Physical Inventory procedures in SAP MM are as follows: Periodic Inventory (All stocks are counted on a pre-determined date) Continuous Inventory (stocks are counted continuously during the entire fiscal year) Cycle Counting (Counting is done at fixed intervals) Inventory Sampling (Randomly selected material stocks are physically counted on the balance sheet key date. If variances are small enough, it is presumed that the book inventory balances for the other stocks are correct.)