Retail Physical Inventory

Industry Solutions (IS-B, IS-H, IS-Oil, IS-P, IS-Retail, IS-T, RIVA etc.)

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Joined: Thu Jul 24, 2008 12:03 pm

Retail Physical Inventory

Post by Lukiz » Thu Jul 24, 2008 12:29 pm

I work for a retail clothing company that has just implemented SAP. We are preparing for our yearly store physical inventory (over 300 store locations). I was testing the SAP physical inventory process to make sure we had the process down. During my testing I realized that the SAP physical inventory process does not work for our business. I'm hoping someone else has figured out a solution to the same problem we are going to face.

We hire two 3rd party companies to perform our physical inventory counts in our store locations for us. We're counting our stores inventories over a span of 3 days. The 3rd party companies will go to each of the store locations, count all the merchandise in the store, and send us a file with the UPC (SKU) counts for each store location. Before they do this, we have to freeze our store inventory or get a snapshot of the store inventory so we can perform count variance analysis.

We have been told create a physical inventory document (PID) to freeze inventory, but there is a limit of 300 UPCs per PID. When we tested freezing an entire store over 1400 PIDs were created. Then it got worse, we have to load a count file for each of those individual PIDs (over 420,000 PIDs). All of those PIDs then have to be looked at for count variance analysis and posting. This would take us weeks maybe even months to get through our physical inventory. Keep in mind, our 3rd party vendors don't receive these PIDs. All they do is show up at the store, scan all the merchandise, and send us a file with what they counted.

Has anyone figured out a way to make this process more manageable for a business like ours? How do other retailers get through a complete store physical inventory?

Posts: 60
Joined: Sun Dec 22, 2002 3:40 am
Location: New Zealand

Re: Retail Physical Inventory

Post by stcao » Mon Jul 28, 2008 2:29 am

You could create PID in background by transaction code MI31.
You can change the "Max. No. items/Doc.", it's defaulted as "300", but don't over 499 to avoid subsequent issues.

If you're using SAP Retail Store and PDC device for counting, you should be able to do stock taking by a more efficient way. Refer to below url for detail. ... ontent.htm
Steven Cao

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