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Cycle Counting

Cycle Counting . SAP Extended Warehouse Management (SAP EWM) Rapid-Deployment Solution V2. Cycle Counting. Physical Activity. System Activity. Step 1 Create PI documents and WOs (EWM). The system creates PI documents and WOs. A warehouse clerk prints the WOs ( paper only ).

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Cycle Counting

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  1. Cycle Counting SAP Extended Warehouse Management (SAP EWM) Rapid-Deployment Solution V2

  2. Cycle Counting Physical Activity System Activity Step 1 Create PI documents and WOs (EWM) The system creates PI documents and WOs A warehouse clerk prints the WOs (paper only) The system assigns the WOs to a queue (RF only) Step 2 Count the products (EWM) A counter logs on as a resource (RF only) The system proposes the next product to be counted (RF only) The counter counts the product A warehouse clerk (paper only) or the counter (RF only) enters the count results Step 3 – exceptional case Create recount documents and carry out the recounting (EWM) The system creates recount documents A warehouse clerk checks the recount document creation The counter carries out the recounting (repeating step 2) Step 4 Post the PI documents (EWM) The system posts the PI documents depending on tolerances The supervisor posts the remaining PI documents Step 5 Set completeness (EWM) The system sets completeness Step 6 Post the differences (EWM) The system posts the differences depending on tolerances The supervisor reviews and posts the remaining differences

  3. You use cycle counting as a product-specific physical inventory (PI) process that you perform at regular intervals to ensure the inventory accuracy within your warehouse, and to meet legal requirements. These intervals depend on the Cycle Counting Indicator that you select for all products you want to include in cycle counting. The Cycle Counting Indicator reflects the classification of your products according to their impact on operations and finance. You can automatically classify your products and select the Cycle Counting Indicator for the products, for example, with help of an ABC analysis in SAP Supply Chain Management (SAP SCM). In this process, you create PI documents for all cycle-counting-relevant products that are due to be counted. You execute the counting using a mobile device or paper. By posting the PI documents, you adjust the book inventory in SAP Extended Warehouse Management (SAP EWM). By posting the differences to SAP Enterprise Resource Planning (SAP ERP), you balance the stock accounts. You can monitor the progress of your PI by using the warehouse management monitor. Purpose

  4. You have integrated SAP ERP with SAP EWM. You have configured the warehouse structure and master data. You have configured your systems for this process. Prerequisites

  5. Every day the system creates PI documents for all cycle-counting-relevant products that are due to be counted. The system automatically creates one or several warehouse orders (WOs) with a predefined maximum number of PI document items. Within a WO, the bins to be counted are sorted according to an optimized path in the warehouse. In case of an RF-based PI, the system sends the WOs to a PI-specific RF queue. In case of paper-based PI, the warehouse clerk prints the PI documents and lays them out in the office. Process Step Create PI documents and WOs (EWM)

  6. In case of RF-based PI, a counter takes a mobile device and logs on as a resource that is assigned to the PI queue. The system guides the counter to the first bin. Standing in front of it, the counter verifies the bin, the HU (if there is one), and the product proposed by the system. Then he counts the product and enters the quantity. When the counter finishes the counting of this bin, the system guides him to the next bin. In case of paper-based PI, the counter goes to the office and picks up the printouts of the PI documents of the first WO. He goes to the first bin shown on the first printout. Standing in front of the bin, he counts the products and writes the count results on the printout. When he finished the counting of the bin, he goes to the next bin listed on the printout. After counting the last bin listed on the printout, he notes the count date and time and signs his name at the bottom of the printout. Then he continues with the next printout. At the end, he brings all printouts back to the office and picks up the printouts of the PI documents of the next WO. Process Step Count the products (EWM) – Part 1

  7. A warehouse clerk takes the printouts and enters the name of the counter, the count date, and the count results into the system. Recommendation: If you use paper for PI: Moving products from or to the bin during the counting may lead to unexpected results. Therefore we recommend forbidding movements during the PI process by selecting the Phys. Inventory Blocking Indicator checkbox when you create PI documents in step 1. Otherwise, it might happen that the system triggers a recount more often than expected. When you save the count results, the system calculates the differences on the basis of count results and the book inventory. Process Step Count the products (EWM) – Part 2

  8. If a difference exceeds the predefined, counter-dependent thresholds for recounting, the system automatically creates a recount document. A warehouse clerk monitors the creation of recount documents and asks a counter to recount the products. Process Step Create recount documents and carry out the recounting (EWM)

  9. When you save the count results, the system posts the PI documents automatically if the differences do not exceed the thresholds for posting assigned to the counter (using RF) or assigned to the warehouse clerk (using paper). The system adapts the book inventory in the bins and posts the differences to the Difference Analyzer. At the end of the count process the supervisor checks the remaining PI documents that are not posted yet due to exceeded thresholds, and posts them manually. Process Step Post the PI documents (EWM)

  10. This step is necessary only in case of product-specific PI. With help of a background job, the system checks if a product is completely counted. If so, the system sets its status to complete. Recommendation: We recommend running this background job once a day. Process Step Set completeness (EWM)

  11. To adjust the stock accounts and the Available-to-Promise (ATP) quantity in a timely manner, the system posts all differences up to a certain value to SAP ERP automatically with help of a background job. The value threshold is defined in the tolerance group assigned to the background user. The supervisor reviews the remaining, bigger differences in the Difference Analyzer. He blocks the differences for posting and defines follow-on actions, such as the analysis of the movements or even the creation of a new PI document for the product. After review and clarification he posts all differences to SAP ERP manually. Process Step Post the differences (EWM)

  12. Process Monitoring

  13. More Information For more information, see SAP Library for SAP Extended Warehouse Management on the SAP Help Portal at http://help.sap.com.

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