Contents: Cycle Counting

Flagging materials for cycle counting

Creating physical inventory documents for cycle
counting

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Unit Objectives
At the conclusion of this unit, you will be able
to:
describe the cycle counting procedure
describe the ways of assigning the cycle

counting indicator in the material master

record
carry out a physical inventory using the

cycle counting procedure

list the most important indicators and

Customizing settings.
R

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Cycle Counting
Physical Inventory

Cycle Counting

Stock:
Plant 0001
Werk
0001

Stock
Indicator:

B
B B C
A

...
Inventory frequency:

12 x

6x

4x

1x

...n x
R

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Cycle counting is a method of physical inventory whereby material is inventoried at regular intervals
within a fiscal year. These intervals or cycles depend on the cycle counting indicator set for the material.
Cycle counting allows fast-moving items to be counted more frequently than slow-moving items, for
example.
All materials to be included in the cycle counting inventory are flagged. This is done either manually,
using a cycle counting indicator in the material master record (storage data), or automatically, by means
of an ABC analysis. The cycle counting indicator allows you to classify materials into individual cycle
counting categories (e.g.: A, B, C, D) In Customizing, you can then set different time intervals for
inventory of different.

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TAMM10 4.0B

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Setting the Indicator

Purchasing

1.

Manually

2.

Via report
RMCBIN00

Material
Material
master
master
data
data

cc-

Consumption-based
analysis

Requirements-based
analysis
Analysis

Material

Text
value
$

CC
Quantity new
Pc

CC
old

Plant 0001
No.
Text CC CC
21,500 19,850 Material
new old
PP-008...
PP-001..
A
20,330 15,100 PP-008
A
A
PP-015
B
B
PP-015...
B
A
C
A
C
C
PP-001...

...

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You can set the indicators for materials to be included in the cycle counting inventory method as follows:
manually in the material master record (storage data)
automatically via an ABC analysis
The RMCBIN00 program allows you to carry out an ABC analysis to classify the materials according to
either consumption or requirements. The analysis can be set to include either only those materials with a
cycle counting indicator, or all materials. The cycle counting indicator can be automatically updated
during the cycle counting analysis.

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When is the next physical inventory?

Plant

CC
Indicator

No.inv.

Interval

Buffer

Percent

*0001

12

20

50

0001

41

10

30

0001

82

20

15

0001

247

No of
inventories
per year

No. of
workdays

05
= 100

No. of
workdays by
which the
count date
may differ from
the planned
count date

* All materials in plant 0001 with CC indicator must be counted 12 times

per year (every 20 days)

For all new materials in stock, the date when the accounting view
was initialized is relevant.
Batches: The date when the batch was created is relevant.

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To plan the cycle counting inventories, start the RM07ICN1 cycle counting program at regular intervals.
This program checks the due dates for inventories for all cycle counting materials.
If it is time for an inventory for a certain material, use the program to create a batch input session to
create physical inventory documents. Physical inventory documents are only created for stock type 1
(unrestricted use). The actual inventory count date is calculated as follows:
Date of last inventory + pre-defined interval
The interval between inventories for each cycle counting indicator is set in Customizing.
Use the batch input session to create the physical inventory documents.
Now you can carry out the inventory. When the difference is posted, the actual inventory count date is
recorded in the material inventory data as the date of the last inventory.

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Summary
Cycle counting is a method of physical inventory

whereby material is inventoried at regular intervals

within a fiscal year. These intervals or cycles
depend on the cycle counting indicator set for the
material.

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TAMM10 4.0B

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