F. Monitoring physical inventory progress

Responsible: Finance responsible assigned

To get BW installed : Business warehouse

The reference for the coverage rate is the BW query physical inventory coverage rate

1 - How to run the query ?

3. In File tab, I select Analysis. Then I click icon open workbook (from SAP NetWeaver)

4. I select the data source BW - Production - WBP

5. And I click on Next

6. Enter user and password

7. Select folders tab and then choose Role in order to select core workbooks

8. Open the workbook physical inventory coverage rate (core workbook)

9. Press OK

10. Click on (Analysis tab)

11. Enter the data you want to display in the report. Here is only mandatory the company code.

12. Press ok

There are two spreadsheets in the file:

2 - Why the coverage rate is lower than expected ?

Answer 1 : The physical inventory is not finished
Answer 2 : There is no more quantity of some materials that were in the inventory at last year end
Answer 3 : Inventory flag is updated in BW on Saturday

For question related to physical inventory procedure in RCS, please refer to APM training document :

Warehouses in IM Warehouses in WM

ANSWER 1 The physical inventory is not finished

There are 7 steps in a physical inventory in MM when there is no variance and 10 steps when a recount is needed

Physical inventory creation	MI31
Inventory count from printing	MI21
Physical stock calculation	Out of RCS
Inventory count entry	MI04	counted
Inventory count differences printing	MI20
Inventory count differences validation	MI07	validated
Results display	MB03
Inventory recount if needed	MI11
Inventory recount entry	MI04	counted
Inventory recount differences validation	MI07	validated

A physical inventory is taken into account in the BW query when the status is validated (step 6 & 10)

ANSWER 2

There is no more quantity of some materials that were in the inventory at last year end

The reference used by the calculation of the coverage rate is the inventory at the end of the previous year.

It is recommended to count all inventories even if the quantity is equal to zero and follow this procedure :

Create the inventory document with MI13 and select "only materials with zero stock". If necessary you can change in the control section to the relevant "MA. no. items/doc"
In MI04 (inventory count) click on "set zero count" => All item ZC box will be checked
Validate with MI07
Create a new inventory document with MI31 and select materials "only materials w/o zero stock" and complete the procedure

ANSWER 3

Inventory flag is updated in BW on Saturday

The query reports the coverage rate as of last friday night.

3 - E-mail validation from GCCO

By September coverage rate in value is above 80% of prior year-end value for the FI, and above 90% for other type of material knowing that each reference is counted every 3 years for manufacturing supplies and every year for all other types of materials.
In case of exceptions to the rules defining the physical coverage rate for year end, the FRA publishes last quarter physical inventory planning and require GCCO validation.
The validation mail is posted in the Electronic Control Evidence Depository

For information : SBS dashboard - Coverage rate indicator

Inventory coverage rates are followed using this indicator in SBS dashboard

To receive automatic broadcast

Either you run the query as previously explained or you can receive automatically a monthly broadcast

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“Per event” information
- Determination of the threshold for the value of discrepancies for one stock count or one month of cycle count above which the GCCO, plant manager and GBU supply chain director are informed
- Maximum threshold is 1% of the value of counted inventory

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