Physical Inventory Count Briefing

October 8, 2015
Physical Inventory Count

OBJECTIVE:
To ensure completeness and accuracy of inventories reflected in
SAP.

SCOPE:
Storage Location: Main , Fleet and Fuel Stores
Stock Type:
ALL Unrestricted stocks good items (6 series)
ALL Blocked stocks
All Quality Inspection (QI) stocks
ALL Goods Receipt (GR) blocked stocks
Major materials under unrestricted stocks items for disposal (95
series)
Topics

Count locations
Count and SMO Leads
Storage types in main warehouses
Count team composition
Key areas in physical inventory count
Inventory count procedures
Exception handling
Master schedule
Reminders
Reference Documents

Sample inventory count sheets WM

Sample inventory count sheets - IM
Sample inventory count tag
Unit of measure (UoM) in SAP
Major materials under unrestricted stocks- items for disposal to be
counted
List of recyclable materials
Item catalogue (\\185-93299\from 81538 bkup\MMS_INVENTORY)
Count Locations
Plant Stores -
Stores - IM Fleet - IM Fuel- IM
code WM Stores with activated
South Warehouse
Sta. Rosa 3020 321 30 40 Management (WM)
San Pablo 3010 311 30 40 warehouse is
Cavite 3000 301 30 40
Paranaque 3030 11 30 40
managed/maintained on
Pagbilao/Lucena 3060 10 per bin location.
Batangas 3040 10
Stores with Inventory
Central Management (IM)
Pasig 2030 231 30 40 stocks in warehouse
Manila 2010 211 30 40 are monitored on per
Rizal 2020 221 30 40 type of item.
Ortigas 2000 10 30 40
Kamias 2040 10

North
Valenzuela 1000 101 30 40
Plaridel 1020 121 30 40
Balintawak 1010 111 30 40
Count and SMO Leads
Local
Count Lead Mobile Number SMO Lead
Number
South
Sta. Rosa Mark Campanano 8614 0998-9715137 R. E. Alcausin
San Pablo Khrina Ojoy 2542 0923-5387435 B. S. Tacorda
Cavite Jerry Lim 8614 0922-8265871 M. de Castro
Paranaque Larry Nito 8342 0922-8785005 A. V. Mejia
Pagbilao/Lucena Mau Torrecampo 8828 0933-6973235 W. B. Ilagan
Batangas Karen Dela Cruz 2542 0922-8876157 J. M. Medina
WM Storage Types
Type Storage type name
100 Electrical & Hardware
102 Electrical & Hardware (Bulk)
110 Yard
120 Meter
130 Wires
140 Poles
150 Transformers
160 Special Line Equip
170 Office Supplies
180 Recycling
190 Disposal
200 Vault
210 Hazardous Materials
220 Property Return
Items for Disposal to be Counted

Distribution Transformers
SLEM
954097 SCRAP LINE CAPACITORS, NON
TOXIC
954100 SCRAP RECLOSER, 2 BUSHINGS
954101 SCRAP RECLOSER/SECTIONALIZER,
6 BUSHINGS
954099 SCRAP CAPACITOR SWITCH

POLE LINE/BYPASS SWITCH

954305 SCRAP POLE LINE/BYPASS SWITCH

Streetlight
954172 SCRAP STREETLIGHT LUMINAIRES
954306 SCRAP SL-FIBERGLASS FIXTURE W/
BALLAST
Items for Disposal to be Counted

Tires
950051 SCRAP TIRE FLAPS
950138 SCRAP TIRE INNER TUBES
950139 SCRAP TIRE OUTER CASING

Battery
954093 SCRAP NON LEAD-ACID BATTERY

Poles
950035 SCRAP CONCRETE POLES

AVR
954163 SCRAP AVR, DISTRIBUTION TYPE, 75 KVA
954164 SCRAP AVR, DISTRIBUTION TYPE, 100 KVA
954165 SCRAP AVR, DISTRIBUTION TYPE, 167 kVA
954167 SCRAP AVR, DISTRIBUTION TYPE, 250 kVA
954166 SCRAP AVR, DISTRIBUTION TYPE, 276 KVA
954168 SCRAP AVR, DISTRIBUTION TYPE, 400 kVA
954169 SCRAP AVR, DISTRIBUTION TYPE, 833 KVA
Count Team Composition

Department Function
Warehouse personnel Responsible in performing the count of
(Counter) inventories.

Fill-out the quantity and UoM in the

CLO/Finance
Representatives (Verifier)
count tags.
Verify the actual count of quantity,
condition and company number (for
DT) of inventories.
Complete other information in the count
tag (date) and attach it to the bin tag.
Write quantity in the count sheet and
fill-out supplemental count sheet
 Key Areas of Physical Inventory Count
1. Pre-count activities
Clean - up of outstanding reconciling items
Account stock transfer forms (STFs) issued and on hand, and verify completeness of
transactions posted in SAP.
Organize stocks in count locations
Perform inventory count briefing and assignment of count teams on specific locations
Prepare inventory count tags
2. Freezing of inventory in SAP and generation of inventory count sheets
No inventory movement in the SAP shall be allowed during the count.
Finance shall review the scope of count prior to generation of count sheets
3. Inventory document cut-off
Verify the list of unused STFs and note last used and first unused.
4. Actual physical inventory count
Ensure completeness and accuracy of inventory count.
Locations shall be inspected to ensure that all items have count tags.
5. Summarization of inventory count results
Encode inventory count results in SAP
Count lead shall validate the accuracy and completeness of encoded inventory count results
6. Reconciliation of system and actual count balances
Reconciling items should be supported with documents other than STF.
7. Post audited inventory count result in SAP
8. Post adjusting entries
Adjusting entries shall be posted on unaccounted items
Inventory Count Procedures
Obtain count sheets Separate count sheets shall be provided for items with different stock
from the Count Lead
type (unrestricted, blocked, for QI, GR blocked stocks and items for
disposal).

Verify the storage type and the bin location (WM) in the count sheet
Locate the assigned
items or locations to against the actual location.
be counted

Verify the item code in the bin location tag.

Refer to the item description on the item or on the sealed container.
Compare the item If container is not sealed inspect the items inside the container if
code or description in consistent with the item in the count sheet.
the actual location
against count sheets If not familiar with the item refer to SMO Lead
If actual inventory in the location and in the count sheet are not
consistent, cross-out the item in the count sheets and indicate the
correct item in the supplemental count sheet.

Inventory count should be consistent with the UoM of the item in the count
Perform independent sheet.
count and indicate the
actual count in the Compare the company number in the physical DT and in the count sheet.
count sheet
Refer to Exception Handling.
Show the written quantity to the Counter to avoid inconsistency.
If the actual count and verification count doesnt match, retake the
A
verification count.
Inventory Count Procedures
A

Counter shall fill-out the quantity in the count tag. Verifier shall
Complete
inventory count ensure that the quantity indicated in the count tag is same with
tag and attach to quantity in the count sheet.
the bin location
tag Counter and Verifier shall sign the count tags.
(For DT) Attach a sticker to each DT.

Items found in the location but not in count sheets shall be

Count all items in counted. Write the storage type-bin location, item code, item
the assigned
location description, in the supplemental count sheet.

Counter and
Verifier shall sign
the completed
count sheet

Submit signed Count Lead shall ensure completeness of submitted count

count sheets to sheets.
the Count Lead
Exception Handling
Cases Procedures
1. Wires with Odd Check mathematical accuracy of the count summary and compare
Length the quantity in the list against the pre-count. Perform also the
following procedures:
Check reasonableness of the pre-count length by comparing to
Full Length Wires.
If measurable select a sample and measure the length.

If the length in the count summary is reasonable, write the total length
in the count sheet. If otherwise, refer to Count Lead.
Exception Handling
Cases Procedures
2. Damaged or Refer the item to SMO Lead for verification.
items not in good
condition included If for scrapping, perform the following:
as Unrestricted, QI If scrap item is included in the count attach a sticker (see sample
or Blocked Stocks sticker below) on the item and indicate the location, item code,
(Except for DT- description and quantity in the supplemental count sheet provided.
count as is) If scrap item is included in the count but subject to investigation
attach a sticker (see sample sticker below) on the item and include
as unrestricted, QI or blocked stocks and obtain a copy of the
Investigation Report (IR).
If scrap item is not part of the count - indicate with items for
scrapping in the count sheet.

If cannot verify the status, include the item as unrestricted, QI or

blocked stocks but note in the count sheet the count of damaged items.

If good item, include the item as unrestricted, QI or blocked stocks.

Sample Sticker for

Damaged Item
Exception Handling

Cases Procedures
3. Items found in the Refer to SMO Lead for verification if item is reusable:
location and assessed to if yes, indicate details (description of the item, location,
be reusable but no item quantity and UoM) of the item in the supplemental count
code in SAP. sheet.

4. Cannot locate the Assign temporary company number to the DT (Count Lead shall
Company Number in the provide the range of temporary number). Write the temporary
DT. company number in a sticker (see sample sticker below) and
attach to the DT. Indicate also the temporary company number
in the count sheet.
5. Inconsistent DT For each item code of DT, the letters (ex. WA) in the company
company number coding number should be uniform.
for an item
Refer to Count Lead if with dissimilar letters in company number
in an item.

Sample Sticker for

Temporary
Company Number
 Master Schedule
October 10
Freeze issuance 1:00PM
Confirm freezing of inventory and
generation of count sheets 5:30PM

October 11
Departure time (from Meralco Ortigas)
San Pablo, Pagbilao and Batangas 4:00AM
Cavite, Paranaque and Sta. Rosa 5:00AM

Breakfast 6:30 - 7:00AM

Inventory Briefing 7:00 - 7:30AM
Distribute the count sheets
Group count teams per specific
locations
Recap procedures
Actual count 7:30 AM - 3:00PM (Lunch time: 12:00 1:00 PM)
Initial encode 3:00 - 4:00PM
Reconciliation 4:00 - 5:00PM
Final encode and clearing of variances 5:00 6:00PM
REMINDERS

Familiarize yourself to assigned items to be counted (refer to the

item catalogue)
Bring calculator, pen and writing board.

Be PUNCTUAL.
Sample Count Sheet - WM

To locate the
location in store
combine the
storage type and
storage bin
(100-2-517)

Stock type:
Blank - unrestricted
S - Blocked
Q - for quality
inspection
Sample Count Sheet - IM

Item code and

description

Stock type
Sample Count Sheet IM (Serialized Items)

Company number
Supplemental Count Sheet
Sample Inventory Count tag
Bin Location
Bin Location
Wires
Wires
Wires with Odd Length
Distribution Transformers

Test Result after QI:

Green good
Red for disposal
Yellow For Recondition

KVA Rating
Distribution Transformers

Company number
Distribution Transformers
Distribution Transformers
Unit of Measure
Field Name Field Description Field Name Field Description

AY Assembly M Meter
CA Can M3 Cubic meter
CM Centimeter PAA Pair
DR Drum PAC Pack
EA Each PAI Pail
FT Feet PC Piece
G Gram PD Pad
JB Job RM Ream
KG Kilogram RO Roll
KIT Kit SE Set
L Liter SH Sheet
LN Length TU Tube
LO Lot UN Unit