Keeping your warehouse stock accurate is critical — not just for daily operations, but also for financial reporting and compliance. We are excited to introduce Physical Inventory in SAP Logistics Management (LGM): a guided, end-to-end process that takes warehouse clerks and operatives from planning and counting all the way through confirmation and reconciliation. Read on to see how it works, step by step.
How It Works: The Physical Inventory Process in LGM
Physical inventory verifies that your system stock records match what is physically in the warehouse. LGM supports this process at the storage-bin level — each count is planned and executed bin by bin, giving you precise, location-specific accuracy across your warehouse.
Plan Your Count — Create Physical Inventory Tasks
The process starts with the warehouse clerk creating PI tasks — one per storage bin to be counted. When multiple tasks are created together, they are automatically grouped into a PI task bundle, making it easy to assign and track a set of related bins as a single unit.
Use the Create Physical Inventory Tasks app to:
- Browse the list of storage bins available for counting
- Select the bins you want to include and create PI tasks in one action
As soon as a PI task is created, the storage bin is blocked — no picks, putaways, or posting changes can occur until the process is complete.
Hit the Floor — Count with Confidence
With PI tasks in place, warehouse operatives pick up a bundle and head to the bins. Counting is done through the Count Physical Inventory app, available as a Fiori app on desktop or tablet.
Use the app to:
- View all PI task bundles and track counting progress at a glance
- Enter counted quantities per product, flag missing stock as zero count, mark a bin as empty, or add products discovered in the bin that weren't on the original list
- Log the name of the person performing the count
- Save as draft at any time to preserve partial results
Once all items in a bin have been counted, the PI task moves to Counted status upon saving.
Review the Numbers — Confirm and Post Your Results
Once counting is complete, the warehouse clerk reviews the results in the Confirm Count Result app, comparing actual counted quantities against book quantities.
Use the app to:
- Review the Difference Quantity for each item (Counted Quantity minus Book Quantity)
- Post the PI task if the result is accepted — stock differences are applied to the LGM inventory, a Stock Change Document is created, and the storage bin is unblocked
- Request a recount if the result is suspect — the task is marked as Closed for Recount and a new PI task is created for the same bin
Stay in Control — Track and Manage All PI Tasks
The Manage Physical Inventory Tasks app gives warehouse clerks a full view of all PI tasks regardless of status — the central place for monitoring progress and auditing the entire physical inventory process.
From here, clerks can also cancel any PI task still in Open status if it is no longer needed. The storage bin is unblocked immediately upon cancellation.
Keep the Bigger Picture in Sync — Reconcile with S/4HANA
After a PI task is posted, use the existing Reconcile Stock app to review and reconcile any remaining stock differences at the warehouse level with SAP S/4HANA — ensuring your enterprise-wide inventory stays accurate and consistent.
Who Does What?
LGM enforces a clear separation of duties — the 4-eyes principle — between the persona of logistics clerk and warehouse operative. This ensures counting results are always independently reviewed before being posted.
| Persona | Available Apps |
| Logistics Clerk | Creates Physical Inventory Tasks, Manage Physical Inventory Tasks, Confirm Count Results, Reconcile Stock |
| Warehouse Operative | Creates Physical Inventory Tasks, Count Physical Inventory |
What's Next: The Road Ahead for Physical Inventory in LGM
The current release is just the beginning. Next wave of enhancements are planned — including cycle counting with automated ABC-based intervals, product-specific counting across multiple storage areas, and a dedicated Mobile Counting App optimized for on-floor operatives. Stay tuned.
Further Information
SAP Logistics Management Product Page
SAP Logistics Management What's New Viewer
