• Form Application: Inventory
• Form Name: INVADPPI
• Form Path: /oracle/apps/r12/visr12/apps/apps_st/appl/inv/12.0.0/forms/US/INVADPPI.fmx

Physical Inventory (PI) is a process, every organization that keeps inventory on stock does to verify that actual on-hand quantity matches with system (Oracle apps ERP) on-hand quantity. Typically this is performed every year, but some businesses may decide to do more often. During Physical Inventory all inventory transactions are locked-up, no inventory movements are performed.

In Oracle Apps, Physical Inventory is performed as per the below steps

• Physical Inventory Setup: System parameters, scope of PI is setup
• Physical Inventory Snapshot Generation: Inventory on-hand snapshot is taken
• Physical Inventory Tag Generation: For each on-hand quantity PI Tag is generated and printed. A person who does PI will capture the results in this tag.
• Physical Inventory Tag Counts: Enter actual on-hand information in the tag and as well update in the system.
• Approve Physical Inventory Tag Count: Quantity variances that require approval will be approved by authorized person.
• Adjust Approved Physical Inventory Counts: Approved quantity variances are  posted to Inventory to bring system on-hand match with actual on-hand.

Navigation: Inventory responsibility -> Counting -> Physical Inventory -> Physical Inventories

• Click on ‘New’ to setup a new Physical Inventory (PI)
• Enter ‘Name’ of Physical Inventory
• Enter ‘Description’ of Physical Inventory
• Enter the ‘Inactive Date’
• Under ‘Approvals’ select if approval is required outside of tolerances are ‘No’
• Enter ‘Approval’ tolerances either by quantity or value
• Under ‘Counts’ section select ‘All sub-inventories’ or ‘specific sub-inventories’
• Check if Dynamic tags are allowed i.e. tags that are used for any on-hand found that was missing in system snapshot.
• Check if you would like to ‘Exclude Zero Balances’ (i.e. on-hand quantity is zero)
• Check if you would like to ‘Exclude Negative Balances’

Save the changes. Physical Inventory parameters setup is complete now.

Physical Inventory Setup