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cycle counting

Former Member
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Hi guys,

I knwo that we can use t-code MIBC for classifying materials into A/B/C and D categories for using in cycle counting. But this requires either consumption data or requirements.

But we are starting from a green-field project and we do not know either consumptin or requirement. But we want to use cycle counting right from the beginning.

Do we need to enter CC indicator i.e. A/B/C/D at the time of material master upload only or is there any otehr way to classify the total items into A/B/C/ and D.

Any ideas?

Also if we want to use requirements, where we have to maintain the requirements?

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Answers (3)

Answers (3)

JL23
Active Contributor
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You can enter the ABCD classification to your material master at any time you want.

Using MIBC SAP calculates the classification either on consumption or on requirements.

Requirements are: sales orders, planned consumption for production orders, in short: future usage.

Some companies assign ABCD indicators based on different meanings, e.g. importance (even with small quantity a material can be very important for any production), price, experience on differences.

You can set the ABCD indicator with MM17 mass maintencance material master, or you let SAP calculate a proposal in MIBC and directly overwrite the value manually there.

Former Member
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Hi Jurgen,

Thanks for ur reply. My problem is, the client is also starting their business afresh and they do not have any consumption or requirements readily available. I know that we can enter this classification in material master either with MM17 or while uploading material master also.

But i wanted to know is there any other waay for doing this?

If we have to do this classification on the basis of requirements, where should we enter the requirements?

Can u clarify this?

JL23
Active Contributor
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as I already said: requirements are sales orders and planned usage.

Enter sales orders, then run MIBC and you will see a result.

enter production orders, and all materials contained in the BOM will get a planned consumption. So it will be considered in MIBC.

If you neither know what you need, nor what the history was, then you have to assign the ABC indicators based on different figures. Or assign all materials to the same indicator to start with, and reassign the indicators with MIBC every months.

Former Member
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Hi Jurgen,

Thanks for ur reply.

We are going to maintain that in material master. However, can u clarify one more thing. using cycle counting will only generated PID. After that we need to do MI04 and MI07 as usual. Is it right ? or there is any other way of doing this for all items together.

Can u elaborate how cycle counting will reduce the work of client.

JL23
Active Contributor
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you are right with the transactions. With exception of the Create PID transaction MICN, all other transaction are the same as for any other inventory method.

you are wrong with the assumtion that CC will reduce the work. It will increase the workload tremendously.

From a legal point of view, in most countries you just have to count your stock once a year.

Assume you have 1000 materials, this means you have 1000 counts in one year.

If you do Cycle couting, then you classify your materials in ABCD. And you count A more often than B, and B more often than C ...

Assume you count A items 12 times a year, B items 4 times, C items 2 times and D items just once a year.

Assume you have 50 A items, 100 B items, 200 C items and 650 D items.

This means you count A items 50 * 12 = 600 counts

This means you count B items 100 * 4 = 400 counts

This means you count C items 200 * 2 = 400 counts

This means you count D items 650 * 1 = 650 counts.

Summary: 2050 counts with cycle counting copared to 1000 counts for annual counting.

Cycle count is usually implemented if the stock accuracy is pretty low.

you count your items more often to reach a high accuracy.

further it gives you the chance to identify the root cause for your differences much easier as you are closer to time of difference when you count multiple times a year.

Later when you got rit of the difference causes and reached a high accuracy with very low differences, you usually switch the inventory procedure, away from CC to one that reduces the work.

Former Member
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Thanks a lot for your detailed answer. But i am only nor clear on entering the count of many no of items at a time.

Is it possible to upload the count of all materials with some flat file and then post all these PIDs at a time like BDC?

What is the use of t-coees MI34 and MI37.?

Sorry to bother u again. But i am working on this configuration today and i need to clarify these things to my client tomorrow.

Also in normal method of PI, when we enter recount we use t-code MI11. here i am not clear on how to enter recount. Do we need to create a PId again and then enter recount or we can enter recount with ref to original PID.

i think if these things are clarified i will not disturb u again

thanks in advance

former_member335885
Active Contributor
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HI,

An indicator that is assigned by the procedure of ABC analysis.

The following ABC indicators are possible:

A - Important

B - Less important

C - Relatively unimportant

According to these criteria, "A" materials are those materials that are of greatest importance for the production operations of a company.

Examples of use for ABC indicators are vendor master records, material master records, and master records of technical objects.

Check this following link for some useful information

http://www.sap-img.com/mm010.htm

Thanks & Regards,

Kiran

BijayKumarBarik
Active Contributor
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