Inventory Management Process

In SAP MM ( Part 2)

René Efila Minkoulou

rodrigueefila9@gmail.com
Overview Process
1) Goods Issue :
➢ Goods Issue for ( Scrapping and Cost Center )
➢ Goods Issue with reference to a reservation
➢ Impact of Goods Issue
2) Transfer Postings :
 Transfer stock from Quality Inspection to Unrestricted Use
 Material-to-Material Transfer
 Consignment to Warehouse
3) Stock transfer :
 Between storage locations
 Between Plants
4) Stock Transport Order Without Delivery
5) Stock transport order with delivery ( SD )
 1) Goods Issue

Goods issue means moving a stock out of

inventory that may be due to several reasons
like withdrawing of material for sampling or
returning the goods back to the vendor. A
goods issue results in a decrease in quantity in
the warehouse.
 1) Goods Issue :
Goods Issue for Scrapping

You might scrap a material if you cannot use it any more, for
example because:
 the quality has been reduced due to long storage time
 it is out of date
 the material has been destroyed (for example, a container of
crystal glasses falls off the forklift during transport). You have to
enter this as a scrapping.
In the SAP System, you post a scrapping like a goods issue
without reference.

Goods issue for scraping Movement type – 551

1) Goods Issue :
Goods Issue for Scrapping
In MIGO select A07 Goods Issue and R10 Other ; movement type : 551
1) Goods Issue :
Goods issue for Cost Center

In MIGO select A07 Goods Issue and R10 Other ; movement type : 201
 1) Goods Issue :
Goods Issue with reference to a reservation
In MIGO select A07 Goods Issue and R09 Reservation ; Enter document
number
1) Goods Issue :
Impact of Goods Issue

 A material document and an accounting document

are generated
 The stock of material is reduced
 Status in all sales document is updated.
 -cost of goods sold is updated.
Transfer Postings VS stock transfers
2) Transfer Postings :
2) Transfer Postings :
Transfer stock from Quality Inspection to Unrestricted Use

Example : you receive the goods in quality inspection block after checked you
notice that everything is ok now you want to move the goods from quality
inspection to unrestricted use .
2) Transfer Postings :
Transfer stock from Quality Inspection to Unrestricted Use
Go to MIGO select A08 Transfer Posting and R10 Other Movement type : 321
2) Transfer Postings :
Transfer stock from Quality Inspection to Unrestricted Use

Go to transaction MMBE check the status of stock

2) Transfer Postings :
Material-to-Material Transfer

 If a material changes over time in such a way that it no longer corresponds

to the features defined in the material master record, but to the features of
a different material number, you have to carry out a transfer posting from
material to material. This is often the case in the chemical and
pharmaceuticals industry, for example.
 If you manufacture the Goods the 2/11/2020 after 5 years this goods will
not have the same characteristics you must change the status of goods
like ( NEW or OLD )
 A transfer posting from material to material results in the transferred
quantity being managed under a different material number. A material
master record must already exist for the receiving material.
 Material -Material transfer posting is possible only when both materials
have same base unit of measure and it can be posted only from
unrestricted -use stock of one material to un-restricted-use stock of another
and in single step.
 2) Transfer Postings :
Material-to-Material Transfer
New CHLOROQUINE OLD CHLOROQUINE
Stock of New CHLOROQUINE is 1000 and stock of OLD CHLOROQUINE is 0
2) Transfer Postings :
Material-to-Material Transfer
Go to MIGO select A08 Transfer Posting and R10 Other Movement type : 309
2) Transfer Postings :
Material-to-Material Transfer
Check stock of material : OLD CHLOROQUINE
2) Transfer Postings :
Consignment to Warehouse
2) Transfer Postings :
Consignment to Warehouse
Go to MIGO select A08 Transfer Posting and R10 Other Movement type : 411k :
to transfer the stock to our own stock
3) Stock transfer :
One-Step procedures between storage locations
The first thing here is you should extend the material in both Storage Location
with transaction code MM01
We want to transfer the stock from storage location 0001 to 0002 first we check
the stock
3) Stock transfer :
One-Step procedures between storage locations
Go to MIGO select A08 Transfer Posting and R10 Other Movement type : 311
3) Stock transfer :
One-Step procedures between storage locations
Check to stock again T-code : MMBE
3) Stock transfer :
Two-Step procedures between storage locations
Example : we suppose that the second storage location is located abroad that
means it’s mandatory for us to put our stock in Transit
Go to MIGO select A08 Transfer Posting and R10 Other Movement type : 313
3) Stock transfer :
Two-Step procedures between storage locations
You can notice that the stock is in transit
3) Stock transfer :
Two-Step procedures between storage locations
Go to MIGO select A10 Place in storage and R02 material document
Movement type : 315
3) Stock transfer :
Two-Step procedures between storage locations
Check again in stock
3) Stock transfer :
One step procedure Between Plants
The first thing here is you should extend the material in both Plants with
transaction code MM01
We want to transfer the stock from Plants 1000 to 1100 first we check the stock
3) Stock transfer :
One step procedure Between Plants
Go to MIGO select A08 Transfer Posting and R10 Other Movement type : 301
3) Stock transfer :
One step procedure Between Plants
Check to stock again T-code : MMBE
3) Stock transfer :
Two- step procedure Between Plants
Example : we suppose that the second plant is located abroad that means it’s
mandatory for us to put our stock in Transit
Go to MIGO select A08 Transfer Posting and R10 Other Movement type : 303
3) Stock transfer :
Two- step procedure Between Plants
Go to MIGO select A10 Place in storage and R02 material document
Movement type : 305
3) Stock transfer :
Two- step procedure Between Plants
Check stock
4) Stock Transport Order Without Delivery
This stock transfer involves not only Inventory Management but also Purchasing in
the receiving plant. The goods issue posting in Inventory Management is carried
out without the involvement of Sales (SD).
4) Stock Transport Order Without Delivery

1) Stock transport order in the receiving plant

Go to ME21N document type is : EUB Stock Transport Order and put others
information
4) Stock Transport Order Without Delivery
2) A goods issue in the issuing plant
Go to MIGO select A07 Goods Issue and R01 Purchase Order Movement type :
351
4) Stock Transport Order Without Delivery
Go to T-code : MB5T to see stock in Transit
4) Stock Transport Order Without Delivery

3) A goods receipt in the receiving plant

Go to MIGO and select A01 Goods Receipt and R01 Purchase Order
4) Stock Transport Order Without Delivery
Check stock again
5) Stock transport order with delivery ( SD )

1) Stock transport order in the receiving plant

The receiving plant enters a stock transport order with order type UB and item
category U . The stock transport order is used to plan the movement.
5) Stock transport order with delivery ( SD )

2) Go to VL10B , pass Purchase order and execute Then create Delivery through
background tab option
5) Stock transport order with delivery ( SD )

3) Open Purchase order and go to Purchase order history --> click on Delivery
number --> Change the delivery --> Enter picking qty -->enter storage location --
> Planning and actual Goods issue date --> Click on Post goods issue
5) Stock transport order with delivery ( SD )

4) Then come and check in ME23N --> Purchase order history Copy the PO -->
Go to MIGO --> select Goods receipt , Purchase order -->Key in Purchase order
Do GR postings
5) Stock transport order with delivery ( SD )

Check again in ME23N

Next document : coming soon
Inventory Management ( Part 3 )

In this document I will explain another

important topics like : Batch
Management ; FIFO ; LIFO …………..