Physical Inventory is the process of counting the actual shop floor quantity in the warehouse and comparing it with entries in the bookkeeping. This video look at how Physical Inventory in S4HANA Extended Warehouse Management can help you run better. Benefits include: You can minimize stock shrinkage by keeping control and detecting and identifying deviations in advance. Improve delivery promising and precision through accurate stock level overviews. And finally, comply with legal regulations for annual material valuation and tax reporting.