22 September, 2020
What is the Physical Inventory?
Physical Inventory is the procedure used to maintain an accurate count of material This involves physically counting the quantity of stock at the storage location
Which stocks can be inventoried?
1. The above stocks to be taken separately in different physical inventory documents.
2. Physical inventory can be carried out for the following stock types
a. Unrestricted stocks in wear house
b. Quality inspection stock
c. Blocked stock
d. If batch status management is active, stock type 1 covers both unrestricted use stock and restricted-use stock
3. Inventory of all stock types mentioned could be taken in a single transaction
4. For the material to be inventoried, one item is created in the physical inventory document for every stock type.
5. Physical inventory takes place at the storage location level.
6. A separate physical inventory document is created for every storage location
[If no storage location segment exists for material, this means that no goods movement has ever taken place for the material in the storage location. The material therefore has never had any stock at the storage location and does not exist at the stock management level. It is therefore not possible to carry out a physical inventory for the material in this storage location
This is not to be confused with a material for which a goods movement has taken place and for which the stock balance is currently zero. A Physical inventory must be carried out in this case. It is also possible to carry out a physical inventory since storage location data is not deleted when the stock balance is zero]
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Physical inventory procedure:
• Periodic Inventory
• Continuous inventory
• Cycle counting
• Inventory sampling
Independent of the Physical inventory procedure, the physical inventory process can be divided into three phases:
Physical Inventory Preparation
Physical Inventory count
Physical Inventory check