Physical Inventory In SAP WM and IM

Physical Inventory:

Physical stock is actual stock available in the plant / storage location & is the figure (Nos) after physical counting is done.

Logical stock is the stock shown in the system at any point of time.

Following is the process of how to match the stock.

1. Creation of Physical Inventory document for which you want to match stock ( T code MI01)

2. Entry of the physical count in the system (T code MI04)

3. Posting of inventory difference ( T code MI07)ea

AFTER POSTING INVENTORY difference THE QTY & VALUE BASED STOCK IS UPDATED.STOCK ACCOUNTS ARE UPDATED.

You can do PI in IM as well as WM also.

Inventory Preparation:

MI31 Create Physical Inventory Documents in Batch

MI24 Display Physical Inventory List

MI02 Change Physical Inventory Document

MI21 Print Physical Inventory Documents

Process Inventory Results:

MI04 Enter Count Results

MI06 Display Count on individual Physical Inventory Document

MI05 Change Count on Existing Inventory Documents

MI11 Create Recount Document

MI20 Physical Inventory List/Post Differences

MI20 Inventory Completion Check

MI20 Print List of Inventory Differences

MB21 Reconciled Inventory Report

During the inventory you compare the physical (real situation) of your stocks (qty, batch, location, etc) to the stock situation of your system. Maybe you have to do inventory once a year because it is prescribed in the law but of course you can do inventory monthly, or any time you feel it is necessary.

If you use WM the process may differ a little bit from the inventory process mention in messages above.

Basic steps:

LI01N - create / activate inventory doc

(LI02N - activate)

LI11N - enter count result

LI20 - clear differences WM

LI21 - clear differences IM (please use interim storage type 999)

You have information on stocks in SAP - it's one thing.

Other side of the coin is that mistakes (wrong bookings, etc) can happen: some material may have been moved from one bin into another if WH staff haven't kept the rules, someone may have stolen something, you may have received a box with a label on it: 100 pcs and you later find out that the box contains only 98 pcs, etc.

So you may have several reasons why your stock level accuracy and the exact location of your stock, etc may differ from the information stored in your system (SAP).

That's why sometimes it is necessary to make inventory to examine what is the reality and what is the theoretical situation in SAP...

Or as I mentioned you may be forced by the law to make inventory once a year...

If your WH operates very well, then these kind of mistakes don't exist or the amount of these mistakes are of very low level.