Hi Raj,
The accuracy of the stock balance in a warehouse can be guaranteed not only by taking inventory. There should also be the capability of carrying out corrections to stock balances on a regular basis. The monitoring, checking, and correcting of the stock balance when material is removed from stock is very important, especially in a warehouse with partial issue. In WM the task that performs this function is known as zero stock check.
http://help.sap.com/saphelp_45b/helpdata/EN/c6/f849054afa11d182b90000e829fbfe/content.htm
In the standard WM system, two movement types for differences have been defined.
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For differences in which the quantity is not in the storage bin but is "on the books", use the movement type 711. In this case the difference must be removed (cleared) from the warehouse and posted to the interim storage area for differences.
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For differences in which the quantity is in the storage bin but "not on the books", use the movement type 712. In this case the difference must be removed (cleared) from the interim storage area for differences and posted to the warehouse.
http://help.sap.com/saphelp_45b/helpdata/EN/c6/f83e814afa11d182b90000e829fbfe/content.htm