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 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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A. Physical inventory - Definitions
A. Physical inventory - Definitions

 2. Planning and preparation

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B. Physical inventory - Planning & preparation
B. Physical inventory - Planning & preparation

3. Perform an accurate count

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C. Performing the physical inventory
C. Performing the physical inventory

4.

Post

Analysis inventory discrepancies and documentation

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D. Post Analysis inventory discrepancies and documentation
D. Post inventory

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 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
Timely investigation of inventory adjustments is essential. Delay increases the complexities of adequate research and reduces the probability of conclusive findings.
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:
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1 Reception: Movement type: 101-102 Goods receipt for purchase order into warehouse/stores

Analysis inventory discrepancies and documentation

5. Validation and accounting of physical inventory adjustment

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E. Validation and accounting of physical inventory adjustment
E. Validation and accounting of physical inventory adjustment

6. Monitoring physical inventory progress

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F. Monitoring physical inventory progress
F. Monitoring physical inventory progress

7. Example of documents to be used

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G. Example of docs to be used
G. Example of docs to be used

Viewtracker
hidetrue

    • Raw materials: Compare reception in RCS with delivery notes
    • Finished products: Check process orders
2 Consumption in process orders: Movement type: 261-262
    • Check process orders in which the material is consumed
Question 1
    • Are production declaration made at standard quantity? => If yes, it can create under or over consumption :
Action:
    • Review standard unit consumption in BOM
    • Organize regular check in process orders and if necessary adjust the consumption through a process order
Question 2
    • Error of declaration in a process order.
Action:
    • Improve analysis of variance on process orders (transaction ZWPP40A in RCS)
3 Transfer storage location: Movement type: 311
    • 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)
4 Transfer posting material to material: Movement type: 309
    • Control the use of this movement (control IAC on critical transaction)
5 Goods delivery: Movement type: 6XX
    • Compare reception in RCS with delivery notes

Appendix 3: Reports

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Progress report on the cycle counts 

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