The cycle counting method is a special physical inventory procedure where inventory is counted at regular intervals within a fiscal year. In general, it starts with classification of materials based on ABC analysis or at the user's discretion. Additional counting intervals are set based on classification of materials. The counting intervals depend on the cycle count indicator. Creation of physical inventory documents then takes place. The creation can either be done manually by a requester or automatically (applicable for large volumes) based on cycle count indicator. The physical stocks are compared and realized for the given materials in the system. Any discrepancies in the system quantities and physical count are reviewed. The inventory may be recounted until final counts are accepted and inventory differences are posted.