Freeze Inventory

[Former Member]

When attempting to perform an annual inventory count for our warehouse, how do you freeze inventory (as opposed to blocking inventory) so the counts can be accurate? What would the transactions and steps be to doing so?

[csaba_szommer · Accepted solution]

Why don't you check SAP online help first?

http://help.sap.com/erp2005_ehp_04/helpdata/EN/4d/2b8d6043ad11d189410000e829fbbd/frameset.htm

If you have not completed your inventory count, you can freeze the book inventory balance in the physical inventory document with the Freeze book inventory indicator (data element XBUFI). This is to prevent the book inventory balance, which is relevant for physical inventory, from being changed by any goods movements. These could otherwise lead to incorrect inventory differences.
You have physically counted all items in a physical inventory document, but have not yet entered the count results in the system for all items. For one of these items, the book inventory balance is 100 pieces. 90 pieces were counted, corresponding to a difference of 10 pieces. 
You freeze the book inventory balance of 100 pieces in the physical inventory document. 
Before you enter the count, a goods receipt of 20 pieces is posted. The current book inventory balance is now 120 pieces. For the physical inventory document, the book inventory balance of 100 pieces continues to be relevant, however. 
If the inventory balance had not been frozen, there would have been a difference of 30 pieces for the item. 

As you can see you can freeze the balance (1) if you already have the stock levels but the stock levels are not inputted into the system and (2) you want to allow goods movement.

So, the freezing won't make the count accurate (it has nothing to do with accuracy), it only helps to allow goods movement if only count result is not inputted (you have the count result!).

Regards,

Csaba

Edited by: Csaba Szommer on Aug 11, 2009 8:21 PM

[Former Member]

Hi,

Normally we do physical Inventory @ SL level.

Use/Advantage of Freezing Inventory

If the count results are not entered immediately after the stock has

been counted, it is useful to set this indicator so that any goods

movements which may take place in the meantime will not change the book

inventory balance relevant to the physical inventory.

Transactions for executing Physical Inventory

Phy.Inv Doc Creation - MI01(Tick the Freeze inventory option)

Enter Count Results - MI04

Post Difference - MI07

Enter Recount - MI11

Now inorder to carry out physical inventory with Freeze inventory the following settings needs to maintained.

SPRO-MM-Inventory Mgmt & Phy.Inventory-physical inventory-Allow Freezing of Book Inventory Balance in Storage Location

Hope its clear.

Thanks & Regards,