PHYSICAL INVENTORY in Embedded EWM

PURPOSE:

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

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 :-

Also Read: SAP EWM Certification Preparation Guide

1. PRODUCT SPECIFIC PROCESS:-

This means wherever the product lies, it is applicable for physical count.

2. STORAGE BIN SPECIFIC PROCESS:-

This means whatever the product in the storage bins; it is applicable for physical count.

NOTE:

Physical Inventory Area and Activity Area will be in 1:1 ratio.

CONFIGURATION :-

1. 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:

1. Putaway physical Inventory:

PI document generates at the time of first putaway in to a storage bin during fiscal year.

2. 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.

3. Low stock check without physical Inventory:

This Indicator is for alerting low stock check during fiscal year without creating a PI document.

4. 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.

5. 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.

6. 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.

Stock overview:

Storage bin 01-01-01 —> HU 1

HU 1 —-> HU 2

HU 2 —-> Product 4711

HU 1 —-> HU 3

HU 3 —-> Product 4711

7. 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.

8. 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

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.

7. 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.

8. 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