Physical Inventory - Cycle Counting (4LU)

Physical Inventory - Cycle Counting (4LU)

The cycle counting method is a special physical inventory procedure where inventory is counted at regular intervals within a fiscal year. In general, it starts with classification of materials based on ABC analysis or at the user's discretion. Additional counting intervals are set based on classification of materials. The counting intervals depend on the cycle count indicator. Creation of physical inventory documents then takes place. The creation can either be done manually by a requester or automatically (applicable for large volumes) based on cycle count indicator. The physical stocks are compared and realized for the given materials in the system. Any discrepancies in the system quantities and physical count are reviewed. The inventory may be recounted until final counts are accepted and inventory differences are posted.

Key Process Steps Covered

  • Set cycle counting classification
  • Schedule physical inventory document creation
  • Print physical inventory documents
  • Execute physical count or recount
  • Enter physical count
  • List and post physical count differences

Benefits

  • Increase overall inventory accuracy
  • Process inventory adjustments efficiently
  • Enable real-time reporting of your company's warehouse stock

Where is Physical Inventory - Cycle Counting(4LU) being used?

This Scope item is used in the following way:

  • As a core function of Inventory within Supply Chain Scope Item Group

Process flow of Physical Inventory - Cycle Counting (4LU)

Find below the process flow of the scope item Physical Inventory - Cycle Counting as it is defined for release s4h-2021.


Download Process Flow of Best Practice scenario Physical Inventory - Cycle Counting (4LU) - S/4HANA OP
Ref: Supply Chain of SAP S4H-2021
Best Practices related to S/4HANA*1) Yearly Updates are released per September of each year
*2) The Quarterly updates are released per Februari, May, August and November
Details of future releases can be found in the SAP Roadmap section of each product. Go to SAP Roadmap Product Finder.
Knowledge Center Scheer Nederland | The Process Experts Visit also the SAP Cloud ERP knowledge center of Scheer Netherlands. The following topics are covered:
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