Cycle Counting Inventory

Purpose

In cycle counting inventory, you enter your material stocks physically at regular intervals within a fiscal
year. By dividing materials into various classes (for example, A, B, C, D, and so on), you specify for those
materials at which intervals or cycles the inventory is to be performed. This allows you to make an
inventory fast-moving materials in your warehouse more often than slow-moving materials.

Prerequisites

You have used the cycle counting indicator to define material classes and corresponding inventory
cycles. For more information, see the Implementation Guide for Materials
Management under Inventory Management and Physical Inventory Physical Inventory Cycle
Counting .
You have assigned every material to be inventoried using cycle counting to a material class. You
make these assignments by setting the Cycle Counting indicator in the Storage view in the material
master.
In the Customizing for Warehouse Management under Activities Physical Inventory Define
Types per Storage Type , you have specified cycle counting as the inventory procedure for the
required storage type.

Note
When using cycle counting, the system only suggests materials for inventory within a storage type that
are marked with a cycle counting indicator.
If you want to inventory the other materials in this storage type as well, change the inventory procedure
temporarily for this storage type. You can then perform, for example, a Continuous Inventory.

Process Flow

1. Create and activate system inventory records.

1. Choose Logistics Logistics Execution Physical Inventory Physical Inventory Document
Create Cycle Counting .
2. This report searches for all materials in a storage type that are marked for cycle counting within a
given date interval, and it creates a list of storage bins to be inventoried.
3. Enter the required data, and define the time interval for the inventory.
4. Choose Execute.
5. The system proposes for the physical inventory, all storage bins that are to be inventoried by cycle
counting.
6. In the case of mixed storage, the system checks all quants and proposes those quants in the storage
type for inventory as soon as one of the quants is relevant for cycle counting. In this case the
message Several quantsappears.
7. To plan the inventory count for the suggested bins, choose List Post documents .
8. To activate the inventory documents immediately, choose Activate Documents.
1. Print the warehouse inventory list.
1. In the SAP Menu, choose Logistics Logistics Execution Internal Whse Processes Physical
Inventory In Warehouse Management Physical Inventory Document Print Warehouse Inventory
List .
2. Enter data as required.
3. If you only want to display the inventory document on the screen, deselect the Print List indicator.
1. Carry out the physical inventory.
2. Enter the count results in the WMS.
3. Process the inventory differences.
4. Enter the inventory differences in Inventory Management.
5. After the entire physical inventory is complete for the fiscal year, you reset the inventory data for
storage bins and storage quants using the RLREOLPQ report. In the next inventory period, you can
then perform a new physical inventory for these storage bins.

Note
You should not reset the quant data, since the reference to the inventory date is then lost, and the system
proposes too many bins for your next cycle counting inventory.
 Cycle Counting at Quant Level (Quant Inventory)

Use

In contrast to the cycle counting inventory , the cycle counting inventory at quant level is not based on
the storage bin, but rather on the individual quants in your warehouse.

Prerequisites

In Customizing for Warehouse Management under Activities Physical Inventory Define Types
per Storage Type , you have specified the inventory procedure for the required storage type as
continuous inventory using cycle counting.
You have assigned an existing or new number range interval for the quant inventory in Customizing
for Warehouse Management under Activities Physical Inventory Maintain Number Ranges .

Note
Regardless of the default values that you can specify in the Customizing for Warehouse Management
under Activities Physical Inventory Define Default Values for other inventory procedures, the
system always enters the material and the storage bin on the physical inventory document.

Features

If you use cycle counting inventory at quant level, the system does not set the inventory block for the
entire storage bin. It sets the block instead for the quant to be inventoried.
You count only the selected materials, not all materials in the storage bin. If you manage storage bins
with mixed storage, these storage bins are accessible for stock movements with other quants.
There can be open transfer orders for all materials that were not flagged for cycle counting in the
inventory document. You can also create transfer orders for these materials during the inventory.
The system saves the inventory data at quant level.

Caution
In a stock movement, if you move a quant from one storage bin to another, the system deletes the quant
in the source storage bin and creates a new quant in the destination storage bin.
Because the system stores the inventory data for the cycle counting inventory at quant level in the quant
data, any inventory data that you previously entered is lost in this type of stock transfer.

Activities
To create physical inventory documents at quant level for the cycle counting inventory,
choose Logistics Execution Internal Whse Processes Physical Inventory In Warehouse
Management Physical Inventory Document Create Cycle Counting or Cycle Counting per
Quant .
To obtain an evaluation about the progress of the cycle counting, choose Logistics
Execution Internal Whse Processes Information System Warehouse Physical Inventory With
Bin Inventory Management Evaluation of Quant Inventory .
If you generate inventory documents for the cycle counting inventory at quant level, these documents
are active immediately . In this case, you cannot schedule the physical inventory in advance by first
generating the inventory documents and activating them at a later point.
The system immediately blocks the affected quants for all other stock movements.
Transaction Flow

Use
http://help.sap.com/saphelp_47x200/helpdata/en/c6/f8406c4afa11d182b90000e829fbfe/frameset.htm

1. LT22 Display Open TOs

2. LT12 Confirm the Open TOs
3. LS12 Block Storage Type
4. LX26 Create CC Document
5. LX22 Inventory Overview
6. LI03n Display Inventory Document
7. LI04 Print Warehouse Inventory List
8. LI11n Enter Count Results
9. LI12n Change Cycle Count Results
10. LI14 Recount
11. LI20 Clear Diffenences at WM level
12. LI21 Clear Diffenences at IM level

Steps 1-3 are the preparatory for initiating a cycle count.

Since the inventory in a WM managed Sloc is "always supposed to" be in-sync with IM, once you carry
out the inventory at the WM level and you enter / clear off inventory differences in WM only, your storage
bin / quant level data gets updated, however you haven't as yet told the system how it should reconcile
the updated data ( happened as a result of WM inventory clearance) to tie / match up with inventory in IM
(at the Sloc level) . LI21 is what will do this for you. Hence sequentially, you carry out clearing in WM first
and then do the clearing in IM as well. Now, since WM changes reflect/update the data finally at the IM
level, so when you carry out WM inventory clearing (LI20) this will update system "only on the bin level"
NO FI docs are posted at this point.. And now when you go ahead and carry out the IM clearing, this is
where the actual stock level changes will be carried out and you will also get a material document and a
FI document posted as well.
After LI20, when trying to do LI21, I am getting the message " Clearing only from storage types with no
placement or removal strategy" and could NOT proceed further. How to close the cycle/process by doing
inventory at IM level.
Why I was unable to do LI21 or process at IM level..because the Differences posting should be done to
Storage Type 999 NOT to the storage Type in which WM Inventory is counted (which could be storage
type - 001 or 005 or 100 or 500, etc.)
Choose Logistics Logistics Execution Internal Whse Processes Physical Inventory In
Warehouse Management Clear Differences Inventory Management.

Enter the warehouse number and interim storage type for inventory differences.
In the standard system, storage type 999 is set up as the interim storage area for inventory differences.
Choose Program Execute.
The system displays a list of difference items that are planned for clearing to Inventory Management.
Select the bins that you want to clear.
Choose Clear or Save to post the differences from the WMS to Inventory Management (MM-IM).
The system displays a list of all material documents created.