Physical Inventory Guidelines

It's year end and holiday season. When it is time for everyone to relax, the warehouse team and finance team may have difficult time to get prepared for their Annual Physical Inventory and year end books closure. Oracle Physical Inventory is a very stable process if you follow certain guidelines. Today, I want to share with you few guidelines that will help you in doing the year end physical counting smoothly.

1. Important: It is recommended to clear the Pending Transactions and Transactions Open Interface, before taking a snapshot of inventory quantity. Please do inform us before taking a snapshot.

2. Enter the starting tag number. Tag numbers may be alphanumeric, but you can increment only the numeric portion.

Important: When entering a starting tag number, make sure that it contains the total number of possible digits that a tag can have. For example, if your tag numbers can have up to five digits and you want the starting number to be 1, you would enter 00001.

3. Digit Increments -  If the starting tag number is A001 and you enter 0111 in this field, Inventory generates tags A001, A002, A003, A004, A005, A006, A007, A008, A009, A011, etc.

If you enter 0112 in this field then inventory generates the following tag numbers: A001, A003. A005, A007, A009, A011, and so on up to A999

4. Use Physical Inventory Tags report to print tags you have generated

5. If you void a default tag, (i.e. a tag that identifies a stock-keeping unit for which there is system on-hand quantity), Oracle Inventory adjusts the quantity in that location to zero. This indicates that you did not use the tag in question, presumably because the stock-keeping unit corresponding to the tag did not exist.

=> Note for WMS Orgs: Please run the below query before launching the adjustment program. I run this query to find if everything regarding the LPNs(counting same LPN in duplicate locations etc.) is fine or not. 

select wms.license_plate_number, count(1) from MTL_PHYSICAL_INVENTORY_TAGS MPIT, WMS_LICENSE_PLATE_NUMBERS wms where MPIT.ORGANIZATION_ID in(&org_id)

and MPIT.PHYSICAL_INVENTORY_ID=(select PHYSICAL_INVENTORY_ID from MTL_PHYSICAL_INVENTORIES where PHYSICAL_INVENTORY_NAME='&PHYINVName')

and MPIT.void_flag=2

and MPIT.tag_quantity is not null

and MPIT.parent_lpn_id is not null

and wms.lpn_id=MPIT.parent_lpn_id

group by wms.license_plate_number

having count(1) >1

6. Also Run ‘Physical Inventory Adjustments Report’ before launching adjustments to verify tag quantities and value impact. 

7. Once you run the adjustment program for your physical inventory, Oracle Inventory does not allow new tag generation or any further updates of tag counts. You are no longer able to make any changes to that physical inventory. Due to the irreversible nature of this program, Oracle Inventory posts no physical inventory adjustments if you have any adjustments that are still pending approval. You must approve or reject all of your adjustments before you can process them

8. Purging Physical Inventory Information. You can purge just physical inventory tags if you made a mistake and want to start over.

To run the purge program:

·         Navigate to the Physical Inventories Summary folder window.

·         Select the physical inventory you want to use.

·         Choose Perform purge from the Tools menu.

·         Choose Yes to purge only tags in the physical inventory

Major Reports Available:

1. Physical Inventory Tag Listing

2. Physical Inventory Counts Report

3. Physical Inventory Missing Tag Listing***

 (Oracle Inventory considers as missing those tags for which you have not entered counts. Use this report before initiating physical adjustments to verify that you have accounted for all tags generated by the system)

4. Physical Inventory Adjustments Report

5. Physical Inventory Accuracy Analysis

6. Physical Inventory Summary Report

(This report provides a summary of your physical inventory adjustments by subinventory)