From the course: Learning SAP MM (Materials Management)
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SAP physical inventory process - SAP ERP Tutorial
From the course: Learning SAP MM (Materials Management)
SAP physical inventory process
- Physical inventory determines if inventory quantities in the system are correct. When they're not, it helps us flag discrepancies so we can keep our balance sheet accurate. Let's look at depth at how physical inventory works in SAP. There are four different physical inventory strategies that can be implemented depending on a company's needs. First is the periodic physical inventory method. This is where all stocks are physically counted on a predetermined key date. With this procedure, no materials can move during the count. The next strategy is called continuous physical inventory. In this procedure, stocks are counted throughout the entire year. Checks must be in place to ensure that every material is physically counted at least once over the course of the year. The third strategy is called cycle counting. This procedure counts inventory at regular intervals during the year. Cycle counting can be set up to count materials that move through inventory quickly, so they're counted…
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