I have already done the following config to set up Physical inventory in EWM:
1) Define Physical Inventory Area
2) Define Activity Area for Physical Inventory
3) Assign storage types/bins to Physical Inventoy area
4) Assign Physical Inventory Area to Physical Inventory Area
5) Number Range Definition
6) Specify Physical-Inventory-Specific Settings in the Warehouse
7) Define Tolerance Group for Difference Analyzer
8) Define Tolerance Group for Posting Differences
9) Define Tolerance Group for Recounting
10) Define Priorities
11) Define Reason for Physical Inventory
12) Define Reason for Differences
13) Assign User to Tolerance groups for difference analyser and recount.
i can now create PI doc and i can enter the count against it. However when i try and post the document it gives me an error "Location for valuation qty differences in warehouse number CV01 not created"
I assume its something to do with the storage type/bin etc in EWM where the differences are posted to before they are cleared to SAP ERP.