Overview of the Physical Inventory Function

What is use of physical inventory in IM and WM?


An organization carries out physical stock verification on periodic basis. It is carried out monthly, quarterly, half yearly and yearly. Based on physical stock, we compare it with the book balance and if things are mismatch with the book balance we increase/ reduce the stock accordingly with proper approval from the concern authorities.

Transaction Summary

Physical inventory transactions are used to match the physical stock of a material with logical stock in the system. You create the physical inventory document in transaction MI01. Then you check and count the material and enter the actual stock of the material in transaction MI04. Then you complete the physical inventory document at transaction MI07 by posting the difference.


As well as providing a wide range of options for carrying out an inventory of your stocks, the physical inventory functions in the R/3 System allow you to obtain an overview of the progress of the physical inventory for each material at each stage of the process - from creating the physical inventory document to posting the physical inventory differences.

With all the functions listed, you only call up data that is stored in the system. You cannot change any data.

The following functions in the physical inventory menu provide information on the physical inventory:

Displaying the physical inventory documents for a material (RM07IMAT)

Choose Environment -> Phys. inv. doc. for mat.

Displaying the physical inventory data for a material (RM07IINV)

Choose Environment -> Phys. in. data for mat.

Displaying the physical inventory overview (RM07IDOC)

Choose Environment -> Physical inv. overview.

Displaying the physical inventory list (RM07IDIF)

Choose Environment -> Physical inv.list

Displaying the list of physical inventory differences (RM07IDIF)

Choose Difference -> List of differences

Displaying changes to physical inventory documents (RM07ICDD)

Choose Environment -> Changes to phys. inv. doc.

Displaying a Physical Inventory History

When you display or change a physical inventory document, you can display the physical inventory history for every physical inventory item. Choose Goto -> Physical inventory. history.


The documentation for each report contains detailed information on evaluation options.

You can also call up additional functions from the Environment menu.

Displaying material documents for a material

Displaying a material document for a physical inventory document

Displaying a stock overview for a material

Displaying the material master record

Displaying archived documents


Test Question

Physical Inventory can take place at the __________________ level

a) Storage Location
b) Plant
c) MRP Area
d) Warehouse Management System



a, b, d


See also

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SAP MM Forums - Do you have a SAP MM Question?

SAP MM Books
SAP Material Management Certification, Interview and Configuration Reference Books

SAP Material Management Tips
SAP MM Configuration Tips and Materials Management Discussion Forum

Main Index
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