This is a description of the Physical inventory procedure to set up and carry out the different physical inventory methods.
Inventory Method
In SAP , the Physical inventory method is assigned at the Storage Type level [except in cycle counting]. All of the inventory methods are executed within the Storage Type.
Note: When you take annual inventory, the entire storage type is blocked for movement and all bins are counted.
Continuous and Annual Inventory
In Continuous inventory and Cycle counting, only the affected storage bins are blocked for movement. When you select continuous inventory, you are counting the bin and you must count all quants within that bin. When you select cycle count, you are infact counting the material, wherever that material is within the storage type/s selected. In the case of mixed storage, all quants within the bin must be counted. [A quant is the combination of Material and a Storage Bin]
When you clear differences in WM, any discrepant amount is written to the interim storage type for differences and the bins are unblocked. You then clear differences in IM to adjust the inventory balance and create the accounting document. Warehouse inventory data is year-dependent and must be reset at the beginning of a new inventory period.
The Continuous or Annual Physical inventory is distributed over the entire year. When it is carried out on a continuous basis, up to date information about the correspondence between the warehouse stock and the book inventory is always available.
Continuous Inventory and WM Cycle counting in the Warehouse Management system makes it possible for you to separate materials into classes (e.g A, B, C) and take inventory for each class separately several times throughout the year.
Configuration for Cycle Counting
- In the Inventory Management IMG under Physical Inventory, define the cycle counting indicators and the number of times per year that inventory counts are to be taken for each class.
- Enter the cycle count indicator (A, B, C) into the Storage View of the material master record for each material that will be counted using the cycle counting task.
Stock Placement and Removal:
The SAP system sets the inventory indicator for the storage bin the first time Stock Placement is done in the storage bin for that fiscal year. The indicator is set when the transfer order is confirmed. Transfer orders provide proof of movement following the inventory.
The transfer order for Stock Removal is printed with a notice that zero stock check is active for a specific bin. The zero stock check must be verified when the transfer order is confirmed. If the warehouse worker determines that the storage bin is not empty, the actual quantity remaining is entered at confirmation of the transfer order. The system carries out the correction of stock using the interim storage type for differences. The difference must be cleared from WM and recorded in IM.
Update in the Physical Inventory
During the update process, the SAP system reads the count results and reads any changed book inventory balances and book values.
