Inventory Sampling

Contents:

Inventory Sampling: Preparation

Inventory Sampling: Procedure

 SAP AG 2002

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 Inventory Sampling: Course Objectives

At the conclusion of this unit, you will be able to:

Describe the inventory sampling procedure

List the Customizing settings for the

inventory sampling procedure

Carry out inventory sampling in the system

 SAP AG 2002

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 Inventory Sampling: Course Overview Diagram

4.

Inventory
Sampling

Cycle
Counting

Physical Inv.
Management

Introduction

 SAP AG 2002

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 Inventory Sampling: Business Scenario

You want to keep the number of materials to

be counted in your company as low as
possible. To do this, use the inventory
sampling in your plants for raw materials.

 SAP AG 2002

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 Inventory Sampling: Preparation

Stock
mgmt
Stock mgmt levels units

Sampling area Complete-count

Stock population area
10 20 30 ..... 90 100 >100
Value
classes

.....
Stratification

 SAP AG 2002

 The inventory sampling procedure is based on statistical procedures.

- A sample is randomly selected from the stock management units for which a physical inventory
is to be carried out, and then counted. The sample size depends on the probable degree of
confidence you require when using the data obtained from the sample to make generalizations
about all stock management units involved.
- The count results data posted for the sample stock is extrapolated, then applied to all the stock
management units included in the inventory sampling procedure.
- If the deviation between the extrapolated value and the book value is very small, and the
probability is high that any error in the extrapolation results is only very small, then the
inventory sampling procedure is considered to have been successful.
 In the preparation phase, you have to carry out the following steps:
- Allocate stock management levels
You have to specify which stock management units are to be included in the inventory sampling
procedure. To do this, do not assign individual stock management units to the sampling
procedure, but rather you allocate quantities of stock management units, which are known as
stock management levels.
- Form stock population
The stock population is the total stock quantity in all stock management units included in the
inventory sampling procedure.
- Carry out stratification

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 Inventory Sampling: Procedure in Action

Random selection
Strata Complete-count
Stock mgmt ..... area
units to be
counted

1000 2319
Physical inventory 1000 2318
documents
Physical inv.
1000 2317
Material A
Material B

Update
Actual value of
selected stock
management units

Estimation
Extrapolation
Estimated actual
Estimated actual Comparison
value Book
Book value
value of
of all
all
value of
of all
all stock
stock stock
management
management unitsunits stock mgmt
mgmt units
units

 SAP AG 2002

 The following steps have to be carried out during the active phase:
- Generate random selection
Random selection is carried out separately for each stratum of the stock management units to be
counted.
- Create physical inventory documents
- Update
The system performs these two initial actions during the update:
It reads new count results.
It reads changed book inventory balances and book values.
- Extrapolation
In the extrapolation, the physical inventory value of the sampling area is estimated, based on the
latest count results. In each stratum, an average physical inventory value is calculated per item,
and this is multiplied by the number of items in that stratum. The total sum of these stratum
values is the estimated value for the sampling area.
If the entire physical inventory value (estimated value for sampling area plus actual value for
complete-count area) does not deviate from the book inventory value by more than 2%
(standard system setting), the inventory sampling procedure is considered successful.

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 Inventory Sampling: Summary

In inventory sampling, randomly selected stocks of the

company are physically counted on the balance sheet
key date. If the variances between the result of the count
and the book inventory balance are small enough, it is
presumed that the book inventory balances for the other
stocks are correct.

 SAP AG 2002

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 Inventory Sampling: Exercises

Unit: Inventory Sampling

Topic: Inventory Sampling

• Explanation of the inventory sampling procedure

• Configuration/settings for the inventory sampling procedure
• Carrying out an inventory sampling

Your company wants to minimize the number of materials that are

counted. Inventory sampling is used for the raw materials in the plant.
This makes it possible to get an overview of the stock situation without
counting all of the materials.

1-1 In Customizing, check the profile for inventory sampling.

Which currencies have profiles created for them in Customizing?

_______________________________

Display the details of profile 01 and check the following settings:

Are materials with an ABC indicator considered in inventory sampling?

_________________________________________________________________

As of which price limit are materials adopted into the complete-count area?

________________________________

What is the minimum number of materials per stratum that must be included in the
inventory sampling?

_________________________________

1-2 For which stock types is inventory sampling allowed in plant 1000, storage location
0001?
__________________________________

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 Inventory Sampling: Solutions

Unit: Inventory Sampling

Topic: Inventory Sampling

1-1 Customizing of profile for the inventory sampling.

Menu path: Tools → Accelerated SAP → Customizing  Edit Project → SAP Reference
IMG → Materials Management → Inventory Management and Physical Inventory →
Physical Inventory → Inventory Sampling → Create Inventory Sampling Profiles

Currencies UNI and US dollar

Profile 01:

Are materials with an ABC indicator taken into account in inventory sampling? A-materials
are assigned to the complete-count area.

Price limit for the complete-count area? Higher than 1000 UNI

What is the minimum number of materials per stratum for the inventory sampling? 30.

1-2 For which stock types is inventory sampling allowed in plant 1000, storage location
0001?

Menu path in Customizing: Materials Management → Inventory Management and

Physical Inventory → Physical Inventory → Inventory Sampling → Define Stock
Management Levels

For raw materials (ROH).

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