SAP Stock Types
Welcome to our tutorial on SAP stock types. Within the SAP MM Module inventory management is a
sub-module which involves the handling of stock received from the vendor and the subsequent movement
of stock to the correct storage area within the company. In this tutorial, we will break down all of the
different types of stock that are managed within the system and give you an idea on how each is
processed. Stock might also be referred to as materials or goods throughout this article.
Before we introduce all the SAP stock types, we should explain that stock is managed on a value and/or
quantity basis. For example, raw material is managed both by value and quantity. The below image
shows the updating method of raw material as maintained via customizing transaction code OMS2:
Raw Material Quantity/Value Management Configured
Meanwhile, non-valuated material is updated by quantity only. For quantity managed stock, value is
registered against an account assignment, like a cost center. Below is the configuration for updating
method of non-valuated material as maintained via transaction code OMS2:
Non-Valuated Material Quantity Management Configured
It is also important to understand that the movement of stocks are handled using movement types specific
to the type of stocks and the goods movement being performed. We will mention the relevant movement
types and management methods as we discuss SAP stock types throughout this article.
SAP Stock Types
There are three overarching SAP stock types, and several additional sub-types. We will discuss these
stock types in the following sections:
1. Valuated Stock
2. Non-Valuated Stock
3. Special Stock
Valuated Stock
Valuated stocks are those which are stored on premises and which post values in the company’s
accounts. There are three types of valuated stock, amongst which materials can be moved using
particular movement types. We define each sub-type of valuated stock below.
Unrestricted Stock: Unrestricted stock refers to stock which can be used readily and which is always
available for use on premises.
Quality Inspection Stock: Quality inspection stock is delivered material that is retained for quality
inspection. It is not regarded as unrestricted and cannot be readily used.
Blocked Stock: If a material is rejected due to bad quality then it is moved to blocked stock in SAP.
This can also happen during production when some irregularities are found with the stock and thus
blocked for further use.
VALUATED STOCK MOVEMENT TYPES
As mentioned, transfers can be made from one SAP stock type to another using specific movement
types. For valuated stock, the below movement types are used to move goods from one status to another:
Movement Type Movement
321 Quality Stock to Unrestricted Stock
343 Blocked Stock to Unrestricted Stock
349 Blocked Stock to Quality Stock
322 Unrestricted Stock to Quality Stock (Reversal of 321)
344 Unrestricted Stock to Blocked Stock (Reversal of 343)
350 Quality Stock to Blocked Stock (Reversal of 349)
To illustrate the use of valuated stock movement types, let’s process a goods movement for a
hypothetical material ERS1. First, we will have a look at the stock overview for the material via transaction
code MMBE. We can see 100 units of the material are in unrestricted use, as highlighted below:
V
aluated Stock Overview
Next let’s process a goods movement of 20 pieces of the material from unrestricted use to quality
inspection stock. We process the goods movement via transaction code MIGO, using movement
type 322 as illustrated below:
Process Valuated Goods Movement
Now, note how the stock levels have changed in the stock overview. Execute transaction
code MMBE again to see that 20 units have been deducted from unrestricted use and are now
categorized as quality inspection stock, as shown below:
Valuated Stock Overview
Non-Valuated Stock
With the procurement of non-valuated stocks, no accounting entry takes place. These SAP stock types
are not yet owned by the company even though they may be on the premises. For example, if a vendor
sends goods that are visibly damaged at the time of receiving, they will be returned to the vendor and
should not be processed into inventory. In this case the goods are received into blocked stock with no
accounting entry. This is an example of a non-valuated stock type, as the ownership is still not with the
company.
To illustrate the use of goods receipt into blocked stock, let’s examine the status of hypothetical
material ZA-R123 which has been requested from the vendor through a purchase order. First, we will
have a look at the stock overview for the material via transaction code MMBE. We can see 100 units of
the material are on order, as highlighted below:
Non-Valuated Stock Overview
Suppose the material is visibly damaged upon arrival. To bring the received material to blocked stock, a
goods movement using movement type 103 is used. Process a goods movement of 100 pieces of the
material to receive the goods into blocked stock as shown below:
Process Non-Valuated Goods Movement
Once the vendor has rectified the issue and the material is ready for use, move the material into company
stock using valuated stock movement type 105.
Special Stock
SAP special stock types differ in their procurement method compared to standard the procure to pay
process. We will enumerate the different special stock types below:
Subcontracting: Subcontracting is a special procurement method wherein the company decides to
outsource its work to a vendor. In this process, a company sends raw material to the vendor for
specific manufacturing processes and receives the finished material back.
Consignment: In the consignment process, the vendor provides goods and keeps them in a
company’s storage area. The owner of the goods is still the vendor and the company is the owner only
when it withdraws the goods from the consignment stores for its own use. The company pays the
vendor only when it consumes the goods kept in the company’s storage area as needed.
Stock Transport Order: The stock transport order (STO) process refers to the special stock process
where plant stocks are transferred within the same company code amongst supplying and receiving
plants.
Third Party Processing: With third party processing, a customer places an order with a company
which is sent to a third party vendor for processing. The third party vendor delivers the goods directly
to the end customer, but passes invoicing through the intermediary company.
Returnable Transport Packaging: Returnable transport packaging (RTP) is a special procurement
process in which goods can be interchanged repeatedly between vendors and customers. It may be
done with a packaging medium like pallets and containers. Returnable transport packaging is
managed as a special stock belonging to the vendor. It is received by a company with movement
type 501M which does not included the material in the customer’s valuated stock.
Pipeline Handling: If a company procures materials like water, oil or electricity through a pipeline, it is
managed through pipeline handling. In this special stock process, there is no requirement to store the
material which is ordered. Whenever there is a demand, the material is ordered and goods are
received using movement type 201P. Subsequently, settlement with the vendor is handled through
transaction code MRKO.
