63293703 Inventory Planning and Monitoring Manual

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Inventory Planning and Monitoring

Revised January 27, 2011


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Inventory Planning and Monitoring .................................................................................... 1Overview ......................................................................................................................... 3Material Master ............................................................................................................... 3

MM03 Display Material ............................................................................................. 4Purchasing Documents.................................................................................................. 13

ME53N Display Purchase Requisition ..................................................................... 14ME23N Display Purchase Order .............................................................................. 16Goods Movement ...................................................................................................... 17MIGO Goods Receipt ............................................................................................... 17MIGO Display Material Document .......................................................................... 19MMBE Stock Overview: Company Code/Plant/Storage Location/Batch ............... 21MB1A Good Issue .................................................................................................... 23Scrapping .................................................................................................................. 26

Reports .......................................................................................................................... 30MB51 Material Document List ................................................................................. 30MB52 Display Warehouse Stocks of Material on Hand ........................................... 31

MB5B Stock on Posing Date .................................................................................... 32ZMM9 Material Stock by Storage Bin ..................................................................... 34ZMM2 Material Buy List.......................................................................................... 38MB03 Display Material Document ........................................................................... 42ME5A List Display of Purchase Requisitions .......................................................... 43ME2N Purchasing Documents by Purchasing Number ............................................ 44

Physical Inventory ........................................................................................................ 45MI01 Create Physical Inventory Document ............................................................. 45MI31 Selected Data for Phys, Inventory Documents w/o Special Stock ................. 49MI21 Print Physical Inventory Document ................................................................ 55MI04 Enter Inventory Count: Initial Screen ............................................................. 56MI11 Enter Recount .................................................................................................. 57MI20 List of Inventory Differences .......................................................................... 59MI07 Post Inventory Differences........................................................................... 61Financial Posting for Inventory Adjustments ........................................................... 63MI06 Display Inventory Count .............................................................................. 63MI22 Display Physical Inventory ............................................................................. 66

Troubleshooting ............................................................................................................ 69MI31 .......................................................................................................................... 69MIGO Goods Receipt ............................................................................................. 69MM03- Display Material Master .............................................................................. 70

Glossary ........................................................................................................................ 71Frequently Used Inventory Transactions ...................................................................... 73

Transaction Code ...................................................................................................... 73Transaction Title ....................................................................................................... 73


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Overview

The Materials Management module includes two sub-modules; procurement andinventory management.

Inventory management entails the planning and control of material stocks by

quantity and value. In AASIS, plants are either valuated plants tracking bothquantity and value or non-valuated plants which track quantity only. Mostbusiness processes are the same for both types of plants with only minorprocedural differences. The primary difference is that goods movement for anon-valuate plant do not create financial postings in AASIS.

It also includes the planning, data entry and documentation of all goodsmovements to, from, and within the storage locations in the stock plant. Anytransaction that will cause a change of stock is entered in real time and theresulting update of the stock takes place immediately. This provides the userwith an overview of the stock level of any material that is always current.

The objective of this document is to provide an overview of the business processfor the inventory cycle from the creation of a material master, procurement,goods receipt, goods issue and the physical inventory process. Various reportsavailable to the user will also be discussed as well as the integration with othermodules throughout the inventory cycle.

Material Master

A Material Master or Material Master Record is a data record containing all thebasic information required to manage a material. The typical Material Masterrecord may have data that falls into three categories:

Data of a descriptive nature known as General Data. The materialnumber, the description, the base unit of measure and technical data areall types of General Data. General Data is maintained at the Clientlevel and is applicable across all organizational units.

Data of a control nature. Purchasing data, MRP type data, or shelf lifedata is used by the system to determine the way in which specificprocesses are carried out within the system for the material. This data isplant-specific, thus it will be maintained at the plant organizational level.Valuation data, such as the price control and valuation price, ismaintained at plant level as well.

Data automatically updated by the system. Information such as stocklevels, moving average price and consumption values are updated basedupon goods movements.

The material master record is divided into what are known as views. Views mayalso be looked at as user departmental information. There are separate viewsfor areas such as purchasing, accounting, materials planning, etc. Each contains


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information required to carry out specific transactions within those areas ofbusiness.

The views to be used for materials that will be stocked in inventory will be:

Basic Data 1

Purchasing

Purchase Order Text

MRP1

MRP3

General Plant Data/Storage 1

Accounting 1

Plant Stock

The DFA Office of State Procurement (OSP) is responsible for creating materialmasters. In the normal business process, OSP receives a request to create anew material master via the OSP web site which includes a material masterrequest web form for completion by the requestor. All materials are created forthe reference plant 9999 and extended to the stock plants as requested. OSPwebsite link is:http://www.dfa.arkansas.gov/offices/procurement/Documents/materialMasterRequest.pdf

In this document, a material master previously created and extended to the plantis displayed here.

MM03 Display Material

1. Type MM03 in the Transaction Command Field

2.

The Display Material (Initial Screen) screen appears. Use this screen to enterthe material number.


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3.

4.

5. Select the views to be displayed by clicking the small squareto the left of the view name. Views to highlight include: Basic Data 1,Purchasing, Purchase Order Text, MRP1, MRP3, General Plant/Storage 1,Accounting 1, Plant Stock.

6.


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7. Enter the plant number or use the search icon

to display a list of plants. .

In this example, plant 1300 is used.

8.

9.

The general data section of the basic data 1 tab provides information such as thematerial description, base unit of measure and material group. The base unit ofmeasure is the lowest unit of measure in which the stocks are managed. Thesystem converts all the quantities entered in other units of measure (alternateunits of measure) to the base unit of measure.


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10.

The purchasingtab provides information necessary for the procurement of thematerial. Notice that some information is repeated here that appeared on theBasic Data 1 tab such as description, base unit of measure and material group.

Order unit is an alternate unit of measure which allows the material to bepurchased in a measurement unit other than the base unit of measure. Theconversion of the order unit to the base unit of measure must be maintained inthe material master to allow the use of the order unit measure.


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11.

Purchase order textallows for additional information or instruction concerning the

requirements for the material. This may include additional description and/or sizespecification for clarification.


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12.

The MRP 1 tab provides information necessary for the materials requirementplanning to be carried. In this example, the MRP Type is VB, Manual reorderpoint planning. The lot size value is HB, Replenish to maximum stock level.When the MRP is carried out of this material, if the material is at or below thereorder point, the system will propose a planned order for a quantity necessary tobring the stock level back up to the specified maximum stock level, in this case,300. Reminder, this is in base units of measure or 300 ZR5 (ream, 500 sheets).


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13.

MRP3tab defines the availability check level for MRP. In this case the

availability is set at 01 for daily requirements. The Availability check specifieswhether and how the system checks availability and generates requirements formaterials planning. The value, 01, for materials planning is a default value whichdefines which MRP elements (for example, purchase orders, reservations) thesystem includes in the availability check.

14.

Plant data/stor.1 tab provides for listing a unit of issue unit of measure if the plantwill be issuing the material in a unit other than the base unit of measure. Also,materials that are managed by shelf life are defined here.


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15.

The Accounting 1 tab list the valuation class to which the material is assigned.The valuation class proposes the general ledger account to which the materials

are posted upon issue from the plant. This tab also provides the moving averageprice for the material. The system calculates the moving average priceautomatically by dividing the material value in the stock account by the total of allstorage location stocks in the plant concerned for the particular material. Itchanges the price with each valuation-relevant movement. The valuation ofstocks at moving average price or periodic unit price means that the price of thematerial is adapted to the continual fluctuations in the procurement price.


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16.

The Plant Stocktab provides summary information concerning the on-handbalances of the stock levels for the material. This information is also available invarious reports.


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17.

As indicated earlier, all units of measure associated with a material must bedefined in the material master. These conversions may be viewed by going toAdditional data.

18. < Units of Measure >

This tab displays all the units of measure that have been defined for this materialand their conversion factors.

Purchasing Documents

The procedures for completing the purchase requisition and purchase ordertransactions are discussed in the AASIS class on procurement. For this reason,only a brief overview will be made concerning the display of these documents asrelated to the plants purchasing needs.

When creating purchasing documents for a stock plant, the account assignmentcategory must be blank. The system is able to derive the fund, functional area,funds center and commitment item from the plant number. When a purchaseorder is created referencing a purchase requisition for the valuated plant, thisaccount assignment information is pulled into the purchase order. At that pointthe budget commitment on the purchase requisition is relieved and placed on thepurchase order.


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ME53N Display Purchase Requisition

1. Type ME53N in the Transaction Command field.

2.

3.

4 Purchase requisition:

5. 6. Note: the account assignment category field is blank in the requisition.

7.


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The Statustab in the Item section provides the purchase order number andindicates that a goods receipt has been completed. The user may click on thepurchase order number to drilldown and display the purchase order.

8.

The fund, functional area, commitment item and fund center are derived from theplant number.


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ME23N Display Purchase Order

1. Type ME23N in the Transaction Command field.

2.

3.

4. Select Document box.

5.

6.

The purchase order historytab in the Item section provides informationconcerning any goods receipts and invoice receipts. In this example, a goods

receipt was entered on 09/05/2007. No invoices have been entered. The goodreceipt material document number is provided in the detail section. It is possibleto drilldown to the material document for review if needed.


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7.

The account assignment information from the purchase requisition is pulled intothe purchase order.

Goods Movement

Once materials have been ordered, the next step is the delivery of the orderedmaterials to the plant. The goods receipt of the materials is the beginning ofgoods movement cycle in the system. When a goods movement is entered, achain of events occurs within the system:

A material document is generated, which is used as proof of themovement and as a source of information.

Accounting documents are generated. The stock quantities of the material are updated.

The stock values in the material master record are updated, as are thestock and consumption accounts.

The goods movement is defined by the movement type. The movement type hasimportant control functions in Inventory Management such updating quantityfields, updating of stock and consumption accounts, determining which fields aredisplayed during entry of a document in the system.

MIGO Goods Receipt

With the MIGO transaction, the user is able to post several different goodsmovements. The user may post a goods receipt, a goods reversal, or display amaterial document. When the transaction is initially displayed, the last actionautomatically defaults as an aid to the user in the action field.


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1. Type MIGO in the Transaction Command field.

2.

3.

Select the goods receipt option from the drop-down box. The system willautomatically display the label Purchase Order in the reference document field.

4.

5.

6. Place a check for the received items. If the quantity needs to be adjusted, thecorrect value may be entered in the Qty in UnE field.

7.


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When all entries have been made, the document can be posted. A materialdocument number is assigned in the system for the goods receipt.

If the item detail section of the MIGO transaction is displayed, the OK box in theoverview section is grayed out. The OK may be selected at the bottom of theMIGO screen.

MIGO Display Material Document

Material documents can be view by using the MIGO transaction. When Displayis selected in the action field, the system will display the most recent materialdocument completed or viewed. Note: the movement type for a goods receipt ona purchase order is 101.

To examine the financial documents created for the material document

1.

2.

.

3. Highlight a line by clicking on the line.


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4.

The accounting document is displayed.


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MMBE Stock Overview: Company Code/Plant/Storage Location/Batch

The stock overviewtransaction displays the on-hand balances of materials in theplant. The results of the goods receipt posted in the preceding example are seenhere.

1. Type MMBE in the transaction field.

2.

The Stock Overview: Company Code/Plant/Storage Location/Batch screenappears.

Enter the selection criteria and execute the report.

3. .

4.

5.


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6.

The Stock Overview display providing the following information:

Material (number along with description)

Material typeUnit of Measure

Base unit of measure

Company Code

Plant

Storage location

Unrestricted Use

Qual. (Quality) Inspection

Reserved

The quantity in storage location 0200 is 100 ZR5 in the unrestricted use stock.There is no stock in either quality inspection or reserved stock.


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MB1A Good Issue

Transaction MB1A is used to issue materials from the plants stock to a user.

1. Type MB1A in the transaction field.

2.

The Enter Goods Issue: Initial Screen is appears.

Enter the goods movement criteria and execute the transaction.

3. Movement type:

The movement type enables the system to find predefined posting rulesdetermining how the accounts of the financial accounting system (stock andconsumption accounts) are to be posted and how the stock fields in the materialmaster record are to be updated. The movement type also controls the accountassignment information required for the transaction. The movement types usedfor goods issue are:

Movement Type Description201 Consumption for cost center from warehouse221 Consumption for project (WBS element) from warehouse261 Consumption for order (Internal Order) from warehouse551 Withdrawal for scrapping


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4. Plant:

5. Storage Location:

Hit the green check icon and the Enter Goods Issue: New Itemsscreenappears.

Enter the account assignment information, material numbers and quantities.

6. Cost Center:

7. Business Area:

8. Order:

9. Recipient (optional):

10. Material:


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11. Quantitiy:

12.

The display is returned to the initial screen and the document number justcreated is displayed at the bottom of the screen.

The financial postings may be viewed by using the MIGO transaction to displaythe material document just created. The accounting document is displayed here.


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Scrapping

Sometimes materials may be damaged in the storage location and cannot beissued to users. These materials can removed from the inventory stock balancesby scrapping.

1. Type MB1A in the transaction field.

2.

Enter Goods Issue: Initial Screen is appears.

Enter the goods movement criteria and execute the transaction.

3. Movement type: (551 - Withdrawal for scrapping)


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4. Plant:


Hit the green check icon and the Enter Goods Issue: New Itemsscreenappears.

Enter the account assignment information, material number and quantity.

6. Cost Center: For scrapping, the plants cost center is used.

7. Business Area:


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8. Recipient (optional):

10. Material:

11. Quantitiy:

12.

13. Reason for Mvmt (movement): Use the matchcode search to displaypossible entries.

12.


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By displaying the material document, the financial documents created by thegoods movement can be displayed. The accounting document for thistransaction shows that inventory account has been credited (reduced)


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Reports

In addition to the MMBE Stock Overviewtransaction, there are several othertransactions which can provide useful information for managing inventory stock.

MB51 Material Document List

This report creates a list of all material documents which meet specified searchcriteria. Among the most common criteria are: plant, material, movement type,and posting date. In this example the material number and plant number are theonly selection criteria entered. Hint: It is a good idea to limit searches by usingdate parameters when possible.

The output shows three material documents. The middle document withmovement type 101 is the goods receipt for the purchase order. The other twodocuments are goods issues from the plant. It is possible to drilldown on amaterial document for further examination.


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MB52 Display Warehouse Stocks of Material on Hand

This transaction provides a list of the on-hand balances of materials. In thisexample, all materials in storage location 0200 which do not have a zero balancewill be shown in the resulting report.


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The output results may be exported to an Excel spreadsheet.

MB5B Stock on Posing Date

This transaction can be executed for the entire plant, a storage location or a listof materials.


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The output provides the balance at the beginning of the selected date range, thereceipts/issues during the time frame and the ending balance. It also provides alist of the material documents creating during the selection period.


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ZMM9 Material Stock by Storage Bin

The storage bin field has been added to the material master to allow inventory plants the

option to further distinguish storage areas within their plants. This field is updated by the

State Procurement Master Record Specialist role in transaction MM01 Create MaterialMaster or in transaction MM02-Change Material Master.

The storage bin field appears on the Plant data/Stor.1 tab as shown below. It is a10

character, alpha-numeric field. There are no edits on this field so any entry is accepted.

Accurate and consistent data entry is critical.

Storage bin has limited reporting capabilities. The field appears in the Stock Overview

transaction, MMBE, which displays materials individually. To expand the utility of this

field, a report (ZMM9 Material Stock by Storage Bin) has been developed for the plantswhich includes storage bin in the output along with the current stock level.

ZMM9

Pre-requisiteThe material master must be updated to include the storage bin information for the

plant/storage location.


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Transaction : ZMM9

Enter the transaction code in the command field.

Click enter icon, .

Specify the plant and storage location number

Execute, .


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Results of selection by plant and storage location

Field Description

Plant Plant number as specified in the selectioncriteria

SLoc Storage Location

Bin Storage Bin

Material Material number

Material Description Long text description for the material as

given in the material master.

Unrestricted Unrestricted stock on hand which is

available for immediate issue.

BUn Base unit of measureDel Flag Deletion Flag. Indicates whether a material

has been flagged for deletion.

The first three materials are assigned to Bin 1411. The remaining materials in storage

location 0100 may be updated for with a storage bin designation using transactionMM02- Change Material Master where such an entry is applicable.

Notice that material 10000000 is flagged for deletion. The material may be flagged fordeletion at the storage location level, plant level or client level.

Selection criteria by Bin


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Results of selection by storage bin

This search displays all materials assigned to storage bin 1411.

Selection criteria by material number

Results of selection by material number

This search displays all plants/storage locations to which the material, 10004979, has

been extended. Note that the bin information has been updated for only two locations.


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There are two display variants created for ZMM9. The desired variant may be selected

by clicking on the small white area as shown here, . Select choose layout,

.

The default display lists all materials including those that have been flagged for deletion.If a user prefers not to have these materials displayed, the user can select the standard

display.

ZMM2 Material Buy List

A material buy-list has been created to facilitate the stock replenishment process for

inventory plants in AASIS. The purpose of this transaction is to generate a list ofinventory materials that have reached a specified reorder point and provide a suggested

order quantity to replenish the stock back to the plants specified maximum stock level

for the material.

The material buy list may be generated for the plant, storage location or material number.

Pre requisite

Material replenishment information must be maintained in the material master-MRP 1tab.

Transaction:ZMM2

Enter the transaction code, ZMM2, in the command field.


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Click enter icon, .

Selectioncriteriabyplantandstoragelocation

Enter plant numberEnter storage location number

Click execute icon, .

Results of selection by plant and storage location

Plant Plant number as specified in the selection criteria

SLoc Storage Location number as specified in the selection critera

Material Material number for each material having reached the re-order pointMaterial

Description

Long text description for the material as given in the material master.

UoI Unit of Issue. If the unit of issue is different from the base unit of

measure, the unit of measure for issues is specified here.

Unrestricted Unrestricted stock on hand which is available for immediate issue.


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BUn Base unit of measure

Max.Level Maximum quantity to be stock as specified in the material master.


Reorder Point If the stock falls below the quantity specified in the material master, the material

will be included on the material buy list.


Reorder Quantity The quantity proposed by the system for re-stocking. The reorderquantity is the amount for replenishment which will bring the stock

level back up to the maximum level indicated in the material master.


Del Flag Deletion Flag. Indicates whether a material has been flagged for

deletion.

Selectioncriteriabystoragelocation

Enter storage location


Results of selection by storage location


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Selectioncriteriabymaterialnumber

Enter a material number


Results of selection by material number

Notice that this material is stocked in three different plants.

Variants

Two variants have been created for the Material Buy List.

The /STANDARD variant includes only those materials with a reorder quantity greater

than zero and have not been flagged for deletion. This is the default display.

The other variant includes all materials extended to the storage location regardless of

whether the material has reached the re


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MB03 Display Material Document

This is another transaction for material document display. This transactionprovides the same basic information as the material document display in MIGO.


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ME5A List Display of Purchase Requisitions

Enter desired selection critera.

Purchase requisitions which meet this criteria are displayed.


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ME2N Purchasing Documents by Purchasing Number

The field labeled Selection Parameters allows for further refinement of theselection process and display results.


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Using the selection parameter, WE101 Open goods receipts, created the listabove. There have been no goods receipts for this purchase order. Theselection parameters are useful tools when monitoring the status of purchase

orders.

Physical Inventory

A physical inventory count is normally done on an annual basis. In AASIS eachplant will conduct their annual inventory in June before the end of the fiscal year.For these annual counts, the physical inventory count sheets will be generatedfor the entire storage location. The count will be entered and the warehousemanager will post the differences in the physical count, which will either increase

or decrease the inventory balances.Sometimes it is necessary to conduct a physical inventory count for a particularmaterial or group of materials in addition to the normal fiscal year end count. Forthese periodic counts the warehouse supervisor can generate a physicalinventory document in AASIS to begin the physical count process. The followingis intended to provide information regarding the steps involved in counting andposting a physical inventory.

MI01 Create Physical Inventory Document

1. Type MI01 in the Transaction command field.

2.


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The Create physical inventory document: Initial Screenappears.

Enter the physical inventory selection criteria and execute the transaction.

3. Document Date: < ##/##/####> Current date defaults

4. Planned count date: Current date defaults. Enter date onwhich you intend to count.

5. Plant:

6. Storage Location: .

7. Posting Block: Click to select. By selecting Posting Block, no goodsmovements involving the material listed in the physical inventory document canbe posted for the duration of a physical inventory count.

8. Batches w del Flags:


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After entering the material numbers, click the green check icon to proceed.

The physical inventory document number appears at the bottom of the screen.

Use Mi01 when only a few items are to be counted. If all items in a storagelocation are to be counted, use MI31.


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MI31 Selected Data for Phys, Inventory Documents w/o Special Stock

By using transaction code MI31, the warehouse manager may create physicalinventory count sheets for each storage location in the plant without having toenter each material number individually.

1. Type MI31 in the Transaction command field.

2.

The display below shows the initial screen without selection criteria.


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Enter the selection information and execute the transaction.-

3. Plant number:

4. Storage location

5. Material Type:

6. Materials marked for Deletion:

7. Generate Batch Input:

8. Name of Session:

(Example: 1350-0100)

9. Hold Processed session: click to select check box.

10. Issue Log:

11. Max no of Items/Doc: Fifteen is the maximum number of items thatcan be printed on a count sheet page. Each page will have a specific physical

count document number.


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12. Acc to Stck:

13. Unrestricted Use box:

14. Planned count Date:

REMEMBER: All counts must be entered and posted before close of business on06/30/20##.

15.Set posting block:

16. Freeze book inv. (inventory) bal.:

17. Select the preferred sorting.

18. Plant-sloc.-Material:


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19.

The following screen is presented. This screen displays a list of the items to beincluded on the physical inventory count sheets. The screen also gives a totalnumber of items to be included on physical count sheets.

20.

The following screen is presented.

21. Highlight the desired session and click on Process

The Process Session dialog box appears


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22.

23.

The user may click the enter icon to refresh the screen. The small clockwith the green checkmark indicates that the job is being processed.

After refreshing the screen again, the small clock is replaced by a green checkindicating that the job is complete.

If the user failed to select the Hold processed sessions check box on the initial

screen, , the finished job will notbe listed here. However, the count sheets will have been created and a listing

can be found in transaction MI22 using the plant, storage location and plannedcount date as selection criteria.

24. . A log of the jobs just completed will be displayed.


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25.

26. A listing of the physical inventory count sheet numbers just created is given.

In this session the first count sheet is number 13881, the last count sheet isnumber 13923. The batch log may be printed if desired


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MI21 Print Physical Inventory Document

1. Type MI21 in the Transaction Command field.

2.

The Print physical inventory document screenappears. Information from themost recent physical inventory document is defaulted on the screen.

Enter the desired information and execute the transaction.

3. Physical Inventory Document:

4. Plant:


6. Output Device:

7.

The print preview displays shows what the count sheet will look like.


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The printed count sheet may be used as a tool on which plant personnel canwrite the counted quantities for each item. This count sheet contains the materialnumber, description, plant and storage location information along with a space towrite the count quantity. The sheet does not display the systems on-handamounts.

MI04 Enter Inventory Count: Initial Screen


2.

The Enter inventory count: Initial screen is displayed below.

Enter the selection criteria and execute the transaction.


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3. Phys. Inventory doc.:

4. Count Date: Enter date if count date is different from currentdate.

5. The following screen is displayed.

6. Quantity:

7.

The message at the bottom of the screen states, Count entered for physical

inventory document XX.MI11 Enter Recount

Sometimes it is necessary to perform a recount for a material or group ofmaterials after the original count has been entered


2.

Enter the

count here

If the count is zero, enter zero

in the qty field and check the

ZC box.

Be sure to

observe theunits ofmeasure andconvert the

qty as

needed.


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The Enter recount: initial screenis displayed.

3. Phys. Inventory doc.:

4. Planned count date: Enter date if different from current date.

5. Document Date: Enter date if different from current date.

6.

The Enter recount: Selection listis displayed.


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All items are initially selected on this screen as indicated by the check mark tothe left of the item number. The user may deselect those items that do notrequire a recount by clicking the selection box to the left of the material.

7.

The screen will return to the initial screen and a new physical inventory countnumber will be displayed at the bottom of the screen.

The designated materials should be recounted and this value should be enteredinto the system using transaction code MI04 as explained above.

MI20 List of Inventory Differences

Any differences between the entered count and the system balances must bereconciled. These differences create financial postings which increase ordecrease the inventory stock balances.

The List of Inventory Differences provides management a means to examinedifferences for a single count sheet or several count sheets at one time.Depending upon the agencys policy and procedures, the plant management maydecide to recount some items due to wide variances while posting the differencesof other items which have only a small difference. Although material differencesmay be posted from this transaction, it is recommended that differences will beposted using transaction MI07.


2.


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The List of Inventory Differencesscreen appears

Enter the selection criteria and execute the transaction.

3. Physical Inventory document:

4.

For the first material, the book quantity is 358 ZR5 vs a counted quantity of 753ZR5 which produces a difference in amounts of $1,034.84. Differences are alsoshown for the second item.


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MI07 Post Inventory Differences

The MI07 posts the inventory difference for the material and indicates a reasonfor the discrepancy.


2.

The Post Inv. Differences: Initial screenappears.

3. Phys. Inventory Doc.:

4.

The Post Inv. Differences #####:Selection Screendisplays.


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A reason for any discrepancy must be indicated in the Reas. (Reason) field of theMI07 transaction. The movement types associated with inventory adjustmentsare 701 and 702. Movement 701 indicates an increase in the book value of theinventory balances. Movement 702 indicates a decrease in the book value of theinventory balances. Use the match code search box to determine the

appropriate reason

5.

The Reason for Inventory Diff. screen appears.

Enter the most appropriate reason and execute the transaction.

6. Reas.:

7.

Once the physical inventory count document has been posted, the screen willreturn to the MI07 initial screenwhich displays the physical inventory count sheetnumber just accessed. A material document number will be displayed at thebottom of the screen.


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Financial Posting for Inventory Adjustments

As with all goods movements, when the physical inventory count is postedindicating a change in the quantity on hand, a material document is created torecord the updated information. Pursuant to the material document, financialdocuments are also created. In the example below, an increase in the on-hand

quantity creates an increase in the inventory account with the off-set entry to theInventory /Short account.

MI06 Display Inventory Count

AASIS provides several transaction codes, which display the physical inventorycount status. Transaction code MI06 is one of these displays, which allows theuser to search for a particular physical inventory count sheet or several countsheets along with the notation of which ones are active. Many of these searchscreen criteria are very similar.

The initial screen for MI06 is displayed below. The user may enter the physicalinventory count sheet in the field provided or by clicking the drop-down arrow theuser may search for a count sheet.


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The materials on the count sheet are listed on the screen as shown below.

By clicking the Header icon additional information regarding the status of thedocument are displayed as shown below.


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The count status can reflect three different possible status indicators: Blank, X,or A. A Count status that is blank indicates that no count has been entered forany of the materials on the count sheet. A status A means that a count hasbeen entered for some of the items and a status of X means that a count hasbeen entered for all of the materials. The example shown in the screen print hasa status of X.

The Adjustment status field indicates that differences have been posted for thisphysical inventory count document. The Count statusA means that inventorydifferences have been posted for some of the items of the physical inventorydocument. For these items, the physical inventory has been completed. Count

status X means that differences have been posted for all items of the physicalinventory document.

The Delete status is blank indicating that none of the materials have beendeleted from this document. Status A means that some of the items have beendeleted and a status of X means that all items have been deleted.


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MI22 Display Physical Inventory

It may be helpful to simply enter the plant and storage location number to reviewphysical inventory documents to see which count sheets are still active. Afterentering the desired criteria, select the execute icon.


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In this example of Mi22, a list of count sheet numbers is listed for each material.Note that on the right side of the screen, the Status doc indicates whichdocuments are active. In other words, a count sheet for this item has not yetbeen posted. By clicking a document number twice, the document itself will bedisplayed.


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One of the most common errors encountered when performing a physicalinventory count is the message that a physical inventory document is alreadyactive. The message will be displayed at the bottom of the screen when the useris trying to create a physical inventory count sheet or when entering a countquantity. If this message is displayed, use the search screens shown with

transaction code MI06 or MI22 to determine the active document number andenter the count for that document number or delete the document.

To delete the document, use transaction MI02.

Enter the physical inventory document number and click on the trash canicon. A prompt will be displayed asking the user if the document should bedeleted.

By clicking on the green check icon, the document will be deleted.


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Troubleshooting

MI31

Error: Accounting view is missing means that when the material was extendedto plant 1300, the accounting view was not opened (displayed).

Solution: Contact OSP. OSP will need run transaction MM01 for the materialand open the accounting view for the plant.

MIGO Goods Receipt

Error: GR-- Document 45xxxxxxxx does not contain any selectable items

Solution: All items on this purchase order have been received. Check thepurchase order number. Review the purchase order via ME23N.

Error:

Solution: Check the purchase order number entered. Review the purchaseorder via ME23N.

Error: Fund is blank

Solution: Check the moving average price in the material master>accounting 1tab. The MAP must be greater than zero.


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MM03- Display Material Master

Error: Material 1xxxxxxx does not exist in plant 1350

Solution: Contact OSP. The material must be extended to the plant before itcan be used.


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Glossary

Account AssignmentCategory

The account assignment category determines which account assignment data (such ascost center, account number and so on) is necessary for the item.

Alternate Units of

Measure

Unit of measure in which quantities can be entered alternatively to the base unit of

measure/stock keeping unit. Alternate units of measure must be defined in the materialmaster.

Base Unit of Measure Unit of measure in which stocks of the material are managed. The systemconverts all the quantities you enter in other units of measure (alternative unitsof measure) to the base unit of measure. The base unit of measure,alternative units of measure, and their conversion factors are defined in thematerial master record

Client The organizational unit which groups or combines all legal, business and/oradministrative units with a common purpose. The State of Arkansas is theonly client with AASIS.

Company Code The level which represents an independent accounting unit within a Client.The State of Arkansas is the only Company Code within AASIS.

Cost Center A unit within a company code distinguished by areas of responsibility, location,or accounting method.

Goods Issue A reduction in warehouse stock due to a withdrawal of stock for consumptionor scrap.

Goods Movement Physical or logical movement of materials leading to a change in stock levelsor resulting in the direct consumption of the material.

Goods Receipt A physical inward movement of goods or materials.

Internal Order Internal orders are normally used to plan, collect, and settle the costs ofinternal jobs and tasks.

Material Term for all objects processed in materials management. A material masterrecord is created for each material in AASIS and each material is assigned amaterial number.

Material Document A document that represents proof of materials movements and is a sourcedocument for other applications such as Controlling, Financial Accounting andFunds Management.

Material Groups Grouping together of several materials with the same characteristics.

Material Master A data record containing all the basic information required topurchase/manage a material.

Material Type

Materials Management Includes two modules; procurement and inventory control


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Moving Average Price The system calculates the moving average price automatically by dividing the materialvalue in the stock account by the total of all storage location stocks in the plantconcerned. It changes the price with each valuation-relevant movement. The valuationof stocks at moving average price or periodic unit price means that the price of thematerial is adapted to the continual fluctuations in the procurement price.

MRP Material Requirements Planning

MRP Area An organizational unit for which Material Requirements Planning can becarried out separately. An MRP area can include one or several storagelocations of a plant

Order Unit Unit of measure that permits a material to be ordered (by purchasing) in a unitthat differs from the base unit defined for the material. The Unit of Issue is anexample of an Alternative Unit of Measure.

Planned Orders

Plant The organizational level where materials, goods, or services are provided. InAASIS, plants represent agency warehouses with inventoried stock.Additionally, plant 9999 is the reference plant used for all non-inventorypurchases.

Storage Location The organizational units representing physical or logical locations within aplant and are used for ease of segregation between the various stocks of amaterial for inventory purposes. Plants may have one or many storagelocations.

Unit of Issue Unit of measure that expresses the quantity of materials issued from the plant.The unit of issue allows the user to record material usage or consumption,stock transfers and physical inventories in a unit of measure other than thestock-keeping unit. The Unit of Issue is an example of an Alternative Unit ofMeasure.

Units of Measure Unit that allows the user to determine the dimension or quantity of a material.

Valuation Area Organizational level on which stocks of a material are managed based onvalue. The valuation area is either a plant, several plants in a company code,or all plants in a company code. In AASIS, materials are valued at the plantlevel.

WBS Element The work breakdown structure (WBS) is a model of the project that organizesproject tasks into a hierarchy. It is the functional basis for further planningsteps in a project, for example, for process planning, cost planning,scheduling, capacity planning or costing, as well as project control.


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Frequently Used Inventory Transactions

TransactionCode

Transaction Title

MB03 Display Material Document

MB1A Enter Goods Issue

MB1B Enter Transfer Posting (use movement type 301 for transfers betweenplants; use movement type 311 for transfers between storage locationswithin the same plant)

MB51 Material Document List

MB52 Display Warehouse Stocks of Material on Hand

MB5B Stock on Posting Date

ME23N Display Purchase Order

ME2N List Purchase Orders by PO number

ME53N Display Purchase Requisition

MI01 Create Physical Inventory document

MI04 Enter Inventory Count

MI07 Post Inventory Differences

MI11 Enter Recount

MI20 List of Inventory Differences

MI21 Print Physical Inventory Document

MI22 Display Physical Inventory Documents for Material

MI31 Selected Data for Physical Inventory Documents without Special Stock

MIGO Goods Receipt - Purchase Order

MMBE Stock Overview