Configuring Cycle Counting

For each Cycle Counting (CC) indicator (A, B, C, and so on), you can define the inventory cycle in Customizing for inventory management and physical inventory: Physical Inventory→Cycle Counting.

You must define the following values for each indicator:

• Number of inventories in each year

  The number of inventories in each year is then used by the system to calculate the number of work days between the inventories (interval).

• Float time

  The float time is the time interval within which the inventory of a stock unit must be conducted.

• Percentage of the total value

  You determine the CC indicator using an ABC analysis.

For each plant, you must define CC indicators for the inventory. You can define different strategies in different plants.

To calculate the number of work days between two inventories, the system refers to the assigned factory calendar of the plant. Changes to the plant calendar after the calculation is made are not reflected in the interval.

To create the inventory documents, the system uses the interval length and not the number of inventories. If the calendar is changed, the indicators must be re-entered.

The Cycle Counting (CC) indicator is visible in the material master record in the Plant data /storage 1 level, or in the Product Master Data app in the storage location data. The data maintained in any of the views is relevant on plant level.

The CC indicator can be maintained manually or through the ABC analysis. The CC indicator defines that the material is subject to the CC method of inventory and at which time intervals a physical inventory is to be carried out for the material.

To keep the manually assigned CC indicator from being changed, you can fix (lock) the indicator.

• Define cycle counting indicators and set inventory frequency, float time, and value percentage for each indicator in Customizing.
• Assign cycle counting indicators per plant and adjust strategies as needed for different locations.
• The system calculates inventory intervals using the plant’s factory calendar and assigned indicator values.
• Maintain the cycle counting indicator in the material master; lock it to prevent manual changes if required.