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Inventory Management in SAP

This document discusses inventory management and physical inventory in SAP. It describes key functions such as goods receipt, goods issue, stock transfers, reservations, batch handling, and physical inventory. It also covers managing material stocks by quantity and value, as well as planning, entering, and documenting all goods movements in and out of inventory. Special stocks can be managed separately from standard stock. The system automatically updates quantity, value, cost accounting, and financial accounting records for each goods movement.

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Vishnu Kumar S
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1K views3 pages

Inventory Management in SAP

This document discusses inventory management and physical inventory in SAP. It describes key functions such as goods receipt, goods issue, stock transfers, reservations, batch handling, and physical inventory. It also covers managing material stocks by quantity and value, as well as planning, entering, and documenting all goods movements in and out of inventory. Special stocks can be managed separately from standard stock. The system automatically updates quantity, value, cost accounting, and financial accounting records for each goods movement.

Uploaded by

Vishnu Kumar S
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 and Physical Inventory (MM-IM)

Integration of Inventory Management in the Logistics System

Goods Movement

Goods Receipt

Goods Issue

Return Delivery

Subsequent Delivery

Stock Transfer and Transfer Posting

Reservation

Physical Inventory

Batch Handling

Stock Determination

Print Functions

Archiving

Reporting in Inventory Management

Storing Documents

Handling Units in Inventory Management

Material Master (LO-MD-MM)

Managing Special Stocks (MM-IM)

Inventory Sampling (MM-IM-PI)

Inventory Management and Physical Inventory (MM-IM)


Purpose
This 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

Features
Managing Stocks by Quantity
All transactions that bring about a change in stock are entered in real time,
as are the stock updates resulting from these changes. You can obtain an
overview of the current stock situation of any given material at any time.
This, for example, applies to stocks that:

Are located in the warehouse

Have already been ordered, but have not yet been received

Are located in the warehouse, but have already been reserved for
production or a customer

Are in quality inspection.

If a further subdivision by lots is required for a material, one batch per lot is
possible. These batches are then managed individually in the stock.
Special Stocks
Inventory Management can manage various types of a companys own
special stocks and externally owned special stocks separately from standard
stock.
For more information on special stocks, refer to Managing Special Stocks .
Managing Stocks By Value
The stocks are managed not only on a quantity basis but also by value. The
system automatically updates the following data each time there is a goods
movement:

Quantity and value for Inventory Management

Account assignment for cost accounting

G/L accounts for financial accounting via automatic account


assignment
The valuation area is the organizational level at which a material's stock
value is managed. The valuation area can be plant level or company code
level.
In Inventory Management, work is basically done at plant and storage
location levels. When you enter a goods movement, you only have to enter

the plant and the storage location of the goods. The system derives the
company code from the plant via the valuation area.
For more information on managing material stocks by value, refer to MM
Material Valuation .
Planning, Entry, and Documentation of all Goods Movements
Goods movements include both "external" movements (goods receipts from
external procurement, goods issues for sales orders) and "internal"
movements (goods receipts from production, withdrawals of material for
internal purposes, stock transfers, and transfer postings).
For each goods movement a document is created which is used by the
system to update quantities and values and serves as proof of goods
movements.
You can print goods receipt/issue slips to facilitate physical movements and
monitor the individual stocks in the warehouse.

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