Physical Inventory

Consignment

Business Partner Catalog

Initial Quantities

Inventory Revaluation

Contents:

Appendix: Variations in Inventory Processes

Carry out a physical inventory and post the differences in quantity and value with the correct expense and revenue accounts

Create a consignment warehouse and transfer items to the new warehouse

Set up a business partner catalog for items that one of your customer regularly orders.

See how to enter opening balances for inventory items

Examine how to revalue materials

In this unit, you will:

Variation in Inventory : Purpose

Periodically you need to perform a cycle count to verify the on-hand stock quantities as they appear in SAP Business One match the physical count.

You have a consignment warehouse at a customer site. When the customer uses items from the warehouse, you create an invoice to bill the customer for their use.

One of your customers regularly orders items that they know by a different item number. You set up a business partner catalog to reference these item numbers.

You sometimes need to enter an opening balance for a new item.

In the year-end closing process, you decide to revalue costs for inventory items.

Inventory Variations: Business Example

Physical Inventory: Unit Overview Diagram

Topic 3: Additional functions for items

Topic 4: Initial quantities

Topic 5: Inventory revaluation

Variation in Inventory Processes

Topic 1: Physical Inventory

Topic 2: Consignment

Status:Not Counted

Item List per Warehouse

2. Perform Count

4. Post Differences

Do not AllowPostings

Note Results

Record theQuantitiesCounted in theWarehouse

No Changes in Quantity or Value

Correct Quantities Stored

Profit or Loss as a Result of Inventory

Differences

Status: Counted

Physical Inventory

Stock Posting

3. Record Count Results

Inventory Tracking

1. Print Inventory Documents

Inventory Tracking

Hide QuantityStored

Inventory Differences

Inventory Posting

Inv. Offset Incr. 3972

Date

Item No. Item Description In WH Counted Difference Price

A1005 Battery Standard 100 102 2

Enter St. Bal. Inv. Tracking Stock PostingItems – Selection CriteriaCode From

Vendor From

Warehouse

To

To

Allow Posting without Price

Price Source for WH Stock Posting

By Price List Last Revaluation

Price Item Cost List

Inventory/Stock Posting

Inv. Offset Decr. 3971

12 EUR

Inventory Cycles

Menu

Definitions

Inventory Cycles

Inventory Cycle

Frequency:weeklyweekly

Next Alert Date:

Time:

Item Master DataInventory Data

All items that are currently scheduled for inventory count.

WH 01: Cycle Code week Alert y / nNext Date 24.10.2004

Cycle Count Recommendations

Alert Overview

Administration

Setup

Inventory

Exercises for Physical Inventory

Consignment: Unit Overview Diagram

Topic 3: Additional functions for items

Topic 4: Initial Quantities

Topic 5: Inventory Revaluation

Variation in Inventory Processes

Topic 1: Physical Inventory

Topic 2: Consignment

Consignment Stock at Customer

Production

CustomerCompany

Customer

Invoice

Goods Issue from WH 03

Company

SYSTEM

Stock Transfer

1.

2b.

2a. Withdrawal

Delivery

1. 2a,b,c.

2c. Invoice

WH 01 WH 03

Invoice

Confirmation

Inventory Transfers for Customer Consignment

Inventory TransferCustomer

NameShip To

Contact From WH 01

To Warehouse

Price List

Issuing Warehouse for

the entire stock transfer

document

Receiving Warehouse for

each item

Additional info for customer

consignment

Item DescriptionItem No. Quantity Price Total

OK Cancel

Warehouse 01

Accounting for Transfers to Consignment

Warehouse 02

Stock account Stock account (Warehouse 01)(Warehouse 01)

100

Stock accountStock account (Warehouse 02)(Warehouse 02)

100

Inventory Transfer

Inventory Transfer

Purchased Item

Fixed Assets

Inventory Item

Sales Item

Exercises for Consignment

Additional functions for items: Unit Overview Diagram

Topic 3: Additional functions for items

Topic 4: Initial quantities

Topic 5: Inventory revaluation

Variation in Inventory Processes

Topic 1: Physical inventory

Topic 2: Consignment

Alternative Items

Sales- or Purchasing Document

A00012A00012

Item No. Description

……

Quantity

5050 01 01

WH

1

E4002E4002Vendor/Customer

Alternative Items

B04711B04711

Item No. Remarks

……

Match Factor

100,00 100,00

A00012A00012Item No.

F00771F00771 …… 80,00 80,00

B04711B04711

Item No. Available

25 25

A00012A00012Item No.

F00771F00771 144 144

Alternative Items – Selection Criteria

Match Factor

100,00 100,00

80,00 80,00

01 01 WH

2

Packaging Unit

10 Units 1 Box

Purchase / Sales Order

Item Quantity No. of Packages

11 2

Factors

Inventory Unit

Twin Pack

Box with 3 Twin Packs

Purchase Order

Factor 1 Factor 2 Factor 3 Qty

1 3 26

Default Value

Factor 1 = Number of boxes orderedFactor 2 = Number of TP per boxFactor 3 = Number of bottles per TP

Item Master Data

Purchase Sales

Factor 1 11

Factor 2 31

Factor 3 21

Factor 4 11

Purchasing Data Sales Data

Quantity = F1xF2xF3

Business Partner Catalog Numbers

Form Settings- General

Vendor

Catalog No.

Purchase OrderPurchase Order

Description Quantity

S7000S7000

ItemItemDocument Type

4711 Color Printer 10

select

BP Items

Define Business Partner Catalog NumbersDefine Business Partner Catalog Numbers

Code

Item No. DescriptionS7000S7000

Catalog No.

A1000 Color Printer 4711

Manufacturer Catalog Number

Purchasing Data

Default Vendor

Mfr. Catalog No.

Vendor

Item No.

Purchase OrderPurchase Order

Description Quantity

V7000V7000

Item Master DataItem Master Data

Item Number

V7000

CP123991

A1000

ItemItemDocument Type

Mfr. No.

A1000 Color Printer CP123991 5

Form Settings-Table Format

select

Exercises for Additional Functions for Items:Business Partner Catalog Numbers

Initial Quantities: Unit Overview Diagram

Topic 3: Additional functions for items

Topic 4: Initial quantities

Topic 5: Inventory Revaluation

Variation in Inventory Processes

Topic 1: Physical Inventory

Topic 2: Consignment

Defining opening balances for inventory items

New items introduced to warehouse outside

purchasing or productionprocesses?

Use the Initial Quantity window to post:

Opening inventory account

Warehouse

Item Numbers

Quantities

Item cost price

Use the Initial Quantities

transaction.

Inventory Revaluation: Unit Overview Diagram

Topic 3: Additional functions for items

Topic 4: Initial Quantities

Topic 5: Inventory Revaluation

Variation in Inventory Processes

Topic 1: Physical Inventory

Topic 2: Consignment

Inventory Revaluation – Price Change

2500

StockStock

2500

Stock GainStock Gain

On Hand: 100Price: 100

New Price: 125 On Hand: 100Price: 125

Inventory Debit/Credit – Moving Average

On Hand: 100Price: 100

Debit/Credit: 6000Qty to revaluate: 100

6000

StockStock

6000

Increase GLIncrease GL

On Hand: 100Price: 160

On Hand: 100Price: 100

Debit/Credit: 6000Qty to revaluate: 120

1000

Price DifferencePrice Difference

6000

Increase GLIncrease GL

On Hand: 100Price: 150

5000

StockStock

Inventory Revaluation for FIFO layers

Item No Description Whse

Current Cost New PriceEntry DateDoc No Open Qty

Number

Revaluation Type

Add Cancel

FIFO Layers

1 A1000 Calculator 01

Price Change

PD 57RE 22SI 7

20.06.1002.07.1022.07.10

101520

51050

Each FIFO layer’s cost price is

independently displayed and

can be revalued

No cost price is shown at the

item level

Inventory Revaluation

Perform physical inventory tasks

Set up consignment for a customer

Create business partner catalog numbers

Name the steps in creating opening balances for inventory

Describe the process of inventory revaluation

You are now able to:

Inventory Variations: Unit Summary