SAP Physical Inventory Tutorial: MI01, MI02, MI04, MI07
SAP Physical Inventory Tutorial: MI01, MI02, MI04, MI07
SAP Physical Inventory Tutorial: MI01, MI02, MI04, MI07
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To simplify the process, check the below diagram, these are the most common steps for
doing physical inventory (not only in SAP ERP).
(//cdn.guru99.com/images/sap/2013/05/052113_0558_36AllAboutP1.png)
Besides the legal reasons it is extremely helpful having the correct stock quantities in the
system matching the physical stock. Management can have the correct information on the
value of stock materials. ATP for sales is correct. MRP is done using the correct input
parameters (material stock quantities).
Not having the correct stock levels in the system means quite the opposite. Management
has the wrong picture on the financial aspect of the stock in possession. ATP uses the wrong
data (sales might not be able to sell something physically on stock but not existing in the
system, or system might allow selling something that isn't physically present in the
warehouse). MRP is inaccurate (production planning and other material planning processes
might be in a big problem as they are required to calculate the needs for
production/procurement based on stock levels and several other information).
Now you see that having a clear and correct stock levels is of immense importance for a lot
of processes in a company. Now you will see how physical inventory is done in MM module.
Periodic inventory
Continuous inventory
Cycle counting
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).
Continuous 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.
Cycle counting 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
CC phys. Inv. Ind. Inventory sampling Only a number of 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 a 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.
We will explore the most common – annual inventory option in the following topic.
Crea ng Physical Inventory Document
The following procedure can be used in creating and processing of the physical inventory
document.
Step 1)
(//cdn.guru99.com/images/sap/2013/05/052113_0558_36AllAboutP2.png)
Step 2)
1. Enter the material number(s) you want to include in this physical inventory document.
2. Save the transaction data.
(//cdn.guru99.com/images/sap/2013/05/052113_0558_36AllAboutP3.png)
You will be informed of the newly created physical inventory document number.
(//cdn.guru99.com/images/sap/2013/05/052113_0558_36AllAboutP4.png)
Step 3)
Optional step.
1. Execute the transaction MI02 to make changes to the document (if needed).
2. Double click the item if you want to check if the counting has already been done.ž
3. If you need to delete the document, you can set the deletion indicator.
(//cdn.guru99.com/images/sap/2013/05/052113_0558_36AllAboutP5.png)
Step 4)
Optional step.
1. You can see in the item level that our material has not yet been counted.
(//cdn.guru99.com/images/sap/2013/05/052113_0558_36AllAboutP6.png)
Step 5)
Optional step.
1. On header level, you can edit the data entered during the creation of the physical
inventory document.
(//cdn.guru99.com/images/sap/2013/05/052113_0558_36AllAboutP7.png)
You are now finished with creating (and changing the physical inventory document). You can
display the document with MI03 transaction code.
Entering the Coun ng 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)
(//cdn.guru99.com/images/sap/2013/05/052113_0558_36AllAboutP8.png)
Step 2)
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.
(//cdn.guru99.com/images/sap/2013/05/052113_0558_36AllAboutP10.png)
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.
Step 1)
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.
(//cdn.guru99.com/images/sap/2013/05/052113_0558_36AllAboutP12.png)
We can see that our posting is done by creating the resulting material document
4900547510.
(//cdn.guru99.com/images/sap/2013/05/052113_0558_36AllAboutP13.png)
Step 3)
Optional.
Rs. 27,999 Rs. 4,999 Rs. 27,999
(//cdn.guru99.com/images/sap/2013/05/052113_0558_36AllAboutP14.png)
For a reference of standard movement types, used for physical inventory, see the below
table.
(//cdn.guru99.com/images/sap/2013/05/052113_0558_36AllAboutP15.png)
You are done with physical inventory. You can now continue with regular warehouse
activities.
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