ABC analysis & cycle counting

Dear Gurus,
I am having doubt regarding ABC ananlysis & Cycle counting.
1. What is ABC analysis and how it can be used in SAP MM ?
2. What is cycle counting? Is there any relation b/w cycle counting and ABC analysis? If so kindly explain.
Kindly explain in detail. Thank you.

Cycle Counting is periodic counting e.g. every 2 months, every 6 months etc. etc. Typically you would not want to count every material every 2 months so you carry out an 'ABC analysis' in order to categorise your materials. You set an ABC indicator against materials and this allows you to, for example, count your more valuable materials more often.
For example your set up could be:
'A' = most valuable
'C' = least valuable
Count:
'A' materials every 2 months
'B' materials every 6 months
'C' materials every 12 months.
Regards,
Nick

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Cycle Counting (Ref: Q3-4)

Dear Sirs,
In Cycle counting, how to save ABC analysis for a material ? / How to choose the function of ABC analysis ?
Many Thanks,
KH Fong

Please check these answered links:
ABC analysis: cycle counting
ABC analysis for Cycle Counting.
ABC ANALYSIS FOR CYCLE COUNTING
cycle counting - ABC analysis in MIBC
Edited by: Afshad Irani on May 30, 2010 6:42 PM

What does the field Inconsistent mean for ABC Analysis for Cycle Counting report

What does column "Inconsistent" mean for report ABC Analysis for Cycle Counting (T-code MIBC)? The reason I'm asking is because I see TotalStock values greater than 0, but the Accounting 1 view for Material Master and MMBE both show zero stock. I do not understand why TotalStock in the report does not show zero. Can anyone explain how this can happen?
Note: the report is run for consumption/usage date range.
Thank you,
Doug

Hi,
MBEW table and MMBE transaction will show the current stock. When you run MIBC report for consumption, the system considers the consumption for the date range given (from MVER table), which may not be equal to the current stock. Refer the KBA: 1817237 - Stock quantities and stock values in MIBC which explains the system design.
Regards,
AKPT

A question about ABC analysis for Cycle counting

Hello expert,
What is RMCBIN00 used for? Currently, user asked me if we can copy RMCBIN00 and perform ABC analysis by quantity? I have no knowledge about it. Can any expert give some clue?
Thanks in advance,
Best Regards, Johnny

Hi
RMCBIN00 is a standard ABAP report available within your SAP system (depending on your version and release level). Below is the standard documentation available for this report and a few details of other objects it interacts with such as tables, function modules, includes etc. If you would like to see the full code listing simply enter the object name( RMCBIN00 ) into the relevant SAP transaction such as SE38 or SE80
RMCBIN00 - ABC Analysis of Cycle Counting (Physical Inventory)
PURPOSE
This report runs an analysis for the chosen material types in the cycle counting method of physical inventory.
FEATURES
The analysis takes into account the consumption (usage) or the requirements values of the selected materials for the desired time period. You can decide whether you want to analyze:
Only materials that have a cycle counting indicator
All materials; that is, including materials that have no cycle counting indicator.
Regards
Anand

ABC analysis for Cycle Counting.

Hi SAP gurus,
I am facing a problem from the user. While doing the ABC analysis for cycle counting using the Transaction MIBC, he is getting an error " table T159c is not maintained for plant XXXX". when i checked it SPRO cycle counting is not done for that particular plant.
My question is : Where do we maintainc CC Physical inv indicator ? I have checked at material level in Gen.Plant/Sloc view, it is not maintained . so may be they have maintained at Plant level. where do we maintain at plant level.?

Hi
1) Maintain the Percentages against A,B,C,D cycle counting indicators in OMCO
2) Perform MICN to schedlue the batch input session for Creation of physical Inventory documents
3) MIBC-For ABC analysis for Cycle counting .
Note : the percentages maintained in OMCO will decide on the classification of the material as to when the Physical inventory needs to be done based on either the consumtion values/Requirement values
Regards
Sandeep

MIBC - ABC Analysis for Cycle Counting -Report : RMCBIN00

Hi All,
We are trying to have our CC inventory indicators updated by using report RMCBIN00. We noticed that if a have a part with a very high value it is most likely to get indicator A even though the demand for that part is not as high as for a part with a very low price but that we sell thousands. Can some explain how can we use this report in such a way that considers demand? Thanks for your help.

A cycle count indicator A or B or C or D is allocated to material in the material master based on either consumption value (consumption X rate) or forecast value (forecast quantity X rate). You can also specify whether this analysis is to consider only the materials with cycle counting indicator or all materials. The cycle counting indicator in the material master records can be updated automatically by this program.

Transaction MIBC-- ABC Analysis for Cycle Counting - Physical Inventory

Dear Friends,
Could you please explain me the cycle count indicator relationship to the percentage of inventory to be counted.
When i am using MIBC transaction and changing the Percentages....based on percentages the system is proposing the new cycle count indicators for the materials.
Thanks in advance
Sanjay

Dear Sanjay,
I would recommend you to write your question into the ERP - Logistics Materials Management (MM) topic. I suppose you will get more information about MIBC there.
Regards,
Ely

ABC Cycle Counting Process Steps

We currently want to switch our Cycle Counting by Bin location to ABC Cycle Counting. We want the system automatically generate a list of materials to count daily based on there ABC indicator.
Our Current Process Steps are as follows:
Step 1: LX 26 - Select Items for cycle count
Step 2: LI04 Print the Count sheets
Step 3: LI11N Enter the results
Step 4: LX17 View variance
Step 5: LI14 Create recounts
Step 6: LI04 Print the recount sheets
Step 7: LI11N Enter the results
Step 8: LX17 View variance
Step 9: LI20 Accept Counts & Clear Differences WM
Step 10: ZLI21 Accept Counts & Clear Differences IM
But when we switch to ABC Cycle counting we can't do the LX26 because that is when you select the bins you want to count. We need the process steps if we use the system to generate the kick off. Any ideas?
Linda

1. It is a CO problem - I think your error message is KI235. However you may face this problem if settings are ok but you do not do things properly in IM/WM bookings. Please check these links:
Re: OKB9
Account 5248654 requires an assignment to a CO object---Message no. KI235
Please describe step-by-step (with trx codes) what you did and in which step you get the error message.
2.
WM bookings will "never" consume you components (or maybe because a bug...). If you want to consume the components you have to post GI with reference to your PrdOrd (CO11N, CO15, CO27, MIGO, MB1A).
If you did a booking with mvt 261 in MB1A by mistake, do the reverse booking by mvt 262. That's all.
If you cannot solve your issue please clarify your problem, step-by-step...
Regards,
Csaba

ABC CYCLE COUNT

We want to Cycle Count using the ABC method and base it on material cost
A parts - over 12K (count once a month)
B Parts - between $500 and 12K (count once a quarter)
C Parts - under 5K count (count once a year)
We cycle count every day.
Do all the materials need to have there own bin location? We want to count 34 materials a day.
As 3
Bs 10
Cs 21
34 Materials a day to cover all of our parts the way we want to count them.
Our bins have several mixed parts in them so if I count A part it may be in 3 different locations. I was told you not only have to count all 3 parts but all parts that are in that same bin even if it is not in the cycle count. This can't be right.
Tell me there has been a fix if this is the case.
Thanks

For cycle count, system will automatically select and proposed to you the material number to be counted into a physical inventory document based on the config you specified for the ABC indicator. Based on the material number proposed by the the system (plant , storage location,with/without bin location) you then perform the physical inventory count.
Could you reorganised your question so that people understand what exactly u r asking.
best regards,
Eric.

Inventory Auditing - ABC Cycle Counting

Hi all,
I have a question on inventory auditing.
I want to use ABC cycle counting but I need to figure out how to make SAP think that 1 fical year is actually 3 real life years.
Thanks for any information on this.
Regards,
Prabhu hankar

this is not possible in SAP standard.

CYCLE COUNT INDICATORS WITH ABC FOR MATERIALS NOT GENERATING SESSION MICN

HI ALL.
THANKS IN ADVANCE.
WHILE DOING CYCLE COUNT .
ALREADY EXISTING MATERIALS WITH ABC INDICATORS.
NOT GENERATION SESSION IN MICN.
LOOKING FOR ANSWERS FROM SAP MM MEMBERS.
REGARDS.
PARAMESHWAR
Edited by: Csaba Szommer on Jun 30, 2011 9:48 AM

how often a material is to be counted is defined in customizing of your ABC cycle count indicators and its assignment to the material master.
at which day the material is due for counting depends on last count date for this material (or creation date of material master accounting view if no last count date is available).
and last but not least it is the user who decides for which period (from and to date) he want create inventory documents with MICN
for example, just enter a from date of today and a to date December 31st 2011, and SAP will show you all materials that are due to be counted in that period with the proposed counting date.

Cycle count ABC report from MBEW, MARC, MLGN, MLGT

Guys I have this spread sheets I wanted to join and make a ABC analysis report that i need to confiure in ABC indicator.
If anyone have Idea how to join this spread sheet and get the ABC analysis report lick material ID,
Part # Consumption Qty Unit Cost Cons. Value Role in Total Cons. In % ***. % Class Remarks

Hello
Modify select :
SELECT werks matnr kulab sobkz charg FROM MSKU
INTO CORRESPONDING FIELDS OF TABLE it_msku
for all entries in it_mat
WHERE matnr = it_mat-matnr
AND werks IN p_plant
AND sobkz IN p_spec.
In this case if you select special stock = 'w' at the selection screen, only 'w' stock will be appear.
And if you select special stock blank (p_cpec is initial), all stock will be appear.

ABC analysis and MC40

hi-
Environment : ECC6.0
We use the standard MIBC-ABC analysis which changes the ABCD indicators based on the turnover or u can say consumption.
Scenario:
We have low cost value components (say Bolts) but have a high usage/consumption. So based on ABC indicators, they come up for counting very ofter. We dont want to count them every month due to their low value but would like to make them available in standard SAP ABC analysis.
And NO, we dont want to fix the CC indicators for these bolts.
My question as per following?
(1) How can i achieve a situation that when the ABC analysis runs and provides a report that Bolts are A ( high consumption indicator-monthly), i am able to change the CC indicators subsequently for the Bolts to D ( once a year) so that i dont do the inventory count for them. ( I dont want to use MM17)
(2) Can i run MIBC analysis and then execute MC 40 for bolts (if this T-code will assist me since i dont know much about this T-code)?
(3) Can i just run MC40 or is there another T-code which will assist me?
(4) Is there a process in Standard SAP which will be enble me to achieve my requriement.
Looking for any information you all can share.
Thanks

Thanks for the response.
MICN is the only one that can update the indicator used for cycle counting.
Once MICN updates the Cycle count indicators, can i then go into MC40 or similar T-code, select the range of materials or material types for the BOLTS in the input screen and make a change on the CC indicators manually to D ( annual count)?
However, pretty often the cycle count indicators are precalculated by MICN based on consumption, but then individual items are changed to get a different indicator for specific reasons.
You may have a low value item, which is very important for your processes.
Based on consumption values it may get indicator C, but if you have differences on that item then it is a critical factor for your business, hence you want count it more often, thus you would manually change it to B or even A. (which can be done directly from the MICN report)
My requirement is : I have low value materials in high qty which show in Monthly inventory count due to high consumption. This is my target group to change the CC indicatos to C or D.
When you indicate i can manually change in MICN report, does it mean that i need to run MICN report twice, first to get the actual ABC analysis and then second time, select the materials (BOLT), generate a report and change the CC indicators.
I do see an option to input materials in the input screen of MICN but i dont see the option to input or provide the required CC indicators as a manual input.
If you could provide more information on the sequence of steps, it is appreciated.
Appreciate your support.

Manually schedulled cycle count items are not coming in cycle count listing

We had scheduled some items for manual cycle counting for particular date. But those are not getting generated in cycle count listing report or not avialble for counting.
Checkpoints done: 1. Items are cycle count enabled
2. Those items are avialable in that Cycle count Name
3. Onhand is avialbe for those items in particular subinventory
4. Cycle count scope is specific to Subinventory and that sub inv is included in the list
Can anyone give some thoughts why those manually schedulelled items are still not getting in cycle count listing report?
Thanks in Advance
Avinash

Hi Avinash,
Can you please let us know, are you using the CC with ABC analysis?
Thanks
NS

Cycle counting happening not beyond fiscal year

Hello
We tried to run Cycle counting using LX26 but got error as IM settings are not done,we ran MIBC
The issue here is we can't push the counting date beyond the fiscal year end. If I run the transaction LX26 in either QAS or Prod it will work just fine if I keep the date before 31.03.2012.
Result of this issue is that all parts classified as C or D, are not being suggested for counting. As most of our stock is rated C or D by the ABC analysis that means that a lot of parts will not be counted, while they should be counted.
So what I need is a way to be able to count all types of stock using an inventory process in SAP, if there is another transaction that does count C and D classified stock that would be very helpful.
Factory calendar validdity is from 1996 to 2020.
Transactions I use now:
        For creating inventory documents LX26
        Printing inventory documents ZLI04
        Inputting count results LI11N
        Processing count results LI14, LI20 and ZLI21
Thanks in advance for helping us
Bheema

simha lakkoor wrote:
Hello
> Thanks for your answer but we have maintained AB C D indicators for the plant (xxxx) in the OMCO screen with no of physical inventories,interval,float time etc
> What more we need to maintain. please revert back with your suggestions.
> Regards
> Bheema
Why a setting in OMCO without intervals? complete the customizing according to SAP design, your cusotmizing is incomplete

ABC analysis & cycle counting

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