Inventory upload in SAP Business One

An inventory adjustment initially helps to maintain precise control over stock. However, it also reduces the risk of losses and improves purchasing planning.

Through an inventory adjustment in SAP, you can maintain the accuracy of your company's stock records and detect common or unforeseen errors, such as losses or theft.

Inventory adjustment movements are made through movement codes 701 and 702. Code 701 is used to increase the stock quantity of a material. Code 702 is used to decrease the stock quantity. The difference between the physical and inventory recorded in the system will indicate whether the adjustment will be positive or negative.

For example, what happens if the stock recorded in the system is 100 units and the physical inventory is 150 units? In this case, a positive adjustment will be made with movement code 701 to reflect the difference in the system.

Transactions such as MI09 or MI10 can also be used. Certain information needs to be entered, such as the plant code, location code, physical quantity, and part number of the material.

An inventory adjustment in SAP is a clear and precise procedure to maintain the integrity of stock records. Previously, we have already discussed how to manage cycle inventories with SAP Business One. Next, we will explain the operation in SAP One.

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Inventory Counting in SAP Business One

Inventory counts are essential processes that help businesses verify and adjust their stocks. SAP Business One allows you to enter the count results manually or import them from an Excel file. Once the count is completed, an accounting document must be created for the adjustments to take effect in the system.

Steps to perform an inventory adjustment in SAP

1) Perform an inventory count:

• First, you need to access the counting window. To do this, in the main menu select Inventory > Stock operations > Inventory counting operations > Stock accounting.
• Next, you will need to define the counting parameters. Make sure that all inventory transactions performed are recorded in the system before starting the count. Set up the necessary parameters such as the date of the count, the type of count, and the counting clerks.
• Finally, you will need to block the items using the corresponding option, to prevent transactions from taking place during the count.

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2) Record the counting results: The counting results can be entered manually or imported from an Excel file. Each counted quantity must be recorded on the corresponding line of the document. Once entered, update the inventory counting document.

3) Post inventory adjustments: After recording the count results, create an accounting document. This will allow the inventory adjustments to be reflected in the system. Make sure that all recorded quantities are correct and, if necessary, adjust the quantities directly in the document.

Inventory accuracy and the need for adjustments are greatly reduced with the implementation of a Warehouse Management System (WMS). A WMS helps automate counting and adjustment processes, improving accuracy and reducing manual effort.

One successful case is Medical Depot in Central America. The company was able to reduce inventory counting times from 5 days to just 1 day with Intralog WMS. This improvement made operations more efficient. It also reduced financial expenses and staff motivation costs associated with general inventories.

This demonstrates that a WMS can transform inventory management in companies using SAP Business One.