Training Manual Materials Management TMM - 13 - Physical Inventory

Material Management
User training Manual Physical Inventory ECC 6.0
Training Manual
Materials Management
TMM_13– Physical Inventory

(Physical Inventory Document create, Count and Difference
Posting)
T-Systems Classification Date State Version Page

Systems Integration Confidential 17 October 2018 Released 2.0 Page 1 of 27
Material Management
Document Identification TMM13_Physical Inventory_V1.0
Process Area Process Organizational Unit
MM Physical Inventory Process Depok
VERSION CONTROL
Prepared by Renuka Gorthi
Date 24-Aug-2018
Reviewed by Mangesh Pote
Date 17-Oct-2018
Approved by
Date
RECORD OF CHANGES
Type: A = Added; M = Modified; D = Deleted; C = Created; F = Finalization
Date Version Create by Type Changed Items Description

24-Aug-2018 1.0 Renuka C Creation of document
10-Sep-2018 1.0 Renuka F Change in Update of Process Details

Document date
16-Oct-2018 2.0 Renuka F Enter Recount Review Comments regarding

Process Recount Incorporated

Material Management
Table of Contents
1. Process Overview............................................................................................................. 4
2. Key Data Element:............................................................................................................ 4
3. Process Specific Pre-requisites:.....................................................................................5
4. Process Scenario: Create Physical Inventory Document.............................................5
5. Process Scenario: Change Physical Inventory Document...........................................8
6. Process Scenario: Display Physical Inventory Document..........................................11
7. Process Scenario: Enter Inventory Count....................................................................14
8. Process Scenario: Enter Recount.................................................................................19
9. Process Scenario: Display Difference List...................................................................22
10. Process Scenario: Post difference document..............................................................24

Material Management
1. Process Overview
This component allows you to carry out a physical inventory of your company’s warehouse
stocks for balance sheet purposes. Various procedures can be implemented for this.
In SAP R/3, physical inventory can be carried out both for a company’s own stock and for
special stock. Inventory for a company’s stock and for special stocks (such as consignment
stock at customer, external consignment stock from vendor, or returnable packaging) must be
taken separately (in different physical inventory documents).
The counting can be done by 2 methods:
1. Block Method - Posting block due to physical inventory:
No goods movements involving the materials listed in the physical inventory document can be
posted for the duration of a physical inventory count.
2. Freeze Method – Freeze Book Inventory:
Book inventory balances of those items in a physical inventory document that have not yet been counted
are frozen. The system compares the counted stock with the frozen book inventory balance to determine
any inventory differences
2. Key Data Element:

Sr. No Key Data Element Value Comment
1 Company Code 1. 1105 1. PT RAGAMSEHAT MULTIFITA
2 Purchasing 1. 1000 1. Mitra Keluarga PORG

Organization
3 Plant 1. 1610 1. MIKA DEPOK

2. 1620 2. MIKA DEPOK RJ
3. 1000 3. MIKA HOLDING
4 Storage Location Excel file is attached with all storage location

for MIKA.
Storage
Location.xlsx

Material Management
3. Process Specific Pre-requisites:

Before a Physical Inventory Document can be created, the following information is required:
Material - Material (Product Code) master should be created
Org Structure Configuration – Company Code, Plant, Storage Location and all other Organization
Structure.
4. Process Scenario: Create Physical

Inventory Document
4.1 Process Step: Create Physical Inventory Document: Initial

Screen
This procedure explains the process steps in detail to create Physical Inventory Documents.
1.1.1 Access for Creating Physical Inventory Document
Logistics → Materials Management → Physical Inventory →

Easy Access Menu
Physical Inventory Document → Create
Transaction Code MI01
1.1.2 Procedure Specific Pre-requisites
1.1.3 Procedure Specific Master Data setup
1.1.4 Create Physical Inventory Document: Initial Screen
In the Physical Inventory creation initial screen, enter information in the fields which are applicable
for MIKA as specified in the table below:
Selection Screen: Enter the following information in the fields:
(Note: In the below table, column “R/O/C” represents “R”- Required, “O” – Optional, “C” – Conditional)

Material Management
Field Description R/O/C Values
Document date Date of PI document creation R 30.08.2018

Planned count date Date when counting is planned R 30.08.2018
Plant Plant code R 1610
Storage Location Storage Location code R FM05

Posting Block
Method of Phy Inventory Doc
Other Information O Freeze Book inventory
creation
Batches w. deletion flag
Drop down values can be seen by key F4 or clicking icon on the field.
Press enter or button to create the Physical Inventory Document.

Material Management
1.1.5 Create Physical Inventory Document: New Item
Enter Material and Batch and Stock type details in Create Physical inventory screen.
Material Material Code R 2400000065

Batch Batch Number O DUMMY
Shows the stock type for which a physical
Stock Type R 1
inventory is to be carried out
Note : The values of General tab are defaulted from Material master like Order Unit and
Conversion
Click on Post button to save the Physical Inventory Document
Physical Inventory document created with confirmation

Material Management
5. Process Scenario: Change Physical

Inventory Document
5.1 Process Step: Change Physical Inventory Document: Initial

Screen
This procedure explains the process steps in detail to change Physical Inventory Documents.
1.1.6 Access for Changing Physical Inventory Document

Easy Access Menu
Physical Inventory Document → Change
1.1.9 Change Physical Inventory Document: Initial Screen
In the Physical Inventory change initial screen, enter information in the fields which are applicable for
MIKA as specified in the table below:

Phys. Inventory Physical Inventory document
R 30.08.2018
Doc. number
Fiscal Year Fiscal Year R 30.08.2018

Material Management
Press enter or button to change the Physical Inventory Document.
1.1.10 Change Physical Inventory Document: Header
Change Physical inventory document Header Data

Material Management
Stock Type Stock Type O 1

AUn Alternative Unit of Measure O X
Deletion Indicator Deletion Indicator O X
Conversion
Document date Date of PI document creation R 30.08.2018

Planned count date Date when counting is planned R 30.08.2018
Phys. inventory number Phys. inventory number O FM05
Posting Block
creation
1.1.11 Change Physical Inventory Document: Collect. Processing
Enter stock type and Alternative Unit Indicator in the Physical Inventory document.

Material Management
Stock Type Stock Type O 1

AUn Alternative Unit of Measure O X
Deletion Indicator Deletion Indicator O X
Conversion
Click on Post button to save the Physical Inventory Document
Physical Inventory document changed with confirmation
6. Process Scenario: Display Physical

Inventory Document
6.1 Process Step: Display Physical Inventory Document: Initial

Screen
This procedure explains the process steps in detail to display Physical Inventory Documents.
1.1.12 Access for Displaying Physical Inventory Document

Easy Access Menu
Physical Inventory Document → Display

Material Management
1.1.15 Change Physical Inventory Document: Initial Screen
In the Physical Inventory display initial screen, enter information in the fields which are applicable for

Phys. Inventory Physical Inventory document
R 30.08.2018
Doc. number
Fiscal Year Fiscal Year R 30.08.2018
Press enter or button to display the Physical Inventory Document.
1.1.16 Display Physical Inventory Document: Overview
Display Physical inventory document Overview Data

Material Management
1.1.17 Display Physical Inventory Document: Header
Display Physical inventory document Header Data

Material Management
7. Process Scenario: Enter Inventory Count
7.1 Process Step: Enter Inventory Count

This procedure explains the process steps in detail to Enter inventory count.
1.1.18 Access for Entering Physical Inventory Count

Easy Access Menu
Inventory count → Enter
1.1.21 Enter Inventory Count: Initial Screen
In the Physical Inventory Count Enter screen, enter information in the fields which are applicable for
(Note: In the below table, column “R/O/C” represents “R”- Required, “O” – Optional, “C” –
Conditional)

The physical inventory document
Phys. Inventory Doc. R 100000121
number you want to use.
The year for which the company
Fiscal Year is to create its inventory and O 2018
balance sheet
Specifies the date of the last
Count Date R 07.09.2018
physical inventory count.

Material Management
Press enter or button to enter count.
Note: For the batch managed material, the count needs to be entered as per the Batch.
Use to access other items in the document. Click Save icon or press (Ctrl +
S).
A confirmation message will appear,

Material Management
7.2 Process Step: Change Inventory Count

This procedure explains the process steps in detail to change inventory count.
1.1.22 Access for Changing Inventory Count

Easy Access Menu
Inventory count → Change
In the Physical inventory change screen, enter information in the fields which are applicable for MIKA
as specified in the table below:
Conditional)

balance sheet

Material Management
Press enter or button to change count.
Note: For the batch managed material, the count needs to be entered as per the Batch.
Use to access other items in the document. Click Save icon or press (Ctrl +
S).
A confirmation message will appear,

Material Management
7.3 Process Step: Display Inventory Count

This procedure explains the process steps in detail to display inventory count.
1.1.26 Access for Display Inventory Count

Easy Access Menu
Inventory count → Display
In the Physical inventory display screen, enter information in the fields which are applicable for MIKA
as specified in the table below:
Conditional)

balance sheet

Material Management
Press enter or button to display count.
8. Process Scenario: Enter Recount
8.1 Process Step: Enter Recount

This procedure explains the process steps in detail to enter inventory Recount.
1.1.30 Access for Entering Physical Inventory ReCount

Easy Access Menu
Physical Inventory Document → Recount

Material Management
In the Physical Inventory Recount Initial screen, enter information in the fields which are applicable
for MIKA as specified in the table below:
Conditional)

balance sheet
Specifies the date of the last
Planned Count Date R 07.09.2018
physical inventory count.
The document date is the date
Document Date on which the original document R 07.09.2018
was issued
Posting Block
creation

Material Management
Press enter or button to enter recount.
Select the item to be recounted and click on Save/Post button on top.

Material Management
A confirmation message will appear, and a new

Physical inventory document will be created.
Enter count in the new Phy inventory document using T-code MI04.(Refer to Process scenario
7.1)
The old Physical inventory document (Before Recount) will be marked as posted and system
will not allow to post differences for that.
9. Process Scenario: Display Difference List
9.1 Process Step: Display Difference List
1.1.34 Access for Display Difference List
Logistics →Materials Management → Physical Inventory →

Easy Access Menu
Difference → Difference List
In the Physical Inventory Count Enter screen, enter information in the fields which are applicable for
Conditional)

Material Management

Material The number w/c identifies the
R 2400000065
material
Plant The specified plant. O 1610
Storage Location Storage location at which the
R FM05
physical inventory is carried out.
Physical Inventory The number w/c identifies the
100000121
Document physical inventory document.
Press execute button to see the difference report.

Material Management
To change the count, select an item and then click or press (Ctrl + Shift + F10).
The system will show the screen for changing count.
10. Process Scenario: Post difference

document
10.1 Process Step: Post the difference
1.1.38 Access for posting the difference
Logistics →Materials Management → Physical Inventory →

Easy Access Menu
Difference → Post

Material Management
1.1.41 Post Inventory difference

Physical Inventory Doc. The physical inventory document number
R 100000121
you want to use.
Fiscal Year The year for which the company is to
O 1610
create its inventory and balance sheet
Posting Date Posting Date R 07.09.2018
Press Enter or click on .

Material Management
Specify the reason for the physical inventory difference. Click the Save icon or press (Ctrl +
S) to post the difference.
A message will appear;
As per MIKA requirement, the difference will be posted to a separate cost center, determined
based on storage location. This combination is maintained in table ZMM01_COST_DET
Material document posted for difference can be seen in MB03 t-code

Material Management
Difference posted to cost center maintained in Z table as per Storage location.


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Material Management

User training Manual Physical Inventory ECC 6.0

TMM_13– Physical Inventory

T-Systems Classification Date State Version Page

User training Manual Physical Inventory ECC 6.0

Document Identification TMM13_Physical Inventory_V1.0

Process Area Process Organizational Unit

MM Physical Inventory Process Depok

Prepared by Renuka Gorthi

Reviewed by Mangesh Pote

Type: A = Added; M = Modified; D = Deleted; C = Created; F = Finalization

Date Version Create by Type Changed Items Description

10-Sep-2018 1.0 Renuka F Change in Update of Process Details

16-Oct-2018 2.0 Renuka F Enter Recount Review Comments regarding

T-Systems Classification Date State Version Page

User training Manual Physical Inventory ECC 6.0

T-Systems Classification Date State Version Page

User training Manual Physical Inventory ECC 6.0

The counting can be done by 2 methods:

1. Block Method - Posting block due to physical inventory:

2. Freeze Method – Freeze Book Inventory:

2. Key Data Element:

2 Purchasing 1. 1000 1. Mitra Keluarga PORG

3 Plant 1. 1610 1. MIKA DEPOK

4 Storage Location Excel file is attached with all storage location

T-Systems Classification Date State Version Page

User training Manual Physical Inventory ECC 6.0

3. Process Specific Pre-requisites:

Material - Material (Product Code) master should be created

4. Process Scenario: Create Physical

4.1 Process Step: Create Physical Inventory Document: Initial

1.1.1 Access for Creating Physical Inventory Document

Logistics → Materials Management → Physical Inventory →

1.1.2 Procedure Specific Pre-requisites

1.1.3 Procedure Specific Master Data setup

1.1.4 Create Physical Inventory Document: Initial Screen

Selection Screen: Enter the following information in the fields:

T-Systems Classification Date State Version Page

User training Manual Physical Inventory ECC 6.0

Field Description R/O/C Values

Document date Date of PI document creation R 30.08.2018

Plant Plant code R 1610

Storage Location Storage Location code R FM05

Press enter or button to create the Physical Inventory Document.

T-Systems Classification Date State Version Page

User training Manual Physical Inventory ECC 6.0

1.1.5 Create Physical Inventory Document: New Item

Field Description R/O/C Values

Material Material Code R 2400000065

Click on Post button to save the Physical Inventory Document

Physical Inventory document created with confirmation

T-Systems Classification Date State Version Page

User training Manual Physical Inventory ECC 6.0

5. Process Scenario: Change Physical

5.1 Process Step: Change Physical Inventory Document: Initial

1.1.6 Access for Changing Physical Inventory Document

Logistics → Materials Management → Physical Inventory →

1.1.7 Procedure Specific Pre-requisites

1.1.8 Procedure Specific Master Data setup

1.1.9 Change Physical Inventory Document: Initial Screen

Selection Screen: Enter the following information in the fields:

Field Description R/O/C Values