Saturday, 11 June 2016

Physical Inventory

Entering the Counting Results

In the following topic, I will show you how you can enter the counting results in the physical inventory document.
The process is fairly easy, but it needs to be accurately executed because the error in entering the counting results in poor stock balances later. So, there is high need that the counting process as well as entering process both be accurate.
Step 1)
  1. Execute the transaction code MI04.
  2. Enter physical document number and fiscal year.
  3. Enter the counting date if it differs from the one suggested.
  4. Enter the variance percentage. This means that if you had 100 pcs on stock before the physical inventory process, and you enter 107 pieces as a counting result, you will be informed with a warning message of the difference between the previous stock quantity and the counted quantity.
    Press ENTER.
Step 2)
  1. Enter the quantity that is counted for this material.
  2. Press ENTER.
You will be informed that there is a quantity difference of 20 pcs, if you haven't made a mistake while entering the quantity, you can bypass the warning by pressing ENTER. If you made a mistake while entering the quantity, you can correct the entry (124 pcs in my case) and hit ENTER again.
If you get the warning message, and you think that there might be a mistake in the counting process, you can recount the item again and correct the results (check out MI05 transaction code, and MI11 if needed).
After I have corrected my entry to 124 pcs, I will save the transaction data.

Posting the Differences

After you have possibly recounted and reentered quantity information for problematic materials, you can post the differences by using the transaction MI07.
Step 1)
  1. Execute the transaction MI07.
  2. Enter your physical inventory and fiscal year.
  3. Enter posting date. Goods posting will be done according to this date. Some companies use 31.12. In the annual physical inventory as the last day of fiscal year.
  4. You can use the threshold value to enter the maximum allowed differences value in local currency. If you don't want a limit leave this field blank. In order for this to work, materials need to have the standard or variable price maintained.
  5. Press ENTER.
Step 2)
  1. You can see the difference quantity. This means that we have found 4 pieces more than it was previously stated in the system.
  2. Value isn't shown as our controlling/accounting department didn't yet release the prices for this material.This needs to be done in a production environment. You cannot post a difference of 4 pieces with the respective value of 0,00 Eur.
We can see that our posting is done by creating the resulting material document 4900547510.
Step 3)
Optional.
We can check the material document in MB03.
  1. We can see a quantity of 4 pcs in the material document.
  2. Movement type used for goods receipt from physical inventory difference posting is 701.
This means that 4 pieces are added to the inventory.
For a reference of standard movement types, used for physical inventory, see the below table.
  • 701 – Goods Receipt for unrestricted stock
  • 702 – Goods Issue for unrestricted stock
  • 703 – Goods Receipt for quality inspection stock
  • 704 – Goods Issue for quality inspection stock
  • 707 – Goods Receipt for blocked stock
  • 708 – Goods Issue for blocked stock
You are done with physical inventory. You can now continue with regular warehouse activities.

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