Physical Inventory General Process

Physical Inventory General ProcessPurpose The purpose of this page is to present the main steps of Physical Inventory Process, also highlighting Tables, Transactions, Customizing Settings and Examples. Overview  1. General  1.1 Description  1.2 Physical Inventory Processes  1.3 Tables and PI Indicators  1.4 Warehouse Management  2. Main Physical Inventory  2.1 Online transactions  2.1.1 Create physical inventory document (MI01)  2.1.2 Entering the Physical Inventory Count (MI04)  2.1.3 Post inventory differences (MI07)  2.1.4 Change and delete PI documents (MI02)  2.1.4.1 Changing PI documents  2.1.4.2 Delete PI document  2.1.5 Others  2.1.6 Customizing  2.2 Batch-Input  2.2.1 General  2.3 PI reporting  2.4 PI archiving  2.5 Others  3. Cycle Counting  3.1 General Procedure  3.1.1 General Steps Required for Cycle Counting  3.2 RMCBIN00 (transaction MIBC): ABC Analysis for Cycle Counting  3.3 RM07ICN1 (transaction MICN): Batch Input 'Create Phys. Inv.Docs. for CC'  4. Inventory sampling  4.1 Inventory sampling processes  4.1.1 Select stock management level  4.1.2 Stock population  4.1.3 Stratification  4.1.4 Random selection  4.1.5 Creation of PI documents  4.1.6 Update  4.1.7 Extrapolation  4.2 Example  4.3 Notes  5. Physical Inventory - Special features  5.1 Serial Numbers 1. General The Physical Inventory (PI) as a whole is divided into three parts, from which one includes the main PI process, another is the cycle-counting process and the third is the inventory sampling process. The cycle-counting and the inventory sampling processes are only special ways to create PI documents, afterwards the main PI processes are used. 1.1 Description Every company must carry out a physical inventory of its warehouse stocks at least once per fiscal year to balance its inventory. Various procedures can be implemented for this. The SAP System supports the following physical inventory procedures:  periodic inventory: In a periodic inventory, all stocks of the company are physically counted on the balance sheet key date. In this case, every material must be counted.  continuous inventory: With the continuous inventory procedure, stocks are counted continuously during the entire fiscal year. In this case, it is important to ensure that every material is physically counted at least once during the year. You can use the same transactions for 'continuous inventory' as for 'periodic inventory'. The only difference is, that you count a material more than one time per fiscal year.  cycle counting: Cycle counting is a method of physical inventory where inventory is counted at regular intervals within a fiscal year. These intervals (or cycles) depend on the cycle counting indicator set for the materials  inventory sampling: In inventory sampling, randomly selected stocks of the company are physically counted on the balance sheet key date. If the variances between the result of the count and the book inventory balance are small enough, it is presumed that the book inventory balances for the other stocks are correct. A PI document can only be created for the current FI year and for the previous FI year. The criterion in which FI year the PI document will be created depends on the (planned) count date. Please note, that as with a usual material posting, the PI difference for the previous FI year can only be posted until the first period of the new FI year. 1.2 Physical Inventory Processes 1. Create physical inventory document 2. Entering the Physical Inventory Count  Recount 3. Post inventory differences inventory ind. For example: MARD: SPERR Physical inventory blocking indicator: '' No physical inventory defined for material 'X' Due to phys.1. if SPERR = 'X' or 'A'. prev. material is blocked for movements 'A' Physical inventory not yet completed for material --> No physical inventory possible. inventory indicator for blocked stock in prev.. stock in qual. inventory ind.pd KZVLS Phys. These are used to monitor the PI status. inv. in current year KZILE Physical inventory indicator for restricted-use stock KZILS Physical inventory indicator for blocked stock KZVLL Physical inventory indicator for stock in previous year KZVLQ Phys.. period KZVLE Physical inventory ind. f. stock in qual.. . for restricted-use stock. KZILL Physical inventory indicator for whse stock in current year KZILQ Phys. in prev. insp. Period .3 Tables and PI indicators The related database tables for the PI documents are IKPF physical inventory document header-data ISEG physical inventory document segments Key-fields are MANDT Client IBLNR Physical inventory document number GJAHR Fiscal year (ZEILI Line number) only ISEG In every stock table there are indicators for the PI process. insp. f. 3 Warehouse Management The PI process in the warehouse management is totally different from the PI process in materials management.1 Online transactions MI01 Create physical inventory document . DLINL Date of last physical inventory for unrestricted-use stock . With transaction LI21 (Clearing of differences in inventory management).718 will be used to post the differences.5 with call transaction MB11).. 2. MDJIN Fiscal year of current physical inventory indicator For all these fields: If the physical inventory still has to be taken in the current year:  Physical inventory still has to be taken: _ _ _  Physical inventory still has to be completed: _ X _  Posting block is set in active document: X _ If the physical inv. has already been taken in the current year:  Physical inventory has been taken: _ _ X  Physical inventory is active again: X X _  Posting block is set in active document: X X X --> No physical inventory possible. Also a MM PI document can not be created for a storage location for which one the warehouse management is active.. that during the posting an PI document will be created in the background. Attention: This indicator will only work for the movement types 711-718 and should not be used for other movement types. In the customizing for the movement types (table T156-XINVB) you can set an indicator. The movement types 711 . Main Physical Inventory The main PI can also be divided into  the online transactions to create and process PI documents  the batch-input transactions to create PI documents  the PI reporting 2. the PI differences in warehouse management will be posted with our function 'MB_CREATE_GOODSMOVEMENT' (before release 4. if 'X' 'XX_' '_XX' or 'XXX' 1. external consignment stock from vendor or returnable packaging) must be taken separately (in different physical inventory documents).  A material for which a goods movement has taken place and for which the stock balance is currently zero.  Physical inventory takes place at storage location level. consignment stock at customer.  Freeze book inventory: This indicator has the effect that the current book inventory balance is recorded in the physical inventory document. . The system compares the counted stock with the frozen book inventory balance to determine any inventory differences. A physical inventory must be carried out in this case. It is therefore not possible to carry out a physical inventory for the material in this storage location. Count and Differences(MI01 + MI04 + MI07) MI11 Recount 2.. MSKU. The material. Inventory for a company's stock and for special stocks (such as. MCHB.) and writes this in ISEG-BUCHM.  If no storage location segment exists for a material. has never had any stock at the storage location and does not exist at stock management level in the storage location.  Posting block: Indicates that no goods movements involving the materials listed in the physical inventory document can be posted until the count results are posted.  a physical inventory can be carried out for the following stock types:  1 unrestricted-use stock in the warehouse  2 quality inspection stock  4 blocked stock If you want to create a physical inventory document for a material.1 Create physical inventory document (MI01)  Physical inventory can be carried out both for a company's own stock and for special stock. Example: Physical inventory for a (non batch management) material .. this means that no goods movement has ever taken place for the material in the storage location. MI02 Change physical inventory document MI03 Display physical inventory document MI04 Entering the Physical Inventory Count MI05 Change count MI06 Display count MI07 Post inventory differences MI08 Post Count and differences (MI04 + MI07) MI09 Enter count without reference to a document (MI01 + MI04) MI10 Post document. therefore. The program reads the actual warehouse stock (table MARD.1. A separate physical inventory document is created for every storage location. the system checks the PI indicators. (no posting block) Determination of the PI difference --> note 202834 Determ. --> system analysis storage location data in table MARD.inv.  If there was no 'Freeze book inventory' before. dif. diff.3 Post inventory differences (MI07)  When you post the physical inventory difference.inv. the system creates a material document that records the adjusted stock balances and an accounting document that contains the necessary account activities.) 704: GI phys. dif.differences . for blocked stock) 708: GI phys. diff. ==> After entering the count results: You are able to post goods movements for this material.inv. dif. (stock type 2) (positive phys.inv.: blocked stock (stock type 4)(positive phys.ISEG-BUCHM  Physical inventory indicator will be updated: Example: Create a physical inventory document MARD-SPERR = 'X' MARD-KZILL = 'XX_' Count the material: MARD-SPERR = 'A' MARD-KZILL = 'X'. if 'X' 'XX_' '_XX' or 'XXX'.  Movement types in material document: 701: GR phys.: blocked stock (stock type 4)(negative phys. 2. of book quantity within physical inventory 2.inv.1.inv.inv.) 707: GR phys.: quality insp. for quality insp.: unrestricted stock (stock type 1) (positive phys. diff.inv. --> Physical inventory difference = ISEG-MENGE . for quality insp.2 Entering the Physical Inventory Count (MI04) You have to enter the count results for each item in a physical inventory document.1.  The posting block is automatically cancelled when you post the counting results for the physical inventory document.inv. --> No physical inventory possible. (stock type 2) (negative phys.: unrestricted stock (stock type 1) (negative phys. the system calculates the current book quantity and updates ISEG- BUCHM with this quantity. for unrestricted stock) 702: GI phys.inv. for blocked stock)  Physical inventory indicator will be updated: Example: Create a physical inventory document MARD-SPERR = 'X' MARD-KZILL = 'X X _' Count the material: MARD-SPERR = 'A' MARD-KZILL = '_ X _' Post inv.inv. for unrestricted stock) 703: GR phys.: quality insp.inv. alternative unit of measure.1.5 Others You can use MI08 Post Count and differences (MI04 + MI07) MI09 Enter count without reference to a document (MI01 + MI04) MI10 Post document.1. the delete indicator will be set.  Default values for physical inventory: Default values (at plant level) for stock type. batch in background. MI04 and MI07.4 Change and delete PI documents (MI02) 2.4. 2. Count and Differences (MI01 + MI04 + MI07) instead of MI01. required. MARD-SPERR = ' ' MARD-KZILL = '_ _ X' 2.4.1. Otherwise the whole document will be deleted from the database. reason for difference  Settings for physical inventory  Activate 'Change document' .1 Changing PI documents If the PI documents is not already counted.6 Customizing Transaction SPRO: > Materials Management > Inventory Management and Physical Inventory--> Physical Inventory:  Field selection for physical inventory: Field ISEG-GRUND (Reason for inventory diff.1.1.2 Delete PI document You can delete the whole PI document with transaction MI02. display. 2. you can change in the PI document  The planned count date  The document date  The posting block indicator  The freeze inventory indicator  The inventory number  The inventory reference  The stock type 2. hide. highlighted. when you enter the transaction and then press the garbage bag or you can set the delete indicator for each item! The logic behind the deletion: If the difference for an PI document is already posted.) can be changed to: Input. You will see message M7 145.  Allow freezing for book inventory balanced in storage location  Define tolerances for physical inventory differences Internal tables During debugging you will find information in these tables: YISEG physical inventory document segments (for checks) XISEG physical inventory document segments (filled with data from YISEG. Enter to continue. and with how many lines. Adjust book inv.2 days. Post the goods issue. on database). IKPF physical inventory header YDM07I Fields: Dialog Control for Module Pool SAPMM07I (physical inventory) YVM07I Fields for Update Control of Module Pool SAPMM07I (physical inventory) Breakpoints  MM07IFB0: In form 'beleg_buchen' you can set a breakpoint to see how the system will create/update the inventory document and material document.  4. when entering an inventory count: Indicator Display serial numbers  Whether. quantity = 900 PCs. Transaction MI03 -> Display the item details -> You should see 20 PCs (Diff. the system checks whether the goods movement would have affected the book inventory balance if the goods movement had been posted earlier.80 PCs (Count quantity) The "book quantity" was automatically adjusted in the physical inventory document.  2. plant 1000. Indicator Number of printed serial numbers lines  Default values for batch input  Maintain copy rules for reference documents  You can decide whether the positions in MI07 are pre-selected or not. Quantity) = 1000 PCs (Book quantity) . the book inventory balance in the physical inventory document and the inventory difference are adjusted by the amount of the goods movement. Indicator Inventory document printout with serial numbers  How many lines should be printed for serial numbers per physical inventory document item when printing physical inventory documents. Receive or Issue quantity to maintain a balance of 1000 PCs. If this is the case. Balance  When the indicator "Adjust book inventory balance" is set. serial numbers should be printed. Quantity) = 100 PCs (Book quantity) .  Serial numbers  Whether existing serial numbers should be displayed as input help in the dialog box for entering serial numbers.doc. storage location 0001.  1. Transaction MI01 -> Create a physical inventory document with "Freeze" book inventory  3. Example: Material XYZ. Transaction MB1A -> Post date = Count date . when printing physical inventory documents. . Transaction MI04 -> Enter a "Count" quantity of 80 PCs. Transaction MI03 -> Display the item details -> You should see 920 PCs (Diff.  6.80 PCs (Count quantity)  5. Used to update the physical inv. at Customer) MIO1 (Batch Input: Create Physical Inventory Documents for Mat. Pack. IF DIFFERENZ = X.2 Batch-Input MI31 (Batch Input: Create Physical Inventory Document without Special Stock) MIK1 (Batch Input: Create Physical Inventory Documents for Vendor Consignment) MIE1 (Batch Input: Create Physical Inventory Documents for Sales Order) MIQ1 (Batch Input: Create Physical Inventory Documents for Project) MIM1 (Batch Input: Create Physical Inventory Documents for Ret.doc. Pack. Transp...FORM BELEG_BUCHEN. to Vendor) .. 2.) MIW1 (Batch Input: Create Physical Inventory Documents for Consignment at Customer) MIV1 (Batch Input: Create Physical Inventory Documents for Ret. CALL FUNCTION 'MB_UPDATE_INVENTORY_DOCUMENT' IN UPDATE TASK EXPORTING <== Update/create physical inv. L_TM07I = TM07I TABLES XCM07I = XCM07I XIKPF = XIKPF XISEG = XISEG XVM07I = XVM07I ZIKPF = ZIKPF ZISEG = ZISEG OLD_ISEG = OLD_ISEG1 XMARV = XMARV. <== MI07: Post a difference and create a material document CALL FUNCTION 'MB_CREATE_INVENTORY_DIFFERENCE' EXPORTING BUDAT = IKPF-BUDAT BLDAT = IKPF-BLDAT MONAT = IKPF-MONAT MTM07I = TM07I CTCODE = L_TCODE SPERRE = INV_SHARED IMPORTING MBLNR = MKPF-MBLNR TABLES MDM07I = YDM07I MISEG = XISEG MVM07I = YVM07I M156W = X156W MLGISEG = LGISEG MLGDM07I = LGDM07I MLGVM07I = LGVM07I .. Prov. . MICN (Batch Input: Create Physical Inventory Documents for Cycle Counting) MI32 Batch Input: Block Material MI33 Batch Input: Freeze Book Inv.1 General With the above mentioned batch-input programs.Balance MI34 Batch Input: Enter Count MI35 Batch Input: Post Zero Stock Balance MI37 Batch Input: Post Differences MI38 Batch Input: Count and Differences MI39 Batch Input: Document and Count MI40 Batch Input: Doc. The selection criteria are:  material number  plant  (storage location)  material type  material group  storage bin description  deletion indicator also  materials with/without zero stock  materials with negative stock  FI year with the planed count date Depending on the PI indicators. 2. 2. the program selects materials for which one PI documents will be created. Count and Diff.. you can select the materials for which pyhsical inventory documents should be created.2.3 PI reporting MI20 List of Inventory Difference MI24 Physical Inventory Difference List MI21 Print Physical Inventory Document . posting) PI documents. Also within the reports MI20 and MI24. inv. The cycle counting indicator is used to group the materials together into various cycle counting categories (for example. MI22 Physical Inventory Document for Material MI23 Physical Inventory Data for Material MIDO Physical Inventory Overview MI12 Changes to Physical Inventory Document The PI reports are used to give an overview of the current PI status.1 General Procedure Mark all materials that are to be included in cycle counting with a cycle counting indicator in the material master record (storage data).4 PI archiving MI9A Analyze archived phy. Archive 2. C. 2. You can mark the materials as follows:  manually in the material master record (storage data)  automatically using ABC analysis . and D). Inv. Documents MIAL Inventory Documents: Read Archive MIAR Archive Phys. A.5 Others Also PI documents can be handled with BAPI's. These intervals (or cycles) depend on the cycle counting indicator set for the materials. Documents MIAV Manage Phys. for example. Cycle Counting Cycle counting is a method of physical inventory where inventory is counted at regular intervals within a fiscal year. Inv. Cycle Counting allows fast-moving items to be counted more frequently than slow-moving items. The time intervals at which the materials are counted are defined for each category. inv. the customer is able to process (counting. 3. Inv. 3. documents MIAD Delete Phys. please refer to the general documentation for the PI BAPI's (transaction BAPI). B. Doc. docs MI9R Archive phys. 2 RMCBIN00 (transaction MIBC): ABC Analysis for Cycle Counting The analysis takes into account the consumption (usage) or the requirements values of the selected materials for the desired time period. Customizing (Transaction OMCO): Table T159C 1. 3.1 General Steps Required for Cycle Counting  Marking Materials for Cycle Counting: In the material master record (storage data). 2. use program RMCBIN00. A physical inventory has been planned for a material for June. You can decide whether you want to analyze:  Only materials that have a cycle counting indicator  All materials (including materials that have no cycle counting indicator) During the analysis. you can have the system automatically update the cycle counting indicator in the material master record for the selected materials. To display all Materials for CC. use the program to create a batch input session for creating physical inventory documents. In this analysis. If a material needs to be counted. This program checks all cycle counting materials to determine whether a physical inventory is due to be carried out. You can also specify whether this analysis is to consider only the materials with cycle counting indicator or all materials.  CC fixed: MARC-CCFIX  Specifies that the cycle counting indicator cannot be changed for cycle counting by an ABC analysis. The cycle counting indicator can be updated automatically while the ABC analysis is run. the system assigns the materials to the individual categories according to consumption or requirements. On expiration of the float time (after June. maintain the cycle counting indicator for all materials to be included in cycle counting  Physical inventory indicator for cycle counting: MARC-ABCIN Indicates that the given material is subject to the cycle counting method of inventory. 3. TIP: Both fields are in table MARC (-> you set CC on plant level). Number of physical inventories per fiscal year: At least one physical inventory count per year has to be performed. run program RM07ICN1 at regular intervals. Example: for a plant the float time is 5 days. The report issues a list with the following information for each material:  Material number with short description  The cycle counting indicator obtained as a result of the analysis . 3. To perform an ABC analysis. The material will be included in the log in the next cycle counting run. Float time (workdays): Number of workdays by which the planned count date may vary from current date. you have to use SE16 for table MARC and select all entries with MARC-ABCIN not equal ' '. 6) the physical inventory has not been carried out. Define the allowed cycle counting indicators in the plant. 4. For the planning of cycle counting.1. Percentage of performance measure for cycle counting indicator. 1. the cycle counting indicator is assigned as follows:  The first 3 materials (sorted in descending order according to consumption) represent 50% of the consumption and have the indicator A. 200 materials are subject to the cycle counting physical inventory procedure. select * from t438a into table int_t438a. loop at wertetab. endloop. . <-. the following percentage allocation has been defined for the plant:  A materials: 50%  B materials: 25%  C materials: 15%  D materials: 10% In the cycle counting analysis. Get consumption or requirement values of selected materials .  The next 49 materials represent 15% of the consumption and have the indicator C. Previous cycle counting indicator Choose Edit -> Double-line to also display the consumption or requirements values for each line. Example: In the given plant. form menge_in_tab. clear int_t438a. Select all materials.. After completion of the analysis. In Customizing for Inventory Management. if xverbr ne space. . else. perform bedarf_lesen <-. refresh int_t438a.Requirement: call function 'VERBRAUCH_SUMMIEREN' modify wertetab. endloop.. the materials are sorted by consumption.Consumption: call function 'MCB_SELECT_REQUIREMENTS' modify wertetab.  The next 12 materials represent 25% of the consumption and have the indicator B..  The remaining 136 materials represent the rest (10%) of the consumption and have the indicator D. Coding: Main coding is include RMCBINCC_AL. 2. using view MCON form materialien_in_tab. loop at wertetab. perform verbrauch_lesen. . ... 1.. select * from mcon into table int_mcon where werks = werks and mtart in mtart and abcin ne space and lvorm = space. endif. endloop. endif. if ad_summe le int_t159c-k_ccdev <-.. 3.  It then lists the stock management units for which a physical inventory is already active. . but has not been completed within the predefined float time and therefore must be completed urgently. These stock management units are not included when the batch input session is created because active physical inventory documents already exist. loop at wertetab.. endif. endform. <-. endform. if wertetab-ccfix = true. ABC-Analysis . " Rundungsfehler korrigieren ad_summe = ad_summe_max. Entscheidend ist kum. wertetab-abcin_neu = int_t159c-abcin.Vergabe der ABCIN-Kz. 3. *-------. exit. Inv.Docs. wertetab-k_prozent = ad_summe.Set CC-indicator depending on % and not int_t159c-k_ccdev is initial.. endloop. wertetab-abcin_neu = wertetab-abcin. if ad_summe > ad_summe_max.. The system issues a list containing the following data:  It lists all stock management units for which no physical inventory documents can be created. . ad_summe = ad_summe + wertetab-prozent. else.Sort by value *-------.. modify wertetab. . for CC' This report only takes materials with cycle counting indicators into account. *-------.bei CCFIX = true: kein Ueberschreiben ABCIN ad_summe = 0.3 RM07ICN1 (transaction MICN): Batch Input 'Create Phys. %-Satz vor Add. form analyse_durchfuehren. wertetab-prozent = ( wertetab-k_wert / gesamtwert ) * 100. loop at int_t159c. wertetab-hlp_abcin_neu = int_t159c-abcin.. wertetab-hlp_abcin_neu = wertetab-abcin. endif.Materialien nach Wert sortiert sort wertetab by k_wert descending. Coding: 1. When the inventory differences are posted. If a physical inventory had already been due prior to the planned interval. the planned count date would be highlighted. Process the batch input session to create the physical inventory documents. the list contains all materials for which cycle counting is required within the planned interval (specified interval for the planned count date)... The planned count date is calculated as follows: Date of last physical inventory MARD-DLINL (Storage Location Data for Material) MCHB-CHDLL (Batch Stocks). 2.. 4. Inventory sampling . Carry out the physical inventory... V_MMIM_LC are used to select materials from database. the report takes the creation date (field ERSDA in tables above). . MSKU-KUDLL (Special Stocks with Customer) MSPR-PRDLL (Project Stock) + Physical inventory interval (in workdays) for cycle counting T159C-ININV = Planned count date TIP: If there was no physical inventory for the material (--> date of last physical inventory is initial). . READ TABLE XT159C WITH KEY T159C_KEY BINARY SEARCH. ABS_DLINL = ABS_DLINL + XT159C-ININV.. The physical inventory interval is defined for each cycle counting indicator in customizing. V_MMIM_LB. MSLB-LBDLL (Special Stocks with Vendor) MKOL-KODLL (Special Stocks from Vendor) MSKA-KADLL (Sales Order Stock). Select materials: (RM07ICN) The views V_MMIM_LN. Check date: (RM07ICN1) In form 'Inventurzyklus_pruefen' the planned count date is calculated . In addition. the actual count date is recorded in the physical inventory data of the material as the date of the last physical inventory. In Warehouse Management: The physical inventory is carried out through selection of the storage bins by warehouse number and storage type. The result is then applied to the entire quantity. the more costly it is to carry out a physical inventory by counting all stocks. the following prerequisites must be fulfilled: The size of the stock management units included in the physical inventory must be large enough. a complete physical inventory must be carried out for the stock management units not counted.R/2 MIS5 Create Inventory Sampling . If an inventory sampling is not successful. it is assumed that the estimated deviations from the book inventory balances are so small that they can be neglected. If an inventory sampling is successful. the system carries out an extrapolation for all the stock management units included in the physical inventory. MIS1 Create Inventory Sampling .Other systems Report RM07SBTC can be used to process the inventory sampling in the background. Statistical procedures are used for carrying out inventory sampling: A sample to be counted is randomly selected from the stock management units subject to physical inventory.R/3 MIS2 Change Inventory Sampling MIS3 Display Inventory Sampling MIS4 Create Inventory Sampling . material type. The only difference is the selection of the objects included in the physical inventory: Inventory Management: The physical inventory is carried out through selection of the materials by plant.This component reduces the time and cost of a physical inventory considerably by counting only the stock of individual materials and carrying out an extrapolation to arrive at an estimated count result for all units of stock managed in the ERP System (stock management units). The selection of stock management units to be counted must be "representative". only the stock of the elements actually counted is adjusted. The stock of the remaining stock management units remains unchanged. The more materials a company has. if there is only a small deviation between the extrapolated value and the book value and a high probability that the extrapolation result contains only a minor error. storage location. The principle of extrapolation during sample taking is also used in quality inspection in the ERP System: only one particular sample is inspected. Main program: SAPMM07S. As in the case of a "standard" physical inventory. The statistical parameters are (default values): . Inventory sampling can be carried out in the areas of Inventory Management and Warehouse Management. The steps required to carry out an inventory sampling are the same in both areas. The size of the sample depends on the degree of probability (probable degree of confidence) with which the extrapolated value inferred from individual counts is expected to be valid for all stock management units included in inventory sampling. The inventory sampling is considered successful. and stock type. To infer the counts for all stock management units by extrapolating the count results for individual units. On the basis of the posted count results. XVERR stands for element in the complete count area.1. Random selection 5. for which the inventory sampling will be created are selected. Stock population 3. 4. Extrapolation 4. the stock management levels (plant and storage location or storage number and storage type). rel. Probable degree of certainty 95. These elements will be marked in table SLGH. The table SBSE (Stock Mngmt Levels for Inventory Sampling) will be filled with this information. 4. 4. 4. the materials or storage bins that are participating in the inventory sampling process will be determined.2 Stock population (Form S1_LAGERGESAMTHEIT) In this step. statist. The table SLGH (Elements of Stock Population) will be filled. 4.1.00 % The SAP Inventory sampling process use the mean-value estimation. XSPEL stands for sampling element. Stratification 4. the elements that have to be counted will be determined.1 Select stock management level In this step. Select stock management level 2.1. Update 7. the participating elements will be sorted into classes and strati.4 Random selection (Form P3_ZUFALLSAUSWAHL) With a randomizer.00 % max. rel.1 Inventory sampling processes 1.1.1. error allowed 1. Creation of PI documents 6.00 % max.5 Creation of PI documents The PI documents will be created and are processed in the same manner as other PI documents. deviation allowed 2. 4.1.3 Stratification (Form P2_SCHICHTEINTEILUNG) Depending on the value.6 Update . The table SSCH (Strata of Inventory Sampling) will be populated. 4.5 Stratus 2 from 6 . the systems determines. if the status of the inventory sampling is successful. In the random selection. 4.7 Extrapolation (Form P5_HOCHRECHNUNG and P5_GESAMTFEHLER_BERECHNEN) With the parameters and the posted PI differences.1.5 In the step of the stratification. the following materials will be selected: XSPEL Stratus 1: 1 1 --> X . Probably subsequent random selection has to be made (P4_NACHERHEBUNG).10 In the first stratus the mean value is 3.(Form P4_AKTUALISIERUNG) Counted and difference posted PI documents will be detected and stored in table SLGH. in the second stratus the mean value is 8.2 Example A simple example for the functionality: There are 10 materials for which you want to perform an inventory sampling Material Value 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 10 10 The mean value for these materials are 55/10 = 5. the customer receives two strati: Stratus 1 from 0 . 2 2 3 3 --> X 4 4 5 5 --> X Stratus 2: 6 6 7 7 8 8 --> X 9 9 10 10 --> X Now you enter the PI count for these materials: Material Value after PI 1 1 3 4 5 4 8 8 10 6 After the update the extrapolation will be executed: XSPEL New Value Stratus 1: 1 1 --> X 1 2 2 6 3 --> X 4 7 4 8 5 --> X 4 Stratus 2: 6 6 7 7 8 8 --> X 8 . 9 9 10 10 --> X 6 --> Mean value of the random selected materials: Stratus 1 --> 3 Stratus 2 --> 7 Total --> 5 The maximal rel. To do this. immediately when entering the inventory count. Important notes describing the functionality of the inventory sampling process are: 086111 General note on the inventory sampling procedure 205519 Extrapolation and relative statistical error 216372 Inventory sampling in WM:Special features/document 336896 Certification of the inventory sampling 351013 Stratum to which stock element belongs not clear 5.5 <> 5 --> 9% The inventory sampling is not successful.3 Notes The SAP inventory sampling process is testified by Arthur Andersen. you can enter serial numbers during physical inventory for materials with serial number requirement. entering the count and posting differences in one step (MI10)  When changing the inventory count (MI05) When you enter or change an inventory count. . deviation is 5. Physical Inventory .6A. choose Goto -> Serial number. 4. This is possible for the following transactions:  When entering the inventory count (MI04)  When entering the inventory count without reference to a document (MI09)  When posting the count and differences in one step (MI08)  When creating an inventory document. Position your cursor on the line number whose serial numbers you want to change.1 Serial numbers From Release 4.Special features 5. you can edit the serial numbers entered for each item from the collective processing or overview screen by choosing Edit -> Change serial number. Note the following:  It is not possible to first enter the serial numbers and then to derive the counted stock from their number. You can display the serial numbers when displaying a physical inventory document item. 3 PC counted. Case 2: Positive quantity difference Material 4711. If these quantities are the same. Serial number inventory is performed for all materials with serial number requirement. a serial number profile must be entered containing the serialization procedure MMSL (Maintain goods receipt and goods issue document). you must maintain the following settings:  In the material master record. the system compares the counted quantity with the book quantity. because a positive physical inventory difference exits (--> 1 PC). MI08.  The stock check indicator in the serial number profile should be configured in such a way that an error message is displayed in the event of inconsistencies in inventory management. Case 3: Negative quantity difference Material 4711. book quantity 3 PC: Counted serial numbers Serial numbers in ERP stock 1 1 2 4 3 3 Post inventory difference (MI07. Moreover serial number 3 has to be assigned to material 4711. with the indicator for Serial number usage configured in such a way that serial numbers must be assigned. because the there is no quantity difference. 3 PC counted. MI10): There will be no material document created. 2 PC counted. book quantity 2 PC: Counted serial numbers Serial numbers in ERP stock 1 1 2 2 3 A material document will be created. This could be different for materials with serial numbers: Case 1: No quantity difference Material 4711. For this. but serial number 4 will be assigned to the material and serial number 2 will be unassigned from material 4711. The inspection lot comparison (stock type 2) with serial numbers is not supported. book quantity 3 PC: Counted serial numbers Serial numbers in ERP stock 1 1 . there is no physical inventory difference. Example If you perform a physical inventory for a material without serial numbers. We use table SER07 to save this information: [Table SER07 belongs to application 'serial number management'. 2 PC counted. Moreover serial numbers 2 and 3 have to be unassigned to material 4711.Counted serial numbers Serial numbers in ERP stock 2 2 3 A material document will be created. Moreover serial number 3 has to be unassigned to material 4711.] Field Short text MANDT Client (KEY-field) OBKNR Object list number (KEY-field) IBLNR Physical inventory document ZEILI Line number MJAHR Fiscal year OLTPI Object List Feature . because a negative physical inventory difference exits (--> -1 PC). Case 4: Combination of case 1 and 2/3 Material 4711. while serial number 4 has to be assigned to material 4711. because a negative physical inventory difference exits (--> -1 PC). book quantity 3 PC: Counted serial numbers Serial numbers in ERP stock 1 1 4 2 3 A material document will be created. Program Database tables As you saw in the example the system has to save the counted serial numbers and the serial numbers in the R/3-stock.Physical Inventory WERK Plant LAGERORT Storage location CHARGE Batch number BSTAR Stock type (physical inventory . These lines will be used to compare the serial numbers in stock and the counted ones at the time you post the physical inventory differences. ANZSN Number of serial numbers DATUM Date With the object list number you will find all serial numbers for a physical inventory document in table OBJK. MI05. MI09. Additionally the serial numbers of the R/3-stock have to be saved. These are the forms:  SERIALNUMBER_COUNT  SERIALNUMBER_POST  SERIALNUMBER_BOOK_INVENTORY  SERIALNUMBER_OBLIGATORY_CHECK  SERIALNUMBER_RENUMBER  SERIALNUMBER_DIFFERENCE  SERIALNUMBER_DELETE  SERIALNUMBER_NEW_POSITIONS  SERIALNUMBER_STATUS_UPDATE  SERIALNUMBER_STOCK_TYPE . MI10 and MI11. Form 'SERIALNUMBER_HANDLING' You will find the important part of the serial numbers source code in include MM07IFS1. The main form is named 'SERIALNUMBER_HANDLING'. In this case the system has to ensure. MI08. that after entering the counted quantity a popup appears. that a material requires serial numbers. In this form you can see what the program will do for each transaction: As you can see all important physical inventory transactions will use the form 'SERIALNUMBER_HANDLING': MI01. MI04. For each transaction there is a block of coding where forms are called to perform the needed steps. Field OLTPI could have to contents:  1: Serial numbers in R/3 stock  2: Counted serial numbers This means there will be two lines (they are called 'object lists') in tables SER07 for each item in a physical inventory document. MI07. Source Code The source code in MM-IM has the task to determine. where the serial numbers have to entered. The program will call this form for almost every transaction in the physical inventory. MI02.