Microsoft Word - 08 Unit.doc

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Price Data for Consignment Material

Procurement of Consignment Material

Consignment Stock Movements

Settlement of Consignment Liabilities

Contents:

Consignment

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Post goods receipts into consignment stock

Display consignment stock

Post goods issues from consignment stock

Transfer consignment stock

Transfer consignment stock to another stock type

Settle consignment material and/or transfer
consignment stock to your company’s own stock

At the conclusion of this unit, you will be able to:

Consignment: Unit Objectives

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Inventory Management: Overview Diagram

Goods Receipts

Reservations and Goods Issues

Stock Transfers / Transfer Postings

Special Inventory Management Features

Appendix: Pipeline Processing

Consignment

001

0001

0002

B BC

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Invoice

verification

Inventory

management

Purchasing

Stock

B C

Invoice

Settle-

ment

Purch.

order

Mat1 Price0

Master data

Material/
vendor:

Price = 11.00

Consignment

info record with

price

Consignment

item

Available
Non-valuated

Consignment

stores

Purch.

Vendor Consignment Goods

The vendor provides goods that are stored in consignment stores. The vendor remains owner of the
material until you withdraw materials from the consignment stores.

The vendor is informed of material withdrawals on a regular basis.

The quantity withdrawn is invoiced at certain time intervals.

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Vendor Miller
Material Gas

• Prices in foreign currency

• Periodic prices

• Prices in any unit of

measurement

• Discounts

• Price quantity scales

. . .

Consignment Info Records

Info record

Category: consignment

IMG:

Activate

consignment

prices via

info records

Consignment

price segment

Conditions
Price 1.50 UNI

The consignment price for procuring a consignment material from a vendor is stored in a
consignment info record.

In Release 4.0, consignment info records are supported parallel to the old consignment price
segments. In later releases, consignment price segments are no longer supported. and so you have to
convert them to info records. You can convert them in Customizing at any time while using Release
4.0. After you convert consignment price segments, you can no longer maintain them.

You can manage consignment prices in foreign currencies with consignment info records. The
purchase order currency of the vendor is used for consignment withdrawals.

Consignment prices can be defined periodically.

You can specify the consignment price in any unit of measure. The conversion factor is defined in
the info record.

You can also use conditions in Purchasing, as well as the definition of discounts and price quantity
scales.

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Plant 0001

SLoc

Consignment

vendor Miller

Consignment

vendor Smith

Price:

10.00

Price:

9.50

L001

L002

Miller:

Quantity 100

Smith:

Quantity 50

Miller:

Quantity 100

Smith:

Quantity 50

MAT1

Material

Consignment Stock

A vendor's consignment price for a material is valid plant-wide.

Consignment stocks of a material from one vendor are managed at storage location level.

Your own stocks and consignment stocks of the same material in the same storage location are
managed separately, under one material number.

You can take inventory of a vendor's consignment material.

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No price
No conditions
No IR
GR required

Purch.
requisition

Contract

Purch. ord.

Consignment Items in Purchasing

A consignment item is a request to the vendor to deliver material to the consignment stores.

A separate item category is assigned to a consignment item in Purchasing.

For consignment items, you must select a material for consignment that has a material type that
includes inventory management.

You cannot specify a purchase price or conditions for consignment items.

When posting an invoice receipt for consignment material, you do not make reference to the
purchase item.

Using a special procurement key (MRP data for a material), you can select a material in a plant for
consignment procurement.

You can specify consignment processing as a special procurement type for a quota arrangement item.

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MAT1

Material

Purch. ord.

Vendor

Blocked

Quality

inspection

Valuated

stock

Stock available for MRP

Quality

inspection

Unrestricted-

use

Unrestricted-

use

Goods Receipt to Consignment Stock

You can enter goods receipts into your consignment stock with or without reference to a purchase
order.

The vendor’s consignment price for a material must be determined before you post the goods receipt.

A goods receipt to consignment stock does not change the valuated stock quantity, since the material
still belongs to the vendor.

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Stor. loc.

0001

Stor. loc.

0002

Miller's consignment stocks

Smith's consignment stocks

MAT1

Blocked

Quality

insp.

Quality

insp.

Blocked

Unrestricted-

use

Unrestricted-

use

Unrestricted-

use

Blocked

Quality

insp.

Unrestricted-

use

Material

Transfer Posting to Consignment Stock

Consignment stocks can be managed in the stock types “unrestricted-use stock”, “quality inspection
stock”, and “blocked stock”.

Transfer postings are not relevant for valuation.

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Stor. loc.

0001

Stor. loc.

0002

Miller's consignment stocks

Your own stocks

Quality

insp.

Blocked

Quality

insp.

Blocked

Quality

insp.

Unrestricted-

use

Unrestricted-

use

Unrestricted-

use

MAT1

Production

Liabilities to

consignment vendor

Consignment

price

Material MAT1

Vendor Miller

Blocked

Material

Goods Issue from Consignment Stock

You can post goods issues only from the unrestricted-use consignment stock.

When transferring goods from the consignment stock into your own stock, you can specify a
receiving storage location. This also results in a stock transfer.

A goods issue from consignment stock results in a liability to the consignment vendor.

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Material

MAT1

Material

Consignment

stock for

Miller

Vendor

June 30, 99

May 01, 99

Time

Consignment

price:

Jan. 01- May 31

120.00 UNI

June 01 - Dec.31

125.00 UNI

Invoice

Consumption

from

consignment

stock

May 01 - Jun.30

Liabilities

Settlement of Consignment Liabilities

You can settle consignment withdrawals online as well as on a batch basis.

When processing online, you can define on the initial screen whether the withdrawals are to be
settled or whether the withdrawals to be settled are just to be listed.

You can inform the vendor periodically about issues from its consignment stocks. The list is
restricted to goods issues that have not yet been settled.

You enter the invoice for consignment liabilities without reference to a purchase order. Debits are
posted to the Liabilities from consignment stores G/L account, to which the credits were posted
upon goods issues from the consignment store.

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Consignment: Unit Summary

Post goods receipts into consignment stock

Display consignment stock

Post goods issues from consignment stock

Transfer consignment stock

Transfer consignment stock to another stock type

Settle consignment material and/or transfer
consignment stock to your company’s own stock

You are now able to:

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Consignment

Exercises

Unit: Consignment
Topic: Consignment Material

At the end of this exercise, you will be able to:
• Maintain an info record for a consignment price
• Display a purchase order for a consignment material with

item category K

• Post goods receipts into consignment stock
• Post stock transfers and transfer postings within consignment

stock

• Post goods issues from consignment stock
• Settle consignment liabilities

You have an agreement with two different vendors to supply
consignment material to your company. The consignment
material is considered available for MRP purposes. However, it is
not valued because it is still owned by the vendor. You take
ownership of the material when you issue to a cost center or
transfer it into your own stock. You settle your consignment
liabilites with the vendor monthly.

Use the SAP menu for these activities.

1-1

Determine the consignment stock for material T-RNC## in plant 1000.

To display the stock, choose

Inventory Management

→

Environment

→ Consignment

. Display the prices and

values also.

To which vendor does the consignment stock belong, and what consignment price
has been negotiated?
____________________________________________________________

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1-2

Write down the stock situation in the table below for your consignment material T-
RNC## in plant 1000.

(Stock Overview)

Storage location
0001

Storage location
0002

Unrestricted-use
(own)

Unrestricted-use
consignment

Quality inspection
consignment

Blocked consignment

1-3 Display

the

Accounting 1 view on the material master for material T-RNC## in

plant 1000 and write down the following information.
1-3-1 What is the total stock quantity? __________________________

1-3-2 What is the total value of this unrestricted-use stock?

______________________________________________________

1-4 Cost

center

T-L## requires 50 pieces of material T-RNC## in three weeks. Create

a withdrawal reservation for plant 1000. You do not know from which storage
location the material will be taken, so you leave it blank.

Reservation number _________________________________________

1-5

Display the stock/requirements list for T-RNC##. How does the reservation affect
the available quantity during the next two months?
____________________________________________________________

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1-6

Display consignment purchase order 415108-##.
1-6-1 Which vendor is listed on the purchase order?

______________________________________________________

1-6-2 What is the item category?

______________________________________________________

1-6-3 What is the purchase order price?

______________________________________________________

1-7 The

consignment

material

T-RNC## is supplied by vendor T-K10B##. Display the

consignment info record to see the consignment price that has been negotiated with
the vendor for purchasing organization 1000 and plant 1000.

You find the price on the Purch. Org. data 1 screen.

Price

_______________________________________________________

1-8 Vendor

T-K10B## delivers the consignment material on purchase order 415108-##

to plant 1000. The packaging is damaged, so you post a receipt of 10 pieces to
blocked stock in storage location 0001 and send the remaining 90 pieces to quality
inspection in storage location 0001. Post this goods receipt using one material
document.

To distribute the total delivered quantity among blocked
stock and quality inspection stock, choose [Distribute
quantity].

What special stock indicator does the system automatically determine? Why does it
determine this indicator?
______________________________________________________

Material document number ___________________________________

1-9

Display the material document for the goods receipt. Is there an accounting
document for the goods receipt?
____________________________________________________________

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1-10 Display the Accounting 1 view on the material master for material T-RNC## in

plant 1000. Answer the following questions and compare to your results in part 1-3.
1-10-1 Has the total stock quantity changed?

______________________________________________________

1-10-2 Has the total value of this unrestricted stock changed?

______________________________________________________

1-10-3 Why?_______________________________________________
______________________________________________________

1-11 Display the stock overview for material T-RNC## in plant 1000 for all storage

locations and write down the stock situation.

(Stock Overview)

Storage

location

0001

Storage location
0002

Unrestricted-use
(own)

Unrestricted-use
consignment

Quality inspection
consignment

Blocked consignment

1-12 The

90 pieces of material T-RNC## from vendor T-K10B## passed the quality

inspection. Carry out the transfer from quality inspection consignment stock to
unrestricted-use consignment stock. The storage location is the same.
Which movement type and which special stock indicator do you use?
____________________________________________________________
Material document number _________________________________________

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1-13 Display the stock overview for material T-RNC## for all storage locations in plant

1000 and write down the following information.

(Stock Overview)

Storage

location

0001

Storage location

0002

Unrestricted-use
(own)

Unrestricted-use
consignment

Quality inspection
consignment

Blocked consignment

1-14 Issue

50 pieces of material T-RNC## from consignment stock in storage location

0001 (vendor T-K10B##) with reference to the reservation for cost center T-L##
from part 1-4.
Which movement type and which special stock indicator do you use?
____________________________________________________________

You can enter the vendor in the [Partner] tab on the item
detail screen.

Material document number _________________________________________

1-15 Display the material document.

1-15-1 Is there an accounting document for this goods movement?

______________________________________________________

1-15-2 Which G/L accounts are updated?

______________________________________________________

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1-16 You have agreed with vendor T-K10B## to regularly transfer unrestricted-use

consignment stocks to your own stock at the end of the quarter. First, check the
stock overview for material T-RNC## to see the quantity of unrestricted-use
consignment stock remaining for vendor T-K10B##.

(Stock Overview)

Vendor T-K10B##

Storage location
0001

Storage location
0002

Unrestricted-use consignment

1-17 Transfer this remaining quantity of unrestricted-use consignment material T-

RNC## into unrestricted-use stock within the same storage location. Update the
current stock situation in the table.

Movement type _______________________________________________

Material document number _________________________________________

(Stock Overview)

Vendor T-K10B##

Stor. loc. 0001

Stor. loc. 0002

Unrestricted-use consignment

1-18 What

movements

consignment stock have taken place during the last two

months for material T-RNC##? How can you display this information?

____________________________________________________________

1-19 What liabilities from vendor consignment have accrued during the last two months

for vendor T-K10B##?

Total value __________________________________________________

1-20 Settle your consignment liabilities with vendor T-K10B## by running the

settlement program.

Invoice document number ____________________

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Consignment

Solutions

Unit: Consignment
Topic: Consignment Material

1-1

Inventory Management

→ Environment → Consignment → Vendor

Consignment

→ Stock

Vendor T-K10C##
Price 16.00

1-2

Inventory Management

→ Environment → Stock → Stock Overview

(Stock Overview)

Storage location
0001

Storage location
0002

Unrestricted-use
(own)

110

Unrestricted-use
consignment

Quality inspection
consignment

Blocked consignment 0

1-3

From the stock overview: Position the cursor on the plant line and choose

Extras

→ Display Material

Logistics

→ Materials Management → Material Master → Material →

Display

→ Display Current

1-3-1 Total stock:

110 pcs

1-3-2 Total value:

1.595 UNI

1-4

Inventory Management

→ Reservation → Create

. Then choose

Movement

Type

→ Consumption → For Cost Center

1-5

Inventory Management

→ Environment → Stock → Stock/Requirements List

The reservation reduces the available quantity.

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1-6

Logistics

→ Materials Management → Purchasing → Purchase Order →

Display

1-6-1 Vendor:

T-K10B##

1-6-2 Item

category:

1-6-3 Order

price: 0.00

1-7

Logistics

→ Materials Management→ Purchasing → Master Data → Info

Record

→ Display

You find the price on the

Purch. Org. data 1

screen.

Price: 13.00

1-8

Inventory Management

→ Goods Movement→ Goods Receipt → For

Purchase Order

→ Goods Receipt for Purchase Order (MIGO

)

Then choose ‘goods receipt’ for purchase order

As the item category K (consignment) is specified in the order item, the system
automatically determines the special stock ‘consignment’ (indicator K) when goods
are received for a purchase order.

1-9

Keep the transaction from part 1-8 open. Instead of choosing ‘Goods receipt for
purchase order’, choose ‘Display – material document’. The [Accounting docs]
pushbutton is contained in the [Document info] tab in the header details.
As the vendor consignment stock does not yet belong to your stocks, it is not
valuated at goods receipt. Therefore, there is no accounting document.

1-10

Logistics

→ Materials Management → Material Master → Material → Display

→ Display Current

1-10-1 No
1-10-2 No
1-10-3 Because the consignment stock is still owned by the vendor and therefore is

not valuated by the system.

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1-11

Inventory Management

→ Environment → Stock → Stock Overview

(Stock Overview)

Storage location
0001

Storage location
0002

Unrestricted-use
(own)

110

Unrestricted-use
consignment

Quality inspection
consignment

Blocked consignment

1-12

Inventory Management

→ Goods Movement → Transfer Posting.

Then choose

Movement Type

→ Transfer Posting→ Vendor Consignment → QI to

Unrestricted.

Movement type: 321

Special stock indicator: K

1-13

Inventory Management

→ Environment → Stock → Stock Overview

(Stock Overview)

Storage location
0001

Storage location
0002

Unrestricted-use
(own)

110

Unrestricted-use
consignment

105

Quality inspection
consignment

Blocked consignment

1-14

Inventory Management

→ Goods Movement → Goods Issue (MIGO)

'Goods issue' for reservation
Enter the reservation number. Also enter the special stock indicator K and vendor
T-K10B##, [Partner] tab.

1-15 From the Enter Goods Issue view, switch to the Display Material Document view.

1-15-1 The system has created an accounting document for this goods issue.
1-15-2 Liabilities from consignment stores and consumption of raw materials 1.

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1-16

Inventory Management

→ Environment → Stock → Stock Overview

(Stock Overview)

Vendor T-K10B##

Storage location
0001

Storage location
0002

Unrestricted-use consignment 40

1-17

Inventory Management

→ Goods Movement → Transfer Posting.

Then choose

Movement Type

→ Transfer Posting→ Vendor Consignment → Consignment

to own.

Movement type: 411

Special stock: K

(Stock Overview)

Vendor T-K10B##

Storage location
0001

Storage location
0002

Unrestricted-use consignment 0

1-18

Inventory Management

→ Environment → List Displays → Material

Documents for Material

1-19

Inventory Management

→ Environment → Consignment → Consgnmt from

Vendor

→ Liability

On the initial screen, enter the vendor, material, and a posting date in the past two
months as selection criteria. Select only ‘Consignment’ and choose ‘Display’ from
the Processing menu.
You can total the liabilities by adding the amounts of the individual liabilities.
Select the ‘Amount’ column and click [

Total].

Total value:

1170.00

1-20

Inventory Management

→ Environment → Consignment → Consgnmt from

Vendor

→ Liability

Choose the same selection criteria as those used in part 1-19. On the initial screen,
choose only Consignment and choose Settle from the processing menu.

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Appendix: Pipeline Processing

General Information on Pipeline Handling

Creating Pipeline Material

Creating a Pipeline Purchasing Info Record

Posting Goods Issues for a Pipeline

Settlement of Pipeline Liabilities

Contents:

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Inventory Management: Overview Diagram

Goods Receipts

Reservations and Goods Issues

Stock Transfers / Transfer Postings

Special Inventory Management Features

Appendix: Pipeline Processing

Consignment

001

0001

0002

B BC

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Material type PIPE

For example, gas, water, power

No inventory management, no physical inventory

Available in any quantity

No purchasing, no MRP

Can be used as component in production order
(retrograde withdrawal)
Costs are updated in production order

Pipeline Material: Material Type PIPE

Pipeline material is material that flows directly into the production process from a pipe (for example,
oil) or another kind of conduit (for example, electricity).

Pipeline handling is mandatory for the material type PIPE; that is, goods withdrawals for these
materials can only be posted from the pipeline.

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Pipeline movements mandatory

Pipeline movements allowed

- Inventory management
- Pipeline movement
- Other movements

Other material types

Pipeline Material: Other Material Types

For each material type, you can specify whether pipeline movements are mandatory or allowed.

If pipeline movements are allowed instead of mandatory, you can keep the material in stock, and can
post both pipeline movements and other movements.

You can withdraw material of this type from your company’s own stock, from consignment stocks,
or from the pipeline.

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Invoice

Pipeline

liabilities

settlement

Pipeline material

as components

in prod. order

Retrograde

withdrawal

Material master

PIPE

Pipeline

info

record

Maintain

source list

Post goods issue

from pipeline

Pipeline Material: Process Flow

Source iist

Material M1
Plant 0001

Material from the pipeline is always available, and can be taken from the pipeline in any quantity at
any time. You can enter a pipeline withdrawal with reference to a purchase order or a cost center.

A pipeline withdrawal has the following effects in the R/3 System:

It results in a liability to the vendor, similar to the situation with a consignment, where settlement

takes place periodically. The payables account can be different from that for a consignment
vendor.

Consumption statistics are kept.

Pipeline withdrawals have no effect on existing warehouse stock nor on the availability of

materials.

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Vendor

06.30.97

05.01.97

Time

Price of

pipeline material

01.01.- 05.31

120.00 UNI

06.01.- 12.31

125.00 UNI

Invoice

consumption

pipeline

material

05.01. - 06.30

Liabilities

MAT1

PIPE1

Pipeline

material

Material

Settlement of Pipeline Consumption

You can now settle pipeline liabilities online as well as on a batch basis.

When processing online, you can define on the initial screen whether the withdrawals are to be
settled or whether the withdrawals to be settled are just to be listed.

You can inform the vendor periodically about the consumption of pipeline material. The list is
restricted to consumption that has not yet been settled.

You enter the invoice for pipeline liabilities without reference to a purchase order. Debits are posted
to the “Liabilities from consignment stores” G/L account, to which the credits were posted upon
consumption of the pipeline material.

If pipeline liabilities are posted to the same account as consignment liabilities, you have to settle the
pipeline and consignment liabilities together.

If pipeline and consignment liabilities are posted to different accounts, you settle these separately.

You have the same options for settling pipeline liabilities that you have for settling consignment
liabilities.

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Pipeline Processing

Exercises

Unit: Pipeline Processing
Topic: Pipeline Material

Optional exercise*
At the end of this exercise, you will be able to:
• Define the characteristics of material type PIPE
• Outline the process of a pipeline material in Inventory

Management

In your company, you have pipeline materials. These are materials
that flow directly into the production process. Pipeline materials
are treated differently because there is no inventory to manage.
You keep track of the issues from the pipeline and settle your
liabilities with the vendor monthly.

Use the SAP menu for the activities in this exercise.

1-1 Display

material

T-ZP1##, and write down the material type assigned to this

material.

Material type __________________________________________________

1-2

Display the pipeline info record for material T-ZP1## and write down the agreed
price. Vendor T-K10C## supplies this material for purchasing organization 1000
IDES Deutschland and plant 1000.

Make sure you select Pipeline on the first screen of the info
record. The price can be found on the Purch. Org. data 1
screen.

What is the net price? ______________________________________

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1-3

Enter a goods issue for 20 liters of pipeline material T-ZP1## to cost center
T-L##.

Movement type _______________________________________________

Special stock indicator ____________________________________

Material document number _________________________________________

1-4

Display the material document and accounting document. Which G/L accounts are
updated?

____________________________________________________________

1-5

You want to settle the liabilities incurred from the pipeline withdrawal.
1-5-1 Before you start the settlement program, display a list of the liabilities for

material T-ZP1##.

What menu path do you use?
______________________________________________________

______________________________________________________

What is the amount of the liability?
______________________________________________________

1-5-2 Now settle the liabilities incurred for the pipeline material T-ZP1## and the

vendor T-K10C##.

On the initial screen, choose Pipeline and Settlement.

Invoice document _______________________________________

1-5 -3 Display the accounting view for the automatically created invoice. Which

G/L accounts are updated?

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Pipeline Processing

Solutions

Unit: Pipeline Processing
Topic: Pipeline Material

1-1

Logistics

→ Materials Management → Material Master → Material → Display

→ Display current

Material type: PIPE

1-2

Logistics

→ Materials Management→ Purchasing → Master Data → Info

Record

→ Display

Net price: 1.45

1-3

Logistics

→ Materials Management → Inventory Management → Goods

Movement

→ Goods Issue (MIGO),

then choose ‘Goods issue - other’

Movement type: 201
Special stock indicator: P

1-4

Keep the transaction from part 1-3 open. Instead of choosing ‘Goods issue – other’,
choose ‘Display – material document’. In the header data, you can find the
[Accounting docs] pushbutton in the document information.
The system updates the liabilities from consignment stores account and the
consumption of raw materials 1 account.

1-5

1-5-1

Logistics

→ Materials Management → Logistics Invoice Verification →

Automatic Settlement

→ Consignment and Pipeline Settlement

... Inventory Management

→ Environment → Consignment →

Consgnmt from Vendor

→ Liability

The liability is 29.00 UNI.

1-5-2 Return from the list to the selection screen.

Enter the vendor and the material, and choose settle in the processing
screen area.

1-5-3 From the results list in part 1-5-2, you can go directly to the accounting

document. To do this, click the accounting document number.
The following accounts are posted:
Vendor account, liabilities from consignment stores account, and incoming
tax account.

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SAP AG 2002

Course Content: Physical Inventory

Unit

Course Overview

Unit

Physical Inventory Management

Unit

Cycle Counting

Unit

Inventory Sampling

This Consultant Training contains different courses each discussing a specific topic.

Each single course is divided into different units.

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At the conclusion of this course, you will be able to:

Describe the physical inventory process

Carry out a physical inventory in the system

Implement special procedures, such as cycle
counting or inventory sampling

Course Objectives

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Cycle Counting

Inventory Sampling

Introduction - Course Overview Diagram

Physical Inventory Management

Inventory Management

MM Organizational Levels

Master Data in Materials Management

Introduction

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Your company has to carry out a physical
inventory of its warehouse stocks at least
once per fiscal year to balance its inventory.
Various procedures can be implemented for
this.

In a periodic physical inventory, all the
stocks of the enterprise are physically
counted on the balance sheet key date. Every
material has to be counted. During counting,
the entire warehouse must be blocked for
material movements.

Main Business Scenario

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In the continuous inventory procedure, stocks
are counted continuously throughout the entire
fiscal year. In this case, it is important to ensure
that every material is physically counted at least
once during the fiscal year.

You can also implement special procedures,
such as cycle counting (physical inventory at
regular intervals) and inventory sampling
(physical inventory of randomly selected
stocks).

Main Business Scenario

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Physical Inventory Process

Functions for Carrying out Physical Inventory

Posting Inventory Differences

Tools for Organizing Physical Inventory

Physical Inventory Management

Contents:

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At the conclusion of this unit, you will be able to:

Describe the physical inventory process

Describe the various methods of carrying out a
physical inventory

Enter physical inventory documents

Identify various indicators and Customizing
settings

Physical Inventory Management: Objectives (1)

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SAP AG 2002

Introduction

Physical Inv.

Management

Cycle

Counting

Inventory
Sampling

Physical Inv. Management: Course Overview Diagram

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In your company, you carry out a physical
inventory for a particular key date. This involves
checking the stocks of your materials in the
storage locations. You also count both the
quantities of unrestricted-use stock and the
quantities of blocked stock and stock in quality
inspection. In some cases, you manually enter
the physical inventory documents in the system,
but you use the batch input function for most
materials. If there is any doubt about a count
result, you initiate a recount.

Physical Inv. Management: Business Scenario

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B C

Documentation

Stock

Continuous

Sampling

Cycle

Counting

Periodic

Physical Inventory Procedures

In SAP R/3, you can carry out a physical inventory for special stocks as well as for your own stocks.
However, you have to inventory your own stock and each type of special stock (for example,
consignment stock at customer, or external consignment stock from vendor) separately, using
different physical inventory documents.

As of SAP R/3 4.0, physical inventory is linked with the Logistics Information System (LIS). When
inventory differences are updated in the LIS, they are shown both in terms of quantity and value. The
physical inventory items are aggregated to physical inventory number, plant, storage location, and
material.

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Unrestricted-use

Quality inspection

Blocked stock

Stock Types

In the continuous inventory and periodic inventory procedures, you can inventory the stock types
below:

- 1 unrestricted-use

- 2 quality inspection stock

- 4 blocked stock

The cycle counting procedure only supports stock type 1 (unrestricted-use).

The inventory sampling procedure is only applicable to stock types 1 (unrestricted-use) and
2 (quality inspection stock).

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Print phys.

inventory

document

List of

differences

Create physical

inventory

doc

Initiate

recount

Change

count

Blocking indicator

Enter physical

inventory count

Post

differences

Physical Inventory Process

Independent of the physical inventory procedure, the physical inventory process can be divided into
three phases:

- Physical inventory preparation

This includes creating a physical inventory document, blocking materials for posting, as well as
printing and distributing the physical inventory document.

- Physical inventory count

Firstly, the stocks are counted in the warehouse and the count results are entered in the count
list. These are then transferred from the count list to the system in the step "Enter Physical
Inventory Count".

- Physical inventory check

Using the list of inventory differences, you can check variances in the stocks. You should check
whether the transferred count result is correct (change count) or whether you want to initiate a
recount.

If the difference is accepted, it is posted and the stock is corrected.

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Physical inventory
documents for material
---------------------------------

Material
Plant
...
Phys. inv. no.

Change physical

inventory doc.

Create physical

inventory doc.

----------------

------------------

----------------

dfgdgdfghgh

Phys. inventory
number

Physical Inventory Number

The physical inventory number was created as an additional hierarchy above the physical inventory
document number. You can use it to group together different physical inventory documents that
belong together organizationally.

You assign physical inventory numbers when creating and changing physical inventory documents.
They can then be used in physical inventory reports as an additional selection criterion. This enables
you to directly display the physical inventory documents per storage location, customer, or vendor.

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Freeze book inventory balance

Set zero count automatically

Tolerance for posting inventory differences

Entering the Physical Inventory Count

- If you have not finished entering the complete physical inventory count, you can freeze the

book inventory balance in the physical inventory document. This prevents goods movements
from changing the book inventory balance relevant to the physical inventory count, which
would result in incorrect inventory differences. You define in Customizing for Inventory
Management whether you can freeze book inventory balances in the storage location.

- When entering a physical inventory count with reference to a physical inventory document that

contains many items with a quantity of zero, you can set zero count automatically for all items
that have not yet been counted.

- In Customizing for Inventory Management, you can define the following value tolerances for

posting inventory differences for a user group:

- Maximum amount per physical inventory document

- Maximum amount per document item.

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Determination of posting period

Posting block from

Goods movements are re-allowed

(*)

Effects of Entering the Count Results

(*)Differences are to be posted in this posting period.

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Mat. master record

Material A

Standard price

Total stock 100
Total value

1000

Moving average price

Total stock 100
Total value

1000

Material A

Material B

110

Stock account for material

200 -

Expense from physical inventory

200 +

Stock account for material

100 -

Revenue from physical inventory

100 -

Posted inventory count

Post inventory differences

Mat. master record

Material B

Material A

Material B

Standard price

Total stock

Total value

800

Moving average price

Total stock 110
Total value

1100

Example: Inventory Difference in Own Stock

When you post inventory differences, the material master record is changed; the total stock is
automatically adjusted to the counted quantity. In the accounting view, this corresponds to a goods
receipt or goods issue, in other words, the stock account is credited or debited as a result of the
inventory difference posting:

- If the counted quantity is less than the book inventory balance, the stock account is debited for

the value from the inventory difference* price. The offsetting entry is made to the "Income from
physical inventory" account.

- If the counted quantity is greater than the book inventory balance, the stock account is debited

for the value from the inventory difference* price. The offsetting entry is made to the "Income
from physical inventory" account.

The amount posted is calculated on the basis of the current standard or moving average price, and so
posting inventory differences does not result in a price change.

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Create physical

inventory

doc

Blocking indicator

Print physical

inv. document

Enter physical

inventory count

List of

differences

Post

differences

Initiate

recount

Change

count

Batch

input

Batch

input

Physical Inventory Process

- If you want to create a physical inventory document for many materials, you can do so

automatically, according to your requirements. The process consists of two steps:

-Creating a session with the required data

-"Processing" the session, the system now carries out the required functions.

- In physical inventory, you can work with sessions for the following functions:

-Creating a physical inventory document

-Blocking a material

-Entering the count*

-Freezing the book inventory balance

-Setting the zero count automatically

-Posting differences

-Posting the count/differences*

-Posting documents/count/differences*

Functions marked with an asterisk (*) cannot be carried out using SAP R/3 alone, as the system
does not know the count results. These functions are used for adopting physical inventory data
into SAP R/3 if you carried out the count with a different system.

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In a periodic physical inventory, all the company's
stocks are physically counted on the balance
sheet key date. Every material has to be counted.
During counting, the entire warehouse must be
blocked for material movements.

In the continuous inventory procedure, stocks are
counted continuously throughout the entire fiscal
year. In this case, it is important to ensure that
every material is physically counted at least once
during the fiscal year.

Physical Inventory Management: Summary

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Physical Inventory Management

: Exercises

Unit: Physical Inventory Management
Topic: Physical Inventory Management

•  Explanation of the physical inventory process
•  Posting physical inventory documents
•  Configuration and various settings for the physical inventory
•  The physical inventory number and using it to group physical

inventories

• Standard reports for the physical inventory

Your company carries out physical inventories periodically. You have to
check the stock quantity in the plant. You sometimes use various stock
types to manage a material, for example, blocked stock, stock in quality
inspection, or unrestricted-use stock. You carry out the physical inventory
manually or using the batch function. If it is an unlikely count result, you
may carry out a recount.

1-1 Physical

Inventory

1-1-1 Create a physical inventory document for plant 1000, storage location 0001.

The count is supposed to take place in two days, so you do not have to set
the posting block. Assign physical inventory number G## for your group to
the physical inventory document. The following materials and stock types
should be counted.

Material

Stock Type

T-AM1## Unrestricted-use

T-AM1## Quality

inspection

T-AM1## Blocked

stock

Number of phys. inventory doc. ____________________________
1-1-2 Enter the physical inventory count for the document. Enter a variance of 5%

on the initial screen and use the values in the table for the items in your
document. Remember to set the zero count indicator.

Material

Count

T-AM1## Unrestr.-use 110

T-AM1## Quality insp. 48

T-AM1## Blocked

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1-1-3 Display

the

physical

inventory document. Call up the history and statistics

for the first material in the document and answer the questions below.
Who entered the count?

____________________________

What is the physical inventory status? ____________________________
What is the quantity?

____________________________

What is the book quantity?

____________________________

What is the difference quantity? ____________________________

1-1-4 Create the list of differences and analyze the count results you have entered.

1-1-5 Choose the first item for a recount and assign the physical inventory number

G## again.
Physical inventory doc. _____________________________

1-1-6 Enter the count for the recount document.

Material

Count

T-AM1## Unrestr.-use 105

1-1-7 Post the differences from your two physical inventory documents.
_________________________________________________
1-1-8 Display the material document number. Is there an accounting document?

What is the accounting entry?
What is the quantity difference? __________________________
What is the value difference?

__________________________

Material document number:

__________________________

1-1-9 Display the physical inventory data for your material. Has a physical

inventory been carried out for the material this year?
_________________________________________________
Has a physical inventory been carried out for the special stocks?
__________________________________________________
Display the physical inventory documents for your material.
__________________________________________________

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Physical Inventory Management:

Exercises

Unit: Physical Inventory Management
Topic: Physical Inventory

inventories

• Standard reports for the physical inventory

2-1 Physical

inventory

with blocking indicator

2-1-1 The

unrestricted-use

stock for material T-AM2## in plant 1000, storage

location 0002 is to be counted. Create a physical inventory document for the
count. The count is to take place today, so the posting block has to be set for
this material, as no goods movements should take place for this material
during the count. Assign G## as the physical inventory number again.

Physical inventory doc. ___________________________

2-1-2 Test the posting block by carrying out a goods issue for over 10 pieces from

plant 1000, storage location 0002, to cost center T-L##.

Can you issue the material to the cost center? ________________
What message is displayed?
___________________________________________________________

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2-1-3 Display the storage location stock view in the material master T-AM2## for

plant 1000 and storage location 0002. Has the inventory block indicator
been set?

2-1-4 Create a list of all the physical inventory documents you have created and

processed. Use your physical inventory number G## as the selection
criterion. Reset the material number, the physical inventory number and the
storage location.

2-1-5 Create the inventory count for your physical inventory document.

Material

Count

T-AM2## Unrestr.-use 95

2-1-6 Is the inventory block indicator still set in the material master?

___________________________________________________________

2-1-7 Post the physical inventory differences for your physical inventory

document
___________________________________________________________

2-1-8 Is the inventory block indicator still set in the material master?

___________________________________________________________

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Physical Inventory Management:

Exercises

Unit: Physical Inventory Management
Topic: Physical Inventory Using the Batch Function

•  Explanation of the physical inventory process
•  Using a batch input session to create physical inventory documents
•  Configuration and various settings for the physical inventory

3-1 Physical

inventory

documents via the batch function

3-1-1 Create the physical inventory documents without special stock.

You want to create a physical inventory count for your raw materials in
plant 1000, storage location 0001. The storage bin description for your
materials is BL##. Use this storage bin description as a selection criterion,
as well as plant 1000, storage location 0001, material type ROH, and
material group 002. You only want to count the unrestricted-use stock, so
select this on the selection screen under Stock types.
Logistics – Materials Management – Physical Inventory – Sessions – Create
Phys. Inv. Docs – W/o Special Stock
What session name was assigned automatically? ____________
Process this session in the background.
Choose

System -> Services -> Batch Input -> Sessions

To display the session, enter your user in the Created by field.
Select your session and choose Process.

Choose the Display errors only option and start processing by pressing
Process.

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What physical inventory document(s) was/were created? (It may take a
moment to complete this transaction). How many items does your physical
inventory document have?
_____________________________

3-1-2 Enter the physical inventory counts manually for the physical inventory

document that you created via the batch function

Material

Count

T-AM3## 28

T-AM4## 40

T-AM5## 51

T-AM6## 60

T-AM7## 69

T-AM8## 80

3-1-3 Use a batch input session to post the differences.

What is the name of the session? ______________________________
Process this session in the background.
Choose

System -> Services -> Batch Input -> Sessions

To display the session, enter your user in the Created by field.
Select your session and choose Process.

Choose the Display errors only option and start processing by pressing
Process.

Which material document was created? (It may take a moment to complete
this transaction). _____________________________

You find the material document by displaying the physical inventory
document and choosing the physical inventory history at item level.

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Physical Inventory Management

: Solutions

Unit: Physical Inventory Management
Topic: Physical Inventory Management

1-1 Physical

Inventory

1-1-1 Physical

inventory document with inventory number G## for plant 1000,

storage location 0001.

Menu path: Logistics

→

Materials Management

→

Physical Inventory

→

Phys. Inventory Doc.

→

Create

Material

Stock Type

T-AM1## Unrestricted-use

T-AM1## QI

T-AM1## Blocked

stock

Number of phys. inventory doc. ____________________________

1-1-2 Physical

inventory

counts. On the initial screen, enter a variance of 5%.

Menu path: Physical Inventory

→

Inventory Count

→

Enter

Use the Zero count pushbutton for the items with a value of zero.

Material

Count

T-AM1## Unrestr.-use 490

T-AM1## QI

T-AM1## Blocked

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1-1-3 Display

the

physical

inventory document. Call up the history and statistics

for the first material in the document and answer the questions below.

Menu path: Physical Inventory

→

Physical Inventory Document

→

Display

Who entered the count? LO511-##
What is the physical inventory status? Counted
What is the quantity?

The counted quantity in the storage unit

What is the book quantity?

The book inventory balance at the time of

the count
What is the difference quantity? The difference quantity between the book
inventory balance and the counted quantity

1-1-4 Difference list.

Menu path: Physical Inventory

→

Difference

→

Difference List

Enter your material number, plant, and storage location as selection criteria.

1-1-5 Inventory recount for 1st item. Assign G## as the physical inventory

number again.

Menu path: Physical Inventory

→

Phys. Inventory Doc.

→

Recount

Physical inventory doc. _____________________________

1-1-6 Enter the count.

Menu path: Physical Inventory

→

Inventory Count

→

Enter

1-1-7 Post the differences from your two physical inventory documents.

Menu path: Physical Inventory

→

Difference

→

Post

1-1-8 Display the material document number. Is there an accounting document?

What is the accounting entry?

Menu path: Physical Inventory

→

Environment

→

Mat. Doc. for Material

If your physical inventory showed differences, there is an accounting
document in addition to the material document. The inventory differences
are posted to expenditure/income accounts.

1-1-9 Physical

inventory

data for your material.

Menu path: Physical Inventory

→

Environment

→

Phys. Inv. Data for Mat.

Physical inventory carried out: Yes

Has a physical inventory been carried out for the special stocks? No.
Display the physical inventory documents for your material.

Menu path: Physical Inventory

→

Environment

→

Phys. Inv. Doc. for Mat.

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Physical Inventory Management:

Solutions

Unit: Physical Inventory Management
Topic: Physical Inventory

2-1 Physical

inventory

with blocking indicator

2-1-1 Physical

inventory

document with posting block

Menu path: Physical Inventory

→

Phys. Inventory Doc.

→

Create

Physical inventory doc. ___________________________

2-1-2 Test the posting block by carrying out a goods issue for over 10 pieces from

plant 1000, storage location 0002, to cost center T-L##.

Logistics

→

Materials Management

→

Inventory Management

→

Goods

Movement

→

Goods Issue

Can you issue the material to the cost center?

No.

What message is displayed?

Material blocked due to physical

inventory.

2-1-3 Display the storage location stock view in the material master T-AM2## for

plant 1000 and storage location 0002. What is the physical inventory status?

Logistics

→

Materials Management

→

Material Master

→

Material

→

Display

→

Display Current

The physical inventory status is displayed in the view for plant or storage
location stock.
Inventory block: X (Material is blocked for movements due to physical
inventory)

2-1-4 List of all physical inventory documents.

Menu path: Physical Inventory

→

Environment

→

Phys. Inv. Data for Mat.

Do not enter the material number as the selection criterion, enter the
physical inventory number instead.

2-1-5 Enter

physical inventory count

Menu path: Physical Inventory

→

Inventory Count

→

Enter

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11-25

2-1-6 The

Inventory block field is in the storage location stock view in the

material master T-AM2##.

Logistics

→

Materials Management

→

Material Master

→

Material

→

Display

→

Display Current

Inventory block: A (Physical inventory not yet completed for material)

2-1-7 Post

differences.

Menu path: Physical Inventory

→

Difference

→

Post

2-1-8 The

Inventory block field is in the storage location stock view in the

material master T-AM2##.

Logistics

→

Materials Management

→

Material Master

→

Material

→

Display

→

Display Current

Inventory block: __ (No physical inventory operation planned for material)

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Physical Inventory Management:

Solutions

Unit: Physical Inventory Management
Topic: Physical Inventory Using the Batch Function

3-1 Physical

inventory

documents via the batch function

3-1-1 Create the physical inventory documents without special stock.

Menu path: Physical Inventory

→

Sessions

→

Create Phys. Inv. Docs

→

W/o Special Stock
You want to create a physical inventory count for your raw materials in
plant 1000, storage location 0001. The storage bin description for your
materials is BL##. Use this storage bin description as a selection criterion as
well as plant 1000, storage location 0001, and material type ROH. You only
want to count the unrestricted-use stock, select this on the selection screen
under Stock types.
What session name was assigned automatically? MB_MI01
Process this session in the background.
Choose

System -> Services -> Batch Input -> Sessions

Note: Select your session and choose ‘Process’.
What physical inventory document(s) was/were created? (It may take a
moment to complete this transaction).
How many items does the physical inventory document contain?

items.

3-1-2 Enter the physical inventory counts manually for the physical inventory

document that you created via the batch function

Menu path: Physical Inventory

→

Inventory Count

→

Enter

3-1-3 Use a batch input session to post the differences.

Menu path: Physical Inventory

→

Sessions

→

Post Difference

What is the name of the session?

MB_MI07

Process this session in the background.

Choose

System

→ Services → Batch Input → Sessions

To display the session, enter your user in the Created by field.
Select your session and choose Process.

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11-27

Choose the Display errors only option and start processing by pressing
Process.

Which material document was created? (It may take a moment to complete this
transaction). _____________________________

You find the material document by displaying the physical inventory
document and choosing the physical inventory history at item level.

3-1-4 Statistics and history of physical inventory document.

Menu path: Physical Inventory

→

Physical Inventory Document

→

Display

Who entered the count results and posted the differences?
LO511-##
Which material document was used to post the differences?
_______________________________________

3-1-5 Display the material document that was used to post the differences. Which

movement type was used? Is there an accounting document? What is the
accounting entry for this transaction?

Menu path: Physical Inventory

→

Environment

→

Material Document

Movement type 701 or 702.
Press the Accounting documents pushbutton to display the accounting
document. Select the accounting document. The raw materials account is
posted and, depending on the type of difference, the income or expenditure
from inventory differences account is also posted.

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SAP AG 2002

Describe the cycle counting procedure

Describe the ways of assigning the cycle
counting indicator in the material master
record

Carry out a physical inventory using the cycle
counting procedure

List the most important indicators and
Customizing settings

At the conclusion of this unit, you will be able to:

Cycle Counting: Course Objectives

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SAP AG 2002

Introduction

Physical Inv.

Management

Cycle

Counting

Inventory
Sampling

Cycle Counting: Course Overview Diagram

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SAP AG 2002

B C

12 x

6 x

4 x

1 x

...n x

...

Stock:

Indicator:

Number of inventories:

Stock

Plant 0001

Cycle Counting

Physical

inv

Cycle Counting

Cycle counting is a method of physical inventory whereby material is inventoried at regular intervals
within a fiscal year. These intervals or cycles depend on the cycle counting indicator set for the
material.

Cycle counting allows fast-moving items to be counted more frequently than slow-moving items, for
example.

All materials to be included in the cycle counting inventory are flagged. This is done either
manually, using a cycle counting indicator in the material master record (storage data), or
automatically, by means of an ABC analysis. The cycle counting indicator allows you to classify
materials into individual cycle counting categories (for example: A, B, C, D) In Customizing, you
can set for each category how often the materials are inventoried.

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Consumption-based

analysis

Purchasing

cc-

Material

master

data

Material

master

data

Analysis

Reqmnts-based

analysis

Material

Text

Value

Quantity new old

pc.

PP-001...

21.500 19.850

PP-008...

20.330 15.100

PP-015...

Plant 0001

No.

Text CC CC

Material

new old

PP-001...

PP-008

PP-015

Manually

Via report
RMCBIN00

Setting the Indicator

You can flag materials that are to be included in cycle counting as follows:

-Manually in the material master record (storage data)

-Automatically using ABC analysis.

You can use program RMCBIN00 to carry out an ABC analysis, which assigns materials to
each category according to consumption or requirements. You can choose whether the analysis
should only include materials with cycle counting indicators or all materials. The cycle counting
indicator can be automatically updated in ABC analysis.

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SAP AG 2002

Plant

No. inv.

Interval

Buffer

Percent

*0001

0001
0001
0001

A
B
C
D

6
3
1

20
41
82

247

10
20

50
30
15
05

Number of

phys. invs

per year

Number of

workdays

Number of

workdays

that the

count day

can vary from

the planned

count day

= 100

Indicator

All materials in plant 0001 with CC indicator A must be counted 12 times

per year (every 20 days)

For all new materials in stock, the date when the accounting view

was initialized is relevant.
Batches: The date when the batch was created is relevant.

When is the Next Physical Inventory?

To plan the cycle counting inventories, start the RM07ICN1 cycle counting program at regular
intervals. This program checks the due dates for inventories for all cycle counting materials.

If it is time for an inventory for a certain material, use the program to create a batch input session to
create physical inventory documents. Physical inventory documents are only created for stock type 1
(unrestricted use). The planned inventory count date is calculated as follows:

Date of last inventory + pre-defined interval

The interval between inventories for each cycle counting indicator is set in Customizing.

Use the batch input session to create the physical inventory documents.

Now you can carry out the inventory. When the difference is posted, the actual inventory count date
is recorded in the material inventory data as the date of the last inventory.

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Cycle Counting

Exercises

Unit: Cycle Counting
Topic: Cycle Counting

•  Explanation of the cycle counting process
•  Assigning a cycle counting indicator to a material
•  Carrying out the cycle counting process
•  Configuration and settings for cycle counting

In your company, materials are grouped in different cycle counting
categories. You have materials A, B and C. Materials belonging to group
A are the highest in value and are therefore counted every 30 days. In
some cases, you manually assign a cycle count category to a material, in
others, the cycle count program assigns the indicator.

1-1 Cycle

Counting

1-1-1 Display the settings for cycle counting in Customizing and answer the

following questions by filling out the table.

What are the cycle counting indicators for plant 1000?
How many physical inventories are carried out?
What is the percentage for each indicator?

Cycle count.

indicator

Number of

physical

inventories

Percentage

Plant 1000

1-1-2 Set the cycle count indicator for material T-AM8## in the material master to

C. Which view is this field in?

_________________________________

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12-10

1-1-3 Determination

cycle counting indicator

Carry out this analysis of past consumption values (time period 1 year) for the

finished products in plant 1000. Choose List display first as the processing
step!

What is the suggested new cycle counting indicator for material T-AM8##?

_______________________

Only change the cycle counting indicator for your material T-AM8##.
Save the ABC analysis.

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Cycle Counting

: Solutions

Unit: Cycle Counting
Topic: Cycle Counting

1-1 Cycle

Counting

1-1-1 Menu

path:

Tools

→

Accelerated SAP

→

Customizing

→

Edit Projects

→

SAP Reference IMG

→

Materials Management

→

Inventory Management

and Physical Inventory

→

Physical Inventory

→

Cycle Counting

Cycle count.

indicator

Number of

physical

inventories

Percentage

Plant 1000

1-1-2 In the material master, set the cycle counting indicator for material T-

AM8## to C.

Menu path: Logistics

→

Materials Management

→

Material Master

→

Material

→

Change

→

Immediately

In which view is the Cycle counting physical inventory field? Storage 1

1-1-3 Determination

cycle counting indicator.

Carry out this analysis of past consumption values (time period: 1 year) for the

finished products in plant 1000. Carry out the analysis for previous
consumption values for raw materials in plant 1000. Choose List display
first as the processing step!

What is the new cycle counting indicator for material T-AM8##?

Determining

the new CC indicator depends on the consumptions of this material, for T-
AM8##, ‘D‘ should be the indicator.

Only change the cycle counting indicator for your material T-AM8##.
Select your material T-AM8## and choose 'Change CC indicator'.
Change the indicator to the calculated value.
Save the ABC analysis.

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SAP AG 2002

Describe the inventory sampling procedure

List the Customizing settings for the
inventory sampling procedure

Carry out inventory sampling in the system

At the conclusion of this unit, you will be able to:

Inventory Sampling: Course Objectives

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

SAP AG 2002

Introduction

Physical Inv.

Management

Cycle

Counting

Inventory
Sampling

Inventory Sampling: Course Overview Diagram

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SAP AG 2002

Stock

mgmt

units

Sampling area

Complete-count

area

Value

classes

. . . . .

90 100 >100

. . . . .

Stock population

Stratification

Stock mgmt levels

Inventory Sampling: Preparation

The inventory sampling procedure is based on statistical procedures.

- A sample is randomly selected from the stock management units for which a physical inventory

is to be carried out, and then counted. The sample size depends on the probable degree of
confidence you require when using the data obtained from the sample to make generalizations
about all stock management units involved.

- The count results data posted for the sample stock is extrapolated, then applied to all the stock

management units included in the inventory sampling procedure.

- If the deviation between the extrapolated value and the book value is very small, and the

probability is high that any error in the extrapolation results is only very small, then the
inventory sampling procedure is considered to have been successful.

In the preparation phase, you have to carry out the following steps:

- Allocate stock management levels

You have to specify which stock management units are to be included in the inventory sampling
procedure. To do this, do not assign individual stock management units to the sampling
procedure, but rather you allocate quantities of stock management units, which are known as
stock management levels.

- Form stock population

The stock population is the total stock quantity in all stock management units included in the
inventory sampling procedure.

- Carry out stratification

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SAP AG 2002

Complete-count

area

. . . . .

Strata

Book value of all

stock mgmt units

Book value of all

stock mgmt units

1000 2319

1000 2318

Physical inv.
1000 2317
Material A
Material B

Estimated actual

value of all stock

management units

Estimated actual

value of all stock

management units

Estimation

Actual value of

selected stock

management units

Comparison

Stock mgmt

units to be

counted

Random selection

Physical inventory
documents

Update

Extrapolation

Inventory Sampling: Procedure in Action

The following steps have to be carried out during the active phase:

- Generate random selection

Random selection is carried out separately for each stratum of the stock management units to be
counted.

- Create physical inventory documents

- Update

The system performs these two initial actions during the update:

It reads new count results.

It reads changed book inventory balances and book values.

- Extrapolation

In the extrapolation, the physical inventory value of the sampling area is estimated, based on the
latest count results. In each stratum, an average physical inventory value is calculated per item,
and this is multiplied by the number of items in that stratum. The total sum of these stratum
values is the estimated value for the sampling area.

If the entire physical inventory value (estimated value for sampling area plus actual value for
complete-count area) does not deviate from the book inventory value by more than 2%
(standard system setting), the inventory sampling procedure is considered successful.

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Inventory Sampling:

Exercises

Unit: Inventory Sampling
Topic: Inventory Sampling

•  Explanation of the inventory sampling procedure
•  Configuration/settings for the inventory sampling procedure
•  Carrying out an inventory sampling

Your company wants to minimize the number of materials that are
counted. Inventory sampling is used for the raw materials in the plant.
This makes it possible to get an overview of the stock situation without
counting all of the materials.

1-1

In Customizing, check the profile for inventory sampling.

Which currencies have profiles created for them in Customizing?

_______________________________

Display the details of profile 01 and check the following settings:

Are materials with an ABC indicator considered in inventory sampling?

_________________________________________________________________

As of which price limit are materials adopted into the complete-count area?

________________________________

What is the minimum number of materials per stratum that must be included in the
inventory sampling?

_________________________________

1-2

For which stock types is inventory sampling allowed in plant 1000, storage location
0001?
__________________________________

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Inventory Sampling

: Solutions

Unit: Inventory Sampling
Topic: Inventory Sampling

1-1

Customizing of profile for the inventory sampling.

Menu path: Tools

→ Accelerated SAP → Customizing Î Edit Project → SAP Reference

IMG

→ Materials Management → Inventory Management and Physical Inventory →

Physical Inventory

→ Inventory Sampling → Create Inventory Sampling Profiles

Currencies UNI and US dollar

Profile 01:

Are materials with an ABC indicator taken into account in inventory sampling? A-materials
are assigned to the complete-count area.

Price limit for the complete-count area? Higher than 1000 UNI

What is the minimum number of materials per stratum for the inventory sampling? 30.

1-2

For which stock types is inventory sampling allowed in plant 1000, storage location
0001?

Menu path in Customizing: Materials Management

→

Inventory Management and

Physical Inventory

→

Physical Inventory

→

Inventory Sampling

→

Define Stock

Management Levels

For raw materials (ROH).