/ Title:
Organization/Area: / BUSINESS PROCESS PROCEDURE
Physical Inventory Verification
Inventory Management
Release: / ECC6 / File Name: / 5.9.1 MM-MIGO-Physical Inventory Verification
Last Edited on: / 13 September 2018 / Version: / 1.2

Overview

Physical inventory verification is required to be done.

Business Process Description Overview
Most companies carry out physical inventory verification periodically. When a company does not have many material management items, it is better to manually create single inventory documents. From these documents, a company can physically count material to enter into the system.
Input - Required Fields / Field Value / Comments
Document Date / Current date will default.
Planned Count Date / Current system date will default, change if necessary.
Plant / Key that identifies the plant for which the inventory document is being created.
Storage Location / Key that identifies the Sloc for which the inventory document is being created.
Output - Results / Comments
Physical inventory document is manually created in the system. / This is the material in stock list which will be helpful for physical verification.

Tips and Tricks

Physical verification process in BSNL requires internal approval for loss / gain of inventory for which there is no time bound. In most instances these are closed only during the year end. Additionally, the process of Goods receipt/ issues is not stopped for physical verification. This is in conflict with the internal best practices defined in standard SAP process designed for Physical inventory. In view of this, a custom development suiting to BSNL is proposed.

Steps in Inventory verification processes-

SR. / Step / Mode / TCode / Responsibility
1 / Inventory Report for Physical Verification / SAP / MB52 / Stores
2 / Organizing and Recording Physical Count / Manual / N/A / Stores and Finance
3 / Difference List, Recount and Approval / Manual / N/A / Stores and Finance
4 / Posting of Physical Verification differences / SAP / MIGO / Stores

Procedure Steps

1.1.Access Transaction by:

Via Menus / (a)Logistics > Material Management > Inventory Management > Environment > Stock > Warehouse Stock
Via Transaction Code / MB52

1.2.On screen Display Warehouse stock of material, enter information in the fields as specified in the below table:

Field Name / Description / R/O/C / User Action and Values / Comments
Material No. / Enter Material No. / O / Enter or Select the materials from the full down file access / If you want to have total stock ,don’t enter the material.
Company Code / Enter Company code / O / Enter or Select the materials from the full down file access
Plant / Plant number / R / Enter or select Plant from the pull-down file access.
Storage location / Storage location / R / Enter or select a storage location from the pull-down file access.
Special stock / Special stock indicator / O / Used if special stock is to be handled differently.

.3.Press “Execute (F8) ”

1.4.On screen press to Display warehouse stock of material”,Save the file in desired folder & take print out

2.0Use MIGO Screen to post the differences arisen from physical cost with Movement type 701 –for Goods receipts or 702–for goods issue.

2.1 Goods receipts to increase the stock in system.

Access Transaction by:

Via Menus / Logistics > Material Management > Inventory Management > Goods movement > Migo
Via Transaction Code / MIGO

2.2 Select Goods receipts –Other - movement type 701,and enter the below information,

Field Name / Description / R/O/C / User Action and Values / Comments
Material No. / Enter Material No. / R / Enter or Select the materials of which inventory to increase.
Quantity / Enter material quantity / R / Enter material quantity
Plant / Plant number / R / Enter or select Plant from the pull-down file access.
Storage location / Storage location / R / Enter or select a storage location from the pull-down file access.
Cost center / Cost center for inventory verification. / R / Enter the appropriate cost center.
Reason for the movement / Enter 001(wrongly placed in store) / R / Enter 001

2.3 Then finally check and post the document,

2.4 Select Goods receipts –Other - movement type 702,and enter the below information,

Field Name / Description / R/O/C / User Action and Values / Comments
Material No. / Enter Material No. / R / Enter or Select the materials of which inventory to increase.
Quantity / Enter material quantity / R / Enter material quantity
Plant / Plant number / R / Enter or select Plant from the pull-down file access.
Storage location / Storage location / R / Enter or select a storage location from the pull-down file access.
Cost center / Cost center for inventory verification. / R / Enter the appropriate cost center.
Reason for the movement / Enter 002(Missing from store)
003(Damaged) / R / Enter 002/003

2.5 Check and post the document.

Page 1 of 7