0. Glossary
TERM | Meaning | Role |
FRA | Finance Responsible Assigned | Controlling at plant level |
PIM | Physical Inventory Manager | Storage, Reception, Delivery and Shipping of stock |
GCCO | GBU Cost Control Owner | Controlling at business level |
WP2 | ERP legacy from Rhodia and Cytec | Syesnqo ERP |
PF2 | ERP legacy from Solvay | Syesnqo ERP |
1. Definitions
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2. Planning and preparation
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3. Perform an accurate count
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4.
PostAnalysis inventory discrepancies and documentation
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Appendices
Appendix 1: Annual planning
Appendix 2: Guidance for discrepancies analysis
Appendix 3: Reports
Appendix 4: Reminder on IAC controls
Appendix 5: Check list
Appendix 1: Annual planning
Appendix 2: Guidance for discrepancies analysis
Adjustments are analyzed in accordance with the value of the adjustment and type of item involved, in order to:
- Identify failures in the control systems so that improvements can be made,
- Reduce similar discrepancies in the future,
- Ensure that the proper adjustment was made,
- Evaluate indicators of trends or system problems for corrective action,
- Detect negligence, abuse, or theft
To make the analysis, it is necessary to use the material document history to look for anomalies for the product and batch under investigation. (transaction MB51 in RCS)
The following plan gives an example of the main inventory movements that can create discrepancies and the main actions that could be taken to avoid them:
1 Reception: Movement type: 101-102 Goods receipt for purchase order into warehouse/stores
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5. Validation and accounting of physical inventory adjustment
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6. Monitoring physical inventory progress
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7. Example of documents to be used
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- Raw materials: Compare reception in RCS with delivery notes
- Finished products: Check process orders
- Check process orders in which the material is consumed
- Are production declaration made at standard quantity? => If yes, it can create under or over consumption :
- Review standard unit consumption in BOM
- Organize regular check in process orders and if necessary adjust the consumption through a process order
- Error of declaration in a process order.
- Improve analysis of variance on process orders (transaction ZWPP40A in RCS)
- Check if the item is in an other warehouse or workshop
- Extract the inventory of this item/batch in all warehouses (transaction MB52 in RCS)
- Control the use of this movement (control IAC on critical transaction)
- Compare reception in RCS with delivery notes
Appendix 3: Reports
Progress report on the cycle counts
Appendix 4: IAC controls 2010
Check HERE for update in the section Documentation of the IAC eRoom.
Appendix 5: Check list
