Physical Inventory
Create By : Mohamed Bagha
Content Index
o Define a physical inventory
o Generate a physical inventory snapshot
o Generate physical inventory tags
o Record physical inventory tags
o Approve physical inventory tags
o Post physical inventory adjustments
Define a physical inventory
Click Supply chain Execution the then Inventory Management work area.
Physical Inventory
Click Manage Physical Inventories from the Counts task list in the
Inventory Management work area.
Create Physical Inventory
• Primary Details :
• *Name : Enter a unique physical inventory name.
• Description : Enter a unique physical inventory description.
• Exclude Negative Balances : Select this check box to exclude items
with a negative quantity from the snapshot.
• Exclude Zero Balances : Select this check box to exclude items with
zero quantity from the snapshot.
• Dynamic Tags Allowed : Select this check box to allow dynamic entry
of tags that you manually create. If you choose not to allow dynamic
tag entry, all tags must be generated before use.
Populate the Create Physical Inventory with the following information
Subinventories
• On the Create Physical Inventory page, specify the subinventories to count by
selecting on option for the Subinventories to Count field. You can choose
between these values:
• All: count all subinventories.
• Specific: specify the specific subinventories to count by clicking
the Select Subinventories button.
Approvals :
• *Approval Type :
• Always: All physical inventory adjustments required approval. If there isn't a discrepancy between
the count quantity and system quantity, no approval or on-hand updates for the item are
required.
• If out of tolerance: Approval is required only when the quantities differ from system quantities
beyond the defined tolerances.
• Allow: any adjustment to post without approval.
Tags:-
• Select the type of tag to create:
• Blank: tags contain no item information.
• Both: create blank and default tags.
• Default: creates a unique tag for every combination of item number, subinventory,
revision, locator, lot, and serial number that exists in the subinventories for the selected
physical inventory.
Generate Physical Inventory Snapshot
A snapshot represents the on-hand quantity of items in all subinventories of a
physical inventory at a specific time. Item counts captured in a snapshot are the
basis for all physical inventory adjustments. The snapshot is the baseline from
which physical counts are reconciled. Therefore, you must manually stop inbound
and outbound activities while taking a snapshot.
Record Physical Inventory Tags
• To record physical inventory tags, complete these steps:
• Click Record Physical Inventory Tags from the Counts task list in the Inventory
Management work area.
Search for and select a physical inventory
Record Blank Tags
Create dynamic tags when you are performing a physical inventory
count and find items for which tags have not been generated. Use
dynamic tags to record counts for these items.
Click Save and Close.
Approve Physical Inventory Adjustments
Click Approve Physical Inventory Tags from the Counts
task list in the Inventory Management work area
Search for and select a physical inventory
Click Actions and select one of the following:
• Approve
• Reject
• Reset to Pending
The warehouse or inventory manager then approves all adjustments. This
process consists of finding the out of tolerance adjustments, and either
approving them or rejecting them.
Post Physical Inventory Adjustments
- Post Physical Inventory Adjustments
• After entering all tag counts and approving adjustments that
need approval, the process is submitted and this automatically
posts physical inventory adjustments. A material transaction is
automatically created by adjusting the item quantity. It either
debits or credits the adjustment account. If any adjustment is
rejected, inventory does not change the system on-hand
quantity. If the snapshot of the system on–hand quantity and
the count of item match, no adjustment transaction is posted.