EXP_0029

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Cycle counting is a method of physical inventory whereby material is inventoried at regular intervals within a fiscal year. These intervals or cycles depend on the cycle counting indicator set for the material.
Cycle counting allows fast-moving items to be counted more frequently than slow-moving items, for example.
All materials to be included in the cycle counting inventory are flagged. This is done either manually, using a cycle counting indicator in the material master record (storage data), or automatically, by means of an ABC analysis. The cycle counting indicator allows you to classify materials into individual cycle counting categories (e.g.: A, B, C, D) In Customizing, you can then set different time intervals for inventory of different.
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You can set the indicators for materials to be included in the cycle counting inventory method as follows:
manually in the material master record (storage data)
automatically with an ABC analysis for Physical Inventory (not to be confused with ABC indicator on MRP1 screen).
The RMCBIN00 program allows you to carry out an ABC analysis to classify the materials according to either consumption or requirements. The analysis can be set to consider either only those materials with a cycle counting indicator, or all materials. The cycle counting indicator can be automatically updated during the cycle counting analysis.
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To plan the cycle counting inventories, start the RM07ICN1 cycle counting program at regular intervals. This program checks the due dates for inventories for all cycle counting materials.
If it is time for an inventory for a certain material, use the program to create a batch input session to create physical inventory documents. Physical inventory documents are only created for stock type 1 (unrestricted use). The actual inventory count date is calculated as follows:
Date of last inventory + pre-defined interval
The interval between inventories for each cycle counting indicator is set in Customizing.
Use the batch input session to create the physical inventory documents.
Now you can carry out the inventory. When the difference is posted, the actual inventory count date is recorded in the material inventory data as the date of the last inventory.
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