In this scope item, you can plan, conduct, and confirm regular counts of actual product quantities in the warehouse and compare the physical stock to the data in the system.
- You first create physical inventory documents for a chosen number of storage bins, or products, or based on cycle counting indicators.
- After the documents are created and printed, you count the stock in the warehouse.
- You enter the count result in the system and review discrepancies in the system quantities.
- By posting the PI documents, you adjust the book inventory in the storage bins, to align it with the physical inventory counts.
- The inventory may be recounted until final counts are accepted.
- Finally, inventory differences are posted, to reconcile stocks in the SAP S/4HANA Cloud Public Edition system.
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 relevant material. You can use the cycle counting approach, for example, to ensure that stocks of fast-moving items are checked more frequently than slow-moving items. The cycle-counting indicator and the intervals can be maintained through SSCUI.
Business Benefits
- Ensure an accurate accounting of the inventory in the warehouse.
- Leverage several physical inventory methods.
- Map your warehouse complex in the system down to a storage bin level.
- Improve visibility and control in warehouse processes.
Cycle-counting especially offers the following advantages:
- Less disruptive for warehouse operations.
- Improves operational efficiency, since (cycle) counting can be part of the daily, weekly, or monthly routine.
- Increases inventory accuracy, for example, fast movers can be counted more often.
Note
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Key Process Flows
For a graphical overview on the business process of the scope item Warehouse Physical Invenbory (3BX), refer to the SAP Signavio Process Navigator as described in the lesson The Impact of Warehouse Management.
- Variant 1: Create and print cycle counting document:
There are two variants of physical inventory counting described in this scenario. In the first variant, you create and print a physical inventory document for cycle counting. Cycle counting refers to products that are counted in certain intervals depending on their classification, for example, the turnover ratio.
Variant 2: Create and print counting document:In the second variant, you create and print a counting document for the annual physical inventory count. Other procedures, for example, ad-hoc counting, are possible as well.
- Enter count results:
After creation and printing of the counting documents, the counter carries out the counting activities and records the quantities in the system.
- Confirm inventory count results:
The counting results are confirmed by the person responsible for the physical inventory.
- Analyze and post differences:
If any differences arose during counting, they have to be posted for the storage bin level (warehouse management) and for the storage location level (inventory management). Posting requires the assignment to a tolerance group to be authorized for difference postings.
Business Roles and SAP Fiori Apps
The following SAP S/4HANA Cloud business roles are used for this scenario:
Warehouse Clerk (EWM)
Warehouse Operative (EWM)
The Roles and Apps Used in the Warehouse Physical Inventory (3BX) Scenario figure shows the roles and SAP Fiori apps involved in the process. While the warehouse clerk is responsible for the confirmation and the difference postings at the end of the process, the warehouse operative carries out and confirms the physical inventory activities in the warehouse.
Roles and Apps Used in the Warehouse Physical Inventory (3BX) Scenario
| Process Step | User Role | SAP Fiori App |
|---|---|---|
| Create and Print Cycle Counting Document | Warehouse Operative (EWM) | Create Inventory Documents - Cycle Counting |
| Create and Print Counting Document | Create Inventory Documents - Physical Inventory | |
| Enter Count Results | Warehouse Clerk (EWM) | Count Physical Inventory - Paper-Driven Counting |
| Confirm Inventory Count Results | Confirm Inventory Count Results | |
| Analyze Differences | Analyze Differences | |
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