What is continuous inventory in SAP LO - Logistics - General?

SAP Term: continuous inventory

• Component: LO

• Component Name: Logistics - General

• Description: The physical stocktaking of all items in a company, performed during the fiscal year. A prerequisite for the continuous inventory procedure is an inventory accounting system that determines book inventory levels at the balance sheet date by continuously recording inward and outward stock movements.

Smart SAP Assistant

• Key Concepts: 
  Continuous inventory is a feature of SAP Logistics that allows for the automatic tracking of inventory levels. It is used to monitor and adjust stock levels in order to ensure that the right amount of inventory is available at all times. This helps to reduce costs associated with overstocking or understocking, as well as improve customer service by ensuring that orders can be fulfilled quickly and accurately.
  
  How to Use It: 
  Continuous inventory can be enabled in SAP Logistics by setting up a continuous inventory cycle. This cycle will determine how often the system will check for changes in inventory levels and adjust accordingly. The cycle can be set up to run on a daily, weekly, or monthly basis, depending on the needs of the business. Once the cycle is set up, it will automatically monitor and adjust stock levels as needed.
  
  Tips & Tricks: 
  When setting up a continuous inventory cycle, it is important to consider the frequency of orders and the lead time for replenishing stock. This will help ensure that the cycle is set up correctly and that stock levels are adjusted in a timely manner. Additionally, it is important to keep an eye on inventory levels and adjust the cycle as needed if there are any changes in order frequency or lead time.
  
  Related Information: 
  For more information on continuous inventory in SAP Logistics, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/SAP_ERP_LOGISTICS/6.0/en-US/f9f8d7a3c2b14e8a9f3d7c2b1e5f9a4d.html