SAP MM Inventory Management - SAP MM

What is SAP MM Inventory Management?

Procurement method begins with collecting necessities and ends with procuring goods from providers. Once goods are procured from vendor they want to be located in company’s premises in correct place so they may be consumed when required. This introduces the term referred to as inventory management. Inventory management offers with placing and dealing with stock received from carriers in correct region within organization’s premises. the key points approximately inventory control are as follows:

  • Inventory management deals with management of stock both on value or quantity basis.
  • Planning, entry and keeping information of all goods movement comes below inventory management.
  • Goods movement will create a report in order to replace all stock quantity and price in inventory this is called material report.
  • Fabric file will be referred by using a document quantity and report 12 months.

Inventory management deal with the following terms which are as follows:

  • Movement Type
  • Goods Receipt
  • Reservation
  • Goods Issue

Movement Type

Movement type describes the form of stock posting in inventory. It represents the posting in stock is due to which sort of order like whether stock is published against items receipt or goods problem. The crucial movement types in sap mm are as follows:

  • 101 - items receipt for purchase order or order
  • 103 - goods receipt for purchase order into GR blocked stock
  • 201 - items problem for a value centre
  • 261 - goods problem for an order
  • 301 - transfer posting plant to plant in a single step
  • 305 - transfer posting plant to plant in steps - placement in storage
  • 311 - transfer posting storage area to storage region in one step
  • 313 - stock transfer storage places to storage place in two steps - removal from storage.

Movement types can be reached out by using following the below steps:

Path to attain movement type:

Logistics => materials management => inventory management => goods movement => goods movement (MIGO)

TCode: MIGO

On SAP Menu screen choose goods movement (MIGO) execute icon through following the above path.

SAP MM - Inventory Management

Select GR Goods Receipt drop-down. You will get a lot of standard movement types and you can choose one according to your requirement.

SAP MM - Inventory Management

Goods Receipt

Goods receipt is the phase in which the material is received through the ordering party and the situation and quality are proven. relying upon the motion type stock is posted in inventory with the assist of goods receipt. items receipt will show increase in warehouse stock. goods receipt has scenarios that are as follows.

  • Creation of goods Receipt
  • Cancellation of products Receipt

Creation of Goods Receipt

Goods receipt can be published through following the below steps.

Path to post goods Receipt:

Logistics => materials management => inventory management => goods movement => goods movement (MIGO)

TCode: MIGO

On SAP Menu screen choose items movement (MIGO) execute icon through following the above path.

SAP MM - Inventory Management

Goods receipt may be posted against various files. choose the required document from the drop-down. for example in this situation we are choosing purchase order. choose the movement kind according to the requirement.

SAP MM - Inventory Management

It’ll fetch all the information from the chosen reference document like material, quantity, plant. choose check tab to test the document. Then click on on save. a material document variety will be generated. Items receipt is now posted against a purchase document.

SAP MM - Inventory Management

Cancellation of Goods Receipt

Sometimes goods receipt is not posted successfully. So goods receipt needs to be cancelled and it can be cancelled by means of following the under steps.

Path to cancel goods Receipt:

Logistics => materials management => inventory management => goods movement => goods movement (MIGO)

TCode: MIGO

On the same MIGO screen choose from drop-down Cancellation against a material record number. offer the material file number.

SAP MM - Inventory Management

It’ll fetch all the information from the material record. choose test tab to test the record. Then click on save. a material record variety may be generated. goods receipt is now cancelled.

SAP MM - Inventory Management

Reservation

Sometimes, stock want to be blocked earlier so that it may be available at a selected factor of time. this is called reservation. Reservation ensures that stock is available and it can be used while required. Reserved amount may be viewed through TCode MMBE. Provide the material quantity and plant. Reserved amount may be seen within the reserved tab as proven under.

SAP MM - Inventory Management

Reservation can be created by following the below steps.

Path to create Reservation:

Logistics => Materials Management => Inventory Management => Reservation => Create

TCode: MB21

On SAP Menu screen select Create execute icon by following the above path.

SAP MM - Inventory Management

Enter the date, movement type and plant for which reservation is to be made.

SAP MM - Inventory Management

Enter the order quantity against that you need to make reservation. offer the information of material and quantity this is to be reserved. click on on save. Reservation is now made for the order.

SAP MM - Inventory Management

Goods Issue

Goods problem method moving stock out of stock that may be because of several reasons like withdrawing of material for sampling or returning the goods again to dealer. So, items problem will result in lower in quantity in warehouse. items problem can be done by means of following the below steps.

Path to post goods problem:

Logistics => materials management => inventory management => goods movement => goods movement (MIGO)

TCode: MIGO

On SAP Menu screen choose goods movement (MIGO) execute icon through following the above path.

SAP MM - Inventory Management

Choose goods problem from drop-down. goods problem can be posted towards various documents. Choose the required file from the drop-down. for example in this situation we are selecting purchase order. choose the movement type according to the requirement.

SAP MM - Inventory Management

It will fetch all of the information from the chosen reference record like material, quantity, plant. choose test tab to check the report. Then click on save. a material record number could be generated. goods problem is now posted against a purchase document.

SAP MM - Inventory Management

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