Physical Inventory

Physical Inventory

 The physical inventory is carried out on the basis of stock management units.
 A stock management unit is uniquely defined by:
 Article
 Site, storage location
 Stock type
 Batch
 Special stock
 Each stock management unit of a Article is counted separately
 For example:
 you must record the quantities of :
 unrestricted-use stock, stock in quality inspection, and blocked stock of a Article at a storage
location of a site separately in each case.
Physical Inventory Cont.
 Physical Inventory Process in Three Phases
 1. Creation of physical inventory documents
 2. Entry of count
 3. Posting of inventory difference
Creation of physical inventory
documents
 First Create the physical inventory (PI) documents.
 Print out the documents in order to start the counting process.
 Second Enter the count results in the system in the second phase.
 System calculates the inventory differences.
 You can arrange for a recount of the stock in case of doubtful.
 In case of re-count, further PI documents are generated.
 Third you post the inventory differences that have been identified.
 The quantities and values of the stock are updated.
 The stock accounts are updated in FI.
Physical Inventory Document

 A physical inventory document contains data that includes:

 The site and storage location in which counting is to take place
 The date on which the count is to take place (planned count date)
 The Articles to be counted
 The stock types to be counted ( Blocked, Quality, Sales order stock, etc. )
 The status of the item
 The status of the PI document
Physical Inventory Document Cont.

 You create PI documents per site and storage location.

 If you wish to inventory special stocks, you create PI documents per : Site , storage
location, special stock.
 You can specify a physical inventory number in the document header.
 The physical inventory number facilitates selection of the PI documents.
 The status of an item indicates whether or not the item has been :
 Processed
 Counted
 Posted
 Recounted
Physical Inventory Document Cont.

 You can make the following changes to a PI document:

 In the document header
 Change the planned count date
 Set or unset the posting block
 Freeze book inventory
 Enter or change the physical inventory number
 In a not-yet-counted item
 Change the stock type
 Change the count unit of measure
 Set the deletion indicator
 Enter new items (as long as no count has yet been entered)
 Delete the document
Entering Physical Inventory Count

 You can analyze this difference via the list of differences.

 The list of differences contains the following information for each item:
 Quantity counted
 Book inventory
 Difference quantity
 Difference amount
Entering Physical Inventory Count
Cont.
 You can perform the following functions with the list of differences:
 Enter, change, display count
 Post the difference
 Display, change document
 Recount document or item
Posting the Difference

 You can post the inventory differences either via the list of differences or via
separate transactions.
 When an inventory difference is posted:
 System creates a Material document that corrects the stock figures
 Accounting document recording the necessary account movements.
 You can specify a reason for the inventory difference discovered for each
item.
 For example, you can record that a certain difference is due to damage.
Determination of Book Inventory

 When the count results are entered, the system determines the current book
inventory.
 If goods movements are posted during physical inventory :
 Incorrect physical inventory differences may arise.
 In this case, the book inventory at the time of the count does not match up.
 The SAP system provides two possible ways:
 Blocking Goods Movements
 Freezing Book Inventory
Blocking Goods Movement

 You can block all goods movements relating to a stock management unit for
the purposes of a physical inventory.

 The system blocks all the stock management units of the relevant PI
document by means of the Posting Block indicator in the document header.

 In the Article master, the block is displayed in the Physical Inventory Lock
indicator as X (Article is locked for movements due to physical inventory) in
the Storage Location Stock view.
Freezing Book Inventory

 If it is not possible to block the goods movement for organizational reasons,

you can freeze the book inventory in the PI document at the time of the
count.
 set the Freeze Book Inventory indicator in the PI document.
 This prevents goods movements from changing the book inventory figure that is
relevant to the inventory-taking process.
DEMO

DEMO