1. SAP_FI FuncDes-E_2532 Physical Inventory Count Calendar

2. Physical Counts – End State
WIS and Store Colleague
Track 5 – to be delivered around Oct/Nov
Custom Calendar in SAP will be created to facilitate the Count process
Physical count requires creation of Physical Inventory Document (PID) in SAP for articles to be counted
WIS counts: SAP will send list of articles to WIS prior to count. Count results will be uploaded and through an interface
Store Colleague Counts (eg/ Fresh Counts) will be done through store’s handheld as a Planned Cycle Count initiated by Finance (through the Calendar).
Correct MCH’s must be determined when creating the PID’s for articles intended to be counted.
If articles on PID not counted, this will be considered a zero count
Mvmt 701/702 – Results of count will post quantity updates to PI in MM and to Shrink Provision (Balance Sheet) in FI - same movement as daily cycle counts

3. Functions of Physical Inventory Calendar
Create / Maintain schedule of Physical Counts (Third Party and Fresh) counts SAP
Send notifications based on the schedule
Physical Inventory Calendar drives the determination of articles to be counted
Trigger SAP transactions including sending Count list to WIS, purging Physical Inventory Documents, Freeze Book inventory and generate Physical Inventory Documents
May need to add legacy stores

4. Additional Requirements to 2532
The following are additional business requirements to the Functional Design of the Physical Count Calendar:
Flexibility to Edit MCH1 or MCH2 for each count
Non-Third Party (WIS) Counts can be either a Full or Sample Count

5. Future state Physical Inventory counts process
Integration of Processes:
Create / Maintain calendar in SAP (Finance FD 2532)
Send notifications based on the schedule (Finance FD 2532)
If counted by 3rd party service provider, send list of Articles with details for counting (Stores FD # 1461)
Systematically Freeze Book inventory and generate physical inventory documents (Finance FD 2532)
Perform physical count (External process for 3rd party, Stores FD # 2482 for stores counts)
Audit the results (Stores FD # 1664, New FD for 3rd party Audit)
Obtain count results from 3rd party service provider and updates the count in the physical inventory documents (Stores FD # 1474)
Count difference posted to SAP (Stores FD # 1474, 2482)

6. Physical Count Process

7. Physical Inventory Count Calendar Process
1. Create / maintain Calendar:
The calendar should provide the following capabilities:
Create single entries
Mass upload entries
Modify entries (based on count status)
Cancel entries (based on count status)
Display/Print calendar based on selection criteria
Store
Store Name
Evt. Date
Evt. Time
Store Location
Res Off.
Count Type
Third Party Count
Third Party Name 40
FORTINO'S #40 FIESTA MALL
4/22/2010
7:00 AM
STONEY CREEK ON
7636
FULL 1
WIS
FORTINO'S #40 FIESTA MALL GM
8/12/2010 GM 48
FORTINO'S #48 MALL ROAD
3/18/2010
HAMILTON ON
9/9/2010 51
FORTINO'S #51 MOUNTAINASH
4/13/2010
BRAMPTON ON
7635
FORTINO'S #51 MOUNTAINASH GM
7/27/2010 52
FORTINO'S #52 LAWRENCE & ALLEN
3/4/2010
NORTH YORK ON
7708
FORTINO'S #52 LAWRENCE & ALLEN GM
8/5/2010 53
FORTINO'S #53 PLAINS
BURLINGTON ON
7614 57
FORTINO'S #57 UPPER MIDDLE
8/26/2010
4/8/2010 58
FORTINO'S #58 ANCASTER
ANCASTER ON
FORTINO'S #58 ANCASTER GM
7/22/2010 62
FORTINO'S #62 EASTGATE LTD.
9/16/2010
4/29/2010 63
FORTINO'S #63 QUEEN'S PLATE
10/14/2010
ETOBICOKE ON 64
FORTINO'S #64 GROC
4/27/2010
GROCERY
8/11/2010
FORTINO'S #64 BRISDALE GM
6/15/2010
Does the time make a difference?
- store’s team to summarize how the freezing of the book value takes into account the POS transactions.

8. Physical Inventory Count Calendar Process Cont’d
Display: Calendar should have the ability to display on screen, print and export as excel or PDF
Count Type
Count Type Description 1 FC
Full Count 2 GM
General Merchandise 3 GR
Grocery 4 FR
Fresh 5 LQ
Liquor 6 PR
Pharmacy 7 GC
Garden Centre 8 TO
Tobacco 9 AP
Apparel
Count type is a mandatory field; depicting the what dept will be counted
Note: MCH 2 assignment required for each count type and can be modified. Many count types will be required if variations exist with count types (eg/ Apparel only counts)
Need determine Final version of Count types
Add a comment txt field to explain the reason for the cancel
Then the system will copy the canceled count to add a new entry but prepopulate the info in the calender
We need to ensure that we can undo the canceled count
Build an edit of the count type tables
New Status code for 06 Rescheduled
Build enhance validty dates =
Status Code
Status Code Description 01
Scheduled 02
Count file sent 03
Document Created 04
Count Posted. 05
Canceled
Count Status: Status field has below options and will be automatically updated. Not editable.

9. Additional Requirements Captured from Winnipeg
Editing Calendar Entry:
Cancelled entry should not be permanently removed from the Calendar table
Add a comment text field to explain the reason for the cancel schedule
Add a Cancel and Reschedule function: when cancelling entry, a copy of the cancelled count should pop up for a new entry pre-populated with the info from the cancelled entry
Replace of a count should populate a new Rescheduled status: Status code for 06 Rescheduled
Ability to undo the cancelled count
Allow for user edit of the count type tables
Need to determine what happens when a count type is updated after a count entry is created - should all count entries be updated? proposal enhance design with validity dates

10. Additional Requirements 1: Flexibility to Edit MCH1 or MCH2 for each count
At the beginning of the year a full year schedule is determined for both Third Party and non-Third Party counts
The initial calendar entry will include Count Type (eg/ Grocery, GM, Full Count, Fresh)
There could be variations for each Count Type for each store/banner but it is not practical to create a Count Type for every variation because this will delay the determination of the schedule and each count type per store (or banner) may not be known until the actual count date approaches
Since the Physical Inventory Document must only include articles to be counted the business will need the ability to modify the MCH 1 (or MCH2) in the calendar prior to generating the Physical Inventory document
Finance will need to do a subsequent edit to exclude or deselect the MCH 1 (categories) that will not be counted for each site without impacting the original count type or the entry in the calendar
Edits of the Count Type will not be practical: Count Type is part of the unique ID called Physical Inventory Number which consists of 3 components, “Site&Date&CountType”
Changing any of the 3 components of the Physical Inventory Number will involve cancelling an entry in the calendar and creating a new entry
Some categories/articles within Fresh could be counted by WIS (eg/ bar-coded articles)
Current Design:
Count Type Entries are linked to a corresponding MCH 2 depts which limits ability to modify categories to be counted
Variations can only be done by creating a new count type and assigning the desired MCH 2
Original assumption was that WIS will not count Fresh

11. Additional Requirements 1 Cont’d
Proposed Design:
A user interface/screen will need to be created to allow the business to deselect the categories (MCH1) or depts (MCH2) not to be included in the creation of Phys Inventory documents
The selection would update the Physical inventory count calendar entries table. No impact the the Count types tables
Additional fields will include, MCH 1 and MCH 2 along with the corresponding descriptions
User interface (similar to SM30) will allow the user to deselect and/or select the applicable MCH1 (or MCH2)
The various main calendar tables related to the count should be viewable and also editable
For editing the Physical inventory count calendar entries table, the corresponding MCH 1 categories derived from the MCH 2 should be pre-populated based on the count type
The count type header and detail table should not be maintained by Winnipeg but instead will be based on a parameter table that needs to link the Count type to each MCH
Table maintenance should consist of standard SAP table maintenance functionality with pull down field selections such as Site, Distribution Channel, Sales Org, Date range and Count type
Output should consist of standard SAP reporting, layout and filtering functionality
Edit functionality will allow us to accommodate WIS Fresh Counts:
Use the edit functionality mentioned above at the MCH 1 or 2 level to be updated for each count
Create a specific Count Type for Fresh is created for assigning the MCH 2’s that will be counted eg/ (Bakery for WIS can include commercial bakery)
In addition, the creation of the Physical Inventory Document will exclude any articles without UPC/Barcodes when the Calendar marks the count as a Third Party Count for Fresh Depts

12. Additional Requirements 1 Cont’d
Assumptions/questions:
Winnipeg will be able to update the variations in MCH 1 or 2 for each count type and site in the calendar table which is the preferred process of creating many variants of count types at the time the schedule is uploaded
Determining the MCH 1 and MCH 2 to be counted is not known when the initial schedule is determined.
WIS fills out and provides the schedule which includes the count type.
Count time currently not managed by Winnipeg. Can we add this process for Winnipeg if they’re communicated any changes in the start time?
Physical Inventory Document required to be generated when WIS counts Fresh depts can be determined at the MCH 1 or 2 level so (eg/ commercial bakery, processed meats) in order to exclude depts/categories not to be counted
Can we assume the variation in Count Types can be maintained at the Banner/Region level or does it have to be at Site. Most likely at the site level.
More efficient to take a away the maintenance of a count type (header and detail) table
What Count Types are currently being used?

13. Additional Requirements 1 Cont’d. Flow of data
Table1: Count Type Header
Table 2: Count Type Detail
Count type detail and header table should be replaced with a parameterized table
Table 3: physical inventory count calendar entries
- Requires frequent maintenance of MCH1 or 2 level
Link between the Count type to the MCH contained in a table that should be parameterized
Standard table functionality
Layouts
Pull down selection of options
Output (Sample without MCH 1 or 2)
- Based on the calendar table, a report can be generated with fields selected or excluded

14. Additional Requirements 2: Non-Third Party (WIS) Counts can be either a Full or Sample Count
For non-third party (WIS) Counts, the calendar must accommodate both sample and full counts
Counts performed by store colleagues (eg/ quarterly Fresh Counts) were usually done as Full Counts but the business is moving towards a sample count approach
Sample approach consists of counting articles based on the following criteria:
Top 80% of the Total Inventory $ value of articles with positive qty/value. Include controls such as a warning message when overriding the default sample % below 80%.
100% of articles with negative qty balances will be counted
100% of articles in production departments that are ingredients are counted (regardless if these are among the top 80% of total inventory with positive value)
Current Design:
Physical Inventory documents are created for all articles in a MCH 2 because the original assumption was that there would only be a full (Fresh) count

15. Additional Requirements 2: Cont’d
Proposed Design:
The scheduling of the count in the calendar and the subsequent generation of documents must accommodate the business requirement to do a sample count rather than a full count,
A new count field in the count type detail table representing the full or sample count will be required which will link to the generation of the count schedule.
% to be counted type for “Sample Count” will be added logic to creation of the count list and physical inventory document based on:
80% of total Inventory MCH 2 value $ (SALK3 from table MBEW) for articles that are positive
100% of all articles with negative (LBKUM from table MBEW < 0) value and all ingredients (article type = ZROH and RETAIL_PRICE < 0.05 from table ZST_PERISH_PLNR)
New field required on the calendar table representing Full or Sample count %. A percentage will be entered representing the % of total inventory to be counted at the MCH 2 level
Assumption:
Finance (WSS) will be able to make changes to the % representing the sample. Risk is acceptable. Yes but there needs to be a warning or pop up message when changing the % below 80%. Message should read “Please verify you have your manager’s approval to change the sample % below 80%”
Ingredients can be derived base on articles in HMR/Deli/Bakery/Salad Bar and Floral have a Retail Price < $0.05

16. Additional Requirements 1 Cont’d
User Interface screen
Calendar Selection pulls up the Calendar details based on user criteria
Edit: Create or Change. Each item selected will open a new screen or pop-up to make edits
Calendar Selection:
- Add year
Physical Inventory Document and Physical Inventory Number
Company Code
Edit Options:
Add edit Third Party flag
Planned start time
Third Party name?
Cancel
Cancel and Reschedule
Uncancel
Output: ALV

17. Sample table layout for the calendar
New field required on the calendar table representing Full or Sample count %. A percentage will be entered representing the % of total inventory to be counted at the MCH 2 level. The store team will read this percentage. The business will maintain this field.
Default to a 100% with the option of editing the %

18. Physical Inventory Count Calendar Process
2. Send notifications based on the schedule
A program should be made available to check calendar entries on a daily basis and send automatic communication for the following:
Notification of count schedule to all stores at the beginning of each calendar year. Finance and Operation groups can view the full year schedule for all stores once the calendar has been uploaded.
Notification of upcoming store count sent to each individual store 6 weeks prior to the schedule count date.
Notification of upcoming store count sent to each individual store 5 days prior to the schedule count date.
Notification of upcoming store count/s sent to the Finance and Store Operation groups the Monday of the week prior to the schedule count date.
TO : << ID from Custom table>>
When: The count is scheduled for <YYYY-MM-YY> (Source: Calendar)
Count Type: <<Full Count >> (Source: Calendar)
Physical Inventory Number :<< Physical Inventory number>> (Source Calendar)
The count includes following departments
<<List the departments Based on the calendar count type , the program should get th department from the custom table (Count type –MCH2) and list the MCH2 in this part of the >>
72 hours prior to the count date Article list will be sent to the <<Third party name>>. On the day of the Physical inventory documents will be created.
Please open the following link:
To view:
Click on Shared Documents on the left hand side
Click on your REGION to find the document.
Click on the file  GM GROCERY INVENTORY.
When you get to the sections with excel sheets copied in, please double click and the excel documents will open.
Please print the document as well as save a copy on your computer.
<<<Add note cancellation contact information>>
If you have any question please contact<>>
Any changes required to this notification?

19. Generate Physical Inventory Documents
Calendar will schedule the creation of physical inventory document: A program/job will run on daily basis between (eg/ 4.00 am to 4.15 am local time) to check the calendar to see if there are any scheduled planned counts for the day
Purge cycle count documents – trigger to run FD 1504-Purge cycle count documents for that store
Based on the Count type from the calendar, new Physical Inventory document (or) set of documents for each MCH1 will be created
Inside each document generated, sort the Article lines by MCH
When it is determined that Article lines belonging to an MCH will be split in to multiple documents, break the document and start the next MCH in a new document.
Freezing of Book Inventory Balance will be activated for all Stores at all Storage Locations. This will result in the snapshot of inventory balance recorded in the physical inventory documents (at the time of document generation). Configuration will be done by Stores team.
No longer in
scope for this FD

20. Additional notes:
Provide more detail (referencing where in SAP) in the FD which describes the source of the fields in the Calendar table which are derived from SAP. Eg/ the source for Store Address currently has “Derived based on Store number“. Expand description to include “Derived based on Store number from Site Master in SAP”
Review with developers that a parameter table makes more sense than a regular table that the business will manually update
Rule: Any counts flagged as 3rd party count will only include articles that are bar coded
Any issues if the Physical Count Document creation (including Freezing book value) be based a fixed time early in the morning?
FD 2909 – sales audit rpt needs to add MAC and qty.