A, B, C And D Indicator For Cycle Count

Cycle counting in SAP is a very important process as far as physical inventory is concerned. For cycle count of materials, every material has not of equally important.

Some materials require frequent count and some are require to be count rarely. Products with more consumption are classified as A and with low consumption, a value is classified as D.

As a result, items with A indicator will count frequently and D will be less frequent.

For daily cycle count, A products and B products can be selected with only some items of C and D indicator.

Transaction code for this process is OMCO

• No.of physical inventories in fiscal year

For plant 1000, these figures are A-12, B-6, C-3, and D-1 respectively. This indicates how often in a fiscal year physical inventory count has to be carry out for the purpose of cycle count.

• Interval for cycle counting

For plant 1000, and for A category no.of, physical inventory count is 12 per year, for factory calendar 240 days. Interval will be calculate as 240/12 = 12 days. It indicates after how many workdays another cycle count for the inventory to be schedule.

• Float time

It indicates a number of work days by which cycle count may vary.

For example Plant 1000 floating time is 5 days. Physical inventory count is scheduled for B category material on 10th March. On expiration of flat time (i.e. after 20 march – float time is 10 days for B category) if the physical count has not been carried out, then irrespective of material category material is parked for the coming next cycle count run.

• Percentage

It specifies the percentage allocation of a material to the category. For example, in plant 1000, there are 200 products for cycle count. As we can see in the image percentage allocation for A-56, B-28, C-14, and  D-2 respectively which equals to 100.

For the purpose of analysis which is base on the criteria of consumption, cycle counting indicator is assign as :

First 3 materials represent 50% of the consumption have indicator A

Next 12 materials represent 25% of the consumption have indicator B

Next 49 materials represent 15% of the consumption have indicator C

Remaining material represent 10% of the consumption have indicator D

For cycle counting in sap, in Material Master storage data, we have to maintain cycle counting indicator of the material which we want to include in cycle counting. There are two ways to do this :

1. Manually at the time of material creation (MM01) or change the material master (MM02)
2. Automatically using ABC analysis.

In case you have any questions regarding Cycle Counting In SAP ( A, B, C, D indicator) feel free to comment.

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See Also: Split Valuation In SAP MM

Physical Inventory Process In SAP MM

P2P Process In SAP MM