Items and inventory

Items and inventory SAP Business One

What is the goal of inventory counting?

Match actual item availability with system quantities to ensure accurate inventory management.

Define cycle counting in SAP B1.

A scheduled process of counting inventory items throughout the year so all items are counted at least once.

Where do you set up inventory cycles in SAP B1?

Administration → Setup → Inventory → Inventory Cycles.

How often might A items be counted in cycle counting?

Frequently (e.g., several times per year) based on configured cycles and ABC classification.

What triggers a count recommendation?

An alert sent to a designated user per cycle-count determination.

What can you do before counting to stabilize quantities?

Freeze items so they are blocked from business inventory transactions until counting/posting is complete.

What is a count sheet?

A printed sheet used by stock takers to record quantities; it may hide or show system quantities.

What centralized document records counted quantities?

The Inventory Counting document used to manage the counting process.

How are quantity differences posted after counting?

Differences are copied from the Inventory Counting document into an Inventory Posting document for posting.

What is the last step in cycle counting?

Post any quantity differences found during counting.

Why stagger start dates for cycles?

To distribute workload across time and manage physical counts efficiently.

Name two count frequencies you can configure.

Daily, weekly, monthly, bi-monthly, annually (pick as needed per item classes).

What is cycle count determination?

Configuration that assigns cycles to item groups or warehouse sublevels and sets alerts.

What happens when items are frozen?

The item in the selected warehouse/bin is blocked from business inventory transactions until counting is done.

Does inventory counting require perpetual inventory?

No, but many companies use perpetual inventory and still perform annual physical counts for financial/tax reasons.

What does the Inventory Posting document do?

It posts quantity differences discovered during physical inventory to adjust stock.

Can you re-count items in the process?

Yes—re-count or correct counted quantities before posting differences if needed.

What is the purpose of excluding system quantities on the count sheet?

To prevent bias during physical counting by stock takers.

What does ‘matching actual availability and system quantities’ prevent?

Discrepancies that impact operational planning and financial accuracy.

Who receives the cycle count alert?

A specific user defined in the cycle-count setup/determination.

What is a typical annual objective for cycle counting?

Ensure every item is counted at least once per year (more often for fast movers).

What is the business scenario for inventory counting?

Accurate physical stock for companies using perpetual inventory and needing annual counts for financial/tax reasons.

What happens after entering results in the Inventory Counting document?

You compare to system quantities and copy differences to an Inventory Posting document.

Can you choose which items to include in a count?

Yes—select items based on recommendations, groups, and sublevels.

What is a common ABC approach to cycle counting?

A items: very frequent; B items: moderate; C items: at least annually (configurable).

Which date fields matter during the counting process?

The document dates of counting/posting that will affect reporting/valuation timing.

What are two key reasons for annual physical counts?

Financial statement accuracy and tax compliance.

Does freezing apply at warehouse or bin level?

At the selected warehouse or bin level for the item being counted.

How do you print a count sheet?

From the Inventory Counting document once items are selected for counting.

What is the output after posting differences?

Updated on-hand quantities reflecting actual physical counts.

Who manages the counting process?

Typically an inventory/warehouse user assigned via alerts and documents.

How to reduce bias in counting?

Hide system quantities on the count sheet during physical counting.

What happens if differences are significant?

Investigate errors, recount if necessary, and then post accurate differences.

Can you count daily or weekly?

Yes—cycles are flexible: daily, weekly, monthly, bi-monthly, annually.

Is cycle counting limited to entire warehouses?

No—can be assigned to item groups or warehouse sublevels (e.g., bins/areas).

What document persists the final stock adjustment?

Inventory Posting document resulting from the counting differences.

When should you unfreeze items?

After counting is completed and postings are made to avoid blocking operations.

What is a typical sequence for cycle counting?

Alert → Select items → Freeze items → Print count sheet → Count → Enter results → Post differences.

Why is physical inventory important even with system tracking?

To correct accumulated variances due to errors, shrinkage, or unrecorded movements.

What is the purpose of the Pick and Pack Manager?

Workbench to generate pick lists and create documents for Sales, Production, and Inventory Transfers.

Name three areas where Pick and Pack is used.

Sales deliveries, Production component picking, and Inventory transfers between locations/warehouses.

What is a Pick List?

A list for warehouse employees to collect required items and mark them as picked.

How are pick lists typically generated for sales?

From open Sales Order rows that are due for delivery.

Which documents can be created from Pick and Pack for sales?

Delivery and (in some flows) A/R Invoice based on processed sales rows.

What is a key benefit of Pick and Pack?

Generate batches of pick lists/documents quickly and accurately in a few clicks.

How does Pick and Pack improve accuracy?

Centralizes picking and reduces manual errors during collection.

What happens in Pick and Pack once items are picked?

The user can create Delivery documents for the picked items.

Can Pick and Pack create invoices?

Yes—depending on flow and settings, you can create A/R Invoices after picking/delivery preparation.

How does Pick and Pack relate to reserved invoices?

Similar processing can apply to Reserved Invoices in addition to Sales Orders (for delivery stage).

What statuses are typical in a picking flow?

Open → Released → Picked (and then delivered/invoiced).

Who commonly uses the Pick and Pack Manager?

Warehouse employees and supervisors coordinating picking and packing tasks.

How does Pick and Pack support production?

Generates pick lists for component items to issue to production.

How does Pick and Pack support transfers?

Helps prepare items for Inventory Transfers to other locations/warehouses.

What is a Packing Slip?

A document attached to packages to inform contents for the customer.

When is a Packing Slip typically created?

From Delivery or Invoice generation to include with shipped goods.

What triggers inclusion of Sales Order rows in Pick and Pack?

Creation of Sales Orders adds item rows to the Pick and Pack Manager for later picking.

How does Pick and Pack reduce navigation?

Serves as a hub, minimizing the need to jump between different modules.

Why generate pick lists in batches?

To optimize workload and streamline multiple deliveries at once.

How does Pick and Pack tie to accuracy of deliveries?

Picked items are verified before posting Delivery, reducing shortages/mistakes.

Can Pick and Pack handle non-inventory items?

Yes—flows may include non-inventory items alongside inventory items in documents.

What is the relationship between Delivery and picking?

Picking prepares items; Delivery posts the goods issue that reduces inventory.

Which role typically confirms picking completion?

Warehouse staff who physically collect and confirm items.

Where do picked quantities flow next?

Into a Delivery document for posting and subsequent invoicing.

What else (besides sales) can Pick and Pack process?

Production issues and inventory transfers as part of warehouse operations.

Key benefit of the Manager as a workbench?

Centralizes operations: create pick lists, deliveries, and invoices from one place.

What items appear in Pick and Pack?

Item rows from Sales Orders (and similar sources) that are pending picking.

What is the role of accuracy in Pick and Pack?

Ensures the right items/quantities reach the customer, reducing returns.

When do you create an Inventory Posting document?

After counting, to post any quantity differences found.

What does an Inventory Posting affect?

On-hand quantity (and valuation if perpetual), adjusting to physical reality.

Where do differences originate before posting?

From the comparison between counted quantities and system quantities in the Inventory Counting document.

Why might you perform a recount before posting?

To confirm unusual discrepancies and avoid incorrect adjustments.

What happens to system quantities when posting?

They are updated to match counted (physical) quantities for the selected items.

How do you ensure traceability of adjustments?

Keep the Counting and Posting documents linked and documented with reasons/notes.

What risks occur if you don’t post differences?

Planning errors, financial misstatements, and operational issues due to inaccurate stock.

Who authorizes posting differences?

Typically the warehouse/inventory manager or a user with proper authorizations.

What should be done after posting differences?

Unfreeze items and resume normal warehouse operations.

How to avoid repeated discrepancies?

Improve process discipline, receiving/issuing accuracy, and schedule more frequent counts for problem items.

Why are fast-moving items counted more often?

They have higher risk of discrepancies; frequent counting keeps records accurate.

How does cycle counting help workload?

Spreads counting throughout the year, avoiding a single large annual shutdown.

What is the advantage of hiding system quantities on count sheets?

Reduces bias and encourages true physical verification.

Who should receive count alerts?

Responsible users (e.g., warehouse leads) who initiate and manage counts.

What is a practical sequence for a small warehouse count day?

Run recommendations → Freeze → Print sheets → Count → Enter results → Post differences → Unfreeze.

How does freezing affect transactions?

Prevents movements on selected items/locations to protect count integrity.

What should be documented alongside posting?

Count dates, counters, reasons for variances, and approvals for audit trail.

How does Pick and Pack tie to customer satisfaction?

Accurate picking reduces shipping errors and returns, improving service levels.

Why generate packing slips?

To inform recipients of contents and support receiving checks at the customer.

How do cycle counts integrate with ABC analysis?

Assign higher frequency to A items, moderate to B, minimal to C, per business need.

What is the benefit of using one workbench for picking and documents?

Less context-switching, faster throughput, and fewer errors.

What is a reasonable KPI for counting quality?

Variance rate (by item/warehouse) trending down over time with more frequent counts.

What should you do if a count sheet is lost?

Reprint and recount that area/items to maintain integrity.

How do you select items for a count?

Use cycle recommendations and then filter by item groups or warehouse sublevels.

When should you schedule counts to minimize disruption?

Low-activity periods or after-hours to reduce transactional interference.

What is an Inventory Transfer document?

Moves stock between warehouses/bins; no revenue or COGS posting (pure inventory movement).

Difference: Inventory Goods Issue vs Delivery (Sales)

Inventory Goods Issue reduces stock without a sales document; Delivery reduces stock in the sales flow and can impact COGS/invoicing.

Difference: Inventory Goods Receipt vs Purchasing receipt

Inventory Goods Receipt increases stock without a purchase doc; Goods Receipt PO is tied to purchasing and vendor documents.

What is Inventory Revaluation used for?

Adjusts item valuation layers/prices for financial accuracy (no quantity change).

Key rule for Inventory UoM in UoM Groups

Once transactions exist, the Inventory UoM cannot be changed; conversions/UoM-specific prices apply per group.

Serial number management in sales

Serialized items must be assigned serial numbers on issue for full traceability to customers.

Batch management in sales

Batch-managed items require selecting batch numbers on issue; supports expiry/lot tracking.

What are bin locations?

Sublevels within a warehouse for storage and picking; counts can freeze items at bin level during physical inventory.