SAP Physical Inventory

Standard SAP physical inventory process is quite easy and straight forward. Once you go over this list with links to each step, you will be able to run your physical inventory process with ease.

There are two separate SAP physical inventory process. One for MM level storage locations and one for WM enabled storage locations. This article will only cover physical inventory process for MM level storage locations. There is a note at the end, about a work-around for doing physical inventory for WM enabled storage locations with MM procedures.

For Non-WM Warehouses

1. Use MI01 – Create Physical Inventory Document to create an physical inventory document for a storage location. You need to manually input item codes and batch numbers for items to be counted.
2. Use MI21 – Print Physical Inventory Document to print. It will list stock items with a quantity field to fill with pen.
3. Take the count on paper and use MI04 – Enter Inventory Count to input count results.
4. Use MI07 – Post Inventory Difference to control differences (both quantity and cost).

Note-1: Please be aware of the fact that posting inventory difference creates accounting documents. +/- changes in inventory with this way may require you to pay taxes.

Note-2: You can later track your inventory difference movements from MB51 with 701 and 702 movement types.

Note-3: Physical Inventory process for WM enabled storage locations is done with another set of transactions. But you can use the transactions above with an additional step. All you need to do is to transfer your differences to a MM storage location and use MM-Physical Inventory procedures there to get the job done.