Physical Inventory in SAP MM: Presentation Document to Understanding the Process and Key Steps

This document provides an overview of physical inventory procedures and best practices in SAP MM. Physical inventory involves physically verifying stock quantities on hand and is a critical component of inventory management and overall supply chain operations. This paper reviews key considerations when planning and executing physical inventory counts, including inventory procedures (periodic, continuous, cycle counting, sampling), blocking materials from posting during counts, entering and analyzing count data, handling differences and recounts, as well as system configuration to support the physical inventory process. Insights are provided to help ensure accurate tracking of inventory through robust physical inventory protocols.

Key Sections covered in the document are:

  • Physical Inventory Overview: Defines physical inventory and its importance for inventory visibility and planning
  • Physical Inventory Procedures: Explains periodic, continuous, cycle counting, and sampling inventory methods
  • Physical Inventory Process: Details key steps for inventory preparation, count, and analysis
  • Entering and Analyzing Count Data: Covers entering results, handling differences and recounts
  • Configuration Settings: Highlights SAP customizing settings that support physical inventory
  • Examples: Includes sample transactions for creating physical inventory documents and posting differences

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