basic Physical Inventory process

Physical Inventory Process

This document will help to understand the basic process of Physical Inventory and the steps that are required to perform in SAP. it will also help to understand the business terms that are use in Physical Inventory Process .

Why Physical Inventory is Needed

There are several reasons why an enterprise should inventory its stocks

In an Organization it is legal requirement to carry out a physical Inventory once in a year at regular intervals such as organization need to have correct stock quantity on hand.Inventory checks the stocks of material to establish the current assets that are listed in the company balance sheet. Incorrect Stock data can result in incorrect availability figures . It is very helpful for proper Material Planning.

   Basic Steps in Physical Inventory

1.     Creation of physical inventory documents

2.     Entry of count

3.     Posting of inventory difference

PI doc consist of 1.        The plant and storage location in which counting is to take place. 2.        The date on which the count is to take place (planned count date). 3.        Stock type to be counted and status of the item . P

                                                                       

Step 1. Creation Of Physical Inventory  doc PI doc

In the first phase, we  create the physical inventory (PI) documents. SAP

R/3 provides several procedures for the mass-generation of PI documents.

After selecting the stocks to be counted and creating the PI documents, you

print out the documents in order to start the counting process.

Transaction code – MI01

Go to transaction put the plant and storage location for which you want to create PI , if you want to do inventory for a special stock you need to select the special stock ( ex. K – vendor consignment , P- pipeline , Q- project ).

In the next screen

Input the material for which you need to perform physical inventory

Go to header

In the header you can provide the Planned count date  and save it .

Planned Count date - Indicates the date on which the physical inventory count is to take place

Posting Block Indicator -  if the posting block indicator is checked no goods movements involving the materials listed in the physical inventory document can be posted for the duration of a physical inventory count.

Freeze book Inventory – This indicator is checked when you have counted the stock but the count are not entered immediately due to this check any movement which take place that time will not change the book inventory balance  relevant to physical inventory.

Step 2.Enter the count

Here you enter the physical quantity you counted and save it ,after entering the count PI doc Counted status is X ( means counting has beed done in header of PI )

Transaction code – MI04

Stock in the system is 1000

Count - 1050

3.Post the difference – u need to post the difference if the stock in the system and during counting differ for a material .

Ex for material satya106

  Stock in the system – 1000 PC

 Counted during inventory – 1050 PC

  Difference – 50 PC

Transaction Code – MI07 or you can also use T transaction – MI20

Go to  MI20

Input – material number , plant , storage location and PI number and execute

All CategoriesBooksMobiles & AccessoriesComputersCamerasGames & ConsolesMusic, Movies & PostersHome Audio & MP3 PlayersBelts, Bags & LuggageHome & KitchenTVs & Video PlayersPens & StationeryWatchesBeauty & Health CareBaby CareToys