Scribd
Upload
10 views8 pages

Understanding Physical Inventory Types

Physical inventory is the process of verifying actual inventory quantities against those recorded in the SAP system, essential for accurate production planning and order fulfillment. There are several types of physical inventory including periodic, continuous, cyclic, and inventory sampling, each with its own methodology for counting stock. The document also outlines the steps for creating and managing physical inventory in SAP, including relevant transaction codes for various actions.

Uploaded by

Keerthana susmitha
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
10 views8 pages

Understanding Physical Inventory Types

Physical inventory is the process of verifying actual inventory quantities against those recorded in the SAP system, essential for accurate production planning and order fulfillment. There are several types of physical inventory including periodic, continuous, cyclic, and inventory sampling, each with its own methodology for counting stock. The document also outlines the steps for creating and managing physical inventory in SAP, including relevant transaction codes for various actions.

Uploaded by

Keerthana susmitha
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

PHYSICAL INVENTORY

Definition

Physical inventory is a process of determining that the inventory quantities are exact or if there are
difference in a quantity mentioned physically present and that mentioned in the SAP system.

Why?

Production planning and order fulfilment don’t work without precise inventory data.

Types of physical inventory

 Periodic inventory
 Continues inventory
 Cyclic inventory
 Inventory sampling

Periodic inventory

Most of the time companies use this kind of inventory. In most cases, it is done once a year, and
this kind of inventory is called annual physical inventory. That means that material stock is counted once a
year. Most of the times at the end of the year or after the season ends (in seasonal industries).

Continues Inventory

All materials are counted at some point in the year, but that can be at any day appointed for. So,
we can count some material in February, others in April and so on. A single material can be counted on a
single date. This type of inventory is mainly utilized in warehouse management-based warehouses, but it
can be done in inventory management too.

Cyclic inventory

This type of inventory allows us to set a period for regular intervals for physical inventory on the
material level. So, a fast moving and high value material can be counted four times a year while slow
moving and low value material can be counted once a year. The indicator for this is set in material master
in the Plant/Storage Location 1 View, in the field.

Inventory sampling

Only several randomly selected materials are counted on the balance sheet key date, and if those
materials show small enough differences, the other materials can also be considered to have correct stock
levels. Not really used that often, as it is essentially an approximation, but in some cases, it can be used if
material and warehouse structure imply that.

Let see the most common physical inventory periodic.

Creation of Physical inventory


T-Code: MI01

We have to add plant and storage location.

If we select posting block, it will stop the inventory posting in MIGO.

Enter material and save.

For verification we can try a GR posting in [Link] MIGO


When we tried to GR the material, it pop up the error message that the material is blocked due to a
physical inventory.

To take print out the request of physical inventory,

T-Code: MI21

Enter the required data and hit execute.


Select output device and select print preview.

Output preview

T-Code: MI04
Enter

Enter the quantity after physical inventory and save.

To see the difference and clear it

T-Code: MI07
Enter

In case of difference we have to add the reason , why it got shortage in physical inventory.

Due to shortage and reduction in material it created Material document.

We can view the material document

T-Code: MIGO
In displayMaterial document

You might also like