Mm - Inventory Management.pdf 1u5z3j
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www.sap-topjobs.com
SAP MM/ WM PRESENTATION VISIT US AT www.sap-topjobs.com
1
www.sap-topjobs.com
MM – Configuration Inventory Management Objective To understand Goods Movements & Movement types Stock Determination Valuation and Assignment Split Valuation Determination Physical Inventory
2
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Goods Movements & Movement types
3
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Goods Movements Any material movement is addressed through the term Goods Movement in SAP. Each material movement is associated and identified with movement type. Material document and/or ing document will be generated for each material movement. 4
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Goods movement
Contd..
Important classification of goods movements are Goods issue Goods Receipt Transfer posting Reservation
5
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Movement type Movement type determines the •ing entries i.e. GL to be posted •Update the quantity •Controls field display
•Type of transaction
6
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Goods Issue When material is issued for consumption or sales, it is termed as goods issue. Example: •Components issued for production •Products issued against sales order •Products issued against free replacement 7
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Goods Issue (GI) movement type Goods issue will reduce the inventory from the storage location. Goods issue for different purpose is identified by different movement type. Example:261 – indicates GI for production 601 – indicates GI for sales order 8
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Goods Receipt (GR) movement type When the material is received into the storage location, it is termed as Goods Receipt. GR will increase the inventory. Example:101 – indicates GR from vendor 561 – indicates GR initial stock 9
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Transfer posting When the material is transferred from one storage location or plant to another storage location or plant it is known as transfer posting. Transfer posting will reduce the stock from one location or plant and increase the stock in another location or plant. 10
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Transfer posting movement type Each transfer posting is identified by the different movement type. Example: 311 – indicate transfer from one storage location to another 301 – indicate transfer from one plant to another plant 11
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Reservation It is a request to keep materials ready to withdraw when it is required. Reservation contains Material number Quantity When required From and To 12
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Reservation & Movement type •Each reservation contains only one movement type. •It can be created automatically or manually •Reservation has the document number •MRP will consider the reservation for net requirement calculation
13
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GI & GR flow Reservation Created for Components (Automatically)
Production Order or Process Order
Goods Issue For production Order Mvt.type 261
Goods Receipt For production Order Mvt.type 101
Adjust reservations Reduces inventory ing entries created
Increases stock ing entries created
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STOCK DETERMINATION
15
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Stock Determination •It is a strategy to withdraw material for GI and Stock transfer. •Automatically determines the stock & storage location from where materials are to be withdrawn.
16
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Stock Determination
Contd..
Following stocks can be handled through stock determination. Unrestricted use stock Vendor consignment stock Pipeline stock Sales order stock Project stock 17
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Valuation and Assignment
18
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Valuation and assignment It defines • How the material is to be valuated •
the link between Materials management and Finance
19
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Material Valuation Materials can be valuated at Company code level or Plant level Level at which the material valuation is done is known as valuation area. 20
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Valuation at company code level Material price and price control are common at company code level. It ensures material is valuated at same price at all plants belong to that company code.
21
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Company code level valuation Company code 9100
Plant IND6 Plant IND7 Stock 50 units Stock 600 units
Company code 9200
Plant 9201 Stock 200 units
Plant 9202 Stock 400 units
Material valuation in 9100 company:
Material valuation in 9200 company:
Price = 6 Units/piece Inventory value = 650*6 = 3900
Price = 3 Units/piece Inventory value = 600*3 = 1800
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Valuation at plant level Material price and price control are unique at plant level. Material can have a different price at each plant which are under the same company code.
23
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Plant level valuation Company code 9100
Plant IND6 Stock 50 units
Plant IND7 Stock 600 units
Material valuation in IND6 plant:
Material valuation in IND7 plant:
Price = 6 Units/piece Inventory value = 50*6 = 300
Price = 4 Units/piece Inventory value = 600*4 = 2400
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Valuation Data - Material Master Following are the essential material master data for valuation •Valuation class – to determine the stock for postings •Price control – moving average or standard price •Price unit – indicates pricing unit. 25
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Valuation Procedure Valuation of inventory will be performed For each valuation area According to the price control (price control ‘S’ - standard or ‘V’ – Moving average)
26
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Valuation Procedure
Contd..
Price control
Inventory valuation
If ‘S’
Qty * standard price
If ‘V’
Qty * moving average price
27
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Split Valuation
28
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Split Valuation Split valuation allows to use different valuation price for different stocks. Example: A material can have one price when it is procured inland and different value when imported.
29
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Over view of split valuation A material may be subjected to different procurement type different country of origin different grade A material can have different valuation classes. 30
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Data flow in split valuation IMG
Valuation Types With A/c cat. Reference (Val.class)
Valuation Category
Activated at Plant level
Master Data Create Material & Assign Val. Category In A/c 1 view & Save
In create mode For the same Material Mention valuation Type in the org.data
Select right Valuation class In the A/c.1 View & Save
31
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Data flow split valuation cont.. During each Material transaction select the right valuation type. System determines the right valuation class through valuation type. One material can be posted to different s using split valuation. 32
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Determination
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Determination Movement type and valuation class together determines the FI ing entries through posting key. Valuation group code defined for valuation area Company code Chart of s Valuation group code is linked with posting key
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category & Valuation class category reference Valuation classes are created and linked with category reference. category references are assigned to each material type. Effect :When creating material, according to the material type, predefined valuation classes will appear to select.
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determination & movement type Posting key attached with each movement type Each posting key also attached with valuation class and GL s Effect:Movement type automatically determines the ing entries 36
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determination & movement type
Movement Type 960 (GR)
Transaction Key FR1 (freight Clearing A/c.)
Value String WA01
Transaction Key BSC (Stock A/c.) Dr.Stock 600005
Transaction Key WRX (GR/IR A/c.) Cr.GR/IR 600006
37
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Transaction keys - Example Following are the Goods receipt related transaction keys for your ready reference. BSX – Inventory posting WRX – GR/IR Clearing PRD – Cost/Price difference UMB – Revenue / Expense from revaluation GBB - Offsetting entry to the stock posting
38
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Physical Inventory
39
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Physical Inventory This is a process of physically counting the material at storage location level to keep the accurate stock of material. Four types of physical inventory are Periodic Continuous Cycle counting Sampling 40
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Physical Inventory stock type Following stocks are subjected to physical inventory Unrestricted use stock Quality stock Blocked stock Physical inventory can be performed only for the above stocks. 41
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Physical Inventory steps Steps involved in physical inventory are 1. Physically count the stock 2. Set the block for the material – to avoid any other posting during counting 3. Create physical inventory document 4. Post the count result 5. Post the difference in inventory 6. Posting documents generated by the system in the background automatically 42
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Physical Inventory tolerance Tolerance limit to post the inventory difference can be defined for each Two ways of defining the limits are: 1. Maximum amount per inventory count 2. Maximum amount per document item
43
www.sap-topjobs.com
Summary You must have understood Goods Movements & Movement types Stock Determination Valuation and Assignment Split Valuation Determination Physical Inventory 44
SAP MM/ WM PRESENTATION VISIT US AT www.sap-topjobs.com
1
www.sap-topjobs.com
MM – Configuration Inventory Management Objective To understand Goods Movements & Movement types Stock Determination Valuation and Assignment Split Valuation Determination Physical Inventory
2
www.sap-topjobs.com
Goods Movements & Movement types
3
www.sap-topjobs.com
Goods Movements Any material movement is addressed through the term Goods Movement in SAP. Each material movement is associated and identified with movement type. Material document and/or ing document will be generated for each material movement. 4
www.sap-topjobs.com
Goods movement
Contd..
Important classification of goods movements are Goods issue Goods Receipt Transfer posting Reservation
5
www.sap-topjobs.com
Movement type Movement type determines the •ing entries i.e. GL to be posted •Update the quantity •Controls field display
•Type of transaction
6
www.sap-topjobs.com
Goods Issue When material is issued for consumption or sales, it is termed as goods issue. Example: •Components issued for production •Products issued against sales order •Products issued against free replacement 7
www.sap-topjobs.com
Goods Issue (GI) movement type Goods issue will reduce the inventory from the storage location. Goods issue for different purpose is identified by different movement type. Example:261 – indicates GI for production 601 – indicates GI for sales order 8
www.sap-topjobs.com
Goods Receipt (GR) movement type When the material is received into the storage location, it is termed as Goods Receipt. GR will increase the inventory. Example:101 – indicates GR from vendor 561 – indicates GR initial stock 9
www.sap-topjobs.com
Transfer posting When the material is transferred from one storage location or plant to another storage location or plant it is known as transfer posting. Transfer posting will reduce the stock from one location or plant and increase the stock in another location or plant. 10
www.sap-topjobs.com
Transfer posting movement type Each transfer posting is identified by the different movement type. Example: 311 – indicate transfer from one storage location to another 301 – indicate transfer from one plant to another plant 11
www.sap-topjobs.com
Reservation It is a request to keep materials ready to withdraw when it is required. Reservation contains Material number Quantity When required From and To 12
www.sap-topjobs.com
Reservation & Movement type •Each reservation contains only one movement type. •It can be created automatically or manually •Reservation has the document number •MRP will consider the reservation for net requirement calculation
13
www.sap-topjobs.com
GI & GR flow Reservation Created for Components (Automatically)
Production Order or Process Order
Goods Issue For production Order Mvt.type 261
Goods Receipt For production Order Mvt.type 101
Adjust reservations Reduces inventory ing entries created
Increases stock ing entries created
www.sap-topjobs.com
STOCK DETERMINATION
15
www.sap-topjobs.com
Stock Determination •It is a strategy to withdraw material for GI and Stock transfer. •Automatically determines the stock & storage location from where materials are to be withdrawn.
16
www.sap-topjobs.com
Stock Determination
Contd..
Following stocks can be handled through stock determination. Unrestricted use stock Vendor consignment stock Pipeline stock Sales order stock Project stock 17
www.sap-topjobs.com
Valuation and Assignment
18
www.sap-topjobs.com
Valuation and assignment It defines • How the material is to be valuated •
the link between Materials management and Finance
19
www.sap-topjobs.com
Material Valuation Materials can be valuated at Company code level or Plant level Level at which the material valuation is done is known as valuation area. 20
www.sap-topjobs.com
Valuation at company code level Material price and price control are common at company code level. It ensures material is valuated at same price at all plants belong to that company code.
21
www.sap-topjobs.com
Company code level valuation Company code 9100
Plant IND6 Plant IND7 Stock 50 units Stock 600 units
Company code 9200
Plant 9201 Stock 200 units
Plant 9202 Stock 400 units
Material valuation in 9100 company:
Material valuation in 9200 company:
Price = 6 Units/piece Inventory value = 650*6 = 3900
Price = 3 Units/piece Inventory value = 600*3 = 1800
www.sap-topjobs.com
Valuation at plant level Material price and price control are unique at plant level. Material can have a different price at each plant which are under the same company code.
23
www.sap-topjobs.com
Plant level valuation Company code 9100
Plant IND6 Stock 50 units
Plant IND7 Stock 600 units
Material valuation in IND6 plant:
Material valuation in IND7 plant:
Price = 6 Units/piece Inventory value = 50*6 = 300
Price = 4 Units/piece Inventory value = 600*4 = 2400
www.sap-topjobs.com
Valuation Data - Material Master Following are the essential material master data for valuation •Valuation class – to determine the stock for postings •Price control – moving average or standard price •Price unit – indicates pricing unit. 25
www.sap-topjobs.com
Valuation Procedure Valuation of inventory will be performed For each valuation area According to the price control (price control ‘S’ - standard or ‘V’ – Moving average)
26
www.sap-topjobs.com
Valuation Procedure
Contd..
Price control
Inventory valuation
If ‘S’
Qty * standard price
If ‘V’
Qty * moving average price
27
www.sap-topjobs.com
Split Valuation
28
www.sap-topjobs.com
Split Valuation Split valuation allows to use different valuation price for different stocks. Example: A material can have one price when it is procured inland and different value when imported.
29
www.sap-topjobs.com
Over view of split valuation A material may be subjected to different procurement type different country of origin different grade A material can have different valuation classes. 30
www.sap-topjobs.com
Data flow in split valuation IMG
Valuation Types With A/c cat. Reference (Val.class)
Valuation Category
Activated at Plant level
Master Data Create Material & Assign Val. Category In A/c 1 view & Save
In create mode For the same Material Mention valuation Type in the org.data
Select right Valuation class In the A/c.1 View & Save
31
www.sap-topjobs.com
Data flow split valuation cont.. During each Material transaction select the right valuation type. System determines the right valuation class through valuation type. One material can be posted to different s using split valuation. 32
www.sap-topjobs.com
Determination
www.sap-topjobs.com
Determination Movement type and valuation class together determines the FI ing entries through posting key. Valuation group code defined for valuation area Company code Chart of s Valuation group code is linked with posting key
www.sap-topjobs.com
category & Valuation class category reference Valuation classes are created and linked with category reference. category references are assigned to each material type. Effect :When creating material, according to the material type, predefined valuation classes will appear to select.
www.sap-topjobs.com
determination & movement type Posting key attached with each movement type Each posting key also attached with valuation class and GL s Effect:Movement type automatically determines the ing entries 36
www.sap-topjobs.com
determination & movement type
Movement Type 960 (GR)
Transaction Key FR1 (freight Clearing A/c.)
Value String WA01
Transaction Key BSC (Stock A/c.) Dr.Stock 600005
Transaction Key WRX (GR/IR A/c.) Cr.GR/IR 600006
37
www.sap-topjobs.com
Transaction keys - Example Following are the Goods receipt related transaction keys for your ready reference. BSX – Inventory posting WRX – GR/IR Clearing PRD – Cost/Price difference UMB – Revenue / Expense from revaluation GBB - Offsetting entry to the stock posting
38
www.sap-topjobs.com
Physical Inventory
39
www.sap-topjobs.com
Physical Inventory This is a process of physically counting the material at storage location level to keep the accurate stock of material. Four types of physical inventory are Periodic Continuous Cycle counting Sampling 40
www.sap-topjobs.com
Physical Inventory stock type Following stocks are subjected to physical inventory Unrestricted use stock Quality stock Blocked stock Physical inventory can be performed only for the above stocks. 41
www.sap-topjobs.com
Physical Inventory steps Steps involved in physical inventory are 1. Physically count the stock 2. Set the block for the material – to avoid any other posting during counting 3. Create physical inventory document 4. Post the count result 5. Post the difference in inventory 6. Posting documents generated by the system in the background automatically 42
www.sap-topjobs.com
Physical Inventory tolerance Tolerance limit to post the inventory difference can be defined for each Two ways of defining the limits are: 1. Maximum amount per inventory count 2. Maximum amount per document item
43
www.sap-topjobs.com
Summary You must have understood Goods Movements & Movement types Stock Determination Valuation and Assignment Split Valuation Determination Physical Inventory 44
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