Create Physical Inventory Counting

This document explains how you create cyclic, periodic, zero-point, and deviation-based physical inventory. It also explains how you take physical inventory up to the point of reporting the results.

You take an inventory to make sure that the recorded item quantities are correct.

Outcome

You have created a physical inventory-taking round.

Count the items in your stock and compare it to the printed list to check how the list corresponds to the stock.

After you are finished counting, you report and update the inventory. This is done in 'Physical Inventory. Perform' (MMS300) and 'Physical Inventory. Report' (MMS301).

For information about which M3 tables will be updated, refer to the related process document Taking Physical Inventory.

Before you start

Follow these steps

Outline

Create cyclic, periodic, zero-point, and deviation-based inventory

  1. Open 'Physical Inventory. Perform' (MMS300/B).

  2. Fill in the 'Physical inventory number' field. Click New.

    If this field is left blank, a number will be generated automatically from 'Number Series. Open' (CRS165), number series 12 A.

  3. On the (MMS300/E) panel, select one of the physical inventory methods: cyclic, periodic, zero-point, or deviation-based inventory.

  4. If you want to limit the number of inventory lines, you can use the 'Number of physical inventory lines' field.

    If an inventory is taken with a large selection, you do not want the items to be on the inventory list for too long. The solution is to split the inventory and make it possible to final-report some items before the entire lot is counted.

  5. Fill in the 'Print On-hand balance' or 'Print Next transaction' field if you want this information to be printed on the counting list.

  6. The 'Consider cycle time' field indicates whether or not cycle time is to be considered for the latest in/out date.

    Example:

    Today's date is 2001-01-02. The cycle time is one day. Item A at location XX has the physical inventory date 2001-01-01. Item A at location YY has a blank physical inventory date and 2001-01-02 as its latest in/out date. If a physical inventory is performed on 2001-01-02 and this parameter is set to 1, the balance ID at location YY will not be selected for physical inventory. If the parameter is set to 0, both balance IDs will be selected.

  7. The 'Selection' field indicates whether the stock take lines should be created based on a selection on MITLOC records (alt 0 'Bal ID based'), or on MITPCE records (alt 1 'Location based stock take' or on MITMAS records (alt 2 'Item based').

    If selection 2='Item based' is selected, items that have no balance IDs (disregarding stock in transit and stock in deviation) are represented in MITTKD with a line carrying the item and no location.

    If physical inventory method 3='Zero point phys inv' is selected, empty locations (no bal IDs = 0 on MITPCE) are represented in MITTKD in addition to the MITLOC records.

  8. The status of the created inventory will be 10='Physical inventory round created but contents not yet created'.

    The next transaction can, in some cases, provide information as to why the system's on-hand balance differs from the counted on-hand balance. For example, a quantity may already have been picked from the location that was included in the calculated on-hand balance.

  9. Start the (MMS300/F) panel via option 11='Create requested lines' from the (MMS300/B) panel.

  10. If you have selected stock take lines on MITLOC or MITMAS records, continue with step 11. If you have selected stock take lines on MITPCE records, continue with step 13.

    Stock Take Lines Selected on MITLOC or MITMAS Records

  11. Fill in the 'Item selection table' field and other selections. It is recommended to exclude balance IDs that are in transit. Decide whether to exclude balance IDs in deviation, or oppositely only list balance IDs in deviation if the objective is to clear this dummy stock. Click Next.

  12. Select from one of the following alternatives:

    • If you have chosen the zero-point physical inventory method, go on to step 15.
    • If you have chosen the cyclic, periodic, or deviation-based physical inventory method, go on to step 16.
    • If you want to create a new item selection table, refer to Create Item Selection Table.

    Stock Take Lines Selected on MITPCE Records

  13. On the F panel, it is possible to sort on transportation flow code. The purpose of this is to be able to print the stock take lists in a sort order that minimizes travel time during stock take

  14. The 'Exclude allocation' field, on the F panel, indicates whether stock take lines should not be created for those balance identities where allocation exists. This decreases the risk for incorrect differences caused by picking being performed between the time the stock take list was created and the actual counting.

    Zero-Point Physical Inventory Method

  15. Define what zero means by activating one of the fields on the (MMS300/G) panel. This panel is only displayed when the zero-point inventory method has been selected. Click Next.

    The valid alternatives for defining zero are:

    • Negative on-hand balance
    • Below safety stock
    • Below reorder point
    • Percentage left of the reorder point.

      For example: If the 'Negative on-hand balance' field is activated, then balance identities with negative on-hand balances will be included in a physical inventory request.

    Continue Creation of Cyclic, Periodic, Deviation-based, and Zero-Point Inventory

  16. Click Exit to close the program.

    Status will be 30='Balance identities selected'. Click Refresh and the status will be 40='Request printed'.

    The selected records will be flagged as active now and during physical counting. This means that they cannot be selected until the count is completed.

    Status 41

    Status 41 is displayed when you have sent the MI transaction LstStockTake to the API. You can resend the transaction by select option 21='Change status'. This will decrease the status to 40 again.

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