SAP Cloud Reference Systems
Demo Script
Supply Chain Highlights – Cycle Count
Classification: Internal and for Partners
Manufacturing
Global
November 28, 2012
Golden Demo
SAP Business ByDesign
Golden Demo Supply Chain Highlights - Cycle Count
February 19, 2013 2
Table of Content
1 Demo Script Overview .......................................................................................................................................... 3
1.1 Demo Overview ............................................................................................................................................. 3
1.2 Intended Audience ........................................................................................................................................ 3
1.3 Protagonists .................................................................................................................................................. 3
1.4 Business Pain Points ..................................................................................................................................... 3
1.5 Key Messages and Value Proposition ........................................................................................................... 4
1.6 Story Flow Summary ..................................................................................................................................... 4
2 Technical Requirements ....................................................................................................................................... 5
2.1 Prerequisites ................................................................................................................................................. 5
2.2 System Access Information ........................................................................................................................... 5
2.2.1 System Landscape .......................................................................................................................... 5
2.2.2 System Access ................................................................................................................................ 5
2.2.3 Users ............................................................................................................................................... 5
3 Demo Steps ............................................................................................................................................................ 6
3.1 Prerequisite: Stock Overview ........................................................................................................................ 6
3.1.1 Check Stock Overview ..................................................................................................................... 6
3.2 Create new Cycle Count ............................................................................................................................... 7
3.2.1 Create New Product Count .............................................................................................................. 7
3.2.2 Create Count Task ........................................................................................................................... 8
3.3 Execute Cycle Count ..................................................................................................................................... 9
3.3.1 Confirm Count Task ......................................................................................................................... 9
3.3.2 Approve Count Result .................................................................................................................... 10
4 Scenario Quick Guide and Key Master Data ..................................................................................................... 12
4.1 Prerequisite: Stock Overview ...................................................................................................................... 12
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1 Demo Script Overview
1.1 Demo Overview
This demo scenario describes how you can create and execute a new product count supported by count tasks. The
warehouse manager creates a count document based on all cycle-counted products; the system automatically creates the
respective count tasks. Each count document can contain a number of count tasks, which an assigned warehouse operator
accesses from physical inventory task folders. This helps to organize the counting-related work in your warehouse. You can
monitor the counting process and preview detailed information about the progress and status of count items and count
documents. You can view the counting results, including any differences when compared to the book values. With this
detailed information, you can quickly see and react to deviations as they occur and initiate appropriate follow-up actions,
such as requesting recounts. Once you approve a count document, the system updates the inventory and the inventory
records of your finance department.
This scenario includes features such as:
Cycle Counting
Creation of count tasks
Monitoring of count documents
React to deviations in quantity and value
1.2 Intended Audience
SAP internal: New hires
SAP external: CEO, CIO, CFO, Logistics Management
1.3 Protagonists
Warehouse Manager
Typical KPI’s
Inventory Accuracy
Fill rate
Resource Utilization
1.4 Business Pain Points
Inaccurate inventory levels impact many aspects of a business
Lost sales and lost customers
Late deliveries
High freight costs
Expediting costs
Write-offs at year end
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1.5 Key Messages and Value Proposition
Grow the Business – improve inventory accuracy to ensure commitments are met
Ensure Profitability – eliminate lost sales due to inaccurate inventory levels
Stay Customer Centric – meet customer commitments
Overview
Give companywide visibility to accurate inventory levels
Ensure commitments and profitability through integration to supply chain and financials
Ensure true customer centricity through a complete and consistent view of all information
Key Features and Associated Benefits
Automatic Proposals of items to count
o Ensures you count the correct mix of high/med/low value items
Count Monitoring
o Visibility to the status of the cycle counts
Count Approval
o Approvals are required before inventory adjustments are posted
1.6 Story Flow Summary
This demo covers the business processes depicted in the orange boxes:
Create new Cycle Count
Check Stock Overview
Confirm Count Task
Approve Count Results
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2 Technical Requirements
2.1 Prerequisites
None
2.2 System Access Information
2.2.1 System Landscape
Software Component Release Support Pack
SAP Business By Design FP4.0
2.2.2 System Access
Access your local demo system. The access details and demo features described here are available in all standard reference
systems as of FP40 V1.
2.2.3 Users
Predefined User ID User Name Password Component
Warehouse01P Luther Loblanski Welcome1
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3 Demo Steps
3.1 Prerequisite: Stock Overview
3.1.1 Check Stock Overview
Introduction
Prior to beginning the demo you need to check the on-hand stock in order to get an overview which quantities have to
be entered during the product count.
What to Do
WoC Physical Inventory Management Common Tasks Stock Overview
Product ID: Click on More Options and enter the Products P100101, P100110, P100111
Site ID: P1100
Logistics Area ID: Click on More Options. Exclude logistics areas P1100-30-10 and P1100-50 from the selection
Click Go
Export the on-hand stock to MS Excel and save it on your desktop for reference in order to enter suitable values
during cycle count
What you Should See
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3.2 Create new Cycle Count
3.2.1 Create New Product Count
What to Say
Introduction
The Warehouse Manager creates a new physical inventory count document for selected products that are to be
counted in a certain cycle maintained in the material master data. Additionally the warehouse manager excludes
logistics areas from the count.
Key Features and Advantages
Items due to be counted can be automatically selected, ensuring the correct mix of items.
Count tasks can be split by various criteria, to optimize the count execution.
Value Statement
Cycle Counting greatly improves the ability to identify and fix inaccurate data, such as misplaced, mislabeled, or lost
stock.
It also improves the supply chain operations through more accurate inventory data.
What to Do
WoC Physical Inventory Management Common Tasks New Product Count
Storage Location ID: P1100
Mark Only Cycle-Counted Products indicator
Click Go
Select products P100101, P100110 and P100111 for counting
Click Next
What you Should See
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3.2.1 Create New Product Count
3.2.2 Create Count Task
What to Say
Introduction
After selecting the scope of the count with regards to products and logistics areas, the count task is created
automatically.
What to Do
Exclude the following logistic areas from the product count: P1100-30-10, P1100-50.
Click Finish.
Click Close.
What you Should See
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3.2.2 Create Count Task
3.3 Execute Cycle Count
3.3.1 Confirm Count Task
What to Say
Introduction
The automatically created count tasks are used to execute the product count. The warehouse manager can also print
the count task in order to get a list of all products and logistics areas to be counted. The count results are recorded
and confirmed in the count task.
Key Features and Advantages
Count sheets can be used for ‘Blind Counts’, where the book value is not displayed, or confirmation of book values.
Value Statement
Optimized count sheets allow greater efficiency in Cycle Count execution.
What to Do
WoC Physical Inventory Task Control
Show Tasks Not Started
Click Confirm
Product Actual Quantity: <Enter the on-hand stock from the Excel export for the three items; enter a quantity
variance of e.g. 2 EA for product P100111>
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3.3.1 Confirm Count Task
Click Finish All Items
Click Close
What you Should See
3.3.2 Approve Count Result
What to Say
Introduction
The warehouse manager monitors the physical inventory counting process and is enabled to prioritize and quickly
access all current count documents that might require your attention due to variances in quantity and value. By
approving the count results the inventory gets updated automatically.
Key Features and Advantages
Exception Monitoring of tasks gives visibility to items with variances.
Items can be submitted for re-count quickly, to confirm variance is accurate before making adjustments.
Value Statement
Rapid visibility to variances helps identify and correct receiving, shelving, ordering, packaging, labeling, returns, and
fulfillment errors.
What to Do
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3.3.2 Approve Count Result
WoC Physical Inventory Monitoring: By PI Count Document
Show PI Count in Process
Click Edit
Go to tab Count Items and check the variances in quantity and value
Click Approve All Count Items
Click Save
Click Close
What you Should See
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4 Scenario Quick Guide and Key Master Data
4.1 Prerequisite: Stock Overview
Steps Summary
Path Data to Use/Enter Activity
Step 1 – Check Stock Overview
WoC Physical Inventory
Common Tasks Stock
Overview
Products: P100101, P100110, P100111 Select the products to be counted and
check the on-hand stock
Export to MS Excel
Step 2 – Create New Product Count
WoC Physical Inventory
Common Tasks New
Product Count
Storage Location ID: P1100
Only Cycle-Counted Products
Products: P100101, P100110, P100111
Select the scope of products to be
included in the cycle count
Step 3 – Create Count Task
Exclude logistics areas: P1100-30-10,
P1100-50
Select the logistics areas to be
counted
Step 4 – Confirm Count Task
WoC Physical Inventory
Task Control
Filter Tasks Not Started
Click Confirm
Product Actual Quantity: <Enter the on-
hand stock from the Excel export for the
three items; enter a quantity variance for
one item>
Click Finish All Items
Step 5 – Approve Count Result
WoC Physical Inventory
Monitoring: By PI Count
Document
Filter PI Count In Process
Click Edit
Physical Inventory Count
Tab Count Items
Check variances in quantity and value
Click Approve All Count Items
Click Save
Click Close
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