Cycle counting

[sandeep_pv]

All,

1.What is meant by cycle counting in physical inventory?

2.Is this something related to some back ground jobs scheduled for physical countin?

Pls explain in simple terms.

Regards

[Former Member · Accepted solution]

hi,

Cycle counting is a method of physical inventory whereby inventory is counted at regular intervals within a fiscal year. These intervals depend on the cycle counting indicator set for the material.

Cycle Counting allows you to count fast-moving items more frequently than slow-moving items.

In fact it is not a back ground process it is a type of comparing book value with physical material (To find real status of physical material available with us )

This count can be made as per the requirement quarterly or yearly

Edited by: MANI ROOPA SD/MM on Feb 18, 2008 9:46 AM

[sandeep_pv · Accepted solution]

Thanks Mani.

I have worked in physical inventory where we create document in MI31 and rest all steps.

But cycle counting I have never used. I understand we can do setting in material master for cycle counting in storage location view.

But what is the benefit of this. Based on this what response system will give .

1.Whether system will give some alarm for next count process?

2. Or system will automatic process inventory document for that material on next count day?

Please explain in terms of real scenario.

thanks

[Former Member · Accepted solution]

go to T.code:OMCO for confguration of cycle counting

In this step, you complete the system settings for the physical inventory method of cycle counting by defining the individual cycle counting indicators for the given plant.

The cycle counting indicators are used to group the materials together into individual categories.

Recommendation

Normally, the cycle counting indicators are assigned when an ABC analysis is run. However, different indicators can be defined, if necessary.

Activities

1. Define the allowed cycle counting indicators in the plant.

2. Make the required settings for each indicator.

Remember that the total of the percentages must be 100 if you want to assign the indicator to the individual materials as part of an ABC analysis

G.Ganesh Kumar