Define Physical Inventory Settings

This document explains how you enter the settings for physical inventory.

Outcome

Basic settings for periodic, cyclic and zero-point physical inventory have been entered.

Settings for quick physical inventory have also been entered.

Before you start

Program ID/Panel Field The field indicates …
(MMS001/E) Inventory accounting … whether the stock kept for the item should be accounted for in the inventory records.
(CRS717/E) Difference percentage

… the percentage variance for the physical inventory parameter. This is entered with two decimal places.

This percentage is used for checking how reasonable the physical inventory result is. If an inventory variance is above or below the expected percentage of the inventory value for the balance identity, the physical inventory result must be manually verified in (MMS300).

(CRS717/E) Variance amount … the amount used for a check of how reasonable the results from a physical inventory are.
(CRS717/E) Verify records … whether or not the stock transaction history file (MITTRA) should be updated when the difference is zero.
(CRS165/B) Number series type … the purpose of each number series.
(CRS165/B) Number series … the number series.
The following fields apply for cyclic inventory only:

(MMS002/G)

and

(CRS110/B)

Physical inventory cycle

… the applicable physical inventory cycle.

The inventory cycle contains information on how many days are to elapse before inventory for the item is once again taken.

Example: An inventory request is created on the first of each month and the time cycle is set to 180 calendar days, which means that the item should be counted every six months. If the item has not been included in any inventory for the last six months, then it will be included in the inventory this time.

(CRS110/E) Cycle time

… the number of calendar days selected to be the physical inventory frequency of the physical inventory code.

Cycle time for physical inventory is entered for each physical inventory code.

Follow these steps

  1. Start 'Item. Open' (MMS001/E) and set the 'Inventory accounting' field to 1=The item is entered in the inventory record.

  2. Open 'Settings. Physical Inventory Variances' (CRS717/E) and fill in the 'Difference percentage' and 'Variance amount' fields in order to set the parameters for inventory variances.

  3. To determine whether the stock transaction history should be updated even if there are no inventory differences to report, fill in the 'Verify records' field.

    The valid alternatives are:

    0 = No

    1 = Yes, create records with zero quantity.

    The purpose is to verify that the physical inventory has been completed, even if there were no variances.

  4. Start 'Number Series. Open' (CRS165) and enter number series A of type 12.

    Follow Steps 5–7 Below for Cyclic Inventory Only

  5. Open 'Item. Connect Warehouse' (MMS002/G) and fill in the 'Physical inventory' field to determine how often the item is to be counted.

    This field starts a table from 'Physical Inventory Cycle. Open' (CRS110).

  6. In 'Physical Inventory Cycle. Open' (CRS110), specify the number of days for a cycle by filling in the 'Physical inventory cycle' field on the B panel.

  7. On the (CRS110/E) panel, specify the physical inventory frequency by filling in the number of calendar days in the 'Cycle time' field.

    This indicates the number of days that must have elapsed between the last physical inventory date and today’s date.

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