Академический Документы
Профессиональный Документы
Культура Документы
Physical Inventory:
Physical Inventory is a business process in which physical stock is matched with book (system) stock. It is legal requirement
to carry out physical inventory at least once in a year.
Physical inventory can be carried out both for a company’s own stock (Unrestricted, Quality, Blocked Stock) and for special
stocks (Customer Consignment stock, Vendor consignment stock from vendor, Returnable packaging). This inventory is
carried out saperately for both type of stocks.
Several inventory processes available for physical inventory which includes as follow:
3. Cycle Counting
o In this method of physical inventory, inventory is counted at regular intervals within a fiscal year.
o These intervals (or cycles) depend on the cycle counting indicator set for the material in Material Master record as CC
indicator in plant view data.
o With this Cycle Counting Method of Physical Inventory allows fast-moving items to be counted more frequently than slow-
moving items.
4. Inventory Sampling
o Randomly selected stocks of the company are physically counted on the balance sheet key date.
o If found not much variance between the counted stock and the book book stock, it is presumed that the book inventory
balances for the other stocks are correct.
- 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
- 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.
- 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
- 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.
If material is managed with serial number then it is possible to carry out physical inventory for material with serial number.
There are some pre-requisite before you carry out physical inventory for serialized materials.