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8.inventory Management in SAP

Inventory management in SAP deals with goods management, including placement of goods in a company's premises after receipt from vendors. It helps manage goods placement and SAP stock. Once goods are received, they must be placed on company premises to be available for consumption or resale.

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Girish
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58 views5 pages

8.inventory Management in SAP

Inventory management in SAP deals with goods management, including placement of goods in a company's premises after receipt from vendors. It helps manage goods placement and SAP stock. Once goods are received, they must be placed on company premises to be available for consumption or resale.

Uploaded by

Girish
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Inventory Management in SAP (SAP MM-MI ) deals with goods.

Actually the
process of Procurement starts with collecting the business requirement for
goods and goes to getting the goods from Vendors in SAP MM.

Once received; Goods have to be place on premise of the company in order to


be accessible for consumption or reselling.

Here Inventory Management helps dealing with Goods Placement and


management of SAP Stocks.

Table of Contents

SAP Inventory Management FAQ


What does SAP stand for in inventory management?
SAP Inventory Management and Physical Inventory (MM-IM) ‘s component
deals with the following tasks:

 Management of material stocks on a quantity and value basis


 Planning, Entry, and Documentation of all Goods Movements
 Carrying out the Physical Inventory
Source: Inventory Management
What is a goods receipt in SAP?
A goods receipt in the Warehouse Management system (WMS) is the physical
inbound movement of goods or materials into the warehouse.

It is a goods movement that is used to post goods received from external


vendors or from in-plant production.

Source: Goods receipt – SAP Help Portal


What is a goods issue ?
Goods Issue is basically movement of materail within the plant for
consumption/manufacturing or outside the plant as delivery to Customer.

Speaking in Inventory terminology, Deplition(reduction in) of stock level as


material is getting consumed.

source: good issue and good reciept | SCN


What are the movement types in SAP?
Read detail on Movement Types in SAP here:

 SAP Good Movement Types in SAP MM and SAP WM (with Tables)


 SAP Goods Movement Tables?

Inventory Management Overview ( SAP Stock


)
The main topics for Inventory Management in SAP MM are:

 Stock Management: the SAP stock can be quantified by quantity or by


value
 Good Movement: SAP Material Document updating the stock (Value as
well Quantity )
 Material Document: a key document in Inventory Management. In fact,
Both Document number and a year are the keys for the SAP Material
Documents
When it comes to inventory management in SAP, you will hear these
important objects:

 Movement Type
 Good Receipt
 Good Issue
 Reservation

Movement Type in SAP MM


Movement Type identifies the kind of stock posting. The Posting in SAP Stock
can be due to an order and the Movement type is posted against a goods
receipt or a goods issue.

 Check this post for detail information about SAP Movement Type
The Path in SAP Menu for Movement Type is
Logistics > Materials Management > Inventory Management > Goods
Movement > Goods Movement (MIGO)
Or you can directly launch the famous SAP MM Tcode: MIGO
For more information on Good Movement ininventory management sap, check
alos
 SAP Good Movement IDocs
 for SAP Good Movement
 SAP Goods Movement Tables
 Transaction Codes for SAP Goods Movement

SAP MM Goods Receipt


Goods Receipt is issues when goods are received from vendors and the
quantity & quality are validated.

Consequently Good Receipt in SAP MM will increase the Warehouse stock for
received goods.

Goods Receipt, depending of Movement Type, will post stock in Inventory


Management in SAP MM.

The only two actions of Goods Receipt are: creating Goods Receipts or
cancelling an existing Goods Receipts.

Goods Receipts can be issues against one of multiple documents such as:

 Inbound Delivery
 Material Document
 Order
 Purchase Order
 Reservation
 Transport
Inventory Management will retrieve the relevant of the document in case If
Goods Receipt is created based on a document.

Therefore these Data (plant, materials, quantity) will be fetched from the
document.

Notice that it is MIGO tcode, ?also the SAP MM MIGO transaction is the main
SAP Tcode in Inventory in SAP MM.

Reservation in SAP MM
Reservation allows blocking a certain amount of Stocks in advance for a period
of time in advance as a result it ensures the availability of a SAP Material for
the future expected requirement.

For example, a SAP MM reservation can be made for an order (Movement


Type will be 261).
In SAP MM Inventory Management, the reserved quantity can be displayed on
SAP Tcode MMBE
The SAP tcode Reservation is

 MB21 to create a SAP MM Reservation.


 MB22 to change a Reservation
 MB23 to display a SAP MM Reservation
The Path in SAP menu for Reservation is
Logistics > Materials Management > Inventory Management > Reservation >
Create

SAP MM Goods Issue


Goods Issue is the opposite of Goods Receipt.
SAP MM Goods Issue will decrease in case the Warehouse’s tock in Inventory
Management.

Every time Goods Issue is created when the SAP stocks is moved out of
inventory.
Goods Issue, In opposite to Goods Receipt, can be issue against SAP
Document ( order ? )

In order to create a Goods Issue, navigate to


Logistics > Materials Management > Inventory Management > Goods
Movement > Goods Movement
Or just launch the MIGO Tcode.

SAP MM Inventory Management


recommended Ebooks
Through my experience dealing with Inventory Management, I find these 3
ebooks very usefull:

SAP MM Inventory Management Concept Presentation


This document explains about what all major concepts are involved in SAP
Material Management (MM) Inventory Management. This presentation helps
you to understand following Concepts

 Goods Movements & Movement types


 Stock Determination
 Valuation and Account Assignment
 Split Valuation
 Account Determination
 Physical Inventory
This document is in the form of PPT. You may use this document for your self
study and client demo.

This readymade presentation helps you to make your client understand the
potential of SAP MM Inventory Management.

SAP MM Material Management Complete Documents


This documents set provides complete implementation and support solution
for SAP MM material Management.

This document will help you for during implementation and as well as during
support project.

If you are looking for complete working knowledge in the area of SAP material
management, this is perfect document for you.

All the SAP MM consultant and who wanted to become SAP MM consultant
will be getting benefit out of these documents.

SAP MM Material Management Concept Presentation Sets


This document explains about what all concepts are involved in SAP MM
Material Management. This document is in the form of PPT.

You may use this document for your self study and client demo. This ready
made presentation helps you to make your client understand the potential of
SAP MM Material Management functionality.

This is a base level of document. If you are new to SAP MM Material


Management or you are working in other sap module (like SD, HR, FI, PP, etc).
You will find this document very useful.

This will make you understand SAP MM Material Management very clearly and
very quickly.

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