BUSINESS PROCESS PROCEDURE

Title: Physical Inventory Verification

Organization/Area: Inventory Management

Release: ECC6 File Name: 5.9.1 MM-MIGO-Physical Inventory Verification

Last Edited on: 28 July 2017 Version: 1.2

Overview

Physical inventory verification is required to be done.

Business Process Description Overview

Most companies carry out physical inventory verification periodically. When a company does not have
many material management items, it is better to manually create single inventory documents. From these
documents, a company can physically count material to enter into the system.

Input - Required Fields Field Value / Comments

Document Date Current date will default.

Planned Count Date Current system date will default, change if necessary.

Plant Key that identifies the plant for which the inventory document is
being created.
Storage Location Key that identifies the Sloc for which the inventory document is
being created.

Output - Results Comments

Physical inventory document is This is the material in stock list which will be helpful for physical
manually created in the system. verification.

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 BUSINESS PROCESS PROCEDURE

Title: Physical Inventory Verification

Organization/Area: Inventory Management

Release: ECC6 File Name: 5.9.1 MM-MIGO-Physical Inventory Verification

Last Edited on: 28 July 2017 Version: 1.2

Tips and Tricks

Physical verification process in BSNL requires internal approval for loss / gain of inventory for which there is
no time bound. In most instances these are closed only during the year end. Additionally, the process of Goods
receipt/ issues is not stopped for physical verification. This is in conflict with the internal best practices
defined in standard SAP process designed for Physical inventory. In view of this, a custom development
suiting to BSNL is proposed.

Steps in Inventory verification processes-

SR. Step Mode TCode Responsibility

1 Inventory Report for Physical Verification SAP MB52 Stores
2 Organizing and Recording Physical Count Manual N/A Stores and Finance
3 Difference List, Recount and Approval Manual N/A Stores and Finance
4 Posting of Physical Verification SAP MIGO Stores
differences

Procedure Steps

Access Transaction by:

Via Menus (a) Logistics > Material Management > Inventory Management >
Environment > Stock > Warehouse Stock

Via Transaction Code MB52

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 BUSINESS PROCESS PROCEDURE

Title: Physical Inventory Verification

Organization/Area: Inventory Management

Release: ECC6 File Name: 5.9.1 MM-MIGO-Physical Inventory Verification

Last Edited on: 28 July 2017 Version: 1.2

1.2. On screen Display Warehouse stock of material, enter information in the fields as specified in the
below table:

Enter plant,
storage
location.

Select No zero stock

lines

Select Non hierarchical

presentation, layout
/DEFAULT

Field Name Description R/O/C User Action and Values Comments

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 BUSINESS PROCESS PROCEDURE

Title: Physical Inventory Verification

Organization/Area: Inventory Management

Release: ECC6 File Name: 5.9.1 MM-MIGO-Physical Inventory Verification

Last Edited on: 28 July 2017 Version: 1.2

Material Enter Material No. O Enter or Select the materials If you want to
No. from the full down file access have total stock
,dont enter the
material.
Company Enter Company code O Enter or Select the materials
Code from the full down file access
Plant Plant number R Enter or select Plant from the
pull-down file access.
Storage Storage location R Enter or select a storage
location location from the pull-down file
access.
Special Special stock indicator O Used if special stock is to be
stock handled differently.

.3. Press Execute (F8)

1.4. On screen press to Display warehouse stock of material, Save the file in desired folder &
take print out

Click here to convert the

document to text format.

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 BUSINESS PROCESS PROCEDURE

Title: Physical Inventory Verification

Organization/Area: Inventory Management

Release: ECC6 File Name: 5.9.1 MM-MIGO-Physical Inventory Verification

Last Edited on: 28 July 2017 Version: 1.2

2.0 Use MIGO Screen to post the differences arisen from physical cost with Movement type 701 for
Goods receipts or 702 for goods issue.

2.1 Goods receipts to increase the stock in system.

Access Transaction by:

Via Menus Logistics > Material Management > Inventory Management >
Goods movement > Migo

Via Transaction Code MIGO

2.2 Select Goods receipts Other - movement type 701, and enter the below information,

Field Name Description R/O/C User Action and Values Comments

Material Enter Material No. R Enter or Select the materials of
No. which inventory to increase.
Quantity Enter material quantity R Enter material quantity
Plant Plant number R Enter or select Plant from the
pull-down file access.
Storage Storage location R Enter or select a storage
location location from the pull-down file
access.
Cost center Cost center for inventory R Enter the appropriate cost
verification. center.
Reason for Enter 001(wrongly placed in R Enter 001
the store)
movement

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 BUSINESS PROCESS PROCEDURE

Title: Physical Inventory Verification

Organization/Area: Inventory Management

Release: ECC6 File Name: 5.9.1 MM-MIGO-Physical Inventory Verification

Last Edited on: 28 July 2017 Version: 1.2

Enter the movement type 701

2.3 Then finally check and post the document,

2.4 Select Goods receipts Other - movement type 702,and enter the below information,

Page 6 of 7
 BUSINESS PROCESS PROCEDURE

Title: Physical Inventory Verification

Organization/Area: Inventory Management

Release: ECC6 File Name: 5.9.1 MM-MIGO-Physical Inventory Verification

Last Edited on: 28 July 2017 Version: 1.2

Field Name Description R/O/C User Action and Values Comments

Material Enter Material No. R Enter or Select the materials of
No. which inventory to increase.
Quantity Enter material quantity R Enter material quantity
Plant Plant number R Enter or select Plant from the
pull-down file access.
Storage Storage location R Enter or select a storage
location location from the pull-down file
access.
Cost center Cost center for inventory R Enter the appropriate cost
verification. center.
Reason for Enter 002(Missing from store) R Enter 002/003
the 003(Damaged)
movement

Enter the movement type 702

2.5 Check and post the document.

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