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SAP' IERP'::111iI!troduct~on il1lto Precesses

iin IlnvenmryManage:ment

Th~5 ffioduille covers ~he InvBntory Mian8!gementand Log~s~ic.Ex.eCiIJ~iol'1ll processes ot an Organ~zah[ln, Physica~llnvoentory Procedl!.Jtres.process omGoodRBGe'ipiit agaill1s~a Purchase Order and sulbsequenilt putaway u,s-ing' arehiou5IEl'Malrlfllgemerniltilndional tv and ~~rtlJallliy process for Stock: Transfers and T renster tPos1]ngs_ W 'the Mo,dl!.l~,e DrILllIi',atmon::3, hours
• • Desrrjbe how mile 111ilvenloryMalna!;:!remerniltand l.oqisfic Execuil:idr1lIPfO['HSS otan orglanimtion can be mapped! inl SAP ERP and expla~nl Phlysica~ Inventory Procedures, ReceilPt.against. a Purchase Order an(jl suosequsnt PIL~~3wary usnq Warehouse Mal'll,ag,e:mHllt fLm,dji;ona~lityand pro cess JOf Siltodk Transfers aJl1Idi Transfer Postinqs. Discusstne diffErence! lOe1l.\iveen Stock. Trnnsfe'fs and! Transfer Postings_ Gliv'HSan ~introdllJctimllto the' fiJlndiornaliy olWarehoUise Managemerrtwith P,ostling·a ,Goods Rernirpt a.galinst a Purchase' Order with subsequsnt [posting_ Gives ani ~introdudion to the procedures for physjjcal i'rlven'i0IY_

Drf,(l{)35So~ Good

Module ObjlElctives

Stock lira nsters and Transfer Posf nqs

Physlical inveFllltory Procedures

Module Con~en~




® .:2:003 SAP .AG. A! I rig'hts ~esEI'I!'e'd'.


Thli!stop ic desOIiilOesS~,()okTransfer and Transilfm- IPost! ng processes andlthe! difference i~Htweer:l th!8'hivo" E.s~ijmated timle to comiPlle,~e~histoph:::1 hOUJr Wbafs in it mr me?
• E}(p~ Uu~diffierenee b e:hNeen Stock Translers aiirll
,8 rid

T ransler P:o:s;~ngs


Goods, Movements


Plant 1 ["··· ..················..·····,··'·'·1

P~ant 2
Siolrage.loc. 2

'SAP _ Mb.iLi:1ria, firoe:roM

S~or:age Ifoe", 1
] Unrestdc:ted~ t use stock ••


With~he help ofthoe- exampl,e, shown here, lemlllslry to ull1lderstand whall: a goods m[l1Ve;mentis and wha~ are the diffielrent~pes ava.i~ab!e in the system. Goods Ir,ece~pt deined as the recei pi of goods from e.ld:elrflalivendors from prccucnonplant. Th~sresuss in the ~n(fease of inventory ilf1 warehouse stock

_ ••

Good! ilssue- defined! as the removal 'Of goods for sales, materialll consumption and o~her such reasons from Ule W8mnOlLilse stock Tillis results l~n decrease o~ inveniIDory~nwarehousH' s~odlk_ ~he




.. · .. ·



.. ~ ......

i- ....

"'~!-+++oi+i'i""~,, ~

. . .




S'IDrage loe. 3

SfO'[k~ransfer - is UTe rnovernent ol ma~eriallfrom one storaqe locai~iom to anomer or one plantto olher. Tlns res'l!J1frtsin hel~emnval o,f matelF~al U physicaUy from one to another.

Tmllls~er pos1ljlril:g is the movement of material from one- ~odl<~IDe to anomer stock type such as quanty inspection to unl~e:stlicted use.
This does not require :any physical rnovemenl o~ rneterials. ..As you can see~II1'lJm your slide,. betw'een VB ndor, customer and dliffereilill production plents, :aU-bur~lPes of goods ,m:ovement are possible.


---- -1-' '-1" ,§] ~~


Transfer PostingJP'hy'sical

Slock Transfer

Tiransfe'r pos,ting .. Change' to :s,tock type:!, mia,tsrial number Of balch,

We. wl~11ow move onioilhe n

dinersnt scenarios that am addiressed by

Trans1e~ Posting and. Stock. Transter. Transter posting is iIlheMovemenilt of stock liD or stock category of materietfrom oneto another. This may or mlay ~O~iml(J~lve physical movement of ma!~eria~, Ell Fo:r [Examplff
,~~._.~ ••• a ••

A.dditiDnal physi'caJ m!stelrli!aJll ImlO,vement p'osslhlei

ii~.,---""""ii···~m·····.j"""''''··-····''''-··''~ ..
•• !II~.


..... ~~

•• ~!

(:: C:olo'sigflment to
~.'rI-!'.r."_'_•• ~!'-

"".,t..,. ~ I ~...~-++,,~•••

~ ~-!!JI!_I~!' •• _~-'!!.

• •

Stock te slI:ocffi< where~he na nsfer 'Of material c(lu~d be from quaillity ilr11!spedion stock. to unresmcted use stock. Mate~ial~()Mmeria~or Consig

~-!_H I .. ~""""'.~ !_~+'!-~ ~ ••• ~.,.

m..,.," ....•• !_.,..!! •••

ISlock 'trans~er

,r~,,·······'·"··'--·"'···"~····'·'-''''··-····'_····n._ ~.......•.
'. . 51,0:1'.lac
!! ••• ~" ••••.


star. 10e


stock ~o 'w.8Hceh~}usetock s

Physical m!ateii~alll

!!"IoI·Ii."!'i~.~"!.IL·!,!q,~II'!II'!~"l+"• •


•• "~"~~~.~I11."!"l.~"!'ii-!!··"!!"-'!"''''''_.11!!-

• O'ne'~"and twD-step
p,FOCl'edures, Ipos,siilble
.... ~.i~.r.n~-II ...... i~"ii -.... ~n ..... ~....

StDck Transter, on the' othelr hand, is movement of Im;aterial physically from one .I!m::atnon another to
For :Exampl'8 = •

(C:ompany codata company ,~mii:)
.1b!.... .-"!! ."'''--!o- •• ~
!! .... "",.,.,. ~


,;,;-.i-H-f'II •••••


•• jO~i.~Il""i.~i.""~


wherethe~ransfer of stock is ibehiveen MO storage lo[a~ilon5 with in a plant
StoragH lacalion !bcaijon-

to storage




~. ~...,.,... .. ".".

d-!" ...........



I! •• !.

\1-- ~-"!!-- ,.

• •

Plant to Plant - w~ere the trans~er a~stock is belw'een two p,laniltswilil:hi~n~hesame comp,any IJOci'Et Company code to oo:mpany co~j.e,- where thHttran ster 0111 tock s is iJ<emeenbNo plants belongs to diITfHr,ent company Coo.1805_


---- -1-' '-1" §l ~~




Two-Step Stock Transfer Procedures

IS5uin,g orga nizal,iC)hal lievel

Recei:'t/ing 'organ~zationalleVe'l

s~p - !Mo"iH:al ij=ire~~~~

A stock transfer or atraJrlIiSiel posting consists of a goods issue from niH removal point 8indla goods reoeipt alII ~he reoeiviing poi nt.



~1j11 siock.

Thi;strnl1lls1eJnUlllibe posted in®lne system in a one step meUll,ocior in 'mo sJ~e,Ps_,
In the orllie-s~Elp me~hod,when"t~e goods Issue is posted from the :~IemovallocaJt~on, he system t .automa~~cany postthe Igoods receipt in the rece~vingl




111:1 tlll,8!ift\!vo-step method, whenUm qoods issue is posted from the removal locston, the m:ater,~al oves m illl~O"stock in ~ransfer" om ~herHGeivling plant Once the m8JteJialreaches the: receJivilllg locaffi:ilon ,goods the


receipt. hasto be posted separntelly_ Over tile nextNi10 slides, w~!wiililiootat gH:l!a:ter detail. these in


---- -1-' '-1-' ,§] ~~


Storage Location to Stor,age location: One-step


s~p - MOii':iH:allFire~:'

Stock kallsfer between storage loca~ions wJit!h[n a plant can be postedlimthe sys~e:m usiifillgrtha one-steiP procedure.
:;~~~,"~~r.~~~,"~~~~~"~~ ".,r;;;~,"~~ ""'' 1= ~~~~'"~~







u:se :stl:! ct

The rnovemerlll~ results ~na creatinn 01 mate1rial document wirtll t.wo, nnei~ems and
an accountinqcocussent. • One lili item for f,emoval o~ ne

material born issui ng pc)inl
tgoods issue) and


One ~li ltern for f,eo;]iipt of ne mate:rial at receiving! l:ocabon
~gnods receipt}






Each matelfial movemeli1~is dlifferen~iar~ed usingl dirieJfHnt mO,V>B111l1l,enftypes such as 311~32~i ,3231 and so on. 1


----§l-1-· ·-1·· ~~


Storage Location to Stor,age location: 'Two-'step

Plant 1

S.AP- lMozTlI'al lFireffifux

Storage loeation 1

The tlNi()~s~ep pm,e,edum can be used only wfherl )'Io,utr,ansfer rnaterialw~UI u 11restricted use bHtween local~~on, s WhEN1~hegooosissllJIe ~sposted ~rom the lissuilrlg' locaift~on]he matenal is removed from U18 t unreiStr~cted uSJEi!' iss'U~nglocation and moves of illl~oP!stockin transter" o~~he Feoeiv~ location ng





w[thOIM any ~ock type.


Ttns ql!lan~I;~ tlIlail. is in transfer w~1111 be' nom ava~latl:~efi(]fthe rece~vingl locaiJtiiollJof any Lise tJi!ll~
thie goods rHoe'ip~is posted althe receiving' loca~~ort

lise sloclk

ln this case, tvvo ma;fteria~ d1ocumel11li5re a geUlemted_ Ollie atthe time of goods removaland anothe r one at the m~me goods receipt of ValuatiO'Uldoes not take place in the two~step




Cross-Pla.nt Stock. Transfer

'Company' code ,A

CJOlmlpalny code B P~ant3

1 = I @Ilr
You willni(]l\!Vlook at Plall1~~oPi8il1lit stock. transfer else called


Plant 1


Cross-Pent Stock Transfer. This can hiappen betweell two plants wh~eh belong to the same oonllpany code! or to diner,ent GC),mpany' codes. Cross-Plant S~odl:;Trensfer can happen onlywi~h unrestricted use stock.

Th~5type· ot stock transfer affBcts tina nemal 81000U Illing a nd mallle,ria~ requ irements !D ian 11iI'19.·
Financial accountyng is aiiected only ifthH ilNvop:l:ants :Eue assigned d ~ffefent y,aluati:on areas. •


Pes C! i'I'I-b- -.1 U~'IW". -I,DP-- rn"'Ad-11 plant 2


'W .. ,gi,






Ir-,D'Ii:!'" I!Iiifcgl~

'One'..s.tep preeedure

A Cress-Plant Stock Transfer leads to a va ius :update in stock accolJlI1Iitts . .An ,accoilJlWilllliunQi dOCLiffITlen~ is. 'g:enerntedl pe ralll!elto the material document for the s~odk'~f,ansfe[lhe stock trarlsfell isveluatsd rutt~l1e vall!lat~on pFli!ce of mile m8JteJialin ~W1eissuing plant

I. Twooostepprociedure I. Stock transjpon: on::ile'r (with/wiiitihout. del~velry'),

111:1 case of a cross-company-code stock: trnnSil'm, tw'l] the ,aCCOulliltingl ocuments are created at thetime ol posting d one tor each cOITltpal1Y code.
The loffseHing entry to the stock posing ijs~hen made to a oom:pany-rod,e deaDing! acco U[lt

Let. us now ~ook atift.he one-step and M[li-S~ep procedures fiof updatilng
the systern




Plant to IPllant: One,-SteIP and Two-step Procedures

Plant, 1

Plant 2 ..
Sto,ok ii iii transfer





1 I
l -:'
.i 1


. , 'SAP - MoziTriDI fireIDiK


We w1~lllJeg~n ith~he one-step prooedLlf 8_ w

Urllr,estr'i - cteCf.. - -..- ~
use stock

In this case, !hie!goods issue aJmdthe,goods rece~p'tare troth posted in a sing:~ematerial document.

,f'' ....... '

ln the fivn-step procedure, when removijngU18 m8!me:ria~
~rom S~(lIragl8j ou must sp8,[ify~he re(eiv~ng pliant. in y Eldd'u~i:on UIH material anciift.heissuing orgalrllizaticmall ~o levels_ Tlss is necessary IEM3CE1li1Se va:l:uatinH om ~he


Uliilresltii etea-

use' stoc:k:

stock transfHw takes place wlhlsnthe ma~efialll:iis removed from storage and P[lIstm;iio s~odk in transfer t Ell the rElce',irvirlg p ~al1lit



Displa.y stock ov,erview 1

®.:2:IlOIlSAP.f,!G. A!I rights ~esEI'II'ed.


Exercis,e: Display stock overview 1
Now~hat you have seell1 hOll,lV dilsplay the stock: overv,ii8w try this on your OWiIl_SH~ed lIiheI~nk,~o to open the simijli8it~on_

®,:2:I)OIlSAP,f,iG, A!I rights ~~'.



Pla.flt to PhUltStock posting

®.:2:IlOIlSAP.f,!G. A!I rights ~esEI'II'ed.


gAP - Mo~i'lliall"ire,fuM ,Ii, lie _g,dilt

gAP - Mo~i'lliall"ire,fuM ,Ii,lle ~dilt

Demonstra'tion: Dis;play stock Dv,erview 2
Click on iliile l'iinkbelow to see the! dlemo~sbaj]nn on how ~odisplay the stock iCliverview_

Exercis,e: Display stock overview 2
Now~hat you have seell1 hOll,lV dilsplay the stock: overv,ii8w try this on your OWiIl_SH~ed lIiheI~nk,~o to open the simijli8it~on_

®,:2:I)OIlSAP,f,iG, A!I rights ~~'.


Stock Transport Order

Issuing Plant

Receiving Plant
S,toE:kTransp", Onte"
There are many adlvantagl8s of usi rig stock. transport order as ,aga!llnst ,8 Stock. T rans~erw.inlou~ Stock Transporl Order, • Stock Transport Order or STO is iWlI~egrated~ithMRP ~ and a Purchase> Requ~si.tion can be converted. into STO,

.S~orctgle UI1i IfErs,lrictedliI'se :st;ock St.ock 11111 tra IiI!S.H:

The dEl~iverycosts can be captlJred airThdi dstails of fmvvarding ageutJcanier eruered.

.A GIR can 'tie posted dllredliy ~[litocensumption.
When you post the GIR.intothe warehollse" yom can also post the mat.e![ia~~ntoQuamy ~[lispeetio'nstock. Of b:h,)C~Eld
stock. The trackingancii monmitoringl fthe ennre process cain be o

.... , ,Il. ,...

done usingl th 8i PO h is~o<ry_


Demonstration: S10 betwe'en Plant 1000 & 1200-1
C~id( on ~he ImFlk below to seethe dernonsnanon on howfIo crea1tea sil[l{Jk: ransport order t


A!I rights



Exercis,e: S T'O between Pia nt 1000 &, 120D - 1
Nlow~hat you have


to creats

a stock, transport order, try ~h~son your own. Se!leot~he 11~llk~t] open ~he simulail:ioflll.

®,:2:I)OIlSAP,f,iG, A!I rights ~~'.


Demonstration: S10 betwe'en Plant 1000 & 1200 - 2


A!I rights



Exercis,e: S T'O between Pia nt 1000 &, 120D - 2
Now~hat you have seell1 hOll,lV dilsplay the stock: overv,ii8w try this on your OWiIl_SH~ed lIiheI~nk,~o to open the simijli8it~on_

®,:2:I)OIlSAP,f,iG, A!I rights ~~'.


Demonstration: S10 betwe'en Plant 1000 & 1200 - 3
C~id( on ~he ImFlk below to seethe dernonsnanon on howfIo post

'g'oods issue.


A!I rights



Exercis,e: S T'O between Pia nt 1000 &, 120D -3
Now~hat you have seell1 hOll,lV post a goods isslIIe, try Ullils Ofl Y'Cltllf own_ Select. the link to open the simUllation_ to

®,:2:I)OIlSAP,f,iG, A!I rights ~~'.


Demonstration: S10 betwe'en Plant 1000 & 1200-4


A!I rights


- '1- D!lt --

Exercis,e: S T'O between Pia nt 1000 &, 120D - 4
Now~hat you have seell1 hOll,lV dilsplay the stock: overv,ii8w try this on your OWiIl_SH~ed lIiheI~nk,~o to open the simijli8it~on_

®,:2:I)OIlSAP,f,iG, A!I rights ~~'.


Test Your Knowledge

A stock. transrer between storage ~ocatiorn;s['5< not re.~evarntto .





® 2;l]1) B SAP ft..G. All rig rrls ~d.

Test Your Knowledge
~ Oe4ennine Whethef"lhis searement is true




C:OhigratuJ aU@n s.! \NaJeJ:nou:s 8!rllumbe:r i:s a'lwOl~,::;. i1t11 kieJi wh:frar :1 81i3iSt fit:iil!' IClRlmhT liiI'a:ti QI1 ·o.fHla nt& ,St.mag8


® 2;l]1) B SAP ft..G. All rig rrls ~d.


Test Your Knowledge

You can enter stock. tr,ausfers Lls.~rlIgthetrarn;sact[o!1l.






® 2;l]1) B SAP ft..G. All rig rrls ~d.


Test Your Knowledge
~ Oe4ennine Whethef"lhis searement is true




eetr'l:g;fq.tLJIEl:ti;~r!'l ~ Sb i~pp.i~g PkJintsa re) :as,sj.g:m~iLJ! ~Cl





® 2;l]1) B SAP ft..G. All rig rrls ~d.




gi 50 es EXEmti(l n

Thli!stopic desOIiilOes tiltS process olf Good !Receipt aga~rll!sta Purchase Ordlers and subseq:L1eniiliPutaw.ay usil1g1WarehouiSle IMariagemellll~~UililctiolllaJl!y_ E.s~ijmated timle to comiPlle,~e~histoph:::1 hOUJr Wbafs in it mr me? • E}(p~aiirllUu~WarehousH Malnlag'emerlliili~:ll.Jndionallityinvoh,lyedwi~h POISi] ng

G(] nds Receipt agai nst a Pu rchase 0 rde If"


gi 50 es EXEmti(l n

Logistics, Execution - P'rocess Overview

Log lstles EXlecutic n

Goods receipt

For lnbound delilvery

:Frorplm:J18.8'1!! order, order,


For other transactions

Logisii:cs Ex.ecllit~onis.fhe I,ink between pnJCIJ remeWil~ and d1istr,iibut[(lnfo,f~ ntemal as 'wen as external precesses, Good Recei:Dt or Goods Issue carl startwith ,eitl:he:r~he neanlt~onof a de~ivelfY or an ilfTh'\len~o:FY man8g1emenm postinq, Ifyoll! aire wo:rkilf1lQI with vemillors, YOlil must oompletEl' creail:iolnllalma oDnfilrma~iron of a transter order betore UIEl inv-enmoiIfY nlIE.lirllaglsment !postirngi u:snrll~grmbounddelivery as reterenoe.
The jlr1lven:illQlI)f alil(i'llgleme[lljill posting can m also be at the start of the process.

~nbound deUvel'¥
with purchase

or1:l:er ret

G·ocJd$ racalpt posUng'

putllaun:d del~\I'ef)'

Putaw.ay with
tran~f@r orner

w~U1saf,s.s orcf1ar ref. I
Pi~'l n:g w~1h tramsfer o Mer



GQ(;Id~ V5$U~ ._ .. -- -



IPurtaway Wirth I:r.EII1;S·jfelf order

Trans'Merrequiremera is crea~ed arid slttook removal wi~h transfer order completes fine
Go-ods issue posting

Go:nfirm transfer.oriier


•• ~§l-I-~kJ--1"


gi 50 es EXEmti(l n

Logistics, Execution - Organization



rransporta,tioll'l plaij ning point

Tralnlsporita.1i:dof'l pia nnii"~ ~oin:!Jt

The lor,glaniz~~~omalleve~s defined inl IOglisticsexeeufion sre arB depicted here.

WareJh.ollJSenumber - Tl:Jl~s always ass[gned~o a plant and is
storage ~ocatinn comoination. It forms the Ir~nk. between w8lrelhollJlse manaaernent andl iniventory manag,ement Seve millp:11ant-stomg:e location cornomanons can be' linked wlith {me w8lrelhollJlse. Atladll~ng mne same combinat[onwj~h more than 0It1ll9 plant ls not possible.



Trensportation D,lannfng Jloin~-Th~s d,~red link be~eenthH transportatien pla:lln~ng poin~'and ~he organimtiorual ~Init, at UhleIl.eve!1 wh~chthH balancer profi~ and loss calcuiJIaUons on are created] is necessary because ofttJle sh~pment cost icaiclUllatiO'n and setil:lemel1t A transportatien planrl~ng poin~ can be ~iillk.edlwithl Otnry one company cede. Sihipp,ill1igl po~nt- This is the place 'wileue 'YOU aduailly receive or desp8!lIdl your marerial. ~t an serve m(nethan one plant c and is assigllliedi10 plants based on the :~equiirement

Warehouse number

Warehouse number


_ '1- D!lt --

gi 50 es EXEmti(l n

SubstflJ'ctu re of' a Warehouse





Walrehouse number

The or'glaniz8Jm~ornal uniJts,~hatreIPH:lS€f1tthe' subsfrudure of a \l\l'are!lno~lseare sil:omge type, sil:ur,agesection or p,icking area, and storage !J,]It1IS_ Let us lookat them in detail.
• Siorag'et!/pe: d~ieH:mt warehouse areas, wh~ch differ with Ir,eSl~ect~~] lel~ror~gannzru~onaland U technica~ features are deifllied as a storage type. Storag!9 areas which are goods reoeipi~and! good!s issue areas are definediinside the slorag1e type. Storag!8 sertion or iP'iCiklin!grea:~he storage section a is dati ned u nder~he storage type II8'v,8'1 and it groups togetJher storage bins from a pum\iVa)" poi nt of vl~eW'. 11m same marlllfler,~he p'ickijng area is also de:ll~rll:ed the under il:hestorage type !llevBI,tIle pickling area groups il:oge~herstflfagH bins mroml a pick~ng pDin~of!


Siorng'e bins: this is lillie master data that ¥IOU create w~lll~n stomgle! section whereth,s materials ar,El< a adual'lly stored,


gi 50 es EXEmti(l n

Process of Goods R 8ceipitwith Transfer Order

SAP - MozTll:a1 fire:lfoM



When a 'GolJds Rece~pt is posted wi~h'En[je~o a IPO the system ,cheGkswhether the item is relevan~forwarehousel managJement by ,chedkingl the plarr~-S:~O$,ageloca~ionom b,ilr1al~]on_mile GoodisRHGe'ipm c Il is booked inilio a swora'gelocation that is SlI bject ~Q Wiare:llollise Manage m:ent,~he system detenm il1es the assigned warehotlse number and generates a transfer req'llJi~remenifr addition to the' in mateil"ial and accountingdm::uments_ This docllJmen~ isthe basis for ~hes[lbsequ~mtputaway Of placement in storage. IlUI ~he eV8111ili o~ a Goods Recei pt ~rIl!to .s~orage loca~iolfllthat a is subject to Warehouse Management~ in addiitiion ~othe trensler requilrle:ment~he system bO[J:k:s.lile incoming quantity ot materials inl(]1 the H30e~vingzone om ~hestorage erea. The quantity b(]o~kedin~() '~he goods fficeiv]ln,g area is moved~othe il1l~eriO'l oUhe warelhloulse using
a.Ira nsfer Order.

Warehouse Mgmt (LE-WM)
Transfer requ irement Transfer order


Tile Transler Order, which can belloug'lillt of as a lhli'llndl~rn,g instruction for the store pe:mliJfI, 1[lelaril:es thetranster reql!lliremeril"~ to allldittal!\es key Ifllformalilion from there. The emp~oYHHreports the' cornpletinn of this process by oorlfiirming the Transfer Order, illil ~hl8' putaway PH]08SS, lirst the storage type' is de~8Jfl"mined foUowed by swmage sectron and! then the stm.age bin_


gi 50 es EXEmti(l n

Demonstration: Post


Goods Receipt-1
C~id(on ~he ImFlk below to seethe dernonsnanon on howfIo post ,8 'g'oods receipt.

®.:2:IlOIlSAP.f,!G. A!I rights ~esEI'II'ed.


gi 50 es EXEmti(l n

®,:2:I)OIlSAP,f,iG, A!I rights ~~'.


gi 50 es EXEmti(l n

Demonstration: Post


Goods Receipt-2

®.:2:IlOIlSAP.f,!G. A!I rights ~esEI'II'ed.


gi 50 es EXEmti(l n

Now~hat you have seell1 hOll,lV dilsplay the stock: overv,ii8w try this on your OWiIl_SH~ed lIiheI~nk,~o to open the simijli8it~on_

®,:2:I)OIlSAP,f,iG, A!I rights ~~'.


gi 50 es EXEmti(l n



Thli!stopic desOIiilOestiltS Physicall ~nVlefltoryProoediUlres ilUlducling creation of P!hys~callfll.veflltory Documents, Entry of <Countand Posting ImJe!ntory D~IHrIEHloe_ E.s~ijmated tim,e to comiPl,e,~e~histoph:::1 hour Wbafs in it mr me? • E}(p~ain P:hysicallnventory Procedures


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Pihysicilil Inventory

mnve'Mtolried stoldt
m.all'iag'e,me,nt, units

l~=lr[§]~ I
Phys~call WIIiventory IS carried! Ollf~ based on Smock Manag,ement unes. S~odk Mianagement units are the l'1oi1-divis~ible parts ,ofa stock.lm:ater]allof wlldll 81 separate book. ~nvelltory is msintained.

Materi,a~ requirements pi an 111 j'n'9:: Correction of incorrect stock q L'l3 rrtltles

Plant, storage

.A StDck IMemagemenil: unit wsdefimed! by
• Material


• •
• •

Pil1ant storage ~O(atllon Stocktype
Bruch or Special stock

Stock type
A,c,COIlJnf ng:

Deterrnlnatlon of m aterial stocks foil' current assets

Batch Spelciall stock'

: ,

Phys~,callnventory wouilld indicamewhere a Physica~ cotmn~]ng is done toreach Stock ManagemHflt unit and the vafiaJ~ion ms posted for each Stock Management lIn~t





Process, Phase·s

Print physi:ca~ lnv, mists

The process of Physical I~ ven~l!Jryconslsts of ttl ree phases, n • Crea.tiolfl of Physicai Inv·entory documentswhere ¥[I;U crea~e Phys~[al ~ nver:u~ory PI or documents e~l~hernd~vidually or using '~ileoption i of mass genera~~on_ Afieri!1e creation o~tile Pi document the same is printed to start the oJtlnting pmCHtSS_ . Entry of coiljn~ - where the count: is enterecli i:n~he system and~lle system calculates the! linverrtory d ifferences_ I~youwa.nUo do a recount then you have to create another Pilidocument for Uile

• •






Posl:ingl of l~rrvHntory d~frefen!Oes-where the irnren~ory dlifferenlces are posted _Stock qtla[ll~i~ and stock. value are updated HIfiI[j1 stock. accounts

,BrE!updlatedl in accotjn~ingl_ =


Pihysicilil Inventory


SAP' ~ Mozil.I)[I fife:fu~

A Phys'i:calllnverJli~o:ry do[umenm contains a header and an item jlL!ls~ like a~~~ne ther documents yo u have seen so far Nlorma~lly !P~documents o are created for each pil!anta rid storage ~ocati;on HioweVIBJ if you want to _


.P~ant SIQ1'ag'E! hu:ati on
Special sft:@ck Inventory number Gro'up,in:Q

take special stocks into accountthe 11 PI doclL!lmelf1~s. are created! for each planm, storag:e :b::ation, and special stock. YOLII call S€H these three Une·(]letaHsIn the i~eader on your s~ide_IDurjng~lle creation of a PI

documenta physirn~ inventory number ~sentered! wn~he document header wh]ch ~:s used for furthef IPlrocesswng such asselecton of p~ document for postilUlig IIJOUlUd, elnlby, postingl clilfteHanoes and in 'E!VallJllat[OnS_ Th~s number is differetrlilWlfOmthe overa~1document :rMJlnbe[ Stomg:B' :Bi!nsor GrolllPS can also be spr8c~f~e:d_




IMlaterial QUlantity IBalch

The Hems ar,E! U1eWliass~gned~oa material groupingl or storage bin and the status fieidi of an ~i~em indicates whethelr ~he item has been processed, cDL!n~ed,posted or reeourrled.

Count da.te·, plosUng d~le, .
Co'un't :s·tatu$., posting De laUon s:tatu,s

ln thEl' documenilli header you wi~11 r:loti.ce other assignoo:ents from IPlanned Gaunt da~e to De~.etioflstaius. C~angles'that can 'be made ~n~he document header indliudfl • • •

Ite·ms· 1st item 2nd item

S•. ck type o AII~el~n,idive unit of measure [I~.em deleted

Chang1ing the p~ anned count da~e Setting or unsetting oUne :posting block o.r',frs,ez:e· ook b


or dhang!ingin

the Phrysical~Inventory number

an item that is not ye~counted the changes can WfH:::lude •

Ghang!ing the stnck[y',iJ'8 or changliing measure.
Setty ngthe deieHon ~ ndicamor



unit of

You can ElmBr new items if no lentry of col~nillis entered jlnlthe system or
you can dlei,et:e~hedocu rnent.


Demonstration: Create Physical Inventory :DocUtment
C~id( on ~he ImFlk below to seethe dernonsnanon on howfIo crea1tephysical inventory document


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Exercis,e: Create Physica~ Il11vento:ry Document

®,:2:I)OIlSAP,f,iG, A!I rights ~~'.


B' Goods, Movements

¥ouwilll be able to ;[Illockthe qoods movement for the :p'l!Jlr!]oseof Pthyslicallnventoll)f_ You can dol1~s by putiJilnga bi~ockiill1dica~m lin~he PI document header. In the sworag'El location view o~~heMaterial Master llt?!eand, thH iPhysica~ ~nV'Bntoryib~ock indicator shows the value X 'br matBfia~ Ib:I:ockBd for rnovementdueto Physical ]nvelll~my_ .Mo~he:r opnon is to lfrBe~e· '~he illllven1io:rry clIurifng the phys~cal inventoiry if yOll.J arenot able to b~ock.the movements. You can set ~hemlreezeirwer;lkJ['f kidicall:o;r in nle PI dJo[umelrltThi'Swilll, book inveni!:ory is not chanqed due to goods rnov'emenil:during this period.


Freeziin 91 Book Inventoll'Y



190 Afte:!:"lhe ,count





3'0.. 8. 0


Assaid earlli:efr you can freeze the linv,entory dJlJlringl the Physi·callilvenfory· if YOILI no~ able to bl:ockthe are rnov'emenills_ You can set lhe freeze irmv,erltoryind~cator irnthe P] document. Ttl is w~IIII nsure tIhIa~ book e ~Ile inven~my is not changed due to goods movement during this period.

Book i nventory

fbc,ed mn rnornlnq (250} and 255 counted

Count entered ln evening
{2.5,s),and difference


Pag:e 4701 &3;


Entering Physical Inventory Count

Fo:r conducting a PhiYsical~ Irrv,sntory counl.the Pldotument printout ~s tak,en andl gNen~o ~he pe rson responsi:~:~efor th at ac1jvi~. Tile P!hys:~callnventowyil'igure can be entered ei;l:hefwith reference WiJ' or wW~OI]OO re]ei~EmOe to a PI document. The system can be se~ mo issue a w.arningl msssaqe if the<physica~ ilr'llvE!niliorycount \II',8Jieswiilfh book invem~ory by a percentagle. lterns counted as zero siliodkcan be el1~efBd using the ZiElH]count faci~ity. Hem, document i~femsthat are not yet processed am se~~o zero stock. When the enlemd data is saved ..the sys~em deilie~minesthe book, inventory' in the systemL Thedifference Ibehveenthe count result and this book: jlOverrl~my mheinve~mnrydifference, is Tile dmereru:es can be anail¥£ed via mheI~ist f difterenoes.llhe o contains inJorma.tion on • • Quanuiy

C reate EII1V. document



Dwfference' list


d ifferan Ices


Counted Posted





Activ:~tT:es~hat carl i:]:ecarried om usirigtJhe [Ilistof diijerences


• •
• •

Ent.erllllg, -changing and display~n!Jihe! count Postingl the d~ffiererlce
D~splayiing or chang~ng~he document Recoulliitiing docu rnent 'Or iam



Enter Physicilllinventory


C~icllk ~he ImFlk below to seethe dernonsnanon on howfIo entertha :phys~:calnverulttmycount on i


A!I rights


Pag:e 49 !Of G!


Exercis,e: Enter Physical Iinventory Count

®,:2:I)OIlSAP,f,iG, A!I rights ~~'.


Posting of Inventory


tolerance group= '. maximum postable amount at user Materi,al

l = I @]
I ~ventorydliffBreW1lce carll be US~r;lJgl seperetetransacnees.

I~ k


posted ell:Uler usingl th~ ~listof differences OJ The system creates a ma~eria~ do[umenm and corrects the stock figu res and an ac:c.'<]un~ingl document is created w~~hithe necessary aero untingl entries. .A reason can tbe specified! Jor the ~nventory d'irije_r'Emce discovered for IBacll item, The control tor postilUig the d~lIeJf,ellce can be bmugh~ usi rig authorization. This wou~dmean that if~he difference ~iSmorethan a certain ~imi~~llelUlthe users w~llllot be ab~!e post those documents in to the syslem_ The system flOOe(s~he postling period oilltft:Ieaccounting doc~rmenili automami[al~ whefl~he iffiirslcount is ,entered. for the phys~caiinventory document. The inven~ofY d~We[rf:lncemlli5~ "therefore either be posted ~n the 581me period or, ~fbacl postinq lathe pm'Vilous period is a~lowHd, n m lhe fol~owmng period.
The date



Post differences
,_. _.

niting do,cument



f rst year is Siet as

of the' pl.arl[led cou:m when Ule PI documeriili is crea~ed fuli:hm postngster this ..AI~

18 result o,f the specification

document must be made i~n~h ~sfisca ~year or in tile first period! of the' foHow!lfillgl yealf itbackposnnq is ani(]lwe~l


Demonstration: Post Inventory Differences - 1
C~icllk ~he ImFlk below to seethe dernonsnanon on howfIo post inventory differences. on

®.:2:IlOIlSAP.AG. A!I rights ~esEI'II'ed.

Pag:e .520161l:


Now~hat you have SHElIll

hOll,lV to

post ~nvell1toryilftmBHces, try this. on your own. Seled d


I~nk: open~he :sirm.Jia~i,orL to

®,:2:I)OIlSAP,f,iG, A!I rights ~~'.

Pag:e53 01631


Demonstration: Post Inventory Differences - 2
C~icllk ~he ImFlk below to seethe dernonsnanon on howfIo disp~ay'l:he difference 'Ilist. on


A!I rights


Pag:e54 '0163:


Pag:e5i5 01 fi3;


Demonstration: Post Inventory Differences - 31
C~id( on ~he ImFlk below to seethe dernonsnanon on howfIo disp~ay'l:hephysica[1 ~nverrtory document


A!I rights


Pag:e .56 01 fi3


€\ WOIl SAP AG. All right; r~d_




Cornlbin:ing 'Physical Inventory Steps

Create phys.

inventory doe. ------



Post diifferene,es

,As discussed earli,e-r,! each Physic3Illllnven®ofY phases. consists of three

Creating the Phiysica,lllililVeif1lkl',ry iJocllIImenms


Post dlfferences ~-------

Eniering count
Pos~ing invel1ltolry differences

Op~~onlsthat!~Ie-aivai~able tous tor combining' PhlYsica~lnvHntory 8


Create' phys. inventory doc"


steps ~n:dude




En~,eri the COLllIll~ wlhollJt.~he Physical ~ ng nVHmmO:ry dioclIImetr1lm

(silIep 1 anci 2}
• En~,erjngthe COUIIll~~lIrll.d pos~nrllig he IPhysicallllrnvetnl~ory ~

differeniJe (step .2. and 3)
• En~erjng the COLllIll~ wlhollJt.~he Physical II VHmmOtrj dioclIImetr1lm n and posting inven~ory d~jf[erence (steps 1, 2. and 3).




C'ycle Cou nting Method

SAP - Mctzill!Ci firefu}l

With ~hlElcycle countinq

meVfiod, Whrr,elEl differer1l~ types of stocks can be induded namely, Unrestricted-use 5~od(. modk. ilrrl qua~ity S

i~speolDilOnaJrn,dI Blodklsd stock.

The cycle ,uc)lJntinglndicator gwrOu;psthe r:elevanll materia~s for each i pian illrllito cateqories and ~io:r ach ca~egoJrYj e the number ol invel1lito:~ies
per year isdefined.





TheinlvenmOfl{ document is crea~ed wnh the ba~ch inpUl~ session. Fromths' cyda' counting illd:~cator o~~he !materri;al ndlhs last a IlnlVenmOfl{ ilate.~l1e system detertrmllines the' due daie om~he inventory c stock IJlnlilt nd nea~es a balclt.inpu~ session_When the session is a ruin, the rnn\H:J!ntory' documents a rei Clrea~ed_




ABC ,Analysis of' the 'Cycle 'Counting llnventory

-= Matalifal description


Total stock BIJn 425

CGnew '$ A 8,,00;

eCoid cuml~ .Ai. 8,,00 Once the cych:l countlnqindkators

l =-1' [§]






P,ump w'i1h ...••

1625.00 eUMP 2,-· _ PunnlPwlth .....
1608.75 PUMP'9 PumlP with ...,•• 792.:19,


are cmatedi, an ABC al1alys~s am be conducted _ The system to~a~s the pariindHr parts at the total consumption value ortetal requirfl!nlent val~e of the, ma;~e'ria:lis. .An ,example of how me cydeoou nli ng indidors are analyz.ed using' the .ABC Ana ~sis method aooordi ng to c:orl5umptionis shown ~rn your slide. COn5iJmpt~on Analysis is one where thfl! sys'ftem uses thiS! ccosumption quantities updated inthe ma~erial master. The' ccnsumption val:Lle is deterrrmed from the' corrected ql..i'aril'~i~of fhe total c:onsulmlP:tion andthe va!~LlatYI(]n rice oHhe s:p,ec~·fi~edplant p IfII the' Rsq u irema nts Analysjsi~he system determ~fl es~he 'Value of the' tom ,II eq lJI~rement of the mailieluiallfmm Indep endent requiremellllit3, salles r orders, d!e-pEHldenli requiremenltts rf-equmrementsfrom stock transport. orders, and ~he valllcj~on price of ~he mate'fiat

7'.92 ,A







,UMP 10 PlUMP '11---

wlth, ..., 650.00


lEI 3.20


PUIrIIPwith ..... 631,12'

ln the example shown on the slii:de 201) materials of tyPB pljrmp are jitllvenfilofieci! Wi'll s~o$,age .Iocail:ion and the cyde COlUlnt~ng indkators the are defined in Customizing! as shown. Tile pumps are ana~ze:d r~n~he ABC analysis oHhe! cyde counlinq a.ccordingl to cOf:ls'l!lmp~ior:l and the H:lsul is~ha;'ftthe jJrnrs~ materials 9 have iIUld~f;ator A wh~ch IlJIse56% ol ~he consumptiol1 FOil pump 11,~he cycle wuntingl jJllJdiicator is ~maint,ained and fixed IllIlanua~ly so that iiI:. is no longer possible-to cha nge it with a c.ycie co:unillin:~'report.

Test Your Knowledge

I( ®

'When the dffferences are posted

1~~JI!Q.fati.::l [atr~r:k!'5.~ 1'['I\,Ie:l'll(f~ t!~d IJ!flt ;arEl "a.rdjiLCtsted WM:!1:! n
Vh8' diffu{8ifl D8,®


® 2;l]1) B SAP ft..G. All rig rrls ~d.










The pl~u1!i:cilPalr1~ should now IDea:tI~e dles[rI~bHhow ~he Il1IiVBntory Miarllla,ge'mentand Logis~icExecu~iorill process Df an (,Hylalliza~ioinll 1D can be!mapped in SAP ERP_Thlis wou'l~d~nclu(je an understandi'r1QI of various Physicailllnventol1l proced ures, process o~ Good Receipt against a PUrcil.ase Order and subsequent PullaM/ay uSlingWarehouse Manage:ment func'ti!cmaiity and ,prOO!ElS5 for Stock Transfers and Translsr Posf~ngs_