Cycle Counting Physical Inventory in SAP WM (Stock Room Management) at Bin Level

[MohdRashid]

Introduction- In cycle counting inventory, you enter your material stocks physically at regular intervals within a fiscal year. By dividing materials into various classes (for example, A, B, C, D, and so on), you specify for those materials at which intervals or cycles the inventory is to be performed. This allows you to make an inventory fast-moving materials in your warehouse more often than slow-moving material.

Cycle counting is basically the process of continually validation the accuracy of the inventory in the warehouse by regularly counting a portion of the inventory on a daily or weekly basis. Every item in the warehouse is counted at lease several times in a year.

Cycle Counting can be performed at IM level as well as WM Level.

In WM  We can go for two types of Cycle Counting Physical Inventory

1- Cycle Counting at Bin Level

2- Cycle Counting at Quant Level 

In this blog I am going to write about Cycle Counting at Bin Level

WM Level Cycle Counting Configuration

• ABC  indicator has to be maintained in Material Management

Navigation SPRO-Material Management-Inventory Management and Physical Inventory-Physical Inventory-Cycle Counting

Master Data Set UP at IM Level

Set Cycle Counting Indicator (M1BC)

Navigation Logistics – Material Management- Physical Inventory- Special Procedures-Cycle Counting – Set Cycle Counting Indicator

Click change CC Indicator

It can be checked in MM03

Cycle Counting Configuration in WM for Storage Type

Navigation SPRO-Logistic Execution- Warehouse Management – Activity – Physical Inventory -Define Types per storage type

Process Flow

Create Cycle Counting Document in WM

Transaction Code LX26

Count the inventory

Transaction code – LI11n

Input Counted quantity In put here lesser than actual

And save the count

Inventory Count Added

Clear difference in WM

Transaction LI20

Write Off the count

Clear difference at IM level

Transaction code LI21 or LX23

I am taking here LI21

After write off  Material document will be created

Check LX03

One pallet quantity was 0 so it disappeared

Other pallet quantity 1 and it was increased by 1 quantity so it is changed

After the entire physical inventory is complete for the fiscal year, you reset the inventory data for storage bins and storage quants using the RLREOLPQ report. In the next inventory period, you can then perform a new physical inventory for these storage bins.

Note- You should not reset the quant data, since the reference to the inventory date is then lost, and the system proposes too many bins for your next cycle counting inventory.

Reference - https://help.sap.com/docs/SAP_S4HANA_ON-PREMISE/b2dee5e83e2446149294f9860a7c08f0/8f91c95360267214e10...

Please share your feedback so I can improve it 

Regards

Rashid