Physical Inventory Preparation
Purpose
To ensure that the physical inventory count goes smoothly, you have to carry out a number of steps in preparation.
Process Flow
1. Create a physical inventory document.
A physical inventory document contains, among other things, the following data:
the plant and storage location in which the count is to take place
when the count is to take place
which materials are to be counted
for material handled in batches: which batches are to be counted
in the case of split valuation: which sub-stocks are to be counted
which stock types are to be counted
2. Blocking Materials for Posting
Due to the delay between a material movement and the posting of that movement, there is a short-term discrepancy between actual warehouse stock and book inventory. To avoid such a discrepancy during physical inventory, it is recommended that you block the materials for posting during the physical inventory. You can set a posting block two ways:
You block the relevant materials when you enter the physical inventory document. This is recommended if you create the physical inventory document immediately before the count.
You block the relevant materials later by changing the posted physical inventory document. This is recommended if you do not create the physical inventory document immediately before the count.
The posting block is automatically cancelled when you post the counting results for the physical inventory document.
3. Print and distribute the physical inventory document.
You must print out the physical inventory document for the physical inventory count and pass it on to the people responsible for doing the counting.