5.3.1.

9 SCM_IM-EWM_BPD_Physical
Inventory EWM

Supply_Chain_IM_BP315_Physical
inventory process in EWM

Physical
Business Scenario Name (L4): inventory on
GUI and RF

Physical
Process Name (L5):
inventory

Supply Chain
"Team" (Owning and Impacted)
(IM-EWM)

1 Document History
1.1 Change History

Other
Ver. Date Summary of Changes Author
Comments

Below User stories have been captured

IAJPJMAB-1323 - Physical Inventory

Once a year/ month
IAJPJMAB-1324 - Physical Inventory
– Continuous
1. 18/08/2020 Kiran Raut
IAJPJMAB-1327 - Physical Inventory
at Storage Bin Level
IAJPJMAB-1328 - Physical Inventory
at Product (Non- HU) Level
IAJPJMAB-1329- Physical Inventory
at HU Level
 Release 1
Update
Release 1 - Inventory Reporting Ganeshram
2. 18/02/2021
Requirement Venkatraman
Section 4 and
5

1.2 RASCI

RASCI Role Name(s)

R Accenture IM/EWM Lead Dinabandhu Nayak

A IVL SCM WSL Joydip Roy / Shmuel Rosenblum

S Accenture IM/EWM Lead Ganeshram Venkatraman

C Accenture IM/EWM Lead Ganeshram Venkatraman

I IVL SCM WSL Joydip Roy / Shmuel Rosenblum

R: Responsible; A: Accountable; S: Support; C: Consult; I: Inform

1.3 Approval Detail

Review # Date Name Role of Approver

1 04/11/2020 Shmuel Rosenblum SCM WPL(IM_EWM)

1.4 Other Related Documents

ID Related Document Comment

1 IVL_ASAP_Sprint 4-IM_EWM Sprint 4 workshop deck

2 Glossary
IVL_ASAP_SCM_Glossary.pptx

2 Process Overview
2.1 Business Process Description
The physical inventory process is the preparation and execution of a physical inventory count
within a warehouse, from the preparation for a count operation, through the actual counting and
gathering of count results, to the approval of those count results and the updating of the
inventory and other systems.
This step involves the overall planning of physical inventory for stock in the warehouse,
including the frequency at which physical inventory is to be done, who will be doing it, and what
process will be used for doing physical inventory. Depending on the type of physical inventory
process chosen, the blocking/freezing of bins, creation of physical inventory documents, and
other activities are carried out. This also involves planning of security roles and authorizations
required for carrying out the count, managing actual and system stock differences, and posting
the final stock count from embedded EWM to SAP S/4HANA. Physical Inventory process can
be carried out for Un-restricted stock type, Quality stock, blocked stock.
Below are the physical inventory processes in EWM:

1. Continues physical inventory

2. Storage bin specific physical inventory
3. Annual physical inventory
4. Product specific inventory

3. Process Details
The following user stories for physical inventory in EWM were captured and discussed in the
workshop. The Process design for the same is detailed out in subsequent sections. The process
has been designed as per the Standard SAP / Chems Direct flow.

IAJPJMAB-1323 - Physical Inventory Once a year/ month

IAJPJMAB-1324 - Physical Inventory – Continuous
IAJPJMAB-1327 - Physical Inventory at Storage Bin Level
IAJPJMAB-1328 - Physical Inventory at Product (Non- HU) Level
IAJPJMAB-1329 - Physical Inventory at HU Level
3.1 Detailed Process Steps
3.1.1 IAJPJMAB-1323 - Physical Inventory Once a year/ month:
In this procedure, stock counting is done in the warehouse on a certain day or at a short interval
of time during which stock movement is prohibited. This is done to get an exact stock count in
the warehouse by avoiding any incoming or outgoing products. This inventory procedure is
usually carried out near the end of a fiscal year to get a clear stock count and prepare for the next
year.
The inventory counting can be done on a specific day or during a small window anytime of the
year to account for all the stock in the warehouse at once. This physical inventory is also referred
as wall to wall counting. Periodic physical inventory can be done at the bin level or product
level.
If any discrepancy is available, then it will be updated in EWM. When this discrepancy is
approved (offline process) and posted by finance team a material document will be created to
adjust the inventory at plant/warehouse level.
Below are the two movement types for discrepancy.

1. Increase the stock –712 movement type

2. Stock reduce –711 Movement type

Physical Inventory Process consists following steps:

1. Creation PI (Physical Inventory) document

2. Printing of PI document
3. Counting / Recounting of PI document
4. Posting of PI document in EWM level
5. Stock difference posting to adjust the stock in IM level

The physical inventory counting process involves following steps:

1. Creation and printing of Physical Inventory document: By selecting the procedure of

physical inventory - bin specific or product specific the physical inventory document is
created. The same will also be printed (a customer FORM has been captured as a
RIEFW)
2. Counting and recounting: After the documents are created and activated, the warehouse
operator must count the stock. The count result is saved to the document. If the count
results are not acceptable then recount is triggered i.e. a new PI document is created
which must be counted. If the count results are acceptable and approved then stock at
storage bin level is updated and differences, if any are moved to difference area.
3. Stock posting for stock differences: When the counting / recounting is complete, the
inventory document is completed or "posted" and the counting results are updated at
storage bin level. Differences between the counted quantities and the book quantities are
posted to a difference area and are visible in the difference analyzer. Differences are
posted from difference analyzer which sends update to IM system for inventory
adjustment and creates material document as well as accounting document for inventory
gain / loss.
Once all these steps of the PI process are executed successfully, the PI document will have
details of the count, including the count result, difference quantities, count date, and counter.

3.1.2 IAJPJMAB-1324 - Physical Inventory – Continuous:

In continuous physical inventory, the inventory is done over time. This is considered a better
way to perform physical inventory as the cost and effort to perform a physical inventory isn't
concentrated into one day of the year but distributed throughout the year. Continuous physical
inventory saves costs and increases the accuracy of the stock situation. It also prevents any
impact to regular warehouse processes as the inventory for the entire warehouse is not focused
on a period.
The following are the continuous physical inventory procedures available in embedded EWM-

 Ad hoc physical inventory : An ad hoc physical inventory procedure can be performed

at any time during the fiscal year at both the storage bin level and product level. As the
name suggests, it's done on an ad hoc basis, when, for example, there's been product
damage or a theft, which requires an immediate stock assessment for the product in the
warehouse.
 Low-stock check: A low-stock check is a continuous physical inventory procedure that
can only be done at the storage bin level. This physical inventory procedure is triggered
while confirming the stock removal warehouse task. A low-stock check requires that after
removal of stock only a small quantity will be left in the bin for a product, which is also
the threshold value based on which physical inventory can be triggered. But this Low
stock check physical inventory is not activated as of now as not required in IVL business
scenarios.

3.1.3 IAJPJMAB-1327 - Physical Inventory at Storage Bin Level:

Storage-bin-specific physical inventory refers to inventory counting at storage bin level, i.e. all
the products and HUs in a storage bin must be counted.

3.1.4 IAJPJMAB-1328 - Physical Inventory at Product (Non- HU) Level:

Product-specific physical inventory refers to inventory counting at product level i.e. selected
product must be counted at one or more storage bins of the warehouse.

3.1.5 IAJPJMAB-1329 - Physical Inventory at HU Level

To count the physical inventory at HU level we can count two ways that are product specific and
bin specific. In both the options handling unit can be scanned and count.
The below are the check box available while counting the handling units

1. HU Completed: If you set this indicator, a handling unit can be counted as "complete" at
the time of count entry. That is to say, A counter accepts the complete hierarchy of a
handling unit without counting any other HUs it might contain, or all the products packed
in the handling unit.
 2. Missing HU: If physically handling unit is not available then counter has to select this
option.
3. Empty HU: If handling unit is available physically but products are not available in
handling unit then counter has to select this option.

All the above user stories have same process in standard system and below are the process steps.

1. Create and print physical inventory document

2. Count physical inventory document.
3. Process physical inventory document to post in EWM level
4. Difference posting (Book inventory verses actual inventory) to IM

M: Manual
Fig 1. Process of physical inventory in EWM

Control
Process Process Step Fiori App (if relevant)/
Roles Involved Point
Step Description Transaction code
(Y/N)
 Create Physical Inventory
Documents

/N/SCWM/PI_DOC_CREATE/
Create the Physical
Physical
physical inventory /N/SCWM/PI_CREATE
inventory Y
inventory document
manager
document creation Print Count Documents –
Physical Inventory

/SCWM/PRPI_DOC

Physical
verify and
Count the put the actual Count Physical Inventory. Physical
physical account of inventory
inventory product /N/SCWM/PI_COUNT manager/PI
document quantity or Operator
handling unit
quantity

Post the
difference
Post the between Process Physical Inventory
Physical
physical book
inventory
inventory inventory /N/SCWM/PI_PROCESS
manager/finance
document and actual
inventory in
EWM level

Post the
Post the actual Analyze Differences.
Finance team /
actual difference in
Warehouse
difference IM level to /N/SCWM/DIFF_ANALYZER
Manager
in IM update the
stock

Automatically after posting with

Material Material
711 and 712 movement types for
documents document Auto
add and reduce the inventory
creation will create
from plant level

3.2 Process Variations

Below are the types of physical inventory that can be generated from different business processes

1.
1. Periodic inventory
2. Continuous inventory

1. Periodic Inventory: In a periodic inventory, all stocks of the company are physically
counted on the balance sheet key date. In this case, every material must be counted.
During counting, the entire warehouse must be blocked for material movements.
2. Continuous Inventory: In the continuous inventory procedure, stocks are counted
continuously during the entire fiscal year. In this case, it is important to ensure that every
material is physically counted at least once during the year.

There were certain variations / requirements seen in IVL when compared to the standard SAP /
Chems Direct process. To address the same RIEFW have been created and the same updated in
section 4.

3.2.1 Business Unit Variation

Not additional variations. Captured above.

Fiori App (if

Process Process Step Roles Control Point
relevant)/
Step Description Involved (Y/N)
Transaction code

3.2.2 Geography/Legal Entity Variation

Not applicable for Global Template

Fiori App (if

Process Process Step Roles Control Point
relevant)/
Step Description Involved (Y/N)
Transaction code
3.2.3 Interim Process Variation

Not additional variations.

Fiori App (if

Process Process Step Roles Control Point
relevant)/
Step Description Involved (Y/N)
Transaction code

3.3 Inbound Communication

Not Applicable

Process Step Type (email, form, handoff, etc.) Automatic / Manual Source Description

NONE

3.4 Outbound Communication

Not Applicable

Type (email,
Automatic /
Process Step form, Source Description
Manual
handoff, etc.)

A Physical Inventory Form

Print Physical
PI (output) will be printed from the
Inventory FORM Automatic
Document PI Document to allow for the
document
counting at the warehouse.

3.5 Use Cases

Test Condition
Test Condition – Action Expected Result
Number

Physical Inventory count at EWM PI Count executed successfully

PI - UT001
Storage Bin (HU Managed) and difference posted

Physical Inventory count at EWM - PI Count executed successfully

PI - UT002
Product level (non - HU Managed) and difference posted

4 Process Fitness & Gap Analysis

4.1 Process Fitness

Req Document
Short Description Long Description Req. Type
ID

Detail Handling
Unit Inventory
Detail Handling
EWM Report Output-
Unit Inventory Report and
-RQ- EWM (Report
Report Output- form
PI01 which will shows
EWM
the initial print
output)

Summary Report
for HU in Physical
Summary Report Inventory (Bin
EWM
for HU in Physical Wise) – EWM
-RQ- Report
Inventory (Bin (Detailed report of
PI02
Wise) – EWM physical inventory
including all details
date wise)
 Operational
Report/Enhancemen
Operational t for Physical
EWM
Report/Enhancemen Inventory- EWM Enhancemen
-RQ-
t for Physical (To create execute t
PI03
Inventory- EWM the physical
inventory
document)

An overview of key
performance
indicators (KPIs)
relevant to your
EWM warehouse
IVL_ASAP_Warehous
-RQ- Warehouse KPIs operations, for Fit
e KPI_Fiori App.pdf
PI04 example, the total
number of open
warehouse tasks to
be processed on the
current date
EWM Inventory Reports Inventory reporting Gap - Release 1 Update
-RQ- requirement of Reports
RP01 Auriga and
Spindletop

IAJPJMAB-9918
Spindletop-AU-
Inventory details
IAJPJMAB-9850
Spindletop-AU-
Y_DEV_81000245
- Consignment
Stock
IAJPJMAB-9803
Spindletop-US-IVL
Global Inventory
Daily
IAJPJMAB-9794
Spindletop-India-
Inventory Ageing
report
IAJPJMAB-9694
Auriga-Aged
Inventory Report
 IAJPJMAB-9688
Auriga-Inventory
Damage Report
IAJPJMAB-9687
Auriga-Inventory
Detail Report
IAJPJMAB-9686
Auriga-Inventory
Detail Report
Partial Rail
IAJPJMAB-9685
Auriga-Inventory
Detail Report with
NFS
IAJPJMAB-9684
Auriga-Inventory
Summary Report
IAJPJMAB-9680
Auriga-Staged
BOLs
IAJPJMAB-9679
Auriga-Unscanned
Put Aways
IAJPJMAB-9678
Auriga-Warehouse
Location Report
IAJPJMAB-9677
Auriga-Whse/Loc
Physical Inv
IAJPJMAB-9676
Auriga-WT - Open
IAJPJMAB-9675
Auriga-Whse
Transfers

4.2 Gap Analysis

Country/
Legal Magnitude Ref. to
Region/ Solution RICEFW
Gap Description Req. of Impact Req.
Release Type No.
(Y/N) (L/M/) id.
Impacted
 Detail Handling Unit
S/4 Inventory Report EWM-
Report and IAJPJMAB-
Global Output- EWM (Report N H RQ-
form 5660
Template which will shows the PI-01
initial print output)

Summary Report for

HU in Physical
S/4 Inventory (Bin Wise) – EWM-
IAJPJMAB-
Global EWM (Detailed report N H Report RQ-
5661
Template of physical inventory PI-02
including all details
date wise)

Operational
Report/Enhancement
S/4 EWM-
for Physical Inventory- IAJPJMAB-
Global N H Enhancement RQ-
EWM (To create 5662
Template PI-03
execute the physical
inventory document)
Release 1 Inventory reporting
Update requirement of Auriga N H Reports Will be EWM-
and Spindletop updated after RQ-
S/4 Finalization RP01
Release 1 IAJPJMAB-9918 in Workshop
Pilot Spindletop-AU-
Inventory details
IAJPJMAB-9850
Spindletop-AU-
Y_DEV_81000245 -
Consignment Stock
IAJPJMAB-9803
Spindletop-US-IVL
Global Inventory Daily
IAJPJMAB-9794
Spindletop-India-
Inventory Ageing
report
IAJPJMAB-9694
Auriga-Aged
Inventory Report
IAJPJMAB-9688
Auriga-Inventory
 Damage Report
IAJPJMAB-9687
Auriga-Inventory
Detail Report
IAJPJMAB-9686
Auriga-Inventory
Detail Report Partial
Rail
IAJPJMAB-9685
Auriga-Inventory
Detail Report with
NFS
IAJPJMAB-9684
Auriga-Inventory
Summary Report
IAJPJMAB-9680
Auriga-Staged BOLs
IAJPJMAB-9679
Auriga-Unscanned Put
Aways
IAJPJMAB-9678
Auriga-Warehouse
Location Report
IAJPJMAB-9677
Auriga-Whse/Loc
Physical Inv
IAJPJMAB-9676
Auriga-WT - Open
IAJPJMAB-9675
Auriga-Whse
Transfers

5 RICEFW
Ref. to
RICEFW Req.
Description JIRA ID Comments
Type id.
 Business Rationale

Currently the Physical inventory

document form is available in
standard. however, it does not meet
the actual requirement of the
business. The new enhanced
physical inventory form will
display the fields and values as per
the business requirement in a
tabular format. It will help business
to perform the physical inventory
process in an effective and efficient
manner. This physical inventory
form is developed to be part of
global template and then will be
applicable to other releases if the
business is keen to avail this
enhancement.

High Level Requirement (covered

EWM-
Detail Handling Unit in detail in the Functional design)
IAJPJMAB- RQ-
FORM Inventory Report
5660 PI01
Output- EWM 1. Physical inventory
document should be printed
and display at storage type
level with other attributes
like check box with a
flexibility to select HU
accordingly.
2. Multiple PI documents with
multiple bins should be
accommodated
3. Print layout should display
multiple selection with
check box facility
4. The Printed layout should
also have the batch
classification fields such as
Merge and grade.

5. Same development should

also be applicable for Non-
HU location (Spindletop)
 Business Rationale EWM-
Report Summary Report for IAJPJMAB- RQ-
HU in Physical 5661 Physical inventory stock overview PI02
Inventory (Bin Wise) to be displayed in a similar manner
– EWM how it is designed as per the
Operational report (IAJPJMAB-
5662) with tabular format,
providing information on physical
inventory document status along
with stock overview at HU level. It
will serve as key input for
warehouse worker to proceed with
their activities and help business to
perform the physical inventory
process in an effective and efficient
manner. This report is developed to
be part of global template and then
will be applicable to other releases
if the business is keen to avail this
enhancement.

High Level Requirement (covered

in detail in the Functional design)

1. Statistic report to display

the stock overview level
along with the status
pertaining to physical
inventory document.
2. To display the output layout
with information at two
levels
3. First Level should display
only the physical inventory
document status along with
total count of HU stock and
Product stock with
discrepancy if any
4. Second level at sub item
output layout to display in
detail stock overview for
each HU and product level
5. The Printed layout should
also have the batch
classification fields such as
Merge and Lot
6. Sub item output layout will
also display with
categorization of batch,
Lower level Hus, Merge no.
and Grade value

7. Multiple PI documents with

multiple bins should be
accommodated
 Business Rationale

Currently the Physical inventory

document for recording the stock is
available in standard. however, it
does not meet the actual
requirement of the business. The
new enhanced physical inventory
detailed report will display the
fields and values as per the
business requirement in a tabular
format. It will help business to
perform the physical inventory
process in an effective and efficient
manner. This report is developed to
be part of global template and then
will be applicable to other releases
if the business is keen to avail this
enhancement.

High Level Requirement (covered

in detail in the Functional design)
Operational EWM-
Report/Enhancement IAJPJMAB- RQ-
Report 1. Physical inventory
for Physical Inventory 5662 PI03
document should be printed
- EWM
and display at storage type
level with other attributes
like check box with a
flexibility to select HU
accordingly.
2. Multiple PI documents with
multiple bins should be
accommodated
3. To count HU on mass level,
the report layout should
have multiple selection with
check box facility to select
the HU Available
4. The Printed layout should
also have the batch
classification fields such as
Merge and Lot.

5. Same development should

also be applicable for Non-
HU location (Spindletop)
6 Integration Points

Workstrea Integration Point

m
G/L Account determination for the
movement type (e.g. 711) to allow posting of
difference. This is maintained as part of the
G/L Account determination and OBYC set-
Finance team up.

Reference BPD - 1.3.1.1 Manage General

Accounting and reporting

7 Additional Comments
Glossary: IVL_ASAP_SCM_Glossary.pptx