Simplifying Physical Inventory

Objective

After completing this lesson, you will be able to use the apps for creating inventory documents and entering count results

Overview

In SAP S/4HANA, there are various ways of simplifying physical inventory processing. This includes, for example, the grouping of individual steps of the physical inventory or the mass processing of physical inventory documents.

In the following, various simplification options are described in more detail:

  • Combinations of physical inventory phases

  • Possibilities for mass and automatic creation of physical inventory documents

  • Simplifications in entering count results

  • Use of batch input in the physical inventory

Combinations of Physical Inventory Phases

Simplifications in the Creation of Physical Inventory Documents

With the SAP Fiori apps Create Physical Inventory Documents and Job Scheduling and Mass Processing – Physical Inventory, you can reduce the effort of manually entering data when creating physical inventory documents.

SAP Fiori App Create Physical Inventory Documents

With this app, you can search for materials that are due for physical inventory and directly create inventory documents for them.

This image shows an SAP interface for creating physical inventory documents, featuring search and filter options for inventory management at a specific plant and storage location.

In the standard system, the filter criteria Posted to Stock (since S/4HANA 2023), Plant, Storage Location and Not Counted Since date are offered for the selection. You can also adapt filters by selecting other filter criteria, such as material type and material group, or the key figure goods issues since the last count.

The Search field in the filter area you use to find stock by material, batch, customer, or supplier IDs.

Caution

Do not choose time periods for your data analysis where the necessary data for goods issue or goods receipt, for example, is already part of the data aging process. No data from the data aging process can be considered in the data analysis of the Create Physical Inventory Documents app.

To create physical inventory documents using the app, in the results list select all entries for which a physical inventory document is to be created and choose Create Physical Inventory Documents button. As in the Create Physical Inventory Document transaction (MI01), physical inventory documents are always created per plant and storage location.

This image shows an SAP interface for setting up physical inventory documents, allowing users to define document structure, header data, and additional details for inventory management planning.

For creating the inventory documents, the following functions are also available:

  • Definition of an additional grouping level in the Split Documents by selection, to split documents by Storage Bin, Material, or Material Group

  • Specification of the Maximum Number of Items to define the maximum number of items in each new physical inventory document

  • Specification of Document Date, Planned Count Date and, for example, Physical Inventory Number

  • Setting of posting block and freezing of book inventory

SAP Fiori App Job Scheduling and Mass Processing – Physical Inventory

This SAP interface image displays the status of application jobs, including physical inventory document creation, with log details showing messages of success and information on recent job activities.

You use this app to create, schedule, and monitor jobs for the creation and printing of physical inventory documents. This way, you can ensure that inventory documents are created for the right materials at the right time. Ideally, you schedule these jobs in advance and for background processing.

When you create a new job, you first need to select a job template. You can define your own job templates or use one of the predefined job templates and then adapt them to your needs

  • In the predefined job template for annual physical inventory, the system schedules a physical inventory for all materials that have to be counted since the last run, for example, because you need to prepare the physical inventory that is due by the end of the fiscal year.

  • In the predefined job template for cycle counting, the system schedules all materials that have to be counted because a new counting cycle is due again, for example, for a monthly counting.

    Note

    For more information about cycle counting, see the "Applying Cycle Counting" lesson

  • In the predefined job template for printing physical inventory documents, the system schedules a background printing job for the selected physical inventory documents (mass printing).
This SAP interface image outlines the steps to schedule a physical inventory job, including selecting a template, setting scheduling options, and defining parameters such as plant, storage location, and more.

After selecting a job template and assigning a job name, in the Scheduling Options section, you define the start time and the recurrence pattern for the job.

Then, in the Parameter section, you specify further details for the selection of the stock management units to be inventoried and for the document creation. You can make the following entries in this section:

  • Process type (Annual Inventory, Cycle Counting or Printing)

  • Filter values for the selection of materials to be included in the physical inventory documents, or physical inventory documents which should be printed:

    For inventory document creation, for example, you can use the material number, plant, storage location, batch, material type, and material group as filter criteria. In addition, you can restrict the stock units to be included, for example, using the stock type or the stock quantity (greater than, equal to, or less than zero).

  • Data for the document header of the physical inventory documents to be created

    As in the Create Physical Inventory Documents app, here you specify, for example, the planned count date, physical inventory number, the maximum number of items per physical inventory document, and split criteria for physical inventory document creation.

Finally, you schedule your new job.

SAP Fiori App Manage Physical Inventory Count

This SAP interface allows users to manage physical inventory counts, with filter options for documents by status and plant. User-specific settings for activities, counting variance, and scanner settings are accessible.

With this app, you can select physical inventory documents and enter or change count results. You can also create a physical inventory document and enter the count results in one step (ad hoc counting).

You can search for physical inventory documents in the app using a variety of filter criteria. For example, the planned count date, the plant and the storage location, and the physical inventory number are available as filter criteria.

From the results list, you can navigate directly to the desired physical inventory document to enter the count result for uncounted items, or to change the count result for items that have already been counted. To simplify processing, all items are grouped in Uncounted or Counted at physical inventory document item level. In the case of zero count, enter the number 0 as the counted quantity. Otherwise, the app still interprets the item as uncounted.

Note

Unlike the transactions or the corresponding apps for entering physical inventory count results (MI04, MI05, MI08, MI09, MI10), in the Manage Physical Inventory Count app, you directly enter a quantity of zero as the result. The Zero Count indicator is not necessary in the app.

Via the user action menu, you can define a user-specific percentage for the deviation between the counted quantity and the book quantity, that the system uses to issue a warning message when saving the count result.

This image shows an SAP interface for managing physical inventory counts, where users can edit and enter count results for specific materials at a plant and storage location, with options to save and scan.

Manage Physical Inventory Count App and Integration of a Mobile Scanner

As a warehouse clerk, you can simplify finding physical inventory documents and then entering count results for physical inventory by using a scanner. This ensures fast and reliable data collection and the mapping to the appropriate material items in the physical inventory document.

There are two types of scanning options: internal smartphone camera or external barcode scanner. In the personalization area (User Action menu) you define which option you want to use.

Note

Barcode scanning requires a mobile device with a touch-sensitive display together with an SAP Fiori client.

Manual barcode entry is also supported by the app. However, this option should only be used if no scanner option is available.

Regardless of the scan method used, you have to enter the counted quantity manually.

There are different scenarios that you can map using the scan function. For example:

  • Scan of documents:

    You can scan a barcode containing the physical inventory document number of one of your documents. In the app, a message appears with the physical inventory document number. The app navigates to the detail page of the document that you have scanned and displays all items of this document.

  • Scan of materials:

    You can scan a barcode containing the material number of a material. In the app, a message appears with the material number. Then a dialog appears with a table that displays all the open documents that contain this material item. Now you can select the document with the material item you are interested in. The app navigates to the detail page of the document and displays only your selected item.

For more information about the app, the scan function and possible scenarios, see SAP Help Portal at SAP S/4HANA→Enterprise Business Applications→Supply Chain→Inventory→Inventory Management and Physical Inventory (MM-IM)→Fiori Apps in Inventory Management→Physical Inventory→Manage Physical Inventory Count.

Administration of Batch Input Sessions

This graphic contrasts SAP S/4HANA and external systems for managing physical inventory documents, highlighting processes like creating documents, setting inventory blocks, and posting differences versus count entry.

You can perform various steps of the physical inventory by using batch input sessions. Batch input is a standard procedure for transferring large amounts of data to an SAP system. The transaction process is simulated in this way. The data is transferred as if it had been entered online. The advantage of this procedure is that all transaction checks are performed, which ensures data consistency.

The batch input procedure is performed as follows:

  1. A batch input session containing all relevant data is generated.
  2. The batch input session is processed and the data it contains is imported into the SAP system.

Batch input is typically used for one-time import of data from a legacy system into a newly installed system. It is also used for periodic data transfers (hourly, daily) from non-SAP systems or legacy systems into a SAP system, in which all enterprise data is consolidated. Batch input offers the advantage of automating the process steps. With batch input, data is not manually entered.

To access the main menu of the batch input service, choose System→Services→Batch Input→Sessions (or call transaction SM35).

A batch input session consists of one or more transaction calls with the data to be processed by the transactions. Usually, the system does not perform the transactions in an interactive session. Consequently, a large volume of data can be imported in a very short time. Batch input sessions are usually started automatically, not manually.

In a physical inventory, this procedure can be used for the mass processing of data and for transferring count result data. 

Batch Input Sessions in Physical Inventory

Batch input sessions are differentiated between sessions that can only be run in the SAP system and those systems that transfer data from other systems.

The following sessions accept data from the SAP system:

  • Create physical inventory documents:

    To create physical inventory documents for batch input, materials that will be subject to the physical inventory are selected based on predefined selection criteria. When you run the session, the system creates the inventory documents.

    When batch input sessions are created, a distinction is made between normal stock (without special stock) and each type of special stock.

  • Create physical inventory documents for special procedures (cycle counting (CC), sample-based physical inventory):

    In the case of the CC procedure and the sample-based physical inventory, always generate physical inventory documents using the batch input procedure. With CC, the selections contain data such as the cycle-counting indicator (CC indicator) in the material master record.

    With sample-based physical inventory, the stock management units to be inventoried are determined using a random number generator and a session is created with this data.

  • Block material and freeze book inventory:

    The Physical Inventory Block and Freeze Book Inventory checkboxes can be selected and deselected in many physical inventory documents with batch input.

  • Set zero count:

    You can also select the Zero Count checkbox by using a batch input report. As a result, the zero count is set for all items of a physical inventory document for which no count result has been entered.

  • Post difference:

    After the difference has been analyzed in the list of differences, and if necessary, a recount triggered for individual items, the differences can be posted using the list. However, this procedure can unnecessarily overload system performance during the hours of operation. if materials are locked by other processes, the difference cannot be posted. For these reasons, you will want to post the differences by processing a batch input session.

Physical Inventory with Batch Input Sessions

Default Values for Batch Input in Customizing

In Customizing, you can define default values for the individual batch input reports that enable mass processing of data in the SAP system. For the Create Phys. Inventory Doc. w/o Special Stock report, for example, you can pre-assign default values for the session name, the planned count date, and the selection of stock types.

Go to Customizing, for Materials Management under Inventory Management and Physical Inventory→Physical Inventory→Default Values for Batch Input(OMCN) and then choose the relevant batch input report.

Create and Post Physical Inventory Documents in Simplified Way

ExerciseStart Exercise

Learning

SAP FacebookSAP YoutubeSAP LinkedIn