1. The document describes two methods for handling goods movements during a physical inventory count: blocking all goods movements for materials in the count (blocking method) or freezing the book inventory balances and comparing to actual counts (freeze method). 2. It provides steps for creating a physical inventory document, entering counts, and displaying difference lists to post adjustments. 3. Information on specific transaction codes like MI01, MI04, MI05, MI06, MI07, MI20, MI31 and MB03 is also included to support the physical inventory process in SAP.

1. Process Step: 1 : Create Physical Inventory Document: Initial Screen – MI01
Block Method - Posting block due to physical inventory:
No goods movements involving the materials listed in the physical inventory document can be
posted for the duration of a physical inventory count.
Posting Block method indicates that no goods movements allow for the materials listed in
the physical inventory document for the duration of a physical inventory count done.
We use MI24 – Physical inventory list
And MI32 – block method

2. Note: System show below message if user try to perform Goods Movement after Physical inventory document created.

3. • 2. Freeze Method – Freeze Book Inventory:
• Book inventory balances of those items in a physical inventory document that have not yet been
counted are frozen. The system compares the counted stock with the frozen book inventory balance
to determine any inventory differences
•
• With the Freeze Book Inventory method system freeze the book inventory for the materials
listed in the physical inventory documents and calculates the difference with actual stock
counted and froze book inventory. Any goods movements after physical inventory document
created will not consider in the stock take.
•
• Note: With “Freeze Book Inventory” indicator system will not block the posting of any goods
movement.
•

5. Process Scenario: Post difference document
MI07
Material document posted for difference can be seen in MB03 t-code

6. • Process Step: Create Physical Inventory – MASS
• MI31
• This transactions creates the physical inventory documents for all the materials as per storage location selected in the selection screen.
•
•
• Process Step: Enter Inventory Count
• Create MI04 , Change MI05 , Display MI06
•
• Mandatory : Physical inventory document and count date
• Optional – Fiscal year
•
• Note: For the batch managed material, the count needs to be entered as per the Batch
•
• Process Scenario: Display Difference List
• MI20
• Mandatory : Material, Plant
• Plant is optional
•
• And if need to change count just click the change count button