In this blog i would like to explain the process of Physical Inventory and its basic function .We will also discuss the configuration to be done for carrying out PI process.
- Physical Inventory is a process to count the actual shop floor quantity and compare with book entry quantity.
- This process may plan for year wise, continuous or product specific with pre-defined time periods.
- Physical Inventory process can be carried out for Un-restricted stock type, Quality stock, blocked stock.
- Physical Inventory Process can be carried out using two ways :-
- PRODUCT SPECIFIC PROCESS:-
This means wherever the product lies, it is applicable for physical count.
- STORAGE BIN SPECIFIC PROCESS:-
This means whatever the product in the storage bins; it is applicable for physical count.
- Physical Inventory Area and Activity Area will be in 1:1 ratio.
- DEFINE PHYSICAL INVENTORY AREA:-
PATH: Spro—Img—SCM EWM—EWM—Internal warehouse processes —physical Inventory—physical Inventory Area specific settings—Define physical Inventory Area.
- Here we need to create separate physical Inventory area for separate Activity area. As PIA: AA is to be done in 1:1 ratio.
- Here select the IOWH-RK01 row and click on Permitted Documents
- Here we assign the product specific and storage bin specific procedures in terms of permitted document types.
- Similarly create separate PIA for every Activity Area. Below is the attached document for your reference.
PHYSICAL INVENTORY AREA CONTROL PARAMETERS:
- Putaway physical Inventory:
PI document generates at the time of first putaway in to a storage bin during fiscal year.
- Low stock check without Physical Inventory:
We check this Bar, then system will check the minimum value we maintain and if it’s below minimum value system will propose for PI.
- Low stock check without physical Inventory:
This Indicator is for alerting low stock check during fiscal year without creating a PI document.
- Posting after Count Entry:
This check box is for posting the PI document automatically after count with reference to assigned tolerance group, if the difference is below tolerance group system posts PI document automatically.
- Display Book quantity:
Here system displays the Inventory book qty, when the count results are entered. The display of the book Inventory qty enables to check the count quantity entered.
- Display item Object:
Indicates that object information is to be displayed as suggested (default) lines when a count result is entered for a location-specific (for example, storage- bin-specific) physical inventory.
Ex- HU 1 is storage at storage bin 01-01-01. HU 2 and HU 3 are packed in HU 1. HUs 2 and 3 each contain the product 4711.
Storage bin 01-01-01 —> HU 1
HU 1 —-> HU 2
HU 2 —-> Product 4711
HU 1 —-> HU 3
HU 3 —-> Product 4711
- HU complete:
If you set this indicator, a handling unit can be counted as “complete” at the time of count entry. That is to say, a counter accepts the complete hierarchy of a handling unit without counting any other HUs it might contain or all the products packed in the handling unit.
- HU Counting method:
It specifies whether counter want to count collectively the number of handling unit (HU) or the no of items inside a handling unit
- PERIODICITY OF STORAGE BIN CHECK:-
PATH: Spro—Img—SCM EWM—EWM—Internal warehouse processes —physical Inventory—physical Inventory Area specific settings—Define physical Inventory Area—Periodicity of storage bin check.
- ASSIGN PHYSICAL INVENTORY AREA TO ACTIVITY AREA:
PATH: Spro—Img—SCM EWM—EWM—Internal warehouse processes —physical Inventory—Warehouse number specific settings—Assign Physical Inventory Area to Activity Area.
- Here Assign the Activity area to physical Inventory Area.
- DEFINE NUMBER RANGE FOR PHYSICAL INVENTORY DOCUMENT:
Physical Inventory document number ranges are year specific. If maintain year “9999”, then no need to maintain during year ending activities.
PATH: Spro—Img—SCM EWM—EWM—Internal warehouse processes —physical Inventory—Warehouse number specific settings—Define Number ranges for Physical Inventory documents.
- SPECIFY PHYSICAL INVENTORY SPECIFIC SETTINGS IN THE WAREHOUSE:
- In this area we maintain WH control parameters for each Warehouse.
PATH: Spro—Img—SCM EWM—EWM—Internal warehouse processes —physical Inventory—Warehouse number specific settings—Specify physical Inventory specific settings in the Warehouse.
- DEFINE TOLERANCE GROUP FOR DIFFERENCE ANALYZER:
PATH: Spro—Img—SCM EWM—EWM—Internal warehouse processes —physical Inventory—Warehouse number specific settings—Define Tolerance Group for difference Analyzer.
- DEFINE TOLERANCE GROUP FOR POSTING DIFFERENCE:
PATH: Spro—Img—SCM EWM—EWM—Internal warehouse processes —physical Inventory—Warehouse number specific settings—Define Tolerance Group for Posting Difference.
- DEFINE TOLERANCE GROUP FOR RECOUNTING:
- Here you define physical inventory tolerance groups for the recount of a physical inventory document in a warehouse number, and assign value-based and quantity-based (percentage) tolerance values to these activities.
- If the difference exceeds tolerance limit, system automatically propose to recount. Result of recounting is to create a new PI document with deleting existing document.
PATH: Spro—Img—SCM EWM—EWM—Internal warehouse processes —physical Inventory—Warehouse number specific settings—Define Tolerance Group for Re-counting
TEST CASE -1
Now Once we maintained the Tolerance group (20%) , If there is any deviation of qty/Value more than tolerance limit , System will not post
CONFIGURATION NEED TO BE DONE:-
1.1 Define Tolerance group for Posting Differences:
1.2 Define Tolerance group for Differences Analyzer:
1.3 Assign User to Tolerance group for Recount /Clearing:
- Here we assign USER to Tolerance group.
- Create a Physical Inventory Document for carrying out the PI process
- We can create PI documents with reference to –Storage Bin, Product, Activity Area.
- Now we create PI Document
- Select the product row and click on SET FLAG.
- Once we create on SAVE , PI Document will be generated .
- Now once PI document is generated , we will now Process PI document.
- Maintain the Document no-8009, and click on Execute.
- Now select the entire row and click on COUNT.
- Enter USER who is going to generate the WO for Counting.
- Once we click on SAVE, PI status will be changed to COUNTED
- Once click on POST and again click on SAVE.
- Here Error message. will appear regarding Tolerance as shown below as we kept tolerance level up to 20%.
TEST CASE: 2
PHYSICAL INVENTORY DOCUMENT (ADHOC STORAGE BIN SPECIFIC)
CREATE PHYSICAL INVENTORY DOCUMENT:
- First we need to create a PI document.
- Transaction : /SCWM/PI_CREATE
- Before creating PI , ensure to fill PI procedure –HL
- HL-Ad-hoc PI (storage bin specific) , HS-Ad-hoc PI (Product specific)
- Now select the row and click on SET FLAG, Click on SAVE.
- PI Document is generated as shown below.
PROCESS PHYSICAL INVENTORY DOCUMENT:
- Once PI document is created ,process it through below transaction
- Transaction : /SCWM/PI_PROCESS
- Once we enter the PI document no -8010 and click on Execute
- Now click on COUNT.
- Enter the counter name, date &time.
- If RF device is using to process PI document, system adopt the counter details for resources.
- Once after enter the count, save the document. Status will be change to ‘COUNTER’.
- After it click on POST Difference.
- Here once we SAVE the document, then a Document will be created.
- Below it is shown Error ,as tolerance level is exceeded.
- Now again click on RECOUNT, to count the document again.
- Once Click on RECOUNT, existing document set to recounted &create a new PI document. As shown below.
- Now again we need to enter new PI doc. No &click on EXECUTE. As shown below.
- Enter counter name & date
- Click on COUNT & change the quantity.
- Now Click On SAVE & POST
- Once you SAVE it Status will change to POSTED.
Hope this blog helped you understand the basic function Physical inventory flow. Thanks for your time.
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