Inventory Management: Physical Inventory - MEPA-DATA AG, Switzerland
Inventory Management: Physical Inventory SAP Business One Version 9.3 PUBLIC PUBLIC
Objectives At the end of this topic, you will be able to: Describe the process steps for counting inventory 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2
Business Scenario Your company needs to have an accurate count of the stock physically in the company warehouses. The company uses perpetual inventory which tracks the receipt and use of inventory and calculates the quantity on hand. The company needs an annual physical count of inventory for financial and tax reasons, so they have set up an inventory cycle linked to cycle count recommendations. If the physical count reveals any discrepancies from the quantity recorded in the system, the quantity difference is posted. 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3
Inventory Counting Matching actual item availability and system quantities is crucial for inventory management. You can set up inventory cycles with recommendations for periodic counts. 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4
Cycle Counting Process Overview A items B items C items 6 times / year 6 times / year 1 time / year Alert for A items Cycle Count Recommendation Select items Freeze items Print count sheet Count Enter results Post quantity differences 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5
Setup Step 1: Set up Cycles First you set up the inventory cycles you need. You can set cycles for different intervals. Cycle 1 Cycle 2 6 times / year 1 time / year Administration Setup Inventory Inventory Cycles 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6
Setup Step 2: Cycle Count Determination Printers Accessories General items Administration Setup Inventory Cycle Count Determination 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6 times / year 6 times / year 1 time / year Set up the cycle count determination to get recommendations. 7
Process: Receive Alerts 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC The designated user receives an alert for cycle count recommendations. The user can select which items to count and The user can open an inventory counting document from the alert. You can also use the menu for cycle count recommendations: Inventory Inventory Transactions Cycle Count Recommendations 8
Process: Inventory Counting 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC The Inventory Counting document centralizes the process of recording and managing the inventory count process. When the count is complete, you use this document to enter the quantities counted. 9
Inventory Counting Option: Multiple Counters Single Counter Multiple Counters Team Counting Multiple Individual Counters Multiple stock takers (either individuals or teams) can count items in the same area The teams or individuals enter their own results. You can then compare the results 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Mix of Team and Individual 10
Multiple Counters Example Three employees count one section of a warehouse. Keisha counts the entire section alone. Lee and Saul work as a team. Each employee’s count is entered into the Inventory Counting Document. Keisha’s result is compared to the team result of Saul and Lee. Saul’s count: 76 Keisha’s count: 151 Lee’s count: 75 Total 151 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 11
Process: Compare Results and Post Differences When there is a discrepancy from the expected in-warehouse quantity: Option 1: recount or adjust counted quantities Option 2: copy the difference to an inventory posting 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 12
Additional Options in the Process Managing counts for bin locations Counting serial and batch numbers Counting different units of measures Importing items and counts into Inventory Counting Documents Setting inventory document dates or inventory posting dates as default for the in-house warehouse quantities 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 13
Options: Manage Counts for Bin Locations 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC For warehouses with bin locations, you can: Enter bin locations in the Inventory Counting document Enter quantities at the level of each bin location View in-stock quantities by bin location 14
Options: Counting Serial Numbers and Batches When counting serial numbers and batches, if there is a discrepancy, you can delete or add serial numbers or batch numbers. 1. OEC Computers performed a count for a printer item. Current inventory showed 54 in stock. 2. The stock taker entered a count of 55 into the Inventory Counting Document. 3. Stock taker creates a draft serial number in the Inventory Counting document. 4. When the counting differences are posted in an Inventory Posting document, the draft serial number becomes an actual serial number. 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 15
Options: Counting Different Units of Measure An item may be stored in different units of measure in a warehouse Units of measure groups contain relationships between units. The system automatically converts the different units into the inventory unit of measure Example: Pack is inventory unit 24 packs in a carton 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 10 cartons counted 7 packs counted Total counted: (24 x 10) 7 247 packs 16
Options: Importing Items and Counts Use the Import from Excel tool to import items and counts: Define import template 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Enter data in Excel Import items and counts Adjust as needed Add the document 17
Options: Default Date for Warehouse Quantities Document Settings Calculate In-Whse Qty on Count Date Based On: Administration System Initialization Document Settings Per Document Tab For Inventory Counting Document Two choices for the default date for calculation of the in-warehouse quantity for inventory counts. In most circumstances, the best date to use is inventory transactions’ creation date. However, the posting date is another option for customers who create inventory documents with a posting date that differs from the current date. Transactions’ Creation Date Transactions’ Posting Date 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 18
Example: Default date for In-Warehouse Quantities September 6 September 7 September 8 September 9 Shipment with a quantity of 10 arrives at the warehouse Physical inventory count performed Goods receipt created for Qty. 10 (with posting date of September 6) Inventory Counting Document created (with count date of September 7) to record results Default as Creation Date: In-warehouse quantity does not include the 10. Default as Posting Date: In-warehouse quantity includes the 10. *More information on this option is available in note 1899113 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 19
Summary Here are some key points: Inventory Counting is done periodically in every item-based business to match the actual physical count to the quantities saved in the system. You can set up inventory cycles with recommendations for periodic counts to be triggered annually, monthly, weekly or even daily. Cycle counts can be tied to item groups and warehouse sublevels. Alerts remind you about items due for inventory counting. Inventory counts can be done by individuals or teams or a mix of individuals and teams. The Inventory Counting document coordinates counting by multiple stock takers, records the results, manages the process and allows you to copy any differences into inventory posting documents. 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 20
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Current inventory showed 54 in stock. 2. The stock taker entered a count of 55 into the Inventory Counting Document. 3.Stock taker creates a draft serial number in the Inventory Counting document. 4. When the counting differences are posted in an Inventory Posting document, the draft serial number becomes an actual serial number.
Inventory Approver and an Inventory Administrator has reviewed it and marked it to be posted to the core AM tables. In Process: The inventory transaction is being posted. Posted: Inventory Code and asset information updates have been posted to the core AM tables. PS 1.Use the Inventory Status field to approve or reject an inventory .
Cycle Count— A printable list of current inventory quantities with a space for updating those quantities during a physical check. Inventory On Hand—A list of all parts currently in stock. Scan In and Out Boxstorm's scanning feature lets you use barcodes to add, remove, cycle count, and move inventory in and out of your inventory management
An inventory valuation method that assumes the most recent products added to your inventory are the ones to be sold first. Average inventory cost . An inventory valuation method that bases its figure on the average cost of items throughout an accounting period. Average inventory . The average inventory on-hand over a given time period,
The two main inventory theories in inventory management are: inventory management theory which is also known as mathematical inventory theory and the theory of constraints. There are several mathematical models/ theories in inventory management depending o
Balance sheet Inventory Cost / Unit Inventory Value x Holding Cost Inventory Turns Inventory Value Inventory Turns Wal Mart Stores Inc. Kmart Corp. . Restaurant; High Tech; Inventory decisions 1 Christmas Tree Problem 100 8 15 22 29 2 9 16 23 30 3 10 17 24 31 4 11 18 25 5 12 19 26 6 13 20 27 7 14 21 28
property inventory system. The PCO will also prepare annual inventory control printouts and furnish them to all ODOC facilities/units. III. Inventory Control Officers and Agents Each facility/unit will designate an inventory control officer (ICO) who may designate one or more inventory control agents (ICA) to maintain inventory records
19.Preferred Teaching Approach Inventory 20.Principles of Adult Learning Scale 21.Teacher BehaviorPreferences Survey 22.Teaching Goals Inventory 23.Teaching Methods Inventory 24.Trainer Style Inventory 25.Training Style Inventory 26.Trainer Type Inventory 27.Effective Teacher Inventory 28.Clinical Teacher Characteristics Instrument 29 .
normally trade if trading as either a “day trader” or a “position trader” (simply due to the fact that those styles typically require larger stops thus shrinking the amount of lots one can safely trade according to equity management principles). By trading more lots a scalper can achieve significant gains comparable to the gains expected by day & position traders in the same time span .
