Cycle Counting Process

[Former Member]

Hi SAP guru

I'm currently using ABC cycle counting for my client.

The client however is requesting to do a random cycle counting throughout the year instead as they have many parts in the factory and it would like a long time to count all the material.

Is there any other methods of cycle counting in SAP to fulfilling this requirement?

Thanks !

[Former Member · Accepted solution]

Thank you all

Your response was very helpful.

But again I'm still facing some problems with regards to the cycle counting.

The client wants the system to randomly pick materials (30-40) for counting everyday, regardless of the indicator. After counting and posting the difference, the material which was counted would not be counted again this fiscal year. My initial idea was i can still use the indicator to meet his requirement but then it wouldnt work as some of the material will be recounted.

Thanks

[JL23 · Accepted solution]

this requirement has nothing to do with SAPs cycle counting.

this is called continuos inventory in SAPs WM

you find it in transaction LX16

Beginning of the year you print a list of your storage bins, and then you decide which bins you want to count at which date.

Then you give this proposal to internal and external auditors, who may want to attend a physical count to audit its correctness.

And when you reach such a count date, then you execute LX16 and specify the bins that you want count on that day.

Before you have to make sure that all open TOs get confirmed or cancelled..

[Former Member · Accepted solution]

Thanks my friend !

This is a good suggest but is there a method which is by material instead of storage bin?

Thanks !

[Former Member · Accepted solution]

Yes.

LX16 has dynamic selections option (three colour icon to right of Execute). Select this then open up Quant and select Material.

[JL23 · Accepted solution]

In WM the physical inventory is always by bin. Just a different concept to inventory managment.

How many materials do you have in a bin? do you allow mixed storage?

if not then you have no real problem, because then 1 bin = 1 material.

The only option to count by material (actually by quant) is with LICC transaction, but this is cycle counting again.

If you define just one cycle, means all your materials have just CC indicator A and customzing for A is 1 count per year, then you can make use of LICC to restrict by material. (you have then to enter a planned count date that covers the entire fiscal year)

[Former Member · Accepted solution]

Thanks again

So my only real option from the advices from you all is bascially.

Create planned schedule of which material to count before hand.

Then use LICC and in the parameters input the material and the date according to the planned schedule.

[Former Member · Accepted solution]

To be honest I'm not sure of the true requirement.

Do you really want to select which materials to count every time ? You can save Variants but even so if you have a large number of materials the admin. will be horrendous. Just do Continuous inventory. You can specify material i.e. via Quant, but only do this for your top 100 materials (say). But note that as you have WM the actual count will be defined according to Bin (including any additional materials if mixed storage) as J has already stated.

[JL23 · Accepted solution]

yes, basically this would be the way if you cant do it by bin.

[Former Member · Accepted solution]

Hi again !

The client prefers to be "random".

Again his requirement is basically

1 : ABC cycle counting in intervals (if 100 materials are assigned to be counted every month) then system will automatically distribute the material to be counted. IE 25 materials in week 1, 25 materials in week 2, 25 materials in week 3, 25 materials in week 25 ( or even by day )

As from your advice, its not possible since judging from the screen parameters in MICN.

2. J suggested continous inventory .

[Former Member · Accepted solution]

J is right.

Just do continuous inventory, which is at Bin level, no escape from that. My observation is you can specify material but realistically I don't think that's sensible for all materials. If you have a limited number of 'A'/high value materials you could save a variant and count these more often.

If you've got WM, it has to be WM PI.

[Former Member · Accepted solution]

Thanks Nick and J

Your advice has helped me alot !

Appreciate you two for taking your time to assist on my problem !

[former_member1278972]

Hi,

My company using this approach, whereas, we upload the Date of Last Count in MARD table.

[Former Member]

The number of parts isn't going to reduce because he wants 'random' cycle counting. Have you got WM active ? If so then consider using stock counts on putaway/picking of empty bin for certain Storage Types. This could be considered a form of cycle counting, based on turnover of stock. You'll still need another form of PI to check anything not turned over on a reasonably regular basis.

[Former Member]

From my understanding using ABC cycle counting, it does 12-6-1 count based on the indicator. It doesnt count in interval does it? As in if material indicators are set as A and does count for every month, it does 1 massive count correct? It doesnt spread it by 20 working days?

With his method of random cycle counting, the material is spread through days so the warehouse people does not need to count as many material within a short period of time.

And yes WMS is activated.

Thanks for your advice !

[JL23]

SAP does what you enter in the selection screen.

If you execute MICN every day,with just 1 day as planned count date then SAP just gives you the parts that need to be counted on that day.

SAme is valid for LX26 in case of WM.

Only thing you have to know in case of WM is, that you have to count all materials in one bin, if one of the materials is due to be counted. But this is only the case if you allow mixed stock in your bins.

Edited by: Jürgen L. on Jun 28, 2011 10:39 AM

[Former Member]

Doesn't have to be 12, 6, 1. It can be whatever you want it to be, see:

IMG \ Mat.Man. \ Inv. Man. and Phys. Inv. \ Phys. Inv. \ Cycle Counting

4 - 2 - 1 for example