Physical Inventory Process 

Purpose

Regardless of the physical inventory method, the process of physical inventory can be divided into three phases:

1. Physical Inventory Preparation

2. Physical Inventory Count

3. Physical Inventory Analysis

Process Flow

The physical inventory procedure is carried out in three steps:

1. Creating a Physical Inventory Document

2. Entering the Physical Inventory Count

3. Posting inventory differences

You can also group together individual phases and carry them out in a single step, as follows:

In this step, the following are combined:

– a physical inventory document is created.

– the count is posted.

If a physical inventory document exists, the following are combined in this step:

– the count is posted.

– any inventory differences are posted.

In this step, the following are combined:

– a physical inventory document is created

– the count is posted

– any inventory differences are posted

Monitoring the Inventory Status

To monitor physical inventory processing, each physical inventory document records the inventory steps that have been carried out. This information is contained in the item data and the document header.

The inventory history informs you which steps have been carried out for the item.

In the document header, the fields Count status, Adjustment status and Delete status specify whether some or all of the items have been counted, posted (inventory differences), or deleted.

You can also display statistics for the physical inventory document; the statistics list how many document items are open, counted, posted (inventory differences), recounted, or deleted.

Result

When you post the inventory differences, the system adjusts the book inventory values and book values so that they correspond with the actual stocks and stock values.