The ModernizedWorkspace

WM- Physical Inventory

Contents
Introduction ..........................................................................................................................................................3
Creation of Physical Inventory Document. ...........................................................................................................3
Enter Count: ...................................................................................................................................... 6
Clear Difference: ............................................................................................................................... 8
Introduction
Physical inventory is a process of determining that the inventory quantities are exact, or
if there are differences in quantity mentioned physically present and that mentioned in
the SAP system. Basically, after you are finished with physical inventory, your system
and physical stock levels must be the same.
In SAP below shown are the most common steps for doing physical inventory

Creation of Physical
Inventory Document Enter Count Result Post the difference

Creation of Physical Inventory Document.

Step 1 Transaction LI01N
Enter Warehouse Number and Storage type
Execute the transaction to get the screen mentioned below.

Step 2: Enter the bins you want to perform Physical inventory as shown above and press
enter.
For Example: We selected bin M01FMB011 and P130012

Step 3: Click on the option “Activate”

This will generate the Inventory Document.

Once the inventory is active, the status is also changed and no one is allowed to Pick or
Putaway for that bin.
Transaction : LS03N

Step 4: If you want to print the inventory list, use the transaction LI04.
Enter Count:
Step 1: Transaction LI11

Step 2: Press enter to go to next screen, to enter the quantity.

 Warehouse Worker
Enter actual quantity

For the above example, Bin P130012 has 100 quantity but in actual warehouse worker
found 99.

Click on SAVE button to save the count result

Step 3: If Warehouse Supervisor feels that inventory should be recount, he can initiate
recount through transaction LI14
Press enter to see the list of materials which were in Inventory list. And select the line item
for which you want to Initiate Report.
Click on “Initiate Recount”

Then Warehouse Worker can again do the count through LI11 as mentioned step earlier.

Clear Difference:
Difference is cleared from WM first then from IM level.

Step 1: Difference clearance from WM:

Transaction: LI20

Press Enter.
Step 2: Select all the line item or the line item which you want to write off.
Click on “Write Off” to clear inventory from WM.

This will move the material to 999 storage type.

Step :3 Now clear difference from IM
Transaction LI21
Storage type 999
bin = Inventory Number (Including leading Zeros)
Execute the transaction.
Step 4: Select the line and click on “Write Off”

This will post material Document

And Inventory is corrected.