MIBC--Report ABC

LX26
LI13N
LI14
LI20
LI21

Physical Inventory Processes Cycle Counting

PI documents can also be created via cycle counting processes.
Cycle counting is based on an ABC analysis of material stocks. Materials that make up a higher
percentage of total consumption or requirements are subject to more inventory counts during the year
than materials from lower value categories.
Materials that are deemed to make up the highest percentage of consumption are classified as A
materials. Those with the lowest percentage are classified as D materials.
Current settings dictate the following count cycle:
A materials are counted 12 times a year
B materials are counted 6 times a year
C materials are counted 3 times a year
D materials are counted once a year

The first step in the cycle counting process is to classify your materials.
This classifying can be done manually for each material via the material change transaction (MM02) or
via a standard report that SAP provides.
You can access the ABC analysis report via the following menu path:
Logistics -> Logistics Execution -> Internal Whse Processes -> Physical Inventory -> In Inventory
Mangement -> Physical Inventory Document -> Create -> Set Cycle Counting Indicator
Or via transaction MIBC

The key fields on this report include the plant you wish to run the report for. You can also enter a
material type to restrict the number of materials that the system attempts to classify. By ticking the All
Materials Held in Stock box you can ensure that the report includes all stocked materials in your plant.
The dates play a key role in this as they determine the period from which the materials should be
classified based on their consumption/usage or requirements.

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Execute the report by clicking on

The report will show a list of materials and what the system proposes as the new classification (CC New)
and what the old classification was. It will also show the consumption percentage for each material.
If you disagree with the systems findings, you can manually change the indicator for a material by
clicking on the Change CC Indicator button (highlighted).
No changes are made until you click on the . Once you do this, the materials will be updated
with the new classification value.

After the materials have been classified with an ABC indicator, you can now run the cycle counting
inventory process to determine which materials are due to be counted. This transaction will also
generate inventory documents to conduct the inventory count.
You can access the cycle counting transaction via the following menu path:
Logistics -> Logistics Execution -> Internal Whse Processes -> Physical Inventory -> In Warehouse
Management -> Physical Inventory Document -> Create -> Cycle Counting
Or via transaction LX26

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On the LX26 main screen, you must enter the warehouse number you wish to create the cycle count for.
You can also narrow your selection down by entering a storage type, storage bin(s), and material(s).
The count date is the date on which the cycle count will take place.
Press to execute and run the report

The report will list the bins and materials that are due for counting. It will also show the last PI date and
the new proposed PI date for the materials.
Select the bins/materials you wish to count by clicking to the left of the bin number (as highlighted).

Activate the count (and block the selected bins) by clicking on the button.
After you activate the count, click on to save your results and create the count sheets.
The count is now conducted in the same way as a manual count. The count sheet can be printed if
required and the count is entered via an RF device.

MIBC--Report ABC
LX26
LI13N
LI14
LI20
LI21

GE Internal