SAPMM Training

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SAP-MM Training

• Physical Inventory Cycle Counting

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Agenda

• Physical Inventory
• Cycle Counting

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What is Physical Inventory?

• Physical inventory is a process where a business
  stops all inventory transactions, and physically
  counts its entire inventory. A physical inventory
  may be mandated by financial accounting rules or
  the tax regulations to place an accurate value on
  the inventory, or the business may need to count
  inventory so component parts or raw materials can
  be restocked. Businesses may use several
  different tactics to minimize the disruption
  caused by physical inventory.
• Cycle counting, an alternative to physical
  inventory, may be less disruptive.

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Is It Different in SAP?

• Choose the storage location to be counted
• Create a physical inventory document
• Enter a count
• Reconcile the book to the physical
• Post the count

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How is Cycle Counting Different?

• Use the CC Indicator on the storage location view
  of the material master for automated material
  selection
• Create the physical inventory worksheet, based on
  the selection

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Are There Pre-Requisites?

• Material Masters must exist in the storage
  location
• For cycle counting, the material must have an
  indicator assigned at the storage location level

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What Are the Steps to Creating a Physical
Inventory?

• Create the Physical Inventory Document
• Enter the Count
• Review the differences
• Create a re-count worksheet, if necessary
• Post the differences

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What Are the Steps to Creating a Cycle Count?

• Generate the cycle count selection
• Create the Physical Inventory Document
• Enter the Count
• Review the differences
• Create a re-count worksheet, if necessary
• Post the differences

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What Are the Steps to Creating a Physical
Inventory?

• Create the Physical Inventory Document
• Enter the Count
• Review the
• differences
• Create a re-
• count worksheet,
• if necessary
• Post the
• differences

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How Do I Create a Physical Inventory Document?

• In SAP, you can get to the Physical Inventory
  Document Creation two ways
• Use the menu path
• Logistics -gtMaterials Management -gt
• Physical Inventory -gt
• Phys. Inventory Doc.
• -gt Create
• -OR-
• Use transaction code
• MI01 in the dialog box

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How Do I Create a Physical Inventory Document?

• Enter the plant and storage location to be
  inventoried
• The user may
• elect to block
• postings or freeze
• the book inventory
• here
• Press the create
• icon

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How Do I Create a Physical Inventory Document?

• Or go to MI31 to allow the system to create the
  physical inventory sheets

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How Do I Create a Physical Inventory Document?

• Creation of a physical inventory sheet

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How Do I Create a Physical Inventory Document?

• Output for inventory sheet

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Exercises

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How Do I Enter an Inventory Count?

• In SAP, you can get to entering the inventory
  count two ways
• Use the menu path
• Logistics -gtMaterials Management -gt
• Physical Inventory -gt
• Inventory Count -gt Enter
• -OR-
• Use transaction code
• MI04 in the dialog box

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How Do I Enter a Count?

• Enter the sheet for which counts are to be
  entered.

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How Do I Enter a Count?

• Inventory Counts Entered

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Exercises

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How Do I See the Results?

• Use the Differences List (MI20)

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How Do I See the Results?

• This report displays the book and actual counts

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What If There are Count Errors?

• The user can choose to re-count the item and
  re-enter the count on the existing worksheet, or
  post the accepted items and open a new worksheet
  for the recount.
• Re-count, use
• transaction MI11

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Exercises

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How Do I Complete an Inventory?

• In SAP, you can get to entering the inventory
  count two ways
• Use the menu path
• Logistics -gtMaterials Management -gt
• Physical Inventory -gt Difference
• -gt Post
• -OR-
• Use transaction code
• MI07 in the dialog box

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How Do I Complete an Inventory?

• Post Differences

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How Do I Know if My Worksheets are Closed?

• The system will indicate at posting that all
  items are posted.
• Check MI24 (Physical Inventory List) for any
  un-posted documents

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Exercises

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How is Cycle Counting Different?

• Assignment of Cycle Count Indicators

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How Are Cycle Count Indicators Generated?

• Use the Set CC Indicator transaction

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How Are Cycle Count Indicators Generated?

• CC indicator proposal list

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How Do I Accept the Values?

• Save the report.
• The values are assigned, in the background, to
  the storage view of the material master.

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Exercises

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How Are Items Selected for Cycle Count?

• Use the Document Creation for Cycle Counting

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How Are Items Selected for Cycle Count?

• Enter the selection criteria

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How Are Items Selected for Cycle Count?

• Listing of Items for Cycle Count

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How Are Items Selected for Cycle Count?

• Select the session and select Process.

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How Are Items Selected for Cycle Count?

• Physical inventory documents are created

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How Do I Get Help?

• If you run into problems with the materials
  covered in this training course or need
  additional information, you can contact your
  Campus Help Desk

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End of Inventory Management Physical Inventory
Cycle Count