MM Physical Inventory

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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. Physical Inventory Business Process Procedure

2. Physical Inventory

2.1.PurposeThis scenario allows you to carry out a physical inventory of your companys warehouse stocksfor 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 forspecial stock. Inventory for a companys stock and for special stocks (such as consignmentstock at customer, external consignment stock from vendor, or returnable packaging) must betaken separately (in different physical inventory documents), however.

Note that the blocked stock returns and the stock in transfer cannot be inventoried. If these stocksare still to be counted in a physical inventory, you must transfer post these stocks to other stockscapable of inclusion in a physical inventory.

During the physical inventory the material is blocked for all other goods movements. The materialis only available again after the physical inventory count results have been recorded and thedifference, if any, has been posted. An accounting document is created when the difference isposted.

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

Transaction code MI01

2. On the Create Physical Inventory Document: Initial Screen, make the following entries:

Field name Description R/O/C User action and values Comment

Documentdate

O Todays date

Plannedcount date

O Todays date

Plant R

Storagelocation

R

Posting block R Select

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Batches w.del. flag

R Select

Button Enter

Note: The options Posting block and Freeze book inventory will be selected depending uponthe requirement. If Posting block is selected, no inventory postings can be made until thephysical inventory cycle gets completed. If Freeze book inventory is selected, the book stock willfreezed, until the physical inventory process gets completed. Inventory transactions can becarried out.

3. On the Create Physical Inventory Document: New Items Screen, make the following entries:


Material R Material Number Any Material

number in thesystem

Button Save

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Sav

e


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2.2.2. ResultDue to the delay between a material movement and the posting of that movement, there is ashort-term discrepancy between actual warehouse stock and book inventory. To avoid such adiscrepancy during physical inventory, you have blocked the materials for posting during thephysical 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. Procedure


SAP R/3 menu LogisticsMaterial ManagementPhysical Inventory

Inventory Count Enter


2. On the Enter Inventory Count: Initial Screen, make the following entries:


Physicalinventorydocument

O The above physicalinventory document number

If not defaulted

Fiscal year O This year

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Button R Enter

3. On the Enter Inventory Count XXXXX: Collect. ProcessingScreen, make the following

entries:


Quantity R Number(eg. 950) Enter theinventory countresults

Button R 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 beenposted. You only have to post the inventory differences.

2.4.2. Procedure


SAP R/3 menu LogisticsMaterial ManagementPhysical Inventory

Differences Post


2. On the Post Inv. Differences: Initial Screen, make the following entries:


Physicalinventorydocument

O The above physicalinventory document number

If not defaulted

Fiscal year O This year

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Button Enter

3. On the Post Inv, Difference XXXXX: Selection Screen, make the following entries:


Reason O Wrongly placedin storage

Button R Post Or Ctrl+S

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2.4.3. Result

When you post the physical inventory difference, the system creates a material document thatrecords the adjusted stock balances and an accounting document that contains the necessaryaccount activities.

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Documents

MM Physical Inventory