physical inventory

[Former Member]

hi,

can anyone explain me the terminalology of physical inventory

[Former Member]

Hi

he physical inventory process can plan which material has to be counted at which storage location on which date. Stocks can be blocked for goods movements before begin of counting, measuring and weighting.

[Lakshmipathi]

Dear Divya

Check the link

[Physical Inventory |http://help.sap.com/saphelp_46c/helpdata/en/4d/2b8dae43ad11d189410000e829fbbd/frameset.htm]

Thanks

G. Lakshmipathi

[Former Member]

Physical Inventory is monitoring physically the available stocks as per the records and nothing more.

Where as Inventory Management is nothing but you are controlling your Inventory ( stocks) through MRP, timely Procurement, Issues, etc.

Physical Inventory is Monitoring where as Inventory Management is Controlling.

http://help.sap.com/saphelp_erp2005/helpdata/en/35/2cd77bd7705394e10000009b387c12/frameset.htm

http://help.sap.com/printdocu/core/Print46c/en/data/pdf/MMIM/MMIM.pdf

Reward if useful.

[Former Member]

Hi Divya,

Physical Inventory Process Cycle Flow

1. Creation of physical inventory document

- Physical inventory document(s) is created individually or using the batch program, click for more information

- The transaction codes for creation physical inventory are as follow

• Individual Inventory documetion creation

MI01 - Individual physical inventory creation

MIS1 - Inventory Sampling document creation

MICN - Cycle count inventory document creation

• Collective Inventory document creation

MI31 - Own stock without spcial stock

MIK1 - Vendor consignment

MIQ1 - Project stock

MIM1 - Returnable Transporation material

MIW1 - Customer Consignment stock

MIV1 - Returnable material with customer

MIO1 - Material provided to Vendor (Subcontracting material)

2. Print physical inventory document

- Physical Inventory document can be printed based on the physical inventory document status and or item status

- Transaction code MI21 is used to print the inventory document where print default value can be populated

3. Count the physical stock

- Based on the inventory doucmen printout, the warehouse person will check the stock of material physically and note that on print out. This is completely physical process.

4. Enter count in system

- On completion of physical count, the count result is needs to be entered in the system. This can be with reference (using Tcode MI04) or without reference (using Tcode MI04) to the physical inventory document.

- If count quantity for that material is ZERO then select ZC (zero count) column instead of putting 0 in qty field. If 0 is used for zero count then systm will consider that as "not counted"

5. Analyze difference

- Once count is posted in the sytem, difference analysis can be carried out using trasnaction MI20

- The output gives information based on the input criteria i.e. physical inventory document, plant, material etc.

- The output gives information about the book quantity, Counted quantity, difference in quantity and value.

- From this output list, you can carry out further process ie initiate recount, change count quantity, post difference

6. Initiate recount and follow the steps 3,4,5

- If found unacceptable difference, recount is initiated using directly from difference analysis list (transaction code MI20) or using transaction code MI11.

- New inventory document will be created for selected items or for entire document

- The original document items will be deactivated once recount is initiated so original document will not be available for further process.

- On initiating recount, you need to process same as for new count document.

7. Post the difference

- Several options are available for posting difference

- Post difference after count is posted using transaction code MI07

- Posting the count and inventory differences using transaction code MI08, here you have created physical inventory but not counted so with this you can count and post difference in sinle step.

- Entering the count without a document reference using trasnaction code MI10, with this you can create inventory document, enter the count and post difference in single step.

some more points for posting difference

- Posting period must be open to post inventory difference.

- The fiscal year is set by specifying a planned count date when creating a physical inventory document.

- Tolerence to crear difference per user group can be set in customization.

- The system will generate material document for the difference qty and post the value to appropriate account (for valuated stock)

- The movement type in material document will be 701 or 702 based on gain or loss of material.

Reward points pls.

Regards,

Govind.