What is physical inventory in SAP SRD-SCM-WME - SCM-Warehousing and Manufacturing Execution?

SAP Term: physical inventory

• Component: SRD-SCM-WME

• Component Name: SCM-Warehousing and Manufacturing Execution

• Description: The actual stock quantity according to a physical inventory count at a given storage location at a specific time.

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• Key Concepts: 
  Physical inventory is a process used to count the actual quantity of items in a warehouse or storeroom. It is used to compare the actual quantity of items with the quantity that is recorded in the inventory system. This process helps to identify discrepancies between the two and can be used to adjust the inventory records accordingly.
  
  How to use it: 
  Physical inventory is typically conducted on a periodic basis, such as once a year or once a quarter. The process involves counting the actual quantity of items in the warehouse or storeroom and comparing it to the quantity that is recorded in the inventory system. If there are discrepancies between the two, then adjustments can be made to the inventory records accordingly.
  
  Tips & Tricks: 
  When conducting physical inventory, it is important to ensure that all items are counted accurately and that any discrepancies are identified and addressed promptly. It is also important to ensure that all personnel involved in the process are properly trained and understand the process.
  
  Related Information: 
  Physical inventory is closely related to cycle counting, which is a process used to count a subset of items in an inventory system on a regular basis. Cycle counting helps to identify discrepancies between actual and recorded quantities more quickly than physical inventory, as it is conducted more frequently.