1. Annual Physical Inventory Procedures
Training Code:

2. Annual Physical Inventory
DFO users should not follow these instructions Contact Jay Medlin for instructions.
Engineering users should not follow these instructions Contact Randy Bowman for instructions.
Mechanical users should not follow these instructions Contact Stephanie Key for instructions.
Jay Medlin (Diesel Fuel)
Stephanie Key (Mechanical)
Randy Bowman (Engineering)

3. Annual Physical Inventory
Why do we do Annual Physical Inventory?
Sarbanes – Oxley (SOX) Act of 2002
Confirms accuracy of total book value of inventory

4. ENGR Physical Inventory Process
Mechanical only!
All Other Physical Inventory Documents will be provided.

5. Location of this Reference Document
This document is located in ERC
Go to ERC > Help > Open Online Help
On the Help page and you will find the annual inventory instructions under Inventory Management

6. YOU’RE NOT FINISHED UNTIL YOU POST!
Important Facts
Count documents will be created for you on October 7th.
Counts should be entered and posted beginning October 8th and completed by October 22nd.
Count documents will only contain materials with on-hand quantity as of the date of creation.
Departmental approval is required to post item variances greater than $5,000.
YOU’RE NOT FINISHED UNTIL YOU POST!

7. Physical Inventory Transactions
SAP transactions used during annual physical inventory
Print Count Sheets (MI21)
Enter Counts (MI04)
Manage Count Differences (MI20)
Recount Physical Inventory Document- If Necessary (MI11)
Access Work Instructions, Cue Cards and Simulations in uPerform.
Training Code:

8. Annual Physical Inventory Steps
Step 1: Print Physical Inventory Documents (Print Count Sheets)
Step 2: Count Physical Inventory and Enter Count Quantity (Enter Counts)
Step 3: Review Differences Between Entered Count and Book Count (Manage Count Differences)
Step 4: Perform Inventory Adjustments as Necessary (Adjust Counts)
Step 5: Enter Recounts as Necessary (Recount Document)
Step 6: Post Differences

9. Step 1: Print Count Sheets (MI21)
Enter the Physical Inventory Document number(s). Refer to the spreadsheet that was ed to the storage location contact.
Click Execute

10. Printing Count Sheets (Continued)
Click Print Preview to display in PDF format.
From this screen you may Print or Save the count sheets.

11. Step 2: Enter Counts (MI04)
Enter the Physical Inventory Document number provided (via , also will be printed on the top of your count sheet:
Click the Pencil icon

12. Entering Counts (Continued)
The Enter Inventory Count screen displays. Enter the Quantity for each item with a count greater than zero.
You cannot enter a quantity of “0”. You must leave the quantity blank and check the ZC (zero count) box.
To navigate between pages of the count document, use the previous page and next page buttons at the top. Be sure to page down until counts are entered for all items.
When paging, If any of your materials have been set to a special status, such as slow moving, a warning will appear at the bottom of the screen. Hit enter (potentially multiple times) and you will be able to proceed.
Example warning message:

13. Entering Counts (Continued)
7. Click Save You may need to hit enter again if warning messages appear.
8. Once you have finished confirming the warning messages and Save, you should receive a message that the count has been entered.
9. If you have material physically on-hand that is not listed on the count sheet, and he will create a physical inventory document for the missing items.
Confirmation Message:

14. Step 3: Manage Count Differences (MI20)
Enter the Physical Inventory Document number.
Click Execute.

15. Managing Count Differences (Continued)
. To facilitate posting, click the Difference amt. column header then click Sort Ascending to sort the difference amounts.
. Check-mark all of the items for which you want to post the variance.
. Click the Post Difference button to confirm the posting.

16. Managing Count Differences (Continued)
Click Save to Post the differences.
If any of the items were in a special status,
such as slow moving, you will receive a warning message. Hit enter to get past the warning message.
If you attempt to post item differences that were greater than $5,000, you will receive a warning message that the difference amount of some items is too high. If this occurs, hit enter to get past the warning message and post the items that are less than $5,000. For the items that are greater than $5,000, you will need to contact the appropriate approver for your area. A list of users who can approve transactions greater than $5,000 is on the last slide of this presentation.
Once you have finished confirming the warning messages, you will receive a message that the document has been posted without differences.

17. Approval of Inventory Differences over $5,000
The Manage Count Differences transaction is also used by approvers for amounts over $5,000:
To approve an item: check-mark all items for which you want to post the variance and click Post Difference.
To disapprove an item: remove the check mark by clicking on the check-box. Post the differences of approved items and exit the document. Then contact the employee who requested your approval noting the relevant Inventory Document number and material item number, instructing the employee to do a recount for that item.
Be sure to scroll through all pages (if more than one).
Once completed, and you have approved at least one item in the document, click the Save button. Doing so will charge (or credit) the dollar difference for the items you approved against the appropriate high-level cost center in your department - typically at a VP or AVP cost center level.
Note: If you do not approve any item (i.e., you removed all checkmarks), don’t hit the save button, but instead back out of the system at this point using the icon.
*Approved/Posted quantity differences with a negative sign will result in a charge against the budget; approved positive amounts will result in a credit (as per the above example).
Remember to tell the employee to recount any item you did not approve, noting the relevant Inventory Document number and material item number.
Training Code:

18. Step 4: Adjusting Counts (MIGO)
1. Validate that your physical inventory count is accurate and adjust inventory as needed.
2. When making a count adjustment, type “INV ADJ” into the Doc. Header Text field. This will aid in identifying why adjustments were made.
3. Adjust entries in MIGO.
If the difference quantity greater than 0, a MIGO Goods Issue 202 Movt Type should be performed to correct inventory.
If the difference quantity less than 0, a MIGO Goods Issue 201 Movt Type should be performed to correct inventory.
4. After performing adjustments, go to MI11 to create Recount Document.

19. Step 5: Create Recount Document (MI11)
1. Enter the document number 2. Click Selection Screen 3. All items that have not been posted should be checked. Click the save button to create the new count sheet. 4. A new document number will be shown at the bottom.

20. Enter Recount (MI04)
1. Enter the document number 2. Enter New Counts 3. Click Save.

21. Step 6: Post Differences (Final Step)
After making inventory adjustments and completing the recount sheet, all materials should now show a 0.00 variance. If all materials do not show variance, repeat the MIGO process to correct counts.
Select all materials with a 0.00 variance.
Click the Post Difference button to confirm posting.
Your inventory count process is now complete!

22. BW Annual Inventory Report
Storage location owners will receive a daily to track their progress. The contains the percentage complete as well as the total price difference that was posted.

23. BW Annual Inventory Report
This information is also available in BW under the Inventory Turns tab and three reports are listed:
Annual Inventory Report – Plant
Annual Inventory Report – SLoc
Annual Inventory Report – Material

24. BW Annual Inventory Report
Annual Inventory Report – Plant: This report contains the percentage complete and difference amount at the plant level.
Annual Inventory Report – SLOC: This report contains the percentage complete and difference amount at the storage location level.
Annual Inventory Report – Material: This report contains detail information at the material level. This report can be used to identify materials that have not been counted or posted.

25. Need Help?
If you have any questions during the inventory period, please contact: Sourcing: Jay Medlin (Diesel Fuel) Corey Plunkett Other Departments: Stephanie Key (MECH) Mike Hartung (MECH) Randy Bowman (ENGR) Accounting: (Option 5)

26. Approvers for Transactions Greater than $5000