Physical Inventory in SAP MM

Physical Inventory in SAP MM:

              Verification of physical existing stock and comparing with book balance (system stock) and adjusting system stock to physical stock is called as physical inventory in SAP MM.

Physical Inventory in SAP MM

               The main purpose of physical inventory is to prepare warehouse balance sheet for F.I auditing purpose.

Types of Physical inventories:

1. Manual physical inventory (continuous, periodic, manual)
2. Cycle counting
3. Inventory sampling

1.Manual Physical Inventory:

Step-1: Create physical inventory document (PID)
       Path: Logistics--------> MM-------> Physical inventory-------> PID------> Create
       T.Code: MI01
                   Enter Required details.
Note: For each storage location separate physical inventory document is require. For special stock and warehouse stock also separate physical inventory document is required.
           If we select Check box of Posting Block, all the goods movements are blocked until completion of counting process.
           If we select check box of 'freeze book inventory' , we can still allow the goods movement, but at the time of preparing this document what ever stock is there, that stock will be freezed and counted physical stock will be compared with freezed system stock.
           Enter physical inventory required material numbers and other details and save the document.
Note down physical inventory document number.

Step-2: Print physical inventory document (T.code: MI21)
            Enter physical inventory document number and click execute. Enter print output device and take printout.

Step-3: Enter counted physical stock (T.code:MI04)
           Enter physical inventory document number and click. Enter physically counted value and save.

Step-4: Post differences (T.code: MI07)
           Enter physical inventory document number and click. Enter reason for movement and save.Here physical inventory document is created and material document is posted.
           In MMBE, system stock is adjusted as physical stock.
Note: Goto material document display in MIGO or in MB03. Observe triggered movement types and accounting documents. Here stock GL account is debited or credited and Loss or gain GL account is debited or credited based on excess or shortage of physical stock with respect to system stock. Transaction keys triggered are BSX, GBB-INV.