Professional Documents
Culture Documents
Inventory Management
Inventory Management
MANAGEMENT
5500/ 0827/ 1
Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
CompuGenius, Inc.
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
Inventory Management
Purpose:
This component deals with the following tasks:
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
Integration of Inventory Management in the Logistic System:
Inventory Management is part of the Materials Management module and is fully
integrated throughout the Logistics system:
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
Material is procured from external or internal sources on the basis of the requirements
determined by Material Requirements Planning. The delivery is entered in Inventory
Management as a goods receipt. The material is stored (and managed under Inventory
Management) until it is delivered to customers (Sales & Distribution), or is used for
internal purposes (for example, for production).
During all transactions, Inventory Management accesses both master data (such as material
master data) and transaction data (such as purchasing documents) shared by all Logistics
components
Goods Movement:
Goods Movement can be define as: Transaction resulting in a change in stock.
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.
Structure of Goods Movement:
Goods receipt:
A goods receipt (GR) is a goods movement with which the receipt of goods from
a vendor or from production is posted. A goods receipt leads to an increase in
warehouse stock.
Goods issue:
Stock transfer:
A stock transfer is the removal of material from one storage location and its
transfer to another storage location. Stock transfers can occur either within the
same plant or between two plants.
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
Transfer posting:
A transfer posting is a general term for stock transfers and changes in stock type
or stock category of a material. It is irrelevant whether the posting occurs in
conjunction with a physical movement or not. Examples of transfer postings are:
o
o
o
Movement Type:
When you enter a goods movement in the system, you must enter a movement type to
differentiate between the various goods movements.
The movement type has important control functions in Inventory Management.
For example, the movement type plays an important role in
Movement Types
101
201
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
Depending on the movement type, additional updates are carried out in participating
applications. All updates are based on the information contained in the material document
and the financial accounting document. For example, in the case of a goods issue for a cost
center, the consumption values of the items are also update
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
Company Code A
Company Code B
Controlling Area B
Controlling Area A
Plant A1
Plant A 2
Storage Location
0001
Storage Location
0002
Plant B
Storage Location
0003
Purchasing Organization
(Cross Company Code)
The structure of an enterprise is represented in the SAP R/3 System by the following
organizational levels:
Client:
Client is highest organizational level in Hierarchy. The Client is a Commercial,
Organizational unit within the R/3 System, with its own data, Master Records and Set of
tables. From a business perspective, the clients form a corporate group.
Company code:
Company code is the smallest unit in organization structure.
This level represents an independent accounting unit within a client. Balance sheet and
Profit & Loss statements, required by law, are created at company code level. You can
set up several company codes in one clients level.
Example: a subsidiary company, member of a corporate group.
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
Plant:
Plant can be a manufacturing plant in the true sense, or can represent a branch office or
site within a company code. A plant is an organizational logistic unit that structures the
enterprise from the perspective of production, procurement, plant maintenance and
material planning.
In SAP system, a plant must be assigned to one or more purchasing organizations.
Furthermore, a plant must always be assigned to a company code.
Storage Location:
The storage location is an organizational unit that allows the differentiation of material
stocks with in a plant. Physical inventory is carried out at storage location level.
Purchasing organization:
Purchasing organization is an organizational unit responsible for procuring materials and
services for one or more plants and for negotiating prices and terms of delivery with
vendors. The purchasing organization assumes legal responsibility for all external
purchase transactions.
You can incorporate purchasing into the company structure by assigning purchasing
organization to company code and plants. You can have a combination of centralized
and decentralized organizations.
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
Material Master:
The Material Master record is a companys main source of material- specific data. It is
used by all components in the R/3 system.
The material master database (often referred to simply as the "material master",
comprising all the individual material master records stored in the system) contains
descriptions of all materials that an enterprise procures, produces, and keeps in stock. It
is the central repository of information on materials (such as inventory levels) for the
enterprise. The integration of all material data in a single database objects prevents the
problem of data redundancy. Every area, such as Purchasing, Inventory Management,
Material Planning and Invoice verification can use the data stored.
Material master
Transaction code: MM01
Since materials are processed by
various user departments within a
company and each department
stores different information for the
materials. The Material Master is
sub divided into information
grouped by user departments.
Each user department has a
different view of the material
master record and id responsible
for maintaining the data to support
its function.
Menu path:
SAP main menu> Logistics>
Material Management> Material
Master > Material> Create
(General) >Immediately
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10575 Katy Freeway
Suit#250
Houston-Tx-77024
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10575 Katy Freeway
Suit#250
Houston-Tx-77024
Basic data 1
Enter Description of material
Enter Base unit of measure
Enter Material Group ex 103 for
electronics
Click on Enter
Click on Basic data 2
Click on Enter
Click on purchasing
Click on Enter
Click on plant data/ stor 1
Click on Enter
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10575 Katy Freeway
Suit#250
Houston-Tx-77024
Click on Accounting 1
In the field Valuation Class,
enter valuation class number or
use F4 to choose one value.
In the field Price Control, enter
S like standard price.
In the field Standard Price,
enter 10.
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
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10575 Katy Freeway
Suit#250
Houston-Tx-77024
Goods Receipts:
A goods receipt (GR) is a goods movement with which the receipt of goods from a
vendor or from production is posted. A goods receipt leads to an increase in warehouse
stock.
You use this component to post the receipt of goods from an external vendor or from
production. A goods receipt leads to an increase in warehouse stock.
The R/3 System distinguishes between the following types of goods receipts:
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10575 Katy Freeway
Suit#250
Houston-Tx-77024
Step1:
Goods Receipts For
Purchase Order
Transaction code: MIGO
If you have received the
delivery note from the vendor,
and you have verified that the
delivery was based on a
purchase order, you can enter
the goods receipt in the R/3
System.
Menu path:
SAP main menu> Logistics>
Materials Management>
Inventory Management Goods
Movement> Goods Receipts>
For Purchase Order> PO
Number Known
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10575 Katy Freeway
Suit#250
Houston-Tx-77024
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10575 Katy Freeway
Suit#250
Houston-Tx-77024
Step 2:
Reservation:
A reservation is a request to the warehouse to keep materials ready for a goods issue at
a later date and for a certain purpose. A reservation for goods issue can be requested by
various departments for various account assignment objects, (such as cost center,
order, asset, etc.)
Purpose of a Reservation:
The purpose of a reservation is to ensure that a material will be available when it is
needed. It is also to simplify and accelerate the goods issue process and to prepare the
tasks at the point of goods issue.
Also important is that Material Requirements Planning (MRP), which means that
required materials are procured in time if they are out of stock, takes reservations into
account.
In a reservation, information is stored that is relevant for the goods issue and for MRP,
for example:
What?
How much?
When?
From where?
To where?
(Which material?)
(In which quantity?)
(For which requirement date?)
(From which plant or warehouse?)
(To which recipient or customer?)
Note: You can create a reservation for exactly one purpose only; that is, in a
reservation, you can only enter one movement type and one account assignment object
(for example, a cost center).
When a reservation is entered, the following events occur in the system:
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
Creating A Reservation:
Transaction code: MB21
Menu Path:
SAP Main menu> Logistics>
Material Management>
Inventory Management>
Reservation> Create
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10575 Katy Freeway
Suit#250
Houston-Tx-77024
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
Step 3:
Goods Receipts
(Reservation)
Transaction code: MIGO
In this step we will post Goods
Receipts with Reservation
Menu path:
SAP main menu> Logistics>
Inventory Management> Goods
Movement > MIGO
Select Reservation
Enter your Reservation number
Enter document date
Enter posting date
Click on Enter
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
Check on Item ok
Click on Save / Post
SAP will display a message at
bottom for Goods receipts
posting.
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10575 Katy Freeway
Suit#250
Houston-Tx-77024
Step 4:
Display a Reservation
Transaction code: MB23
Menu Path
SAP main menu> Logistics>
Material Management > Inventory
Management> Reservation>
Display
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10575 Katy Freeway
Suit#250
Houston-Tx-77024
Step 5:
Change Reservations:
Transaction code: MB22
You can change a manual
reservation at any time, even if
the reserved quantity has
already been withdrawn. You
cannot process automatic
reservations.
You can change requirement date,
quantity, movement allowed
indicator
Menu Path:
SAP main menu> Logistics>
Material Management > Inventory
Management> Reservation>
Change
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
Click on Enter:
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10575 Katy Freeway
Suit#250
Houston-Tx-77024
Step 6:
Goods Issues:
A goods issue (GI) is a goods movement with which a material withdrawal or material
issue, a material consumption, or a shipment of goods to a customer is posted. A goods
issue leads to a reduction in warehouse stock.
Inventory Management provides for the staging of components for production. You enter
withdrawals for production as goods issues with reference to the production orders for
which the components are required.
Materials can be withdrawn not only for production but also for other purposes (for
example, for cost center, CO order, maintenance order, or asset).
Before entering a goods issue, you have to find out whether any reference document or
data exists in the system.
When you enter a goods receipt, you can reference:
Reservations
Production orders
Bills of material
If a reference document (reservation/order) exists, it is important to enter the goods
issue with reference to this document, for the following reasons:
The goods issuing department can check whether what was requested is
actually issued.
During entry of goods issue, the system can suggest data from the
reference document (for example, account assignment, requested
material, quantity, etc.). This simplifies both data entry and checking (over
deliveries and under deliveries) when entering a goods issue.
After a withdrawal, the quantity withdrawn is updated in the reference
document and the reserved quantity is reduced accordingly. Thus,
Inventory Management can monitor the withdrawal process and Materials
Planning can update the stock/requirements list.
If you do not reference the corresponding reference document during the goods issue,
the reservation remains open and the requested quantity remains reserved, although the
request no longer really exists. Consequently, available stock in Materials Planning no
longer corresponds to the stock actually available!
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10575 Katy Freeway
Suit#250
Houston-Tx-77024
Menu Path
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10575 Katy Freeway
Suit#250
Houston-Tx-77024
Step 7:
Menu Path:
SAP main Menu> Logistics>
Materials Management> Inventory
Management> Goods Movement>
Goods Issue.
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10575 Katy Freeway
Suit#250
Houston-Tx-77024
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
Click on Save/Post
SAP will display a message
document xxxxx posted.
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
Step 8:
Stock Overview
Transaction Code: MMBE
Stock overview display detail
status of stock. There are
several methods to check stock
overview.
Menu Path:
SAP main menu> Logistics>
Materials
Management>Inventory
Management> Environment>
Stock> Stock Overview
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10575 Katy Freeway
Suit#250
Houston-Tx-77024
Step 9:
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10575 Katy Freeway
Suit#250
Houston-Tx-77024
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
Step 10:
Return Delivery
Transaction Code: MBRL
If you want to return delivered
goods to the vendor for some
reason (for example, due to poor
quality or because they are
damaged), you can use this
function to return the goods,
even if you have already posted
the goods receipt.
If the vendor sends you a
substitute delivery after you
have returned goods, you can
reference the return delivery
when you post the goods
receipt.
Menu Path:
SAP main menu> Logistics>
Material Management>
Inventory Management>Material
Document > Return Delivery
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10575 Katy Freeway
Suit#250
Houston-Tx-77024
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10575 Katy Freeway
Suit#250
Houston-Tx-77024
Stock Transfer:
In a company, goods movements do not only occur in the form of goods receipts and
goods issues. Depending on the organization of the company (for example,
decentralized storage) and its sales policy, internal stock transfers might also be
necessary.
Stock transfers can occur at three different levels:
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10575 Katy Freeway
Suit#250
Houston-Tx-77024
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10575 Katy Freeway
Suit#250
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Step 11:
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Step 12:
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Step 13:
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Step 14:
Stock overview:
(After Transfer Posting)
Transaction code: MB5B
Menu Path:
SAP main menu> Logistics>
Materials Management>Inventory
Management> Environment>
Stock> Stock for Posting date
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10575 Katy Freeway
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Houston-Tx-77024
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10575 Katy Freeway
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Houston-Tx-77024
Step 15:
Stock Transfer: from Plant to
Plant
(Using the one step procedure
with out a Reservation)
Transaction code: MB1B
In this step we will transfer stock
from one plant to another Plant
Menu Path:
SAP main menu> Logistics>
Materials Management>Inventory
Management> Goods Movement>
Goods Receipt > Transfer Posting
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
Click on Enter
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Step 16:
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Houston-Tx-77024
Step 17:
Stock transfer Two-step procedure- Storage Location:
During a two-step stock transfer, two material documents are created:
Upon the removal from storage at the issuing point, the system creates a material
document. For every item you enter, two material document items are created, namely:
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
Step 18:
Placement Into Storage at
receiving storage location
With Reference to the Stock
Removal Document
Transaction code: MBSV
Posting the placement into
storage changes the stock
situation in the following way:
Plant stock:
The transferred quantity is now
part of unrestricted-use stock.
Stock in the receiving storage
location:
The quantity from stock in
transfer has been posted into
unrestricted-use stock.
Since the stock transfer occurs
within the plant, no accounting
document is created in addition
to the material document.
Menu Path:
SAP main menu> Logistics>
Materials Management>
Inventory Management>
Material Document> Place in
Storage
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10575 Katy Freeway
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Houston-Tx-77024
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10575 Katy Freeway
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Houston-Tx-77024
Step 19:
Stock for posting date:
Transaction Code: MB5B
Menu Path:
SAP main menu> Logistics>
Materials
Management>Inventory
Management> Environment>
Stock> Stock for Posting Date
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10575 Katy Freeway
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Houston-Tx-77024
Physical Inventory
Physical Inventory allows you to carry out a physical inventory of your companys
warehouse stocks for balance sheet purposes.
In the R/3 System, physical inventory can be carried out both for a companys own
stock and for special stock. Inventory for a companys stock and for special stocks
(such as, consignment stock at customer, external consignment stock from vendor or
returnable packaging) must be taken separately (in different physical inventory
documents), however.
Furthermore, the stock can be divided into stock types. In the standard system, a
physical inventory can be carried out for the following stock types:
Inventory of all stock types mentioned can be taken in a single transaction. For the
materials to be inventoried, one item is created in the physical inventory document for
every stock type.
Physical inventory takes place at storage location level. A separate physical inventory
document is created for every storage location.
If a material does not exist in a storage location, this means that no goods movement
has ever taken place for the material in the storage location. The material, therefore, has
never had any stock in this storage location. The material does not exist at stock
management level in the storage location. It is therefore not possible to carry out a
physical inventory for the material in this storage location.
This is not to be confused with a material for which a goods movement has taken place
and for which the stock balance is currently zero. A physical inventory must be carried
out in this case, since storage location data is not deleted when the stock balance is
zero.
Physical Inventory Procedures
The R/3 System supports the following physical inventory procedures:
Periodic inventory
Continuous inventory
Cycle counting
Inventory sampling
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10575 Katy Freeway
Suit#250
Houston-Tx-77024
Periodic Inventory
In a periodic inventory, all stocks of the company are physically counted on the balance
sheet key date. In this case, every material must be counted. During counting, the entire
warehouse must be blocked for material movements.
Continuous Inventory
In the continuous inventory procedure, stocks are counted continuously during the entire
fiscal year. In this case, it is important to ensure that every material is physically counted
at least once during the year.
Cycle Counting
Cycle counting is a method of physical inventory where inventory is counted at regular
intervals within a fiscal year. These intervals (or cycles) depend on the cycle counting
indicator set for the materials.
Updating the Logistics Information System (LIS)
The physical inventory is connected to the Logistics Information System (LIS). When
inventory differences are updated in the LIS, they are displayed both on a quantity and
on a value basis. The physical inventory items are aggregated at inventory number level,
plant level, storage location level, and material level. If you need more detailed
information on the inventory differences in the LIS, you can access the list of inventory
differences directly from the LIS and continue the analysis at item level.
Constraints
The posting of physical inventory differences is subject to certain time constraints:
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10575 Katy Freeway
Suit#250
Houston-Tx-77024
Step 20:
Physical Inventory
The physical inventory procedure is carried out in three steps:
1. Creating a Physical Inventory Document
2. Entering the Physical Inventory Count
3. Posing inventory differences
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Step 21:
Creating Sessions
Transaction code: MI31
This is another method of
creating Physical Inventory
document.
Menu Path:
SAP main menu> Logistics>
Material Management> Physical
Inventory> Sessions> Create
Phys. Inv. Docs > W/o Special
Stock
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Step 22:
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Step 23:
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Step 24:
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Menu Path:
SAP main menu> Logistics>
Material Management> Physical
Inventory> Inventory Count>
Enter W/o Doc Ref.
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Step 25:
Changing a Physical Inventory
Count
Transaction Code: MI05
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Step 26:
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Initiating of Recount
Transaction code: MI11
Menu Path:
SAP main menu> Logistics>
Material Management> Physical
Inventory> Phys. Inventory Doc.
> Recount
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Step 27:
Postings Inventory Differences:
There are various options for posting inventory differences depending on the processing
status of the physical inventory transaction.
Physical Inventory
Difference
Transaction Code: MI07
Menu Path:
SAP main menu> Logistics>
Material Management> Physical
Inventory> Difference> Post
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Step 28:
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Click on Save/Post
SAP will display a message Diff.
for I-document xxx posted with
M-document xxxxx.
When you post the physical
inventory difference, the system
creates a material document that
records the adjusted stock
balances and an accounting
document that contains the
necessary account activities.
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10575 Katy Freeway
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Houston-Tx-77024
Step 29:
Physical Inventory Information:
As well as providing a wide range of options for carrying out an inventory of your stocks,
the physical inventory functions in the R/3 System allow you to obtain an overview of the
progress of the physical inventory for each material at each stage of the process - from
creating the physical inventory document to posting the physical inventory differences
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Houston-Tx-77024
Example 1
Displaying the physical inventory
data for a material (MI23)
Choose Environment > Phys.
in. data for mat.
Next screen will display
Enter Material no.
Enter Plant
Enter Storage location
Click on Execute button
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10575 Katy Freeway
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Houston-Tx-77024
Example 2
Displaying Material Document
for Material (MB51)
Choose Environment > Mat.
Doc. For Material
Material document screen will
display:
Enter Material no.
Enter Plant
Enter Storage location
Click on Execute button
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Step 30:
Consignment:
In consignment processing, the vendor provides materials and stores them on your
premises. The vendor remains the legal owner of the material until you withdraw
materials from the consignment stores. Only then does the vendor require payment. The
invoice is due at set periods of time, for example, monthly. In addition, you can also
arrange with the vendor that you take over ownership of the remaining consignment
material after a certain period of time.
Features
The consignment stock is managed under the same number as your own stock.
Consignment stock can, therefore, be transferred to the available stock.
You can define consignment prices in foreign currency. The currency in which the order
is placed with the vendor applies for consignment withdrawals.
You can determine period-specific consignment prices.
You can specify the consignment price in any unit of measure. The conversion factor is
stored in the info record.
Using consignment info records, you can make use of other condition functions used in
Purchasing, such as discounts and price quantity scales.
Consignment stocks of the same material from different vendors can be managed
independently from one another and at the price of the individual vendors.
Consignment stocks are not valuated. When the material is withdrawn it is valuated at
the price of the respective vendor.
A consignment material can be allocated to one of three stock types:
Unrestricted-use stock
Quality inspection stock
Blocked stock
You can make transfer postings between these three stock types. Withdrawals can only
be posted from unrestricted stock, however.
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
Menu Path:
SAP main menu> Logistics>
Materials Management> Master
Data> Info Record > Create
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
Step 31:
Procurement of Consignment Material:
You can procure consignment material via purchase requisitions, purchase orders and
outline agreements for consignment material.
Creating the Purchase Order for Consignment Material:
Enter the item category K for the consignment item. To ensure that the goods receipt is
posted to the consignment stores and an invoice receipt cannot be generated for the
item.
Do not enter a net price.
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
Step 32:
Stock Movement for consignment Material:
Posting Goods Receipts for consignment material
Goods receipts to your consignment stores can either:
Refer to a purchase order or
Be made by the vendor directly without a purchase order
The posting procedure differs slightly.
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
Step 33:
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
Displaying Consignment
Overview:
Transaction code: MB54
You can display data for
consignment stock using the
following functions:
-Display consignment info record
-Display the stock overview
-Display consignment stocks
Menu Path:
SAP Main menu> Logistics>
Materials Management>
Inventory Management>
Environment> Consignment>
Consignment from Vendor>
Stock
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
Step 34:
Goods Issue from
consignment stock:
Transaction Code: MB1A
You can only post a goods
issue from consignment stock
to consumption if the material
belongs to unrestricted-use
stock. If the consignment
material is in quality inspection
or blocked stock, you must first
transfer it to the unrestricteduse stock.
Menu Path:
SAP main Menu> Logistics>
Materials Management>
Inventory Management> Goods
Movement> Goods Issue.
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
Step: 35
Transferring consignment
Material
Transaction Code: MB1B
Supposing you agreed with the
vendor that after six months you
will take over ownership of the
remaining consignment stock.
To do this, carry out the
following goods movement
Menu Path:
SAP main menu> Logistics>
Materials
Management>Inventory
Management> Goods
Movement> Goods Receipt >
Transfer Posting
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
Step 36:
Settling Consignment Liabilities:
Removing material from consignment stores or transferring material to your companys
own stock results in liabilities towards the vendor. You should settle these liabilities at
regular intervals.
Consignment materials are settled without the vendor issuing an invoice, as the vendor
company is unable to track withdrawals directly. The vendor can only manage its
consignment stock by taking deliveries and payments into account.
Settling Consignment
Liabilities:
Transaction code: MRKO
Menu Path:
SAP main menu> Logistics>
Materials Management>
Inventory Management>
Environment>
Consignment>Consignment
from Vendor> Liability
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
Step 37:
Pipeline
A pipeline material is a material that flows directly into the production process from a
pipeline (for example, oil), from a pipe (for example, tap water), or from another similar
source (for example, electricity).
A material from the pipeline is always available; i.e. it can be withdrawn from the pipeline
at any time and in any quantity.
Depending on the system configuration, a material can be withdrawn only from the
pipeline or, in addition to the pipeline; normal stocks of the material can also be
managed.
Materials with Material Type PIPE
Pipeline handling is mandatory for materials with material type PIPE; i.e. only
withdrawals from the pipeline can be posted for these materials.
These materials have the following characteristics:
They are neither procured nor planned. They can be withdrawn from the pipeline at any
time and in any quantity.
They are not stored or kept in stock. No physical inventory is taken.
Pipeline movements are mandatory in all valuation areas; i.e. no other goods
movements may be posted.
Other Material Types
For each material type, you can specify in the valuation area whether pipeline
movements are:
Mandatory
Allowed
If pipeline movements are not mandatory but allowed, the material can be kept in stock
and both pipeline and other movements can be posted.
A material of this type can be withdrawn from your companys own stock, from
consignment stock, or from the pipeline.
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
Activities
Pipeline Withdrawal
You can enter a pipeline withdrawal for an order or for a cost center. Pipeline
withdrawals differ from other goods movements in that they are entered with the special
stock indicator P.
The withdrawal is valuated at the price defined in the pipeline info record.
A withdrawal from the pipeline results in the following updates in the system:
The pipeline withdrawal results in a vendor liability that must be settled
periodically in a similar way to the management of consignment stocks. In
the standard system the same account is used for both pipeline and
consignment liabilities, but a different pipeline liabilities account can be
defined in Customizing.
A consumption history is kept.
The pipeline withdrawal has no effect on existing warehouse stock or on the availability
of the material.
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
Enter Plant id
Click on Enter
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
Step 38:
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
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10575 Katy Freeway
Suit#250
Houston-Tx-77024
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
Step 39:
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
Step 40:
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Compu-Genius Inc.
10575 Katy Freeway
Suit#250
Houston-Tx-77024
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