How does an inventory process work and how do I transfer it to SAP?

The inventory management process in an industrial company is essential for maintaining precise control of materials in stock and optimizing warehouse management. In this article, we'll explain how this process integrates with SAP, the market-leading business management system.

First, it's crucial to understand how the warehousing process works in general. It involves periodically counting the materials available in the warehouse to ensure they match the accounting records.

In an organization, some materials may be more critical than others, meaning they need to be counted more frequently. This aspect can be efficiently managed in SAP by setting up cycle counting. This allows the system to automatically generate inventory sheets for selected materials on specific dates, simplifying the process and ensuring adequate coverage.

A key feature that SAP offers is the ABC classification of materialsThis classification is based on the importance of the materials to the organization, dividing them into categories A, B, and C. Category A materials are the most critical and require the most attention in terms of stock management. With SAP, it's possible to automate stock counting processes based on this classification.

The inventory functionality in SAP offers a comprehensive solution for efficient warehouse materials management. With the standard applications included in SAP, it's possible to create documents for these processes that cover all necessary materials. Each warehouse has its own separate inventory document, facilitating accurate tracking and detailed management at each location.

The stock management process in SAP is divided into three main phases:

1. Inventory preparation:

In the preparation phase in SAP, the stock count document is created with the selected materials, and material postings are blocked to prevent stock fluctuations during the process. Finally, the document is printed and distributed to the material counters.

It's crucial to conduct a preliminary analysis of the materials inventory before generating documents. For example, materials inventory is reviewed, and those with a status other than unrestricted stock are completed or eliminated to avoid potential errors or double adjustments due to differences between theoretical and physical inventory.

2. Inventory count

During the count, the stock count is recorded on the printed document and the result is entered into the system. If necessary, a new count is performed.

SAP facilitates this process by using PDA devices to scan barcodes (DUN14) and display the stock management documents pending counting for each material with the standard APP Manage inventory counting.

3. Inventory analysis

During the analysis, the results are reviewed and accepted differences are compensated. For higher-value materials or when the discrepancy between theoretical and physical stock is significant, the analysis time must be confirmed with those responsible.

To release stock, the counts of the affected materials are deleted and a new one is scheduled, either immediately or at a later time.

The process flow is as follows:

In this process, it's common to have approvers responsible for signing the corresponding documents. This helps ensure that the necessary steps are taken and a clear record is kept of who is involved in the process.

In SAP, this task is not completely automated. While the system can offer document generation and adjustments once the differences are accepted, the counting itself still needs to be performed manually by a designated operator. This is because counting can be integrated with other tools, such as smart warehouses, where human intervention is required to physically access the materials.

In situations where a specific manual count is required, as part of an ABC strategy or for an audit, SAP offers the ability to generate an inventory sheet. This sheet allows for a complete count of a specific warehouse area or of materials with designated locations. This facilitates targeted stock management based on the company's specific needs.