Physical inventory Management.

PIM: Physical inventory Management.

PI: Physical Inventory

PI is a process to map or compare the system stock with the physical stock.

This process can be performed in 4 different ways.

Continuous PI process: in this process, the PI is performed for the materials and goods throughout
the year. So, during this process, each material is counted at least once a month or yearly.

Periodic PI Process: in this process, the PI is performed for the materials and goods on a particular
day in a month.

Sampling PI Process: this process will be used very rarely in industries. Most industries will not prefer
this process. In this process, pick the materials randomly and do the counting.

Cycle counting PI Process: will prefer most of the industries. Where PI is performed, monthly,
quarterly, half-yearly, and yearly. Depending upon the fast and slow-moving items of the materials
And Goods.

(In a company When you’re performing the PI process, we going to block goods movements. No GR,
No GI, and No TP take place.

Before performing this PI Process, they send a mail to all departments, stating that we are going
Perform the PI Process on a so-and-so date. If any department needs a stock of material in advance,
they can take stock of material.

If they want material, they can take it before the PI process or after the PI process)

Process:

Create a Physical inventory document.-MI01

Enter the physical count of material – MI04

Post the difference. MI07

If the system stock is > physical stock, then the system creates automatically GR for difference QTY:
701 + (inventory gain)

If the physical stock is > system stock then the system creates automatically Gi for difference QTY :
702 - (inventory loss)

If the physical stock and system stocks are equal then the PI difference is posted without any
difference.(neither gain nor loss in the inventory difference)
T codes
 MI01 –> Creation of Physical Inventory Document
 MI02 –> Changing Physical Inventory Document
 MI04 –> Counting Physical Inventory Document
 MI05 –> Changing Physical Inventory Document Count
 MI07 –> Posting Individual Physical Inventory Document (post the difference individual)
 MI37 –> Mass Posting of Physical Inventory Document (post the difference mass)
 MI20-List of P.I difference.
 MI21-print physical document.
 MI24-list of Physical inventory documents.
 MMBE Monitor stock overview.

Configuration:

1.maintain the cycle counting indicator.

Path: SPRO-img-MM-IM&PI-PI-Cycle counting

Assign your plant By coping for standard.

2. maintain the cycle counting indicator in general plant data /storage 1 view.
 1. How identified materials that will be under the PI process and that will not be under the pi
process?

A : Using t code MI24 for list of Physical inventory documents for mateterils

( Or)

In mm (Enter plant and storage location.) in view of the storage location stock.