventory Documents

MI11 Create Recount Document

MI20 Physical Inventory List/Post Differences

MI20 Inventory Completion Check

MI20 Print List of Inventory Differences

MB21 Reconciled Inventory Report

During the inventory you compare the physical (real situation) of your stocks (qty, batch,
location, etc) to the stock situation of your system. Maybe you have to do inventory once
a year because it is prescribed in the law but of course you can do inventory monthly, or
any time you feel it is necessary.

If you use WM the process may differ a little bit from the inventory process mention in
messages above.

Basic steps:

LI01N - create / activate inventory doc

(LI02N - activate)

LI11N - enter count result

LI20 - clear differences WM

LI21 - clear differences IM (please use interim storage type 999)

You have information on stocks in SAP - it's one thing.

Other side of the coin is that mistakes (wrong bookings, etc) can happen: some material
may have been moved from one bin into another if WH staff haven't kept the rules,
someone may have stolen something, you may have received a box with a label on it: 100
pcs and you later find out that the box contains only 98 pcs, etc.

So you may have several reasons why your stock level accuracy and the exact location of
your stock, etc may differ from the information stored in your system (SAP).

That's why sometimes it is necessary to make inventory to examine what is the reality
and what is the theoretical situation in SAP...

Or as I mentioned you may be forced by the law to make inventory once a year...

If your WH operates very well, then these kind of mistakes don't exist or the amount of
these mistakes are of very low level.
Physical Inventory of Handling Units
Purpose
Handling unit inventory was designed for the purposes of physical inventory in HU-managed
storage locations where conventional inventory management is not possible.

For storage locations where physical inventory can also be performed using the Warehouse
Management System, you should use the WM Inventory as long as no differences exist or
have been posted for multilevel handling units.

Process Flow
To perform a physical inventory for handling units, proceed as follows:

1. Create a HU physical inventory.

2. Enter the quantities counted for the handling unit
3. Check the inventory differences.
4. Clear the inventory differences for the handling unit in Inventory Management.

Creating a Physical Inventory

Use
The handling unit inventory is only designed for storage locations that are managed using
handling units. For all other storage locations you must use a conventional Inventory
Management physical inventory or the WM inventory.

Procedure
1. From the SAP menu, select Logistics  Central Functions  Handling Unit Management
 Physical Inventory  Create.
2. In the Handling Unit Selection area, enter at least the Plant and a Storage Location
that is HU-managed.

Restrict the selection of handling units further, since a selection restricted simply
to plant and storage location can require a long time, depending on the number
of existing handling units.

The other selection criteria are:

o Handling unit
o Packaging materials
o Material
 1. In the Add. Entries for Creating Inv. Documents area, you can enter the following
additional information as selection criteria for creating physical inventory documents:

o Only HUs that have never been inventoried

You decide whether the selection should select handling units that have
already been inventoried.

o Block HUs (set inventory status)

You decide whether the In Inventory status should be set for the handling
units that are included in a physical inventory document.

o Number of HUs for each inventory document

You can specify that handling units planned for inventory document
creation are distributed to several inventory documents. You can choose
between

 a maximum number of HUs per inventory document – the system creates

as many inventory documents as are needed to inventory all HUs. Each
inventory document only contains a certain number of HUs.
 a predefined, fixed number of inventory documents – the selected
handling units are distributed equally to the given number of inventory
documents.

o Physical inventory description – Text that is copied into the physical inventory to
create

You can define a default inventory description to group together several

inventory documents. This is not the number of the inventory document.
It is a text field that can be used in a later selection.

Select the type of display you would like for the selected handling units.
These are the same options you have in the HU monitor.

4. Select the required handling units and choose Physical Inventory  Create Physical
Inventory Document.

Result
The system creates one inventory document for the selected handling units.

Entering Count Results for Physical Inventory

Use
You can enter count results for HU physical inventory documents to store in the system the actual
quantities counted during the inventory for the relevant physical inventory documents. When
entering count results, you must enter for each handling unit whether the handling unit actually
exists. For the material items contained in the handling unit, enter the found quantity of the
material. If the material should be serialized, you must enter the counted serial numbers. The
system does not allow you to enter serial numbers that are not contained in the handling unit. You
can only change serial number data using the standard dialogs (to do this you must first delete
the handling unit from the physical inventory, see also: Editing the Physical Inventory).

Prerequisites
You must have created a physical inventory using the Create Physical Inventory function.

Procedure
1. From the SAP menu, select Logistics  Central Functions  Handling Unit Management
 Physical Inventory  Enter Quantities Counted.
2. In the Invent. area, enter the Inventory Document or the Physical Inventory.
3. Flag the relevant handling units as existent or non-existent.

If the handling unit exists, you can enter the exact number of the materials found
into the individual items.

You can find the following additional functions in the separate overviews:

o Pass on count to item

In the overview of all the highest-level handling units you can select the
Pass On Count to Item function. In this case, the count result for
the highest-level handling unit is passed on to the items for all selected
handling units. If you have reported a highest-level handling unit as being
existent, then all lower-level handling units also receive this indicator, and
the quantity counted for the material items is set to the quantity found in
the handling unit. This function is designed for handling units for which
no physical counts or changes can be made, because the handling unit
is vacuum-packed, for example. If you have reported the handling unit as
being non-existent, then at material level this is the same as a zero
count.

o Check your entries

A consistency check is performed in this function. Here the system

checks that when you enter a quantity at material level, the handling unit
which contains the material also exists, as there must be no unpacked
stock. The system also checks whether all inventory document items
were counted, or whether, for example, a handling unit was reported as
being existent but no entries were made for the material item.

o Enter serial numbers

In the overviews All Items and Handling Unit Details, you can select the
Enter Serial Numbers function. For serialized materials, the quantity
 field for entering the quantity counted is not ready for input. Therefore,
you must enter the counted serial numbers by selecting the item and
choosing Enter Serial Numbers.

4. Save your entries.

The inventory count can also be performed using the function module
HUINV_DOCUMENT_COUNTING. You can use this function module to
program your own count transaction, or you can use it as an interface to
another system.

Result
The physical inventory items were counted.

Analyzing Inventory Count Results

Use
For the counted inventory document items, you can evaluate the size of the relevant count
difference or see whether the count difference exceeds a specific value. To do this, you must
either enter a difference quantity as of which the item should be listed, or a difference value. The
two selection criteria are mutually exclusive. In other words, you cannot perform evaluations
according to both criteria simultaneously.

Prerequisites
You must have created a physical inventory using the Create Physical Inventory function, and
counted the inventory using Entering Count Results for Physical Inventory where inventory
differences occurred.

Procedure
1. From the SAP menu, select Logistics  Central Functions  Handling Unit Management
 Physical Inventory  Analysis of Differences.
2. In the Handling Unit Selection area, enter at least the Plant and a Storage Location
that is HU-managed.

Restrict the selection of handling units further, since a selection restricted simply
to plant and storage location can require a long time, depending on the number
of existing handling units.

The other selection criteria are:

o Physical inventory number

o Physical inventory
o Created on
 o Created by
o Material

You can also select other analysis criteria, such as whether you want to display
an evaluation for a quantity-based variance as a percentage, or an exceeded
value in a desired currency.

If you do not agree with the count result entry, you can use the Flag HU
for Recount indicator to flag handling units for a recount. To do this,
select the highest-level handling unit and choose Flag HU for
Recount. When you save the physical inventory document, you can
recount this handling unit using the Entering Count Results for Physical
Inventory function.

4. Save your entries.

Result
The physical inventory is released for clearing if differences occurred during entry of the quantity
counted.

To process the physical inventory you can also:

 Edit a HU physical inventory that has already been entered.

 Display a HU physical inventory that has already been entered.
 If you want to perform a repeat inventory for certain handling units, you can delete the
status "Physically Inventoried" for these handling units.

Editing the Physical Inventory

Use
You can use the edit inventory document functions to cancel individual handling units and remove
them from the physical inventory. You can delete individual handling units and the entire physical
inventory document. The items of the selected handling unit are updated with a deletion flag, and
the In Inventory status is deleted for the handling unit.

Prerequisites
You must have created a physical inventory using the Create Physical Inventory function.

Procedure
1. From the SAP menu, select Logistics  Central Functions  Handling Unit Management
 Physical Inventory  Change.
 2. In the Handling Unit Selection area, enter at least the Plant and a Storage Location
that is HU-managed.

Restrict the selection of handling units further, since a selection restricted simply
to plant and storage location can require a long time, depending on the number
of existing handling units.

The other selection criteria are:

o Physical inventory number

o Physical inventory
o Created on
o Created by
o Material

You can also select the following additional selection criteria in order to restrict
the results displayed:

o Display only completely counted documents

o Display only cleared documents

The selected handling units are displayed using the ALV Grid Control display.

4. If you want to delete an inventory document, select the required document and choose
Edit  Delete Inventory Document.

If you want to delete a handling unit from an inventory document, select the
desired handling unit and choose Flag HUs for Deletion.

5. Select Edit  Save.

Result
The selected inventory document or the selected handling unit was deleted.

Displaying the Physical Inventory

Use
You can display physical inventory documents and inventory document items, including canceled
(deleted) inventory items and items that were flagged as recount items after a count.

Prerequisites
You must have created a physical inventory using the Create Physical Inventory function.

Procedure
 1. From the SAP menu, select Logistics  Central Functions  Handling Unit Management
 Physical Inventory  Display.
2. In the Handling Unit Selection area, enter at least the Plant and a Storage Location
that is HU-managed.

Restrict the selection of handling units further, since a selection restricted simply
to plant and storage location can require a long time, depending on the number
of existing handling units.

The other selection criteria are:

o Physical inventory number

o Physical inventory
o Created on
o Created by
o Material

You can also select the following additional selection criteria in order to restrict
the results displayed:

o Display only completely counted documents

o Display only cleared documents

The selected handling units are displayed using the ALV Grid Control display.

Deleting the Status Physically Inventoried

Use
You can use this function to select handling units for which a physical inventory has already
occurred. You can then delete the status Physically Inventoried for the handling units in order to
perform a new physical inventory.

Prerequisites
You must have created a physical inventory using the Create Physical Inventory function, counted
the inventory items using Entering Count Results for Physical Inventory , released any inventory
differences found using the Analyzing Inventory Count Results function, and in Inventory
Management (IM) cleared the differences using Clearing Physical Inventory Differences so that
the handling units have the status Physically Inventoried.

Procedure
1. From the SAP menu, select Logistics  Central Functions  Handling Unit Management
 Physical Inventory  Delete Status PHYSICALLY INVENTORIED.
2. In the Handling Unit Selection area, enter at least the Plant and a Storage Location
that is HU-managed.
 Restrict the selection of handling units further, since a selection restricted simply
to plant and storage location can require a long time, depending on the number
of existing handling units.

The other selection criteria are:

o Handling unit
o Packaging materials
o Material

3. Select the required handling units and choose Physical Inventory  Physical Inventory
Status.
4. Save your entries.

Result
You can create a new physical inventory for the selected handling units.

Creating a Physical Inventory

Use
The handling unit inventory is only designed for storage locations that are managed using
handling units. For all other storage locations you must use a conventional Inventory
Management physical inventory or the WM inventory.

Procedure
1. From the SAP menu, select Logistics  Central Functions  Handling Unit Management
 Physical Inventory  Create.
2. In the Handling Unit Selection area, enter at least the Plant and a Storage Location
that is HU-managed.

Restrict the selection of handling units further, since a selection restricted simply
to plant and storage location can require a long time, depending on the number
of existing handling units.

The other selection criteria are:

o Handling unit
o Packaging materials
o Material

1. In the Add. Entries for Creating Inv. Documents area, you can enter the following
additional information as selection criteria for creating physical inventory documents:

o Only HUs that have never been inventoried

You decide whether the selection should select handling units that have
already been inventoried.
 o Block HUs (set inventory status)

You decide whether the In Inventory status should be set for the handling
units that are included in a physical inventory document.

o Number of HUs for each inventory document

You can specify that handling units planned for inventory document
creation are distributed to several inventory documents. You can choose
between

 a maximum number of HUs per inventory document – the system creates

as many inventory documents as are needed to inventory all HUs. Each
inventory document only contains a certain number of HUs.
 a predefined, fixed number of inventory documents – the selected
handling units are distributed equally to the given number of inventory
documents.

o Physical inventory description – Text that is copied into the physical inventory to
create

You can define a default inventory description to group together several

inventory documents. This is not the number of the inventory document.
It is a text field that can be used in a later selection.

Select the type of display you would like for the selected handling units.
These are the same options you have in the HU monitor.

4. Select the required handling units and choose Physical Inventory  Create Physical
Inventory Document.

Result
The system creates one inventory document for the selected handling units.

Differences for Multilevel and Serialized HUs in the WM Inventory

If differences occur for multilevel handling units, you can perform a physical inventory for the
handling unit using one of the following two methods:

1. Cancel the handling unit from the warehouse inventory and adjust the handling unit to the
actual situation using the Edit Handling Units function.

In this case, the stock difference is passed on to the non-HU-managed partner

storage location (in other words, you must adjust the stock using a physical
inventory for the non-HU-managed partner storage location).

2. Cancel the handling unit from the warehouse inventory, and adjust the handling unit using
a HU inventory.
In each case, to correct the handling unit you must delete it from the warehouse inventory
document. After you have corrected the handling unit, repeat the warehouse inventory for the
storage bins affected, since the HU inventory does not update any inventory data to the storage
bin.

Physical Inventory of Handling Units in the WMS

The WM inventory usually refers to the outermost handling unit (HU). Since this outer HU
corresponds to a storage unit, the inventory is executed in the WM system, as before. In the
inventory process, the system counts the material quantity or the storage units for each storage
bin.

If differences are noted during inventory, a difference HU is created for the difference quantity in
the differences storage type as the differences are picked from WM. The difference HU is the
basis for clearing out stock in inventory management. For more information, see WM
Inventory.

Result
The handling unit was physically inventoried.