What is physical stock in SAP (IS-A-JIT - Just-In-Time Processing)?

SAP Term: physical stock

• Component: IS-A-JIT

• Component Name: Just-In-Time Processing

• Description: Difference between unrestricted-use, logical stock excluding special stock and stock which has been physically withdrawn. Physical stock is the same as the logical stock if a stock category exists for example, blocked stock or if it is a special stock.

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• Key Concepts: 
  Physical stock is the actual inventory of goods that a company has on hand. It is the physical count of items that are available for sale or use. In Just-In-Time (JIT) processing, physical stock is managed in a way that minimizes the amount of inventory held in storage. This is done by ordering and receiving goods only when they are needed, and not before. 
  
  How to use it: 
  Physical stock can be managed using JIT processing by tracking the amount of inventory on hand and ordering new items only when necessary. This helps to reduce the amount of inventory held in storage, as well as the cost associated with storing it. Additionally, it helps to ensure that items are available when needed, as they are ordered and received just in time. 
  
  Tips & Tricks: 
  When using JIT processing to manage physical stock, it is important to have accurate and up-to-date information about the amount of inventory on hand. This can be done by regularly taking physical counts of items in storage and updating the records accordingly. Additionally, it is important to have a reliable supplier who can provide goods quickly when needed. 
  
  Related Information: 
  JIT processing is just one way to manage physical stock. Other methods include using a reorder point system or a Kanban system. Additionally, there are various software solutions available that can help to automate the process of managing physical stock.