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Author's profile photo MOHAMED MALYH

How to Define Physical Inventory Tolerance group in Embedded EWM in S/4 HANA

Objective :

To present customizing steps of the physical inventory tolerance group.

Physical inventory overview :

Physical inventory is integrated in embedded SAP EWM as an internal process of Warehouse management.You can count the stock in indevidual bins (Storage-bin-specific physical inventory ) or for a specific product (Product-specific physical inventory ) in the warehouse, in both levels there are three subprocesses that together complete the PI in EWM :

  • PI Planning : Involves the overall planning of the counting processes;
  • PI Exécution : Includes carrying out the actual count, saving results in EWM, recount document generation based on preconfigured tolerances for posting and recounting;
  • PI posting and reconciliation : once the stock is counted and results are posted on EWM, the autorised person (supervisor, Clark) has to analyse the differences based on reason in order to post the stock in ERP.

Tolerance group for posting differences :

You can use this group type to block value of counting (results) out of the limit to be posted in EWM,so, the user can analyze the differences before deciding his next step (posting the results orgeneration a recounte document).

You can access to the cust via IMG path :




  • Allowed Percentage Tol:

This is the topmost absolute value tolerance allowed for a user to be posted automatically in EWM.

  • Value-Based Tolerance :

This is the maximum allowed tolerance value between the book and actual stock allowed for a user to be posted in EWM.

  • No Tol. Set :

this indicator if no tolerance is applicable for the user to post stock differences.

  • Alert An alert :

can be sent by the system in case there’s a tolerance breach by the user in the counting process.This type of group tolerance is applicable in all PI document types (for counting or for recounting), because the system doesn’t take into consideration the result of the documents generated before the actual PI document, the comparison to be done by the system is between the results of the processing PI document and the stock in AQUA.

Tolerance group for recounting :

This allows you to define the tolerance value on which the recount document is to be generatedautomatically, this type of tolerance has to follow up the tolerance group for posting differences.

You can access to the cust via IMG path :




The definition of tolerance group for recounting is similar to the one of posting differences tolerance group.Once the tolerance group for posting and recounting are defined, you have to asign the tolerance group for the users using the transaction : /SCWM/PI_USER :



Tolerance group for difference analyzer :

The tolerance group for the difference analyzer is used to block difference values outside of thetolerance limits when differences are being analyzed in the difference analyzer tool via transaction /SCWM/DIFF_ANALYZER.

You can access to the cust via IMG path :



The tolerance limit is value-based in this type.There is a new parameter to be defined in this type, wait time ( in days), after which the physical inventory would automatically be posted from embedded EWM to SAP S/4HANA . Once the tolerance group for posting and recounting are defined, you have to assign the tolerance group for the users using the transaction : /SCWM/PI_USER_DIFF :


Bonus : To  define the currency in the warehouse number contrôle, follow the IMG path :



Thanks for reading. Hope you would like this blog.

MALYH Mohamed.



Reference –

Warehouse management in sap S/4 hana by Namita Sachan, Aman Jain

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      Author's profile photo Muthu Govindasamy
      Muthu Govindasamy

      very informative. thanks

      Author's profile photo Amit Sharma
      Amit Sharma


      Just came across this blog through google search and i think the title is bit incorrect saying Embedded 9.5 in S/4HANA is wrong. Suggest to remove "9.5" from it otherwise Nice blog 🙂



      Author's profile photo Soumik Mitra
      Soumik Mitra


      Good blog, wanted to know 2 points,

      1> As we are setting the tolerance group based on the value, like 10000 EUR etc. , can you confirm how system calculates the value of the difference.

      Is it coming from Material master Accounting 1 View and per unit price ?


      2> Also is there any place in Physical inventory document where we can see the difference amount after counting the document ?