USER PROCEDURE MANUAL

TABLE OF CONTENTS 1. 1. Physical Inventory Business Process Procedure.....................................2 2.1. Purpose...........................................................................................................2 2.2. Create a Physical Inventory Document ......................................................2 2.3. Enter Inventory Count Results....................................................................5 2.4. Post Differences............................................................................................8

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1.
2.

Physical Inventory Business Process Procedure Physical Inventory

2.1. Purpose
This scenario allows you to carry out a physical inventory of your companys 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 companys own stock and for special stock. Inventory for a companys 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.

2.2. Create a Physical Inventory Document

2.2.1. 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 MI01 Transaction code 2.

On the Create Physical Inventory Document: Initial Screen, make the following entries: Field name Document date Planned count date Plant Storage location Posting block Description R/ O/ C O O R R R Select User action and values Todays date Todays date Comment

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Batches w. del. flag Button

Select Enter

Note: The options Posting block and Freeze book inventory will be selected depending upon the requirement. If Posting block is selected, no inventory postings can be made until the physical inventory cycle gets completed. If Freeze book inventory is selected, the book stock will freezed, until the physical inventory process gets completed. Inventory transactions can be carried out. 3. On the Create Physical Inventory Document: New Items Screen, make the following entries: Field name Material Description R/ O/ C R User action and values Material Number Comment Any Material number in the system

Button

Save

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Sav e

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2.2.2.

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.

2.3. Enter Inventory Count Results

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

2.3.2.
1.

Procedure
Logistics Material Management Physical Inventory Inventory Count Enter MI04

Access the transaction choosing one of the following navigation options: SAP R/3 menu Transaction code

2.

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

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Button

Enter

3.

On the Enter Inventory Count XXXXX: Collect. Processing Screen, make the following entries: Field name Quantity Description R/ O/ C R User action and values Number (eg. 950) Comment Enter the inventory count results

Button

Save

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Sav e

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2.4. Post Differences

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

2.4.2.

Procedure

1. Access the transaction choosing one of the following navigation options: SAP R/3 menu Logistics Material Management Physical Inventory Differences Post MI07 Transaction code 2.

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

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Button

Enter

3.

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

Button

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2.4.3.

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.

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