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Physcial Inventory - SAP Implementation

Physical Inventory  Overview: Physical Inventory In SAP, physical inventory can be carried out both for a company’s own stock and ... thumbnail 1 summary

Physical Inventory

 Overview: Physical Inventory

In SAP, physical inventory can be carried out both for a company’s own stock and for special stock.

Stock returns in blocked state and the stock in transfer cannot be inventoried. If these stocks are still to be counted in a physical inventory, they must be transferred to a store where inventory can be carried out.

Physical inventory takes place at storage location level. A separate physical inventory document is created for every storage location.


SAP Recommended Process: Physical Inventory


Upon determination of the stock count date, the user will create a physical inventory document. The physical inventory document should contain:

·         the plant and storage location in which the count is to take place
·         when the count is to take place
·         which materials are to be counted 
·         which stock types are to be counted (the stock types are unrestricted stock, quality inspection stock and blocked stock)

The materials are blocked for posting during the inventory count. This is done so that no discrepancies occur between the actual warehouse stock and book inventory. The posting block is automatically cancelled when counting results for the physical inventory document are posted.

The physical inventory document is printed and distributed to the physical inventory team responsible for the count. All materials to be counted are to be written on the physical inventory document and then entered into the system.

If an error was made during counting, recount is to be initiated.

If the physical inventory is different from the book inventory, the correct quantity is to be entered and differences posted.

When the physical inventory difference is posted, the system creates a material document that records the adjusted stock balances and an accounting document that contains the necessary account activities.

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