Business Process Procedure

Icons

Icon Meaning
Caution

Example

Note

Recommendation

Syntax

Typographic Conventions

Type Style Description

Example text Words or characters that appear on the screen. These include field
names, screen titles, pushbuttons as well as menu names, paths and
options.
Cross-references to other documentation.
Example text Emphasized words or phrases in body text, titles of graphics and tables.
EXAMPLE TEXT Names of elements in the system. These include report names,
program names, transaction codes, table names, and individual key
words of a programming language, when surrounded by body text, for
example, SELECT and INCLUDE.
Example text Screen output. This includes file and directory names and their paths,
messages, source code, names of variables and parameters as well as
names of installation, upgrade and database tools.
EXAMPLE TEXT Keys on the keyboard, for example, function keys (such as F2) or the
ENTER key.

Example text Exact user entry. These are words or characters that you enter in the
system exactly as they appear in the documentation.
<Example text> Variable user entry. Pointed brackets indicate that you replace these
words and characters with appropriate entries.

Page 1 of 6
 Business Process Procedure

Abbreviations
R Required entry field
(used in the end-user procedures)
O Optional entry field
(used in the end-user procedures)
C Conditional field
(used in the end-user procedures)

Page 2 of 6
 Business Process Procedure

Contents

Sl No Description Page No

1 Purpose 4

2 Create a Physical Inventory Document 4

3 Enter Inventory Count Results 5

4 Post Differences 6

Page 3 of 6
 Business Process Procedure

Physical Inventory
1. Purpose
This scenario allows you to carry out a physical inventory of your company’s warehouse stocks for
balance sheet purposes. Various procedures can be implemented for this.
In SAP R/3, physical inventory can be carried out both for a company’s own stock and for special
stock. Inventory for a company’s stock and for special stocks (such as consignment stock at
customer, external consignment stock from vendor, or returnable packaging) must be taken separately
(in different physical inventory documents), however.

Note that the blocked stock returns and the stock in transfer cannot be inventoried. If these stocks are
still to be counted in a physical inventory, you must transfer post these stocks to other stocks capable
of inclusion in a physical inventory.

During the physical inventory the material is blocked for all other goods movements. The material is
only available again after the physical inventory count results have been recorded and the difference,
if any, has been posted. An accounting document is created when the difference is posted.

2. Create a Physical Inventory Document 

Procedure
1. Access the transaction choosing one of the following navigation options:
SAP R/3 menu Logistics  Material Management  Physical Inventory  Phys.
Inventory Doc.  Create
Transaction code MI01

2. On the Create Physical Inventory Document: Initial Screen, make the following
entries:
Field name Description R/ O/ C User action and values Comment
Document date O Today’s date

Planned count date O Today’s date

Plant R PM01

Page 4 of 6
 Business Process Procedure

Storage location R RAW

Posting block R Select

Batches w. del. flag R Select

Button Enter

3. On the Create Physical Inventory Document: New Items Screen, make the following entries:
Field name Description R/ O/ C User action and values Comment
Material R Material Number Any Material number in the
system
1000001
Button Save

Result
Due to the delay between a material movement and the posting of that movement, there is a short-
term discrepancy between actual warehouse stock and book inventory. To avoid such a discrepancy
during physical inventory, you have blocked the materials for posting during the physical inventory.

3. Enter Inventory Count Results

Use
During the inventory count, all the materials being inventoried are counted and entered physically.

Procedure
1. Access the transaction choosing one of the following navigation options:
SAP R/3 menu Logistics  Material Management  Physical Inventory 
Inventory Count  Enter
Transaction code MI04

2. On the Enter Inventory Count: Initial Screen, make the following entries:
Field name Description R/ O/ C User action and values Comment
Physical inventory O The above physical If not defaulted
document inventory document number

Fiscal year O 2005

Button R Enter

3. On the Enter Inventory Count XXXXX: Collect. Processing Screen, make the following entries:

Page 5 of 6
 Business Process Procedure

Field name Description R/ O/ C User action and values Comment

Quantity R Number (eg. 999) Enter the inventory count
results
Button R Save

4. Post Differences
Use
A physical inventory document has already been created, and the count has already been posted. You
only have to post the inventory differences.

Procedure
1. Access the transaction choosing one of the following navigation options:
SAP R/3 menu Logistics  Material Management  Physical Inventory 
Differences  Post
Transaction code MI07

2. On the Post Inv. Differences: Initial Screen, make the following entries:
Field name Description R/ O/ C User action and values Comment
Physical inventory O The above physical If not defaulted
document inventory document number

Fiscal year O This year

Button Enter

3. On the Post Inv, Difference XXXXX: Selection Screen, make the following entries:
Field name Description R/ O/ C User action and values Comment
Reason O Wrongly placed in storage
Button R Post Or Ctrl+S

Result
When you post the physical inventory difference, the system creates a material document that records
the adjusted stock balances and an accounting document that contains the necessary account
activities.

Page 6 of 6