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Inventory Management

PR50 Delivery time = 6 hours

Copyright
This manual is based on SAP ERP2005 and SAP Front end server for Windows XP version. Copyright 2007 Client X. All rights reserved. No part of this publication may be reproduced or used in any form or by any meansgraphic, electronic, or mechanical, including photocopying, recording, taping, or in information storage and retrieval systemswithout written permission from the publisher. For internal distribution only. SAP is a registered trademark of SAP AG.

Microsoft is a registered trademark and Windows is a trademark of Microsoft Corporation.

Welcome!
Introductions Set expectations

Housekeeping
Ground Rules Sign the attendance sheet Feel free to ask questions Turn off your cell phones and pagers Please take breaks as needed

Course duration and breaks

Safety precautions

Training Methodology
Prepare Me Tell Me Show Me Let Me Evaluate Me Prerequisite courses and e-Learning Facts, concepts, terms, and definitions Demonstration of procedure steps Hands-on practice (Training Sandbox) Proficiency Test Post Go-Live support and job-aids

Help Me
Training Materials

Presentation Flip Chart

Work Instructions uPerform Website Support Materials

Students Guide

Learning Objectives
At the end of this course, you should be able to: Execute goods issues transactions

Describe and work with material documents and their respective accounting documents Cancel a material document Execute standard SAP inventory reports

Course Content
Chapter 1 Inventory Management Basics Chapter 2 Goods Issues

Chapter 3 Cancel Document Chapter 4 Inventory Reports

Chapter 1
Chapter 1 Inventory Management Basics Chapter 2 Goods Issues

Chapter 3 Cancel Document Chapter 4 Inventory Reports

Chapter 1 Inventory Management Basics Objectives


At the end of this chapter, you should be able to:

Define the high level terms and concepts for Inventory Management (IM) Define goods issues movement types Describe the results of a goods movement

Inventory Management Terms


Accounting document Material document Movement type Special stock Stock type Storage location Transfer posting

See details below

Goods Movement
Goods movement refers to any event which causes a change in stock levels.

Goods Issue (GI)


A withdrawal of material from inventory Decreases inventory levels and values Creates both a material and an accounting document

When you enter a goods movement, you create both a material and an accounting document.
See details below

Goods Issues - MIGO


Same transaction code used for all goods issues

Required three-digit Movement Type Defines the specific kind of goods issue Determines the impact on financial accounts and stock levels Examples: 201 Goods Issue 551 Goods Issue to Scrap Results in uniquely-numbered material and accounting documents

Stock Types
A materials stock type determines whether or not the material is available for use.

Unrestricted Use

Stock transfer (plant)

On order

Blocked

See details below

Results of a Goods Issue


G/L Balances thru Acctng Docs (Not always)

Material Document

Goods Movement
Updated Inventory Balances

Updated Stock Type

See details below

Chapter 1: Inventory Management Basics Check for Understanding


Now you should be able to:

Define the high level terms and concepts for Inventory Management Define movement types and stock types Define a special stock Describe the results of a goods movement

Chapter 1 - Review
1. A goods issue to a cost center creates an accounting document. (T / F) 2. You automatically cancel an accounting document when you cancel its accompanying material document. (T / F)

Chapter 2
Chapter 1 Inventory Management Basics Chapter 2 Goods Issues

Chapter 3 Cancel Document Chapter 4 Inventory Reports

Chapter 2 Goods Issues


Objectives
At the end of this chapter, you should be able to:

Create a goods issue to a cost center or scrap Display a stock overview Display material and accounting documents

Goods Issues - MIGO


Manual issue of raw materials to production
To correct stock level when backflush quantity was too low To scrap raw materials damaged by Client X
Reference document: Other Transaction type: Goods issue

Movement type - 201 Cost ctr - 551 Scrap

See details below

Demonstration 2.1

This demonstration shows you how to:

Goods Issue from Unrestricted Stock MIGO 201

Demo allow 10 minutes

Issue to Scrap Process


1. If the damaged /poor quality raw material was Blocked for use, first enter a transfer posting to change it back to Unrestricted use. Use MIGO: Transaction type = Transfer Posting Document reference = Other Movement type = 343

2. Issue the quantity to scrap.

See details below

Demonstration 2.2

This demonstration shows you how to:

Unblock Stock

MIGO 343 Demo allow 10 minutes

Scrapping Raw Materials - MIGO


Transaction type = Goods Issue Reference document = Other (even if receiving document number is known) Movement type = 551 Must enter: G/L# 520127 Cost Center (plant # + 191 or 192)

See details below

Demonstration 2.3

This demonstration shows you how to:

MIGO GI 551 Scrap Material

MIGO - 551

Demo allow 10 minutes

Stock Overview - MMBE


Material and plant numbers were entered on the selection screen.

Scroll to view stock in the Stk trans.(plant) and Blocked stock types

See details below

Demonstration 2.4

This demonstration shows you how to:

Stock Overview

MMBE Demo allow 10 minutes

List Material Documents MB51

Cancelled documents

Goods receipt
See details below

Display Material Doc from Within MB51


Contains all data entered in MIGO Can access accounting documents from Doc. Info tab

See details below

Demonstration 2.5

This demonstration shows you how to:

List Material Documents

MB51 Demo allow 10 minutes

Accounting Documents for Material MR51


Similar to List of Material Documents Stock quantities and values of goods movements Document types purpose of document WA = Goods Issue WE = Goods Receipt WI = Inventory Document

See details below

Demonstration 2.6

This demonstration shows you how to:


Accounting

Documents for Material

MR51 Demo allow 10 minutes

Material Documents by Reason for Movement MBGR


Scrapped

Original receipt

Returned to vendor

See details below

Demonstration 2.7

This demonstration shows you how to:

Display Material Documents by Reason for Movement MBGR

Demo allow 10 minutes

Simulations

To gain practice, perform the following simulations:

Goods Issue from Unrestricted Stock MIGO - 201 MIGO 343 Unblock Stock MIGO GI 551 Scrap Material Stock Overview Material Document List Accounting Documents for Material MIGO - 343 MIGO - 551 MMBE MB51 MR51

Simulations; allow 1 hour

Display Material Documents by Reason for Movement MBGR

Chapter 2 - Review
1. A goods issue to a cost center creates both a material and an accounting document. (T / F) 2. Reasons for movement are different from movement types. (T / F)

3. The quantity of material in unrestricted stock is the total quantity of that material in the plant. (T / F)
4. Reasons for movement are only entered for returns to vendor and scrapping materials. (T / F)

Chapter 2 Review, contd


5. Which movement type indicates a material was issued to scrap? A) 122 B) 551 C) 561 6. Materials issued to scrap should be issued from unrestricted stock. (T / F)

Chapter 2 Goods Issues


Check for Understanding
Now you should be able to:

Create a goods issue to a cost center or scrap Display a stock overview Display material and accounting documents

Chapter 3
Chapter 1 Inventory Management Basics Chapter 2 Goods Issues

Chapter 3 Cancel Document Chapter 4 Inventory Reports

Chapter 3 Cancel Document


Objectives
At the end of this chapter, you should be able to:

Cancel a material document Display a list of cancelled documents

Cancel / Reverse Material Document - MBST


Initial Screen Copies information from original document Must enter reason code to explain reversal

See details below

Cancel / Reverse Material Document MBST, contd


Original document is not deleted Backs out original entries Also cancels / reverses the accompanying accounting document(s)

See details below

Demonstration 3.1

This demonstration shows you how to:

Cancel / Reverse Material Document

MBST Demo allow 10 minutes

Demonstration 3.2

This demonstration shows you how to:

Display Cancelled Material Documents

MBSM

Demo allow 10 minutes

Simulations

To gain practice, perform the following simulations:

Cancel Material Document

MBST Simulations; allow 40 minutes

Display Cancelled Material Documents MBSM

Chapter 3 - Review
1. When you cancel a material document using MBST, the associated accounting document is automatically cancelled as well. (T / F) 2. You can display a list of documents that were cancelled during a particular week. (T / F)

Chapter 3 Cancel Document


Check for Understanding
Now you should be able to:

Cancel a material document Display a list of cancelled documents

Chapter 4
Chapter 1 Inventory Management Basics Chapter 2 Goods Issues

Chapter 3 Cancel Document Chapter 4 Inventory Reports

Chapter 4 Inventory Reports


Objectives
At the end of this chapter, you should be able to:

Generate inventory management reports

Material Analysis MC.9


Monthly total stock quantities and values Can be run by:

Material Material type Material group Plant

Demonstration 4.1

This demonstration shows you how to:

Material Analysis

MC.9 Demo allow 10 minutes

Stocks for Posting Date MB5B


Helpful for researching inventory level discrepancies Displays beginning and ending stock levels for a material One day or range of days Each goods movement during that time are displayed Displays totals goods movement quantities

See details below

Demonstration 4.3

This demonstration shows you how to:

Stock on Posting Date

MB5B Demo allow 10 minutes

Simulations

To gain practice, perform the following simulations:

Material Analysis

MC.9

Stocks for Posting Date

MB5B

Simulations; allow 40 minutes

Chapter 4 - Review
1. The Material Analysis report displays quantity and value totals by month for a material. (T / F) 2. The Stock on Posting Date report is used to research inventory problems. (T / F)

Chapter 4 Inventory Reports


Check for Understanding
Now you should be able to:

Generate inventory management reports

Course Summary
You should now be able to: Execute goods issues transactions Describe and work with material documents and their respective accounting documents

Cancel a material document Execute standard SAP inventory reports

Chapter Review Answers


Chapter 1 1) T 2) T Chapter 2 1) T 2) T 3) True 4) False it could be blocked 5) b) 551 is the movement type for a goods issue to scrap 6) True Chapter 3 1) T 2) T Chapter 4 1) T 2) T

Going Forward
Practice environment Sandbox The Client X uPerform website to access course materials

Handouts

Course Evaluation

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