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Cyclecounting:Configuration,Processflowand...|SCN

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SAPERPLogisticsMaterialsManagement(SAPMM)

SAPERPLogisticsMaterialsManagement(SAPMM)

Cyclecounting:Configuration,Processflowand
Implementation
PostedbyRajenPatelinSAPERPLogisticsMaterialsManagement(SAPMM)onMay13,20135:38:36
AM
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Thisisbriefoverviewforimplementingcyclecountingprocessininventorymanagement(IM).

What is cycle counting?

Cyclecountingisamethodofphysicalinventorywherebyinventoryiscountedatregularintervalswithinafiscalyear.
Physicalinventorymayberequiredbyfinancialaccountingrulesortaxregulations.Cyclecountingprocessisless
disruptivetooperations.Thisprocesscanbeintegratedindailyoperations,fore.g.,count200materialsatbeginningof
shift(20peoplecounts10materialseach).

CycleCountingallowsyoutocountfastmovingitemsmorefrequentlythanslowmovingitems.

Cyclecountingprocessisfairlyeasytoimplement.Thisprocessincreasesaccuracyofinventory.

Configuration
Cyclecountindicator
Followthisconfigurationpath:IMGMaterialsManagementInventorymanagementandPhysicalinventoryPhysical
inventoryCyclecounting(Tcode:OMCO)
Configurefollowingparameters
1.Definetheallowedcyclecountingindicatorsintheplant.
2.Maketherequiredsettingsforeachindicator.

No.ofphys.inventoriesperfiscalyearforcyclecounting:Specifieshowoftenduringthefiscalyearaphysicalinventory
istobecarriedoutforamaterialsubjecttocyclecounting.Thisparameterwillconvertcountintervalinworkdays.

Interval:Thecountintervalisdeterminedautomaticallyonthebasisofthenumberofphysicalinventoriesspecifiedfor
thefiscalyear.
Floattime:Indicatesthenumberofworkdaysbywhichtheplannedcountdatemayvaryfromthecurrentdate.

Fortheplant3000,thefloattimeisfivedays.Aphysicalinventoryhasbeenplannedforamaterialbelongingtocategory
CforJune,1.Onexpirationofthefloattime(afterJune,6),thephysicalinventoryhasnotyetbeencarriedout.
Irrespectiveofthecategory,thematerialisparkedforthenextcyclecountingrun.

Percentage:Specifiesthepercentageallocationofthematerialstotheindividualcyclecountingcategories.The
percentagevalueisusedforautomaticassignmentofthecyclecountingindicatorduringABCanalysis.

Settingsforphysicalinventory

Thisismoregenericphysicalinventorysettings,butitmayimpactcyclecountingprocess

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Changedocumentsareactivatedforphysicalinventorydocument.
Thebookinventorybalanceisadjustedinthephysicalinventory.
Serialnumbermanagementissetup.Intheaboveexample,lastfivedigitsofserialnumberswillbeprintedon
physicalinventorydocument.

Reasonformovement

Followthisconfigurationpath:IMGMaterialsManagementInventorymanagementandPhysicalinventory
MovementtypeReasonformovement(tcode:OMBS)
Asperyourbusinessrequirementconfigurereasoncodeformovementtype701,702

Master data

1.Cyclecounterindicatorsetforthematerialsplantdata1tab.(Tcode:MM02)

Thisindicatorissetifthematerialistobecyclecounted.Itcanalsodeterminehowthecountistakenandhowoften.It
groupsthematerialstogetherintovariouscyclecountingcategories.Usually,thesecategoriescorrespondtotheABC
analysisofthematerials.ABCanalysiscanbedoneviareportMIBC(ProgramRMCBIN00).
2.Cyclecountingindicatorisfixed:
ThismeansthatthecyclecountingindicatorcannotbechangedforcyclecountingbyanABCanalysis.

Execution / Process flow chart

Hereisflowchartforcyclecountingprocess

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Assumingcyclecountindicatorissetonmaterials,firststepincyclecountprocessistocreatecyclecounting
documents.

MICNCreatePhysicalInventoryDocumentsforCycleCounting
Thisreportistocreatebatchinputsessionsphysicalinventorydocumentsforthecyclecountingphysicalinventory
procedure.

Selection
RestrictselectionbasedonMaterialnumber,storagelocation,Materialgroupetc.
Inadditiontounrestrictedusestock,youcanincludestockinqualityinspectionandblockedstockintheselection.
Byspecifyingathresholdvalue,youcandefinethatonlystocksaboveoruptoaparticularlevelareincluded.

Physicalinventorynumber
YoucansetupbatchjobwithdifferentvariantsforgeneratingcyclecountsheetsinMICN.YoucanuseTVARVtableto
customizephysicalinventorynumberand/orphysicalinventoryreference.Forexample:youwanttohavedifferent
referencenumbersforeachstoragelocationsforeaseofreporting.Youcanuseabovereferencenumberinsettingup
nextjobforautoprintingphysicalinventorydocumentviaMI21.

Postingblock

Indicatesthatnogoodsmovementsinvolvingthematerialslistedinthephysicalinventorydocumentcanbepostedfor
thedurationofaphysicalinventorycount.
Theindicatorissetfortheaffectedstocksineachcase(storagelocationstock,batchstock,orspecialstock),forall
associatedstocktypesandisnotcancelleduntilthecountresultsareposted.
Theblockingindicatorcanbesetupinoneoftwoways:
Directlyuponentryofthephysicalinventorydocument(ifthecountistotakeplaceimmediately).
Shortlybeforethecount(ifthecountistoplacelater).

Freezebookinventory

Itspecifiesthebookinventorybalancesofthoseitemsinaphysicalinventorydocumentthathavenotyetbeencounted
andarefrozen.Thisindicatorhastheeffectthatthecurrentbookinventorybalanceisrecordedinthephysicalinventory
document.Thesystemcomparesthecountedstockwiththefrozenbookinventorybalancetodetermineanyinventory
differences.Ifthecountresultsarenotenteredimmediatelyafterthestockhasbeencounted,itisusefultosetthis
indicatorsothatanygoodsmovementswhichmaytakeplaceinthemeantimewillnotchangethebookinventory
balancerelevanttothephysicalinventory.
Forexample:Businessprocessistocountinventorybeforeshiftbegins,andthenafterfewhoursinventoryadministrator
enterscounts.InthiscasedonotsetPostingblock,asproductionwillneedtoperformgoodsissue.Inthiscaseset
Freezebookinventory,soinventorycountwillbemeasuredagainstinventoryatthetimewhenphysicalinventory
documentswerecreated.

OutputofMICN

Outputwillhaveallmaterialsforwhichphysicalinventorydocumentscanbecreated.
Itthenliststhestockmanagementunitsforwhichaphysicalinventoryisalreadyactive,buthasnotbeencompleted
withinthepredefinedfloattimeandthereforemustbecompletedurgently.Thesestockmanagementunitsarenot
includedwhenthebatchinputsessioniscreatedbecauseactivephysicalinventorydocumentsalreadyexist.

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Inaddition,thelistcontainsallmaterialsforwhichcyclecountingisrequiredwithintheplannedinterval(specified
intervalfortheplannedcountdate).Ifaphysicalinventoryhadalreadybeenduepriortotheplannedinterval,the
plannedcountdatewouldbehighlighted.
Theremainingstepsareselfexplanatory.Inventoryreferencenumbercanbeusedfortherestofthetransactionto
completecyclecountingprocess.

MI21PrintPhysicalinventorydocument
Hereyoucanspecify:
Groupingcriteriae.g.Groupbybinnumber
Sortingcriteriaforserialnumbers

MI24Physicalinventorylist
Thistransactioncanbeusedasworkingtransactionforinventoryadministrators.Usercanuseinventoryreference
numbertogroupcyclecountingdocument.
Inthistransactionusercanentercount,monitorprogress,runanalysisandpostcounts.

Integration

Whentheinventorydifferencesareposted,thetotalstockisautomaticallyadjustedtothecountedquantityonthe
document.Whenthedocumentisposted,thedifferencewillcorrespondtoeitheragoodsreceiptofgoodsissue.This
affectsfollowingareas:
Materialplanningforproductionorsaleorders
Stockvalueonbalancesheet

Tips
1.Ifthereisanyhistoricalrecordforlastcycledate,duringcutoverupdatefieldDLINLinMARDtabletocontinuecycle
countingprocess
2.RefertoSAPnote518418FAQ:CycleCounting
3.Physicalinventorycanbecountedforspecialstocksaswelle.g.MIW1ConsignmentatCustomer,MIO1
Materialprovidedtovendor
Source:help.sap.com
Alsopostedon:http://www.sapiencesolutions.com/sapeinceblog.php
PDFforabovedocument:http://www.sapiencesolutions.com/resources/May_2013_Cycle_counting.pdf
Iwelcomeyourcomments/suggestions/insights.
Thanks,

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Products:sap_erp_logistics_materials_managementTopics:enterprise_resource_planningTags:materials_management,physical_inventory,cycle_count,inventory_data

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13Comments

AmitAnasaneMay18,20139:55AM

Niceblog,Rajen,manythanksforsharinginformationinsuchasimpleway

withbestregards,

AmitAnasane
Like(0)
PathikShahOct28,201312:44PM

NiceInformationsharedinblog.Thanksforthesame.
Like(0)
EliseCarrollApr3,20146:26PM

Thisisagreatarticle,thankyouverymuch!!Ihaveaquestion.Wecountmaterialsbyareaatthe
companyIworkatasitisimpracticaltodothisbymaterial(wetriedlastyear).Isitpossibletousethis
SAPprocesstocountmaterialsbyarea??Thankyouverymuchinadvance!
Like(0)
RajenPatelApr3,20146:48PM(inresponsetoEliseCarroll)

Hi:

Iamassumingbyareayoumeanstoragelocationorbinnumber.Youcanalsouserstorage
binfieldtorecordarearelatedofinformation.

Material1:S1A1001
Material2:S1A1002

WhereS1isstockareaandA1001isbinnumber(racknumberetc)

InMICN,youcancreateinventorydocumentbystoragelocationandcheckboxsortvia
Storagebindescription(Atendofscreen).Bythiswayyouwillgetinventorydescription
groupbyBins.

Hopethishelps.
Like(0)
EliseCarrollApr4,201412:24PM(inresponsetoRajenPatel)

Thankyouverymuchforgettingbacktome!
Yes,byareaIwasreferringtostoragelocation/stockarea,ratherthanbinnumber.
Wewouldcountthematerialsbyareaaswearenotabletoclosedownseveral
areasatonceasweoperateperpetualinventory.TheproblemIamfacingisthatwe
donothavenecessarilydedicatedareasorbinstospecificmaterialsduetostorage
constraintsandchangingdemandrequirements.ThiswouldmeanthatIamnotable
tosetupaspecificstockareaandbinwithinthematerialmasterforeachmaterials.
WouldIstillbeabletouseSAPtoperformacyclecountofanareawithout
specifyingthematerials?Manythanksinadvance!
Like(0)
BisweswarSahuApr4,201412:36PM

Niceexplanation.

Regards,
Bisweswar
Like(0)
RameshKumarApr5,20148:38AM

NiceInformationsharedinthisblog.
Regards,
RameshKr.
Like(0)
GniaTchistiakovApr7,201411:44AM

Thanksforsuchdocument.Veryclearandusefull.

Gnia.
Like(0)
AtharvaG.Apr15,20147:20AM

Verynicedocument.

Ihavefollowingqueries.Willyoupleaseclarifythose.

1)DoesbeforeeverycyclecountreportMIBCABCanalysisneedstoberun?.ThisABCanalysisis
basedonconsumptionvalue?.HopetheirisnocorelationbetweenCCindicatorABCDmentioned
abovewithA/B/Canalysis.WhyABCanalysistoberunforCyclecounting.DoesthisCCindicatorfield

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inmaterialmasterupdatedbyanyreportorremainasit?Ifitgetschangedbywhichreport?.

2)WhenWMisnotactiveinwhichfieldstoragebiniscaptured.inmaterialmasterotherwiseinnormal
scenerioHowonCCoutputstoragebinwillappear.

Thanks
Like(0)
MarkMorganMay15,20149:33PM

ThisprocesssoundsverypromisingforourIMinventory.
Q1)DoestheprocessworkwithIM/HandlingUnit(HU)managedmaterialsaswell?
Q2)ForourWM,wearecurrentlyusinganexternaldatabaseprocesstoselectrandombinlocationsto
beputintoLX16togeneratethecountsheets.IsthereaprocessinSAPthatwillselectbinlocations
fortheWMitems?OurCorppolicyrequiresthatwecountbybininsteadofbymaterialnumber.We
haveover4600binlocations.

ThankYou,
Like(0)
JrgenLMay15,20149:38PM(inresponsetoMarkMorgan)

whatyourcorppolicyrequiresisjuststandardinSAPWMcyclecountprocess
Like(0)
PaulWhiteApr20,20153:57PM

Excellentdocument,thanksRajen.
Like(0)
VasukiBSDec24,20157:16AM

Thanksforthedocument!
Like(0)

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