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cycle counting and annual inventory

Former Member
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Hi

As of now business was used annual inventory method.
now we want to use cycle counting process also (WM is activated).

please clarify the below questions:

1.while activating "cycle counting" checkbox in the system is there any impact to the business??
2.shall we use both anual counting and cycle counting methods??
3.Making the changes to master data for material, is there any obstacle preventing the change from current to new settings?
4.setting in the configuration in WM, anything preventing the change / pre-requisites?

5.What’s required as input from warehouse manager in the change request. Cycle counting plan for the warehouse?

6.We have Standard operating procedure for annual inventory that we need to change.Applying cycle count we need to be able to prove to an auditor that the materials are counted and differences are posted.the process summary End in the document provided is the start point for an auditor.
What is the standard best practice process for auditing?

please advice how to proceed further.

Regards

Accepted Solutions (1)

Accepted Solutions (1)

former_member198492
Contributor
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Hi

Annual inventory (ST) cannot be used as well as cycle counting (CC) for the same storage type.

You need to define the cycle count indicators

Typically A = count monthly, B = count bi-monthly, C = count 4 monthly and D = count annually.

Business needs should drive your data but typically fast moving and/or high value items have the setting of A (monthly) and the slow moving/obsolete stocks having a setting of D (annually). The rest are split between the Bs and Cs. You need to agree if the CC indicator is fixed in the material master or not. If not, you can run MIBC to automatically adjust the ABCD indicator based on company requirements/consumption.

You can mass update (MM17) the cycle count indicators in to the material masters and then run LICC or LX26 to generate your proposed count. Bear in mind that initially, everything with A will come up for counting. Just select a doable number of materials per day and things should sort themselves out after a few months.

PI records can be exported to show to auditors the frequency and accuracy of your counts.

We use both Continuous Inventory (PZ) and Cycle counting (CC) in our business

Regards

Darren

Answers (0)