fico material

Inventory Management and
Physical Inventory (MM-IM)
H E L P . M M I M
Release 4.6C
Inventory Management and Physical Inventory (MM-IM) SAP AG
2 April 2001
Copyright
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SAP AG Inventory Management and Physical Inventory (MM-IM)
April 2001 3
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Inventory Management and Physical Inventory (MM-IM) SAP AG
4 April 2001
Contents
Inventory Management and Physical Inventory (MM-IM) ........................................... 8
Integration of Inventory Management in the Logistics System.............................................................10
Goods Movement ......................................................................................................................................12
The Document Concept .............................................................................................................................13
The Movement Type Concept ...................................................................................................................15
Results of a Good Movement in the System ...........................................................................................16
Changing a Material Document.................................................................................................................17
Displaying a Material Document...............................................................................................................18
Cancelling a Material Document...............................................................................................................19
Entering a Reversal Document with Reference to a Material Document ...............................................20
Entering a Material Document with a Reversal Movement Type............................................................21
Function: Copying Items From Other Material Documents....................................................................22
Copying a Material Document...................................................................................................................23
Goods Receipt/Issue Slip Numbers .........................................................................................................24
Serial Numbers in Goods Movements .....................................................................................................25
Missing Parts Check .................................................................................................................................26
Goods Movements via Shipping...............................................................................................................27
Material Block (Material Enqueue) for Goods Movements ....................................................................29
Goods Receipt ...........................................................................................................................................30
Planning Goods Receipts.........................................................................................................................31
Planning Goods Receipts Using Purchase Orders.................................................................................33
Planning Goods Receipts Using Orders .................................................................................................36
Planning Goods Receipts Using Reservations .......................................................................................38
Goods Receipts for Purchase Orders ......................................................................................................39
Entering a Goods Receipt for a Purchase Order ....................................................................................41
Entering a Goods Receipt for a Shipping Notification.............................................................................43
Results of a Goods Receipt Posting .......................................................................................................44
Underdeliveries, Overdeliveries, and Final Deliveries ............................................................................46
Several Goods Receipt Items Per Order Item ........................................................................................48
Goods Receipts Using the Order Price Unit ...........................................................................................50
Changing the Format of the Selection Screen........................................................................................52
Entering EAN/UPC.................................................................................................................................53
Entering a Freight Supplier .....................................................................................................................54
Shelf Life Expiration Date Check ............................................................................................................55
Shelf Life Expiration Date Check for Materials W/o Batch Mgmt Reqmt...........................................56
Expiration Date Check for Materials Handled in Batches..................................................................57
Goods Receipt of Non-Valuated Materials..............................................................................................59
Shipping Instructions..............................................................................................................................60
Goods Receipt When Quality Management (QM) is Active....................................................................61
Goods Receipts into Goods Receipt Blocked Stock...............................................................................62
Posting a Goods Receipt into Goods Receipt Blocked Stock ...........................................................63
Displaying Goods Receipt Blocked Stock..........................................................................................65
Releasing Material from Goods Receipt Blocked Stock ....................................................................66
Goods Receipts for Orders .......................................................................................................................68
Entering a Goods Receipt for an Order ..................................................................................................70
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Underdeliveries, Overdeliveries, and Final Deliveries ............................................................................71
- ..............................................................................................................................................................72
Entering an Unplanned Goods Receipt .............................................................................................73
Entering a Planned Goods Receipt ...................................................................................................74
Other Goods Receipts ...............................................................................................................................76
Initial Entry of Inventory Data..................................................................................................................77
Entering an External Goods Receipt Without a Purchase Order............................................................78
Entering an Internal Goods Receipt Without a Production Order ...........................................................79
Entering a Goods Receipt With Reference to a Reservation ............................................................80
Entering a Delivery Free of Charge ........................................................................................................81
Entering a Customer Return ...................................................................................................................82
Goods Issue...............................................................................................................................................83
Goods Issues - General .............................................................................................................................84
Goods Issue Without Reference...............................................................................................................86
Entering Goods Issue Without Reference...............................................................................................87
Maintaining Account Assignment Data ..............................................................................................88
Entering Material for Scrapping................................................................................................................89
Drawing of a Sample .................................................................................................................................90
Goods Issue With Reference to a Reservation .......................................................................................91
Searching for a Reservation Number......................................................................................................92
Goods Issue with Reference to an Order.................................................................................................93
Entering a Goods Issue With Reference to an Order .............................................................................94
Goods Issue With Reference to a Bill of Material ...................................................................................95
Results of a Goods Issue Posting ............................................................................................................96
Availability Check......................................................................................................................................98
Dynamic Stock Balance Display.............................................................................................................100
Storage Location and Batch Selection ..................................................................................................101
Reversing a Planned Goods Issue .........................................................................................................104
Entering a Reversal or Return With Reference to a Reservation .........................................................106
Return Delivery........................................................................................................................................107
Return Deliveries from Warehouse or Consumption ...........................................................................109
Return Deliveries from Goods Receipt Blocked Stock ........................................................................110
Return Delivery in Goods-Receipt-Based Invoice Verification............................................................111
Subsequent Delivery...............................................................................................................................112
Stock Transfer and Transfer Posting .....................................................................................................113
Transfer Postings and Stock Transfers: Overview...............................................................................114
Planning Stock Transfers and Transfer Postings via Reservations...................................................116
Stock Transfers From Storage Location to Storage Location.............................................................117
The One-Step Procedure Without a Reservation: Storage Location....................................................118
The One-Step Procedure With a Reservation: Storage Location.........................................................119
Two-Step Procedure - Storage Location...............................................................................................120
Removal From Storage at Issuing Storage Location.......................................................................122
Placement Into Storage at Receiving Storage Location ..................................................................123
Stock Transfer From Plant to Plant ........................................................................................................124
Using the One-Step Procedure Without a Reservation - Plant.............................................................125
Using the One-Step Procedure With a Reservation - Plant..................................................................126
Two-Step Procedure - Plant..................................................................................................................127
Inventory Management and Physical Inventory (MM-IM) SAP AG
6 April 2001
Entering the Removal From Storage At the Issuing Plant ...............................................................128
Entering the Placement Into Storage At the Receiving Plant ..........................................................129
Stock Transfer from Company Code to Company Code......................................................................131
Transfer Postings From Material to Material .........................................................................................132
Entering a Transfer Posting From Stock to Stock................................................................................133
General Information on Stock Types ....................................................................................................134
Reservation..............................................................................................................................................136
Creating a Reservation ............................................................................................................................138
Creating a Reservation Using a Reference Document.........................................................................139
Displaying a Reservation........................................................................................................................140
Processing Reservations ........................................................................................................................141
Changing a Reservation ..........................................................................................................................143
Changing the Requirement Date...........................................................................................................145
Changing the Quantity ..........................................................................................................................146
Changing the Movement Allowed Indicator ..........................................................................................147
Changing the Final Issue Indicator .......................................................................................................148
Checking Availability .............................................................................................................................149
Deleting an Item ...................................................................................................................................150
Managing Reservations ...........................................................................................................................151
Functions of the Reservations Management Program .........................................................................152
Running the Reservations Management Program................................................................................154
Physical Inventory...................................................................................................................................155
Physical Inventory Process.....................................................................................................................157
Physical Inventory Preparation .............................................................................................................159
Physical Inventory Count ......................................................................................................................160
Physical Inventory Analysis...................................................................................................................161
Examples of Physical Inventory Documents.........................................................................................162
Carrying Out the Physical Inventory ......................................................................................................164
Creating Physical Inventory Documents ...............................................................................................165
Changing Physical Inventory Documents .............................................................................................167
Blocking Materials for Posting...............................................................................................................168
Printing Physical Inventory Documents ................................................................................................169
Entering the Physical Inventory Count..................................................................................................170
Freezing the Book Inventory Balance ...................................................................................................172
Setting Zero Count ...............................................................................................................................173
Changing a Physical Inventory Count...................................................................................................174
Initiating a Recount ...............................................................................................................................175
Posting Inventory Differences ...............................................................................................................176
Managing Sessions..............................................................................................................................179
Serial Numbers in Physical Inventory....................................................................................................180
Information on Physical Inventory .........................................................................................................182
Account Activity During Posting of Inventory Differences..................................................................184
Inventory Differences in Company’s Own Stock...................................................................................185
Example of Inventory Difference in Own Stock ...............................................................................186
Inventory Differences in Consignment Stock ........................................................................................187
Example of Inventory Difference in Consignment Stock .................................................................188
Cycle Counting Method of Physical Inventory......................................................................................189
Batch Handling ........................................................................................................................................191
Working with Batches.............................................................................................................................193
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April 2001 7
Batch Status Management ......................................................................................................................194
Goods Receipts of Batch Material..........................................................................................................196
Goods Issue of Batch Material................................................................................................................198
Stock Transfers and Transfer Postings of Batch Material...................................................................199
Batch Classification................................................................................................................................201
Batch Determination ...............................................................................................................................203
Creating Batch Search Strategies.........................................................................................................204
Finding Batches Using the Batch Determination Function ...................................................................206
Goods Movements of Split-Valuated Material .......................................................................................207
Stock Determination ...............................................................................................................................208
Creating Stock Determination Strategies ..............................................................................................211
Starting Stock Determination..................................................................................................................213
Print Functions ........................................................................................................................................214
Output Types ...........................................................................................................................................216
Printing Output ........................................................................................................................................218
Generating Output for Goods Movement ..............................................................................................219
Processing Output ..................................................................................................................................221
Printer Control .........................................................................................................................................222
Multiple Printout of Goods Receipt/Issue Slips ....................................................................................223
Printing Purchase Orders With Multiple Account Assignment...........................................................224
Archiving..................................................................................................................................................225
Reporting in Inventory Management......................................................................................................227
Storing Documents .................................................................................................................................229
Handling Units in Inventory Management .............................................................................................230
Material Master (LO-MD-MM)...................................................................................................................232
Corporate Structure ................................................................................................................................233
Material Master Records.........................................................................................................................236
Material Numbers.................................................................................................................................237
Industry Sectors ...................................................................................................................................239
Material Types..........................................................................................................................................240
Standard Material Types .......................................................................................................................242
User Departments (Main Data)................................................................................................................246
Automatic Creation of Storage Data ......................................................................................................248
Stocks in the Material Master Record ....................................................................................................249
Other Stocks ........................................................................................................................................251
Allowing Negative Stocks......................................................................................................................252
Units of Measure .....................................................................................................................................254
Units of Measure in Inventory Management .........................................................................................257
Inventory Valuation .................................................................................................................................258
Specifying Split Valuation......................................................................................................................260
Split Valuation in Inventory Management .............................................................................................261
Inventory Management and Physical Inventory (MM-IM) SAP AG
Inventory Management and Physical Inventory (MM-IM)
8 April 2001
Inventory Management and Physical Inventory (MM-IM)
Purpose
This component deals with the following tasks:
Management of material stocks on a quantity and value basis
Planning, Entry, and Documentation of all Goods Movements
Carrying out the Physical Inventory [Page 155]
Features
Managing Stocks by Quantity
All transactions that bring about a change in stock are entered in real time, as are the stock
updates resulting from these changes. You can obtain an overview of the current stock situation
of any given material at any time. This, for example, applies to stocks that:
Are located in the warehouse
Have already been ordered, but have not yet been received
Are located in the warehouse, but have already been reserved for production or a customer
Are in quality inspection.
If a further subdivision by lots is required for a material, one batch per lot is possible. These
batches are then managed individually in the stock.
Special Stocks
Inventory Management can manage various types of a company’s own special stocks and
externally owned special stocks separately from standard stock.
For more information on special stocks, refer to Managing Special Stocks [Ext.].
Managing Stocks By Value
The stocks are managed not only on a quantity basis but also by value. The system automatically
updates the following data each time there is a goods movement:
Quantity and value for Inventory Management
Account assignment for cost accounting
G/L accounts for financial accounting via automatic account assignment
The valuation area is the organizational level at which a material's stock value is managed. The
valuation area can be plant level or company code level.
In Inventory Management, work is basically done at plant and storage location levels. When you
enter a goods movement, you only have to enter the plant and the storage location of the goods.
The system derives the company code from the plant via the valuation area.
For more information on managing material stocks by value, refer to MM Material Valuation
[Ext.].
SAP AG Inventory Management and Physical Inventory (MM-IM)
Inventory Management and Physical Inventory (MM-IM)
April 2001 9
Planning, Entry, and Documentation of all Goods Movements
Goods movements include both "external" movements (goods receipts from external
procurement, goods issues for sales orders) and "internal" movements (goods receipts from
production, withdrawals of material for internal purposes, stock transfers, and transfer postings).
For each goods movement a document is created which is used by the system to update
quantities and values and serves as proof of goods movements.
You can print goods receipt/issue slips to facilitate physical movements and monitor the
individual stocks in the warehouse.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Integration of Inventory Management in the Logistics System
10 April 2001
Integration of Inventory Management in the Logistics
System
Use
Inventory Management is part of the Materials Management module and is fully integrated in the
entire logistics system:
Material is procured from external or internal sources on the basis of the requirements
determined by Material Requirements Planning. The delivery is entered in Inventory
Management as a goods receipt. The material is stored (and managed under Inventory
Management) until it is delivered to customers (Sales & Distribution), or is used for internal
purposes (for example, for production).
During all transactions, Inventory Management accesses both master data (such as material
master data) and transaction data (such as purchasing documents) shared by all Logistics
components.
Features
Integration in Materials Management
As a component of Materials Management, Inventory Management is directly linked with Material
Requirements Planning, Purchasing, and Invoice Verification.
Inventory Management provides information for MRP, which takes into account not only physical
stocks but also planned movements (requirements, receipts).
When a material is ordered from a vendor, Inventory Management posts the delivery as a goods
receipt with reference to the purchase order. The vendor invoice is processed later by Invoice
MRP
Financial Acctg Consumption/Sales
Master data
Material
Batches
Vendor
G/L accts
Customer
Storage bins
...
Goods receipt Warehouse
Mgmt
A
B
Inventory Mgmt
External procurement
Purchasing
Int. procurement
Production
Goods
issus
Trans.
Invoice verification posting
?
Invoice receipt
SAP AG Inventory Management and Physical Inventory (MM-IM)
Integration of Inventory Management in the Logistics System
April 2001 11
Verification. Here, the quantities and values from the purchase order and the goods receipt
document are checked to ensure that they match those in the invoice.
Integration in Production Planning
Inventory Management is closely linked to the Production Planning module:
Inventory Management is responsible for staging of the components required for production
orders
The receipt of the finished products in the warehouse is posted in Inventory Management.
Integration in Sales & Distribution
As soon as you enter a sales order, you can initiate a dynamic availability check of stocks on
hand.
When the delivery is created, the quantity to be delivered is marked as "Scheduled for delivery".
It is deducted from the total stock when the goods issue is posted.
It is also possible to create sales order stocks.
Integration in Quality Management
In the case of a goods movement, the system determines whether the material is subject to an
inspection operation. If so, a corresponding activity is initiated for the movement in the Quality
Management system.
Integration in Plant Maintenance
Inventory Management is linked with Plant Maintenance as follows:
It is possible to post goods movements with reference to equipment BOMs.
It is possible to withdraw parts for maintenance orders.
When serial number management is active, the individual serial numbers are entered in the
case of every goods movement. Serial numbers are managed in the Plant Maintenance
system.
Integration in the Logistics Information System
With the Inventory Controlling component, the Logistics Information System offers a tool for
collecting, compressing, and evaluating inventory management data.
Inventory Management and the Warehouse Management System
The Inventory Management system can be extended by the Warehouse Management system
(LE-WM) which manages storage bins in complex warehouse structures.
While Inventory Management manages the stocks by quantity and value, the Warehouse
Management component reflects the special structure of a warehouse, and monitors the
allocation of the storage bins and any transfer transactions in the warehouse.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Goods Movement
12 April 2001
Goods Movement
Definition
Transaction resulting in a change in stock.
Structure
Goods receipt
A goods receipt (GR) is a goods movement with which the receipt of goods from a vendor or from
production is posted. A goods receipt leads to an increase in warehouse stock.
Goods issue
A goods issue (GI) is a goods movement with which a material withdrawal or material issue, a
material consumption, or a shipment of goods to a customer is posted. A goods issue leads to a
reduction in warehouse stock.
Stock transfer
A stock transfer is the removal of material from one storage location and its transfer to another
storage location. Stock transfers can occur either within the same plant or between two plants.
Transfer posting
A transfer posting is a general term for stock transfers and changes in stock type or stock
category of a material. It is irrelevant whether the posting occurs in conjunction with a physical
movement or not. Examples of transfer postings are:
Transfer postings from material to material
Release from quality inspection stock
Transfer of consignment material into company's own stock
SAP AG Inventory Management and Physical Inventory (MM-IM)
The Document Concept
April 2001 13
The Document Concept
Document Principle
Even in a computer-supported inventory management system, the accepted accounting principle
of no posting without a document applies. According to the document principle. a document
must be generated and stored in the system for every transaction/event that causes a change in
stock.
When posting a goods movement in the SAP System, the following documents are created:
Material document
In the Inventory Management system, when a goods movement is posted, a material
document is generated that serves as proof of the movement and as a source of
information for any applications that follow.
A material document consists of a header and at least one item. The header contains
general data about the movement (for example, its date). Each item describes one
movement.
Accounting document
If the movement is relevant for Financial Accounting (that is, if it leads to an update of the
G/L accounts), an accounting document is created parallel to the material document.
In some cases, several accounting documents are created for a single material
document. This might be the case, for example, if you have two material document items
with different plants that belong to different company codes.
The G/L accounts involved in a goods movement are updated through an automatic
account assignment.
For goods receipts for purchase orders, goods movements for stock transport orders and
consignment withdrawals, business partners may have different local currencies.
Therefore, as well as the local currency, the accounting document must also contain
another currency for processing and postings. For this purpose, accounting documents
created as a result of these goods movements will automatically be managed in the local
currency and in the document currency. You can switch between both currencies by
choosing Settings Currency display.
Changes to a Document
Once you have posted a goods movement, you can no longer change the document. You can
only enter additional information in the document, such as the reference to the original document,
or a comment on the event. If you want to reverse the movement or change the quantity of
material moved, you must enter a new document.
Document Numbers
A material document is identified by a document number and the material document year. An
accounting document is identified by the company code, the document number, and the fiscal
year.
Usually, the material document number and the accounting document number are different.
The company code to which the accounting document is posted is derived from the valuation
area defined for the plant.
Inventory Management and Physical Inventory (MM-IM) SAP AG
The Document Concept
14 April 2001
Transaction/Event Types and Document Types
In order to allow detailed document number assignment and systematic storage of documents in
the document file, material documents are divided into transaction/event types, and accounting
documents are divided into document types (see following table).
Transaction/Event Types and Document Types for Goods Movements (Examples)
Goods movement Tr./Ev. type Doc. type
Goods receipts for purchase orders WE WE or WN
Goods receipts for orders WF WE
Goods issues, transfer postings, other goods WA WA
Goods issues for deliveries WL WL
For each transaction/event type, a number range is defined for numbers to be assigned to the
material documents. For each document type, a number range is defined for numbers to be
assigned to the accounting documents.
SAP AG Inventory Management and Physical Inventory (MM-IM)
The Movement Type Concept
April 2001 15
The Movement Type Concept
What Is a Movement Type?
When you enter a goods movement in the system, you must enter a movement type to
differentiate between the various goods movements. A movement type is a three-digit
identification key for a goods movement. The following table contains examples of movement
types.
Goods Movements and Movement Types
Goods movement Movement type
Goods receipt for a purchase order 101
Goods issue for a cost center 201
Release from quality inspection stock 321
Control Functions of the Movement Type
The movement type has important control functions in Inventory Management.
For example, the movement type plays an important role in
updating of quantity fields
updating of stock and consumption accounts
determining which fields are displayed during entry of a document in the system
Inventory Management and Physical Inventory (MM-IM) SAP AG
Results of a Good Movement in the System
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Results of a Good Movement in the System
Use
When you enter a goods movement, you start the following chain of events in the system:
A material document is generated, which is used as proof of the movement and as a
source of information for any other applications involved.
If the movement is relevant for Financial Accounting, one or more accounting documents
are generated.
The stock quantities of the material are updated.
The stock values in the material master record are updated, as are the stock and
consumption accounts.
Depending on the movement type, additional updates are carried out in participating applications.
All updates are based on the information contained in the material document and the financial
accounting document. For example, in the case of a goods issue for a cost center, the
consumption values of the items are also updated.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Changing a Material Document
April 2001 17
Changing a Material Document
As discussed in section The Document Concept [Page 13], you can no longer change a
document once it has been posted. If you made a typing error when entering a goods movement
(for example, when you entered the quantity), you must reverse the movement with a so-called
reversal document (see section Cancelling a Material Document [Page 19]).
Why Change a Material Document?
Although you cannot change a posted document, you can use the function "Change Material
Document" to
enter additional information for the document.
If, for example, when you entered a goods receipt, you entered an unloading point that is
not currently available, you can change the unloading point with this function.
When you cancel a document or an item, you can also, for example, enter text in the
original document explaining the cancellation. You can enter this text in the document
header or in the item.
print a goods receipt/issue slip for the document
(see section Print Functions [Page 214])
Changing a Material Document
To change a material document, follow these steps:
1. From the Inventory Management menu, select Material document Change. This takes you
to the initial screen for this function.
2. Enter the material document number and the material document year. Then press ENTER.
The item overview screen appears. It includes all items contained in the material
document.
You cannot change any data on the overview screen. You can change data on the
header screen or the item detail screen only.
3. If you want to maintain header data, select Goto More functions Header. The screen
for maintaining header data appears. On this screen, you can change the document header
text.
4. If you want to change item data, select the desired item on the overview screen. The detail
screen appears. On this screen, you can change the item text.
5. Select Goto Overview to return to the overview screen. Post the changes you made.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Displaying a Material Document
18 April 2001
Displaying a Material Document
Use
You can use this function if you know the number of the material document you want to display.
Otherwise, you can display the list of material documents for a material by choosing Environment
List Displays Material Documents (see Reporting in Inventory Management [Page 227]).
Activities
Choose the function for displaying a material document in the Enjoy transaction for goods
movements (MIGO).
SAP AG Inventory Management and Physical Inventory (MM-IM)
Cancelling a Material Document
April 2001 19
Cancelling a Material Document
Use
If you made a typing error or an input error (for example, wrong quantity or wrong movement
type) while entering a material document, you must cancel the document, since you can no
longer change this data.
Activities
You can reverse a goods movement in two ways:
You can enter a reversal document that references the original document.
The advantage of this procedure is that you can copy the items to be canceled from the
original document. These items cannot be changed.
Value of the Posting:
Reversals of goods issues, transfer postings and goods receipts without reference in the
system are posted with the value of the original document.
Reversals of goods receipts with reference to a purchase order or production order are
posted with the value specified in the purchase order / production order.
Entering a Reversal Document with Reference to a Material Document [Page 20]
You can enter a material document with the reversal movement type. In this case, you do
not reference an already available material document. Instead, you enter all data manually.
Value of the Posting:
As there is no reference to a material document, the system re-determines the value of
the posting. If the material price has changed, the new material price is used, for
example, for a goods issue reversal.
Entering a Material Document With a Reversal Movement Type [Page 21]
SAP recommends that, if possible, you enter a reversal document with reference to
the original document since in that case the system proposes the items from the
original document in the reversal document and can then create reports on the basis
of these reversal documents. To analyze reversal documents, choose Environment
List displays Cancelled mat. docs.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Entering a Reversal Document with Reference to a Material Document
20 April 2001
Entering a Reversal Document with Reference to a
Material Document
To cancel a material document by entering a reversal document, follow these steps:
1. Select Material document Cancel from the Inventory Management menu. This takes you
to the initial screen for this function.
2. Enter the document number of the material document to be canceled, along with the material
document year.
3. Press ENTER. The item selection list is displayed. The list contains all of the items of the
document to be canceled.
4. Select the items you want to cancel.
To cancel the entire document, select all of the items.
5. To go to the overview screen, select Goto Overview. Post the document.
See also:
Function: Copying Items From Other Material Documents [Page 22]).
SAP AG Inventory Management and Physical Inventory (MM-IM)
Entering a Material Document with a Reversal Movement Type
April 2001 21
Entering a Material Document with a Reversal Movement
Type
Use
You enter a reversal document without reference to a material document in the same way you
entered the original material document, but using the reversal movement type. You can use this
function to reverse partial quantities, for example.
Activities
For example, to reverse a goods issue for a cost center, you would follow the steps shown here:
You choose the same goods movement that was used in the original document. To reverse a
goods issue, choose Goods movement Goods issue. Enter the reversal movement type 202
and the data as required. You can then post the document.
You can also enter the reversal document with reference to one or more material documents
(see Function: Copying Items from Other Material Documents [Page 22]). To do this, choose
Goods issue Cancel w/reference To mat. document.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Function: Copying Items From Other Material Documents
22 April 2001
Function: Copying Items From Other Material
Documents
To reverse items from other material documents using the same reversal document, select
Material document Cancel ref.... A dialog box appears, in which you enter the document
number(s) of the document(s) to be copied.
You can copy the items from the other material documents any of the following ways:
Press ENTER. The item selection screen appears. On this screen, you can select the items
to be copied.
Select Copy. The overview screen appears.
Select Copy + details. All of the items from the material documents entered are copied, and
the detail screen of the first item appears.
You can select Edit Cancel on the detail screen to skip the current item if you do not
want to copy that item.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Copying a Material Document
April 2001 23
Copying a Material Document
If you want to copy items from an existing material document when you create a new document,
you can use either of the two functions described in the following sections.
Copying a Material Document
To enter a new document by copying the items from another document, select Material document
Copy (from the Inventory Management menu).
As in the function Material document Cancel, you enter the document number of the reference
document on the initial screen. The items of the reference document are proposed on an item
selection screen. All of the data for these selected items (for example, movement type, material,
and quantity) is copied into the new document.
Entering a Material Document with Reference to Another Document
Use this function to copy items from one or more material documents when you enter a goods
movement.
When you enter a goods movement (for example, a goods issue), select Goods movement
(goods issue) Create w.reference To material doc... or Material document Reference.
A dialog box appears in which you enter the document number(s) of the document(s) to be
copied.
You can copy the items from the other material documents any of the following ways:
Press ENTER. The item selection screen appears. On this screen, you can select the items
to be copied.
Choose Copy to adopt all of the items on the material documents entered. The overview
screen appears.
Choose Copy + details to adopt all of the items on the material documents entered. The
detail screen of the first item appears.
You can choose Edit Cancel on the detail screen to skip the current item if you do not
want to copy that item.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Goods Receipt/Issue Slip Numbers
24 April 2001
Goods Receipt/Issue Slip Numbers
Use
When you enter a material document or a delivery, you can enter a goods receipt/issue slip
number (GR/GI slip number) in addition to the material document number.
The GR/GI slip number should only be used in those countries (Italy, for example)
where it is required by law for goods that leave the plant and are transported on
public roads.
In other countries the material document is usually sufficient, as this is printed on the
GR/GI slip number in the standard system. External document numbers can be
entered in the fields Material slip and Delivery note.
The GR/GI slip number can be assigned externally as well as internally. You can define different
number ranges for each plant, storage location, and movement type.
Activities
Printing Goods Receipt/Issue Slips
In the standard system, the GR/GI slip number is not printed on GR/GI slips. If you want to print
this number on GR/GI slips, you have two options of doing so
for standard goods receipt/issue slips, you can include the field for the GR/GI slip number in
the SAPscript form
you can call up the form MB_XAB using transaction MBXA. This form contains all of the data
that is relevant to transport and can replace the standard GR/GI slip
If you replace the standard GR/GI slip,
in Customizing for Inventory management, you have to assign a form version to the print
report SAPLMBXA in print control
you have to maintain a printer for user parameter GRD, so that the printout is carried out in
the spool
Maintaining Goods Receipt/Issue Slip Numbers When Entering Goods Movements
The initial and header screens for goods movements contain the field GR/GI slip no. (goods
receipt/issue slip number).
If assignment of GR/GI slip numbers is active in the plant, you can manually specify a GR/GI slip
number when entering goods movements or deliveries. If you do not specify a number, the
system assigns it automatically.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Serial Numbers in Goods Movements
April 2001 25
Serial Numbers in Goods Movements
Use
The R/3 System allows assignment of serial numbers to serialized materials. Numbers can be
assigned internally (by the system) and externally (by the user).
Features
Maintaining Serial Numbers for a Goods Movement
If assignment of serial numbers is mandatory and you enter a goods movement, a dialog box will
appear where you either enter your own serial number for each serialized material or have the
system assign the numbers. For example, if you post three pieces of a material, you must enter
three serial numbers (or have them assigned by the system).
If assignment of serial numbers is not mandatory, you can select Goto Serial number from the
detail screen for an item to maintain the serial numbers.
Stock Transfers
A stock transfer (plant to plant) of materials with serial number management is only possible if
the same profile is assigned to the material in both plants.
Stock Transport Orders
For goods movements for stock transport orders with no involvement of the Shipping component,
you must enter the serial numbers manually.
When goods movements for stock transport orders involve Shipping, note the following:
When a goods issue is posted for a delivery, the serial numbers are taken from the
delivery.
When a goods receipt is posted for a delivery, the serial numbers are also taken from the
delivery. If you enter the goods receipt referencing the purchase order and not the
delivery, however, you must enter the serial numbers manually.
See also:
Serial Numbers in Physical Inventory [Page 180]
Serial Numbers in Inventory Management [Ext.]
Inventory Management and Physical Inventory (MM-IM) SAP AG
Missing Parts Check
26 April 2001
Missing Parts Check
Use
A missing parts check is possible at the time of a goods receipt, other receipt, or transfer posting.
If the missing parts check function is active in the plant, the system checks whether the material
posted as a receipt is a missing part. If it is a missing part, the system issues a warning message
and sends an e-mail to the MRP controller responsible in the plant.
Prerequisites
You have to activate the missing parts check function in Customizing for Inventory Management.
Features
There are two types of missing parts messages:
non-summarized
The MRP controller receives one e-mail for each material, containing a maximum of five
MRP elements.
summarized
The MRP controller receives one mail for each material document and plant. This e-mail
contains a list of the materials for which there are missing parts (missing part materials),
but it does not contain any MRP elements.
You send these e-mails via the output function (output type MLFH).
By selecting Document Execute, the MRP controller can access backorder processing of the
missing part material in order to distribute the quantity received.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Goods Movements via Shipping
April 2001 27
Goods Movements via Shipping
Use
If the standard goods receipt/issue slips in Inventory Management are not sufficient or if you want
to plan picking, packing, and transportation in detail, you can post goods movements via the
Shipping [Ext.] (LE-SHP) application component. The system takes into account all the points
that are involved in shipping.
Prerequisites
To create a delivery via Shipping, the following data has to be maintained in the R/3 System
(refer to Creating Outbound Deliveries [Ext.]):
The plant data, sales organization, distribution channel, shipping point, and division
The sales and distribution data in the material master
The customer field in the central vendor master record, as the vendor for shipping is also the
customer
Features
You can manage the following goods movements via Shipping:
Goods issues for a delivery
Stock transfers using stock transport orders
Returns from the customer
Return deliveries to vendors
Returns for stock transport orders
You enter these goods movements from the Shipping menu (transaction code
VL01N for Create Outbound Delivery with Reference to Order or transaction code
VL01NO for Create Outbound Delivery Without Reference to Order). Goods
movements via Shipping are represented in the system by the movement types 6XX.
You can find an overview of all the movement types in the Implementation Guide
(IMG) for Inventory Management in the step Copy/Change Movement Types.
In Materials Management, you can also enter the following deliveries in the background:
Return deliveries to a vendor via Inventory Management Material Document Return
Delivery or via the transaction for goods movements (MIGO)
(also refer to Return Delivery [Page 107])
Provide components for a subcontract order via Purchase Order Reporting SC Stocks
per Vendor
(also refer to Providing Components for Existing Purchase Orders [Ext.])
Inventory Management and Physical Inventory (MM-IM) SAP AG
Goods Movements via Shipping
28 April 2001
Delivery Scheduling
When you create deliveries via Shipping, you can plan the following activities using the functions
of shipment scheduling (refer to Transportation and Delivery Scheduling [Ext.]):
Material availability date
Transportation planning date
Loading date
Goods issue date
The system takes into account the factory calendar of the issuing plant when it calculates the
material availability date.
If you post a goods movement as a delivery, the system creates a delivery, but does
not create a material document (refer to Goods Issue [Ext.]).
SAP AG Inventory Management and Physical Inventory (MM-IM)
Material Block (Material Enqueue) for Goods Movements
April 2001 29
Material Block (Material Enqueue) for Goods Movements
Use
The system uses the material block to prevent more than one goods movement being posted at a
time for the same material and thereby prevent inconsistencies between the stock quantities and
the stock values.
There are two types of material block.
Exclusive Material Block
In this procedure, when the material master data is read for the first time for a goods movement,
the plant data and the accounting data are locked exclusively up to the end of the goods
movement posting. Another user cannot work with the material during this time. This ensures that
the goods movement is valuated correctly and that the stock quantities and values are updated
correctly. The disadvantage of this procedure is the long locking time (from the time when the
material master data is read for the first time during the entry of the goods movement up to the
closing of the update posting).
Late Material Block
This procedure provides for optimization of the material block, as:
The materials are no longer blocked exclusively, the only exception being when actual data is
to be saved.
The material is blocked exclusively at the latest time possible to keep the blocking time as
short as possible
The advantage of this procedure is that several users can enter goods movements at the same
time.
The disadvantage of this procedure is that the material master record is read several times and,
in the case of an outward movement, lock entries of other users in the ATP server must be taken
into consideration. These additional accesses have a negative effect on performance.
Activities
In Customizing for Materials Management, you can set the material block by choosing General
Settings. The configuration applies to all plants in a client.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Goods Receipt
30 April 2001
Goods Receipt
Purpose
You use this component to post the receipt of goods from an external vendor or from production.
A goods receipt leads to an increase in warehouse stock.
Features
The R/3 System distinguishes between the following types of goods receipts:
Goods receipts with reference to a reservation
Goods receipts with reference to an order
Other goods receipts
SAP AG Inventory Management and Physical Inventory (MM-IM)
Planning Goods Receipts
April 2001 31
Planning Goods Receipts
Use
The Inventory Management component can handle both planned goods receipts and unplanned
goods receipts. Planning a goods receipt in advance means storing certain information that is
important for the goods receipt before the actual goods receipt is posted, for example:
What? (which material?)
How much? (in which quantity?)
When? (on which delivery date?)
From where? (from which vendor or plant?)
To where? (to which destination, into which stock?)
The goal of this planning is to simplify and accelerate the goods receipt process and to better
organize the work at the goods receiving point, so that bottlenecks can be avoided, for example.
Also, if goods receipts are planned, Materials Planning can monitor the stocks of ordered or
manufactured materials and achieve an optimal inventory balance.
Unless receipts are planned, the system cannot track materials that have been ordered. Planned
receipts, therefore, are crucial to regulating the level of inventory in the warehouse. Planned
receipts are also important for determining whether you have received materials promised by
vendors or in-house production. Without them, the system cannot establish a link between orders
and received material.
Features
Depending on the source of information (that is, the document in which the data relevant to
planning is stored), the system distinguishes between three types of planned goods receipts:
planned goods receipts using purchase orders
If you use the Purchasing component to order materials from a vendor, you do not have
to plan goods receipts manually. The purchase orders created by MM Purchasing
contain all of the information needed for planning the goods receipt.
planned goods receipts using production orders
If you plan production orders with the PP component, you do not need to plan goods
receipts from production manually. The orders contain all information necessary to plan a
goods receipt.
planned goods receipts using reservations
If your company does not have the MM Purchasing component or the PP Production
Orders component, you enter reservations to plan goods receipts from the vendor or
from production.
Although reservations can be used to plan goods receipts, their main purpose is to
plan goods issues (or withdrawals). Refer to Reservation [Page 136].
Inventory Management and Physical Inventory (MM-IM) SAP AG
Planning Goods Receipts
32 April 2001
Monitoring Planned Goods Receipts
The planned goods receipts are shown as follows in the output list for the stock overview and
plant availability:
Planning via... Stock
Purchase order Open PO quantity (total)
Order Open order quantity (total)
Reservation Planned receipts
The documents used to plan goods receipts serve as reference documents for entering the
goods movement.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Planning Goods Receipts Using Purchase Orders
April 2001 33
Planning Goods Receipts Using Purchase Orders
Use
If you want to plan goods receipts using the Purchasing component, this component provides two
sources of information for planning the receipt of ordered goods:
the purchase order
the shipping notification
Features
Information in a Purchase Order
When a purchase order is saved, the receipt of the ordered material is considered to be planned,
because the purchase order contains all of the data relevant for the goods receipt, as follows:
Goods Receipt Indicator
This indicator specifies whether a goods receipt is expected to occur for this order item and, thus,
whether the item is relevant for Inventory Management.
Vendor
The vendor from whom the goods were ordered is specified here.
Goods Receipt Message
The buyer can define in the purchase order that he/she is informed of every goods receipt. In the
case of a goods receipt, he or she receives a corresponding MAIL message.
Material and Quantity
The ordered material and the quantity to be delivered, which are specified in the purchase order,
are automatically proposed during entry of the goods receipt.
Underdelivery and Overdelivery Tolerances
The purchasing department can specify in the purchase order that the goods receipt may only be
accepted if the delivered quantity lies within the overdelivery tolerance. If the quantity of goods
received lies below the underdelivery tolerance, the system issues a warning message.
Planned Delivery Date or Week
Using reports to analyze the delivery dates or delivery weeks specified in the purchase orders,
you can determine which deliveries are expected on a particular day, that is, what amount of
work is expected at the goods receiving point, and which deliveries are not scheduled to arrive
until later.
Latest Possible Delivery Date
For seasonal articles, you can define a date in the purchase order up to which a goods receipt
will be accepted. If the goods are delivered after this date, the user receives a warning or an error
message when entering the goods receipt.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Planning Goods Receipts Using Purchase Orders
34 April 2001
Destination of the Goods
The purchasing department can order a material for the following destinations:
warehouse
consumption/usage
If material is intended for the warehouse, the orderer can define a storage location for it. This
storage location is then automatically suggested by the system during entry of the goods receipt.
If material is intended for consumption/usage, it does not go into the warehouse but is instead
passed on to the point at which it is needed. If, for example, a material was ordered for a cost
center, it is delivered directly to the appropriate department.
You can recognize items to be posted directly to consumption by the fact that they have an
account assignment category (for example, K) and an account assignment (for example, cost
center). For items to be posted directly to consumption, the purchasing department can enter a
recipient or an unloading point in the purchase order. Both specifications are automatically
proposed by the system during entry of the goods receipt. Note that you can change the
unloading point, but not the recipient.
The purchasing department can also order materials or services for which no
material master record is defined. These are usually materials or services that are
only purchased once (for example, material for paving a parking lot). The Purchasing
department uses a text to describe the materials that do not have a material number
and assigns materials to a material group, both of which are entered in the purchase
order. These materials are not included in stock; instead, when they are received,
they are posted to consumption.
Stock into Which the Goods Should be Posted
The purchasing department can specify in the purchase order whether the material should be
inspected or posted directly into unrestricted-use stock.
If the Purchasing department has set the quality inspection indicator in the purchase order item,
the system automatically suggests you post the material into quality inspection stock during entry
of the goods receipt. At this point, it is still possible to change the indicator and post the material
into unrestricted-use stock or into blocked stock. You can also post the material into quality
inspection stock, even if the inspection indicator was not set in advance by the purchasing
department.
Shipping Instructions
If the Purchasing department has specified any shipping instructions in the purchase order item,
you must confirm compliance with these instructions at the time of the goods receipt.
Minimum Remaining Shelf Life
Purchasing can specify a minimum remaining shelf life in the purchase order which is different
from the minimum remaining shelf life specified in the material master record.
If the expiration date check function is active, you must enter the shelf life expiration date or the
production date of the material at the time of the goods receipt. The system then checks whether
the remaining shelf life specified in the purchase order can be observed. If not, either a warning
or an error message (depending how the system is configured) is issued.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Planning Goods Receipts Using Purchase Orders
April 2001 35
Batch
If it is known, a batch can already be entered in the purchase order. Note that this batch cannot
be changed when the goods receipt is entered.
When entering a goods receipt, you can also search for purchase orders using the following
search criteria:
Vendor
Material
Delivery date
EAN/UPC code
Material number used by vendor
Information Contained in the Shipping Notification
The shipping notification permits more precise planning of the delivery advised by the vendor. In
the shipping notification, Purchasing can record the following data relevant for goods receipt:
delivery date for each of the notified quantities
means of transport (for example, truck registration number)
When entering the goods receipt, you can search for this number)
bill of lading
EAN/UPC code
material number used by vendor
Inventory Management and Physical Inventory (MM-IM) SAP AG
Planning Goods Receipts Using Orders
36 April 2001
Planning Goods Receipts Using Orders
Use
If you use the Production Order component to plan production orders, this component provides a
source of information for planning the receipt of goods manufactured in-house.
Features
Information in an Order
When an order is released, the receipt of the ordered material is considered to be planned,
because the order contains all of the data relevant for the goods receipt, as follows:
Goods Receipt Indicator
The goods receipt indicator specifies whether a goods receipt is expected to occur for the order
and, thus, whether the order is relevant for Inventory Management.
Plant
The plant specified in the order is the plant where the goods receipt occurs.
Material and Quantity
The material and the quantity manufactured are automatically proposed during entry of the goods
receipt.
Underdelivery and Overdelivery Tolerances
Production or Material Requirements Planning can specify that the goods receipt may only be
accepted if the delivered quantity lies within the overdelivery tolerance. If the delivered quantity is
below the underdelivery tolerance, the system issues a warning message.
Planned Delivery Date
Using reports to analyze the delivery dates specified in the orders, you can determine which
deliveries are expected on a particular day, that is, what amount of work is expected at the goods
receiving point, and which deliveries are not scheduled to arrive until later.
Destination of the Goods
As in the case of an external purchase order, the following destinations can be defined for a
manufactured material:
warehouse
consumption/usage
If material is intended for the warehouse, Production or Materials Requirement Planning can
define a storage location for it. This storage location is then automatically suggested by the
system during entry of the goods receipt.
If a material is intended for consumption/usage, the order contains an account assignment (for
example, a cost center, project, sales order, etc.). For items to be posted directly to
consumption/usage, Production or Material Requirements Planning, you can enter a recipient or
an unloading point in the order. Both specifications are automatically proposed by the system
SAP AG Inventory Management and Physical Inventory (MM-IM)
Planning Goods Receipts Using Orders
April 2001 37
during entry of the goods receipt. Note that you can change the unloading point, but not the
recipient.
Stock into Which the Goods Should be Posted
Production can specify in the order whether the material should be inspected
If the quality inspection indicator is set in the order, the system automatically proposes to post the
material into quality inspection stock during entry of the goods receipt. At this point, it is still
possible to change the indicator and post the material into unrestricted-use stock or into blocked
stock. You can also post the material into quality inspection stock, even if the inspection indicator
was not set in advance.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Planning Goods Receipts Using Reservations
38 April 2001
Planning Goods Receipts Using Reservations
Use
You enter reservations for planned receipts for either of the following reasons: to plan goods
receipts from production if your company does not use the PP Production Orders component to
plan goods receipts from vendors, if your company does not use the MM Purchasing component
These sorts of planned receipts can only be posted to the warehouse; they cannot be posted to
consumption/usage.
Activities
To create a reservation, choose Reservation Create from the Inventory Management menu.
(See Create Reservation [Page 138]).
SAP AG Inventory Management and Physical Inventory (MM-IM)
Goods Receipts for Purchase Orders
April 2001 39
Goods Receipts for Purchase Orders
Use
If your company uses the MM Purchasing component, deliveries from vendors are most likely the
result of purchase orders initiated by the purchasing department.
The purchase order is not only the document with which the purchasing department orders goods
from the vendor; it is also an important planning and tracking tool for the following departments:
Purchasing, Material Requirements Planning (MRP), Inventory Management, and Invoice
Verification.
Features
Reference to a Purchase Order
If a material is delivered for a purchase order, it is important for all of the departments involved
that the goods receipt entry in the system references this purchase order, for the following
reasons:
Goods receiving can check whether the delivery actually corresponds to the order.
The system can propose data from the purchase order during entry of the goods receipt
(for example, the material ordered, its quantity, and so on). This simplifies both data
entry and checking (overdeliveries and underdeliveries).
The delivery is marked in the purchase order history. This allows the Purchasing
department to monitor the purchase order history and initiate reminder procedures in the
event of a late delivery.
The vendor invoice is checked against the ordered quantity and the delivered quantity.
The goods receipt is valuated on the basis of the purchase order price or the invoice
price.
How do you find the correct purchase order?
The purchase order number is usually listed on the delivery note, which is attached to the
ordered goods and passed on by the vendor to the goods receiving point.
If the purchase order number is not on the delivery note, you can search in the system for the
purchase order that initiated the delivery using the material number or vendor number (see
Entering a Goods Receipt for a Purchase Order [Page 41]).
Destination of the Goods
Warehouse
If material is intended for the warehouse, the orderer can define a storage location for it. This
storage location is then automatically proposed by the system during entry of the goods receipt,
and you can accept or change it. If no storage location is entered in the purchase order, you have
to specify a storage location when you enter the goods receipt.
Goods receipts for the warehouse can be posted to three different stock types:
To unrestricted-use stock
Inventory Management and Physical Inventory (MM-IM) SAP AG
Goods Receipts for Purchase Orders
40 April 2001
To stock in quality inspection
To blocked stock
You can define in the purchase order whether or not the material is to be posted to stock in
quality inspection. However, at the time of goods receipt you decide to which stock type the
material is posted.
Consumption
If the material is intended for consumption (order items with account assignments), the
Purchasing department can specify a recipient or an unloading point. Both specifications are then
automatically proposed by the system during entry of the goods receipt. You can still change the
unloading point when you enter the goods receipt, but you cannot change the recipient.
Goods receipt blocked stock
You can conditionally accept a delivery. You record such deliveries in goods receipt blocked
stock. Unlike goods receipts to the warehouse, the receipts posted to the goods receipt blocked
stock are not yet part of the valuated stock.
For the most part, goods receipts into the warehouse and into consumption are
posted using the same movement type (see Entering a Goods Receipt for a
Purchase Order [Page 41]). Goods receipts into goods receipt blocked stock are
explained in Goods Receipts into Goods Receipt Blocked Stock [Page 62].
SAP AG Inventory Management and Physical Inventory (MM-IM)
Entering a Goods Receipt for a Purchase Order
April 2001 41
Entering a Goods Receipt for a Purchase Order
Prerequisites
If you have received the delivery note from the vendor, and you have verified that the delivery
was based on a purchase order, you can enter the goods receipt in the R/3 System.
Automatic Generation of Purchase Order at Goods Receipt
If you receive a delivery for which no purchase order exists, you can still post the goods receipt.
In this case, the system generates an automatic purchase order at the vendor, if this has been
set for each movement type in Customizing. The goods receipt is valuated at the price defined in
the purchasing info record in the first instance. To do this, a purchasing organization must be
assigned to the receiving plant. You cannot post movements into GR blocked stock with this
function.
In the automatic generation of purchase order process, you can also verify an invoice
immediately after the goods receipt is posted.
This function is useful if a vendor delivers urgently required material for which you could not enter
a purchase order for time reasons.
You can only generate purchase orders automatically for valuated materials and for
movement types for which you can enter goods receipts for purchase orders, for
example, movement types 101 and 161. For a future release, SAP plans to include
this function for non-valuated materials.
Return for Purchase Order
When you are posting a goods receipt for purchase order, you can also enter items that you want
to return to the vendor. To do this, you no longer have to reference the purchase order with which
the goods were originally delivered. From the item overview, choose Process Without
purchase order Enter and enter the default values for the new item. Choose 161 (Return for
purchase order) as the default value for the movement type. Enter the data for the returns item and post the
document.
In Customizing, you can configure the system so that a purchase order is generated in the
background for the returns items. This purchase order is required if you want to carry out invoice
verification for the credit memos issued by the vendor for the returns.
Procedure
1. From the Inventory Management menu, choose Goods movement Goods receipt
For purchase order PO number known or PO number unknown.
This takes you to the initial screen for this function.
2. Enter the data on the initial screen:
a. Enter the header data.
b. Select the movement type.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Entering a Goods Receipt for a Purchase Order
42 April 2001
If the quantity delivered is intended for the warehouse or for consumption/usage,
select Movement type PO to warehouse (Movement type 101).
If the total quantity is to be posted to GR blocked stock, choose Movement type
PO to blocked stock (see section Goods Receipts Into Goods Receipt Blocked Stock
[Page 62]).
c. Enter the purchase order number. In addition, you can enter the plant and a purchase
order item, in order to restrict selection of the purchase order items.
If you selected PO number not known, you can specify search criteria for the
purchase orders on the initial screen. The system then displays a list of purchase
orders. Select and copy the required purchase order items.
The item selection list is displayed. This list contains all of the purchase order items that
satisfy the criteria entered.
3. Select the purchase order items to be copied. If necessary, you can change data in the
selected items on this screen.
4. Copy (adopt) the selected items.
5. Post the document.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Entering a Goods Receipt for a Shipping Notification
April 2001 43
Entering a Goods Receipt for a Shipping Notification
If a shipping notification for a purchase order exists, you reference this shipping notification when
entering the goods receipt. If you do not known the shipping notification number, you can search
for it via the transport identification (such as the truck registration number).
To enter a goods receipt with reference to a shipping notification, proceed as follows:
1. From the Inventory Management menu, select Goods movement Goods receipt For
purchase order PO number not known. The initial screen of the function appears.
2. Enter the data on the initial screen:
If the quantity delivered is intended for the warehouse or for consumption/usage, select
Movement type PO to warehouse (Movement type 101).
If the total quantity is to be posted to GR blocked stock, choose Movement type PO to
blocked stock (see section Goods Receipts Into Goods Receipt Blocked Stock [Page
62]).
Enter the shipping notification number in the Delivery field.
The item selection list is displayed. This list contains all notified purchase order items.
For each item, the system suggests the quantity that has been notified.
3. Select those purchase order items that you want to be copied into the material document.
If necessary, you can change data in the selected items on this screen.
4. Copy (adopt) the selected items.
5. Post the document.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Results of a Goods Receipt Posting
44 April 2001
Results of a Goods Receipt Posting
A goods receipt has the following results in the system:
Creation of a Material Document
When you post a goods receipt, the system automatically creates a material document which
serves as proof of the goods movement.
You can display the material document (see Displaying a Material Document [Page 18]).
Creation of an Accounting Document
Parallel to the material document, the system creates an accounting document. The accounting
document contains the posting lines (for the corresponding accounts) that are necessary for the
movement.
From the screen displaying the material document, you can display the accounting document.
Creation of a Goods Receipt/Issue Slip
When you enter the goods receipt, you can print the goods receipt/issue slip (for example, goods
receipt slip or pallet note) at the same time (see Print Functions [Page 214]).
Sending a Mail Message to Purchasing
If the GR message indicator has been set in the purchase order, the buyer automatically receives
a message informing him of the delivery.
Stock Update
Which stocks are updated in the material master record depends on the destination of the goods:
Goods receipt into the warehouse
If the goods are destined for the warehouse, the system increases total valuated stock
and the stock type (for example, the unrestricted-use stock) by the delivered quantity.
The stock value is updated at the same time.
Goods receipt into consumption
If the goods are destined for consumption, only the consumption statistics are updated in
the material master record.
The system does not update the consumption statistics in the material master record, if
you post goods movements using the special stock types Sales order stock and Project
stock.
Goods receipt into goods receipt blocked stock
If the goods receipt is posted into goods receipt blocked stock (see also Goods Receipts
Into Goods Receipt Blocked Stock [Page 62]), the stock level remains the same. The
goods are recorded only in goods receipt blocked stock of the purchase order history.
Goods receipt into a new storage location
If you post goods into a storage location that does not yet exist for this material, the
storage location data is automatically created in the material master record when the
goods receipt is posted.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Results of a Goods Receipt Posting
April 2001 45
Note, however, that this is only true if automatic creation of storage location data is
allowed for both the plant and the movement type in question in the Customizing system.
If automatic creation is not allowed, you must add the new storage location to the
material master record before you post a goods receipt to it.
Update of G/L Accounts
When the goods receipt is posted, the system automatically updates the G/L accounts by the
value of the goods receipt (see also MM – Material Price Change [Ext.]).
Updates can also occur in other related applications. In the case of a goods receipt to
consumption, for example, the account assignment object (such as a cost center, order, asset,
etc.) is debited.
Updates in the Purchase Order
When a goods receipt is posted, the following purchasing data is updated:
Purchase order history
During goods receipt posting, a purchase order history record is automatically created.
This record contains data essential for Purchasing, such as: the delivered quantity, the
material document number and item, the movement type, and the posting date of the
goods receipt.
Purchase order item
If the "delivery completed" indicator is set in the material document, the order item is
considered closed, and the open purchase order quantity is set to zero.
Other Updates
Depending on the characteristics of the material, movement, and components used, additional
updates are carried out in other components. For example, a goods receipt is relevant for:
Entries to be made in the planning file or independent requirements reduction in
materials planning
Statistical data in Inventory Controlling
Vendor evaluation data in Purchasing
Transfer requirements and quanta in the Warehouse Management System
Inspection lots in Quality Management
Inventory Management and Physical Inventory (MM-IM) SAP AG
Underdeliveries, Overdeliveries, and Final Deliveries
46 April 2001
Underdeliveries, Overdeliveries, and Final Deliveries
Use
During entry of a goods receipt for a purchase order, the system proposes the item's open
purchase order quantity as the quantity received. If the quantity delivered differs from the open
order quantity, you can change the proposed quantity.
Whenever you enter a goods receipt item, the system compares the quantity delivered with the
open order quantity. The R/3 System can therefore determine and report under or overdeliveries
immediately.
What Is the Open Purchase Order Quantity?
The open purchase order quantity is the quantity still to be delivered for an order item. It is
calculated as the difference between the quantity ordered and the quantity delivered to date. If
the entire order quantity or more has already been delivered, the open purchase order quantity
equals zero.
The open purchase order quantity is automatically adjusted whenever goods are received for an
order item or when the order item is changed.
Underdeliveries
In the standard SAP System, underdeliveries are allowed. The system interprets the quantity
received as a partial delivery and accepts it as such. The system issues a warning message
indicating that there has been an underdelivery.
It is also possible to enter an underdelivery tolerance percentage in the order item. When a
quantity of goods is received that lies within the underdelivery tolerance range, the quantity is
interpreted as a partial delivery and is accepted as such. The system does not issue a warning
message. If the quantity of goods received lies below the underdelivery tolerance, the system
issues a warning message.
If the underdelivery is not a partial delivery but a final delivery, you have to set the "delivery
completed" indicator.
In the Customizing system, you can define that the “delivery completed” indicator is
set automatically if the underdelivery lies within the tolerance limits. In this case, the
system interprets any underdeliveries within the tolerances as final deliveries.
Overdeliveries
In the standard SAP System, overdeliveries are not allowed. In the event of an overdelivery, the
system issues an error message.
If overdeliveries are to be allowed, the following data can be maintained in the purchase order:
Unlimited indicator
If this indicator is set, overdeliveries of any size are allowed. The system does not issue
any message.
Overdelivery tolerance
SAP AG Inventory Management and Physical Inventory (MM-IM)
Underdeliveries, Overdeliveries, and Final Deliveries
April 2001 47
In the purchase order, an overdelivery tolerance percentage can be specified. If a
quantity of goods is received that is larger than the order quantity plus the overdelivery
tolerance, it is not accepted by the system.
"Delivery completed" indicator
The "delivery completed" indicator specifies whether an purchase order item is considered
closed. This means that no more goods receipts are expected for this item. If the "delivery
completed" indicator is set, the open purchase order quantity becomes zero, even if the full
quantity has not been delivered. It is still possible to post goods receipts of remaining quantities,
but these no longer change the open purchase order quantity.
In Customizing for Inventory Management, you can define that the “delivery completed” indicator
is set automatically in the order if:
the total quantity was delivered
the underdelivery or overdelivery lies within the tolerences
If an underdelivery lies outside the tolerances, you can set this indicator manually for the order
item during entry of the goods receipt to indicate that delivery for the order item is to be
considered complete.
If you enter a return delivery or reversal for an item whose "delivery completed" indicator has
already been set, so that the delivered quantity falls below the underdelivery tolerance limit, the
“delivery completed” indicator is automatically reset. In this case, the system issues a warning
message informing you that the “delivery completed” indicator has been reset. If you are not
expecting another delivery, you can reset the “delivery completed” indicator manually. After you
do this, the system will no longer change the “delivery completed” indicator automatically.
The “delivery completed” indicator has the following effects:
The purchase order item is considered closed, even though the total quantity may not
have been delivered.
Although a further delivery is not expected, it is still possible.
At the time of the next goods receipt, the system suggests the item as unselected in the
item selection list.
The purchase order item can be deleted, even if the total quantity was not delivered..
Although the “delivery completed” indicator is not set, a purchase order item is still
considered closed if the full quantity has been delivered. In this case, the “delivery
completed” indicator is not required.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Several Goods Receipt Items Per Order Item
48 April 2001
Several Goods Receipt Items Per Order Item
Use
If you post a goods receipt with reference to a purchase order, the system converts every
selected order item into a goods receipt item. This means that exactly one goods receipt item is
created for each order item.
In some cases, however, several goods receipt items may be required for an order item, for
example if:
The delivered material is to be placed into storage in several storage locations
A partial quantity is to be posted to quality Inspection
The delivered quantity consists of several batches
The following two functions enable these cases to be handled in a single document:
Distributing quantities
Distributing quantities among storage locations or batches
Activities
Distribute Quantity
You use this function to post a partial quantity into quality inspection stock or into goods receipt
blocked stock, for example.
To distribute an item’s quantity when you enter a goods receipt with the transaction for goods
movements (MIGO), place the cursor on the required line and choose Distribute quantity. A
dialog box is displayed in which you can distribute the quantity among several storage locations,
stock types, or movement types. You can find out which quantity you have already distributed by
choosing Check. The system displays this quantity in the Already distributed: field. If you have
distributed the total quantity, you can copy your entries to the item overview by choosing Adopt.
Distributing Quantities Among Storage Locations or Batches
To distribute the delivered quantity among several storage locations or batches, you can use the
storage location/batch selection list: In this selection list, you can distribute the quantity of order
items among various storage locations or batches. The system creates a goods receipt item for
every item on the list.
To distribute the quantity of an order item among various storage locations or batches, enter * in
the Storage Location field. In the case of a material that is not handled in batches, the storage
location selection list appears. In the case of a material that is handled in batches, the storage
location selection list and batch selection list appear.
Storage Location Selection List
If the material is not handled in batches, the storage location selection list contains all of the
storage locations at which the material is stored.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Several Goods Receipt Items Per Order Item
April 2001 49
Storage Location and Batch Selection List
If the material is handled in batches, the selection list contains all of the batches of the material,
with the respective storage location. If you enter a storage location and * in the Batch field, the
selection list contains only the batches in the specified storage location.
Remember that the batch selection list does not work with special stocks.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Goods Receipts Using the Order Price Unit
50 April 2001
Goods Receipts Using the Order Price Unit
Use
If the purchase order contains an order price unit that differs from the order unit (for example,
order quantity in pieces, order price refers to kilos), you must enter the goods receipt in both
units.
Entering the goods receipt quantity in both units of measure is important for three reasons:
The goods receipt is valuated on the basis of the goods receipt quantity in the order price
unit.
Invoice verification is based on the goods receipt quantity in the order price unit.
Entering the goods receipt in the order price quantity allows the system to immediately
detect and report variances in the order price quantity during the goods receipt.
Variance Tolerances
In the Customizing system for Inventory Management, you can define two tolerances for
variances in the order price quantity:
Tolerance for an error message: if the variance is larger than this tolerance specified, the
system issues an error message, and you cannot post the goods receipt.
Tolerance for a warning message: if the variance reaches this tolerance specified, the
system issues a warning message during entry of the goods receipt. However, you can
still post the goods receipt. The buyer receives a message pointing out the discrepancy.
Activities
Assume you ordered a material in pieces (100 pieces), but the vendor calculates quantities in
kilograms (because the material contains precious metals, for example). One piece weighs 4 kg
and 1 kg costs $10 (currency USD). The total value of the ordered goods is therefore $4000.
When the goods arrive, they are counted and weighed at the goods receiving point. This process
reveals that each piece weighs 4.4 kg. You post the goods receipt in the system (see Entering a
Goods Receipt for a Purchase Order [Page 41]).
As an order price quantity, the system proposes the entered goods receipt quantity, converted
with the conversion factor specified in the purchase order. In the example, the system proposes
400 kg for the 100 pieces.
Check the proposed quantity in the order price unit and correct it if the measured quantity differs
from it. In the example, you would change the 400 kg to 440 kg. This corresponds to a variance
of 10 % in the order price quantity.
Results of the Goods Receipt Posting
The delivered quantity is updated in the purchase order in both units of measure, and the value
of the goods receipt (in this case, $4400) is recalculated on the basis of the correction. This is
evident in the statistical data of the purchase order item.
See also:
Purchase Order Price Quantity Variance [Ext.]
SAP AG Inventory Management and Physical Inventory (MM-IM)
Goods Receipts Using the Order Price Unit
April 2001 51
Inventory Management and Physical Inventory (MM-IM) SAP AG
Changing the Format of the Selection Screen
52 April 2001
Changing the Format of the Selection Screen
Use
At the time of a goods receipt for a purchase order, you may have to change the display format of
the selection list in a way that allows you to maintain the following data:
Vendor material (material number used by vendor)
EAN number
Shelf life expiration date/production date
Reference document
Activities
From the initial screen, or selection screen, choose Edit Format and the desired option.
The format “Shelf life expiration date” is only displayed if the shelf life expiration date check is
active for the material.
Setting a User Parameter
If you always use one specific format, you can predefine it in the user parameter SIC. This
parameter can be defined as follows:
00 format including material number (default)
01 format including vendor material
02 format including EAN
03 format including shelf life expiration date and date of production
04 format including reference document (material document in goods-receipt-based
Invoice Verification)
SAP AG Inventory Management and Physical Inventory (MM-IM)
Entering EAN/UPC
April 2001 53
Entering EAN/UPC
When entering a goods receipt for a purchase order, you can also enter an International Article
Number/Universal Product Code (EAN/UPC) or copy it from the purchase order.
In the material master record, you can define one or more EANs/UPCs for each unit of measure.
Numbers can be assigned both internally and externally.
It is not possible to enter a EAN/UPC for a purchase order item in the purchase order. However,
the EAN/UPC for the order unit is stored in the purchase order.
When you enter a goods receipt for a purchase order, you can specify the following two
EAN/UPC:
EAN for OUn (order unit)
At the time of a goods receipt for a purchase order, the system suggests the EAN/UPC
for the order unit from the purchase order. If you enter a different EAN/UPC, the system
checks whether this number already exists for the unit of measure in the material master
record. If it does not exist, the system reacts as follows:
If numbers are assigned externally, the new EAN/UPC is created if it is valid.
If numbers are assigned internally, the system issues an error message.
EAN check
For checking purposes, you can enter another EAN/UPC for another unit of measure
(suggestion: stockkeeping unit) in addition to the EAN/UPC for the order unit. If the
EAN/UPC does not yet exist, the system creates it in the material master record provided
that numbers are assigned externally.
You can maintain the EAN/UPC on the detail screen of an item or in the item selection list (format
including EAN).
Inventory Management and Physical Inventory (MM-IM) SAP AG
Entering a Freight Supplier
54 April 2001
Entering a Freight Supplier
Use
When you enter a goods receipt for a purchase order, you can specify a freight supplier (also
called freight vendor) that differs from the vendor in the purchase order. The system assigns the
delivery costs to the vendor.
Prerequisites
You can only enter a freight supplier if the condition type for delivery costs allows you to do
so in Customizing for Purchasing, i.e. when the Vendor GR indicator is set.
You can only enter a freight supplier if it is defined in the condition type in the purchase order
Activities
On the detail screen for the item, choose Goto Freight supplier.
A dialog box appears in which you can assign a freight supplier to the condition type.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Shelf Life Expiration Date Check
April 2001 55
Shelf Life Expiration Date Check
Use
You can check the shelf life of a material when you enter a goods receipt. You thereby ensure
that you store only materials that are still usable.
Prerequisites
The shelf life is only checked if the following prerequisites are met:
The minimum remaining shelf life is maintained in the material master record or in the
purchase order. The minimum remaining shelf life is the minimum number of days for
which the material must keep for the goods receipt to be accepted by the system.
The shelf life expiration date check is active for the plant and movement type in
Customizing for Inventory Management.
Features
Relevant Indicators in Material Master Record
In the material master record, the following indicators are relevant to the expiration date check:
Minimum remaining shelf life in days
Total shelf life in days
If you do not enter a total shelf life, enter the shelf life expiration date directly at the
time of a goods movement.
If you do enter a total shelf life, enter the date of production at the time of a goods
movement. The system automatically calculates the expiration date from the date of
production plus total shelf life.
Both indicators are located in the storage data of the material master record.
Activities
Enter Shelf Life Expiration Date/Production Date
You can maintain the production date or shelf life expiration date in the detailed data for an item
each time you enter a goods movement.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Shelf Life Expiration Date Check for Materials W/o Batch Mgmt Reqmt
56 April 2001
Shelf Life Expiration Date Check for Materials W/o Batch
Mgmt Reqmt
Use
The following functions are supported when a material is not handled in batches:
Entry and Check Upon Goods Receipt
Printout on Goods Receipt/Issue Slip
Features
Entry and Check upon Goods Receipt
If the expiration date check function is active, you must enter the shelf life expiration date or the
production date of the material at the time of the goods receipt.
Upon goods receipt, the system checks whether the remaining shelf life is sufficient to satisfy the
remaining shelf life required in the purchase order or in the material master record. If it is not, the
system issues a warning message or error message (depending on how the system is
configured).
When you post the goods receipt, the shelf life expiration date is recorded in the material
document.
Printout on Goods Receipt/Issue Slip
The expiration date is printed on the goods receipt/issue slip.
If the Warehouse Management system (LE-WM) is active, the expiration date is recorded in the
transfer requirement, in the transfer order, and in the quant. In this case, the printed transfer
order serves as a pallet note.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Expiration Date Check for Materials Handled in Batches
April 2001 57
Expiration Date Check for Materials Handled in Batches
Use
If a material is handled in batches, the following functions are supported when the expiration date
is checked:
Entry and Check at Goods Receipt
Printout on Goods Receipt/Issue Slip
Analysis of Batches According to Shelf Life Expiration Date
Batch Determination by Expiration Date upon Goods Issues
Features
Entry and Check at Goods Receipt
If the expiration date check function is active, you must enter the shelf life expiration date or
production date of the batch at the time of the goods receipt.
Upon goods receipt, the system checks whether the remaining shelf life is sufficient to satisfy the
remaining shelf life required in the purchase order or in the material master record. If it is not, the
system issues a warning message or error message (depending on how the system is
configured).
When you post the goods receipt, the shelf life expiration date is recorded in the material
document and in the batch master record.
If the batch already exists, the system also checks whether the shelf life expiration date specified
or determined at the time of the entry corresponds with the expiration date contained in the
material master record. If the dates are different, the system issues either a warning message or
error message (depending on how the system is set). If you post the goods receipt despite
receiving a warning message, the system overwrites the old shelf life expiration date in the batch
master record.
Printout on Goods Receipt/Issue Slip
The expiration date is printed on the goods receipt/issue slip.
Analysis of Batches According to Shelf Life Expiration Date
You can generate an expiration date list (SLED list), which contains the following data for each
batch: remaining shelf life, shelf life expiration date, and quantity. To do this, choose Environment
Stock Expiration date list from the Inventory Management menu.
Batch Determination by Expiration Date upon Goods Receipts
If you enter a goods issue in Inventory Management or a delivery in Sales and Distribution, you
can use the batch determination function to select batches according to the shelf life expiration
date.
If the Warehouse Management system (LE-WM) is active, the expiration date is recorded in the
transfer requirement, in the transfer order, and in the quant. In this case, the printed transfer
order serves as a pallet note. Batch determination can take place in Warehouse Management,
Inventory Management, or Sales and Distribution.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Expiration Date Check for Materials Handled in Batches
58 April 2001
See also:
Batch Determination [Page 203]
SAP AG Inventory Management and Physical Inventory (MM-IM)
Goods Receipt of Non-Valuated Materials
April 2001 59
Goods Receipt of Non-Valuated Materials
Use
If the stock of a given material is only managed on a quantity basis, an account assignment must
be defined in the purchase order. However, this account assignment does not result in the goods
receipt being posted to consumption/usage. Instead, it results in the costs being debited to the
account assignment object.
The goods receipt is posted to the warehouse stock, thus increasing the unrestricted-use stock of
the material.
It is not possible to post goods receipts of non-valuated materials directly into
consumption/usage. You have to post the goods receipt into the warehouse first and
then enter a goods issue.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Shipping Instructions
60 April 2001
Shipping Instructions
Purchasing can specify packaging and shipping instructions in the order item. If compliance with
shipping instructions is to be used as one of the criteria for vendor evaluation, it is necessary to
check during goods receipt whether the vendor has complied with these instructions or not.
If the order item contains shipping instructions, a box will be displayed automatically during
goods receipt where you can confirm compliance with the shipping instructions.
You can manually display this window by selecting Goto More functions Shipping instr....
from the item's detail screen.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Goods Receipt When Quality Management (QM) is Active
April 2001 61
Goods Receipt When Quality Management (QM) is
Active
The SAP System differentiates between two different forms of quality management:
Quality Management in Material Procurement
Quality Management in Material Inspection
Quality Management in Material Procurement
If quality management is active for procurement, you can define in the material master record
(Quality Management screen) that a certificate is required for the material.
If a certificate is required, the system displays a box during goods receipt for a purchase where
you can confirm the receipt of a certificate.
Quality Management in Material Inspection
If an inspection at the time of goods receipt has been defined for the material, the system
automatically creates an inspection lot when the goods receipt is posted. Quality Management
uses this inspection lot to carry out the inspection.
For detailed information on the Quality Management system, see the QM Guide
Inspection Process.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Goods Receipts into Goods Receipt Blocked Stock
62 April 2001
Goods Receipts into Goods Receipt Blocked Stock
Use
Material can flow directly from goods receipt into consumption/usage or into the warehouse.
However, It may also be placed into a blocked stock area first.
Using the stock type, you can post the material into quality inspection stock or into blocked stock.
In both cases, the material is already managed in the stock. Alternatively, the material can be
conditionally accepted. Conditionally accepted deliveries for a purchase order are recorded in
goods receipt blocked stock (GR blocked stock).
The quantity posted into goods receipt blocked stock is not added to the inventory or managed
as part of the inventory. It is only recorded in the purchase order history.
You would use goods receipt blocked stock, for example, if the vendor's certificate for the
delivered quantity were missing, or if you wanted to inspect a small quantity of the material
before posting the actual goods receipt.
When the conditions for acceptance are met, the material can be accepted into stock (for
example, into unrestricted-use stock). The goods receipt is not valuated until this point.
If the goods are to be returned to the vendor, instead, they can be taken directly from goods
receipt blocked stock. Note, however, that a return delivery is possible even if the material was
already posted into stock.
Warehouse
GR blocked
stock A A
A
Vendor
SAP AG Inventory Management and Physical Inventory (MM-IM)
Posting a Goods Receipt into Goods Receipt Blocked Stock
April 2001 63
Posting a Goods Receipt into Goods Receipt Blocked
Stock
When you post a goods receipt into goods receipt blocked stock, you must first decide whether
you want to post the entire delivery or only specific items into goods receipt blocked stock.
Posting the Entire Delivery
To post all items of a purchase order into goods receipt blocked stock, proceed as described in
the section Entering a Goods Receipt for a Purchase Order [Page 41], but use movement type
PO to blocked stock (103) instead of movement type PO to warehouse (101).
All of the order items are posted into goods receipt blocked stock with movement type 103.
Since the material is not to be added to the inventory yet, do not enter a storage location.
Apart from these differences, you can follow the procedure described in the section Enter Goods
Receipt for Purchase Order.
Posting Specific Items Only
You only want to post certain items rather than the whole delivery into goods receipt blocked
stock.
If you only want to post certain items into goods receipt blocked stock, you post the goods receipt
as described in “Entering a Goods Receipt for a Purchase Order” and enter the items as follows:
1. Choose Goods Movement Goods Receipt For Purchase Order.
2. Maintain the data on the initial screen. Select movement type 101 (PO to warehouse).
3. On the item selection list, deselect (that is, remove the check mark from) the items that
you want to post into goods receipt blocked stock. For all other items, use movement
type 101 (PO to warehouse). Note the item numbers of the order items you want to post
into goods receipt blocked stock.
4. To enter new items, choose Goods receipt Create w. reference To purchase order.
5. A window appears. In the box, enter the following data:
a) Movement type 103 (or select the movement type for Goods receipt for PO into
blocked stock via the possible entries button)
b) The purchase order number and the item numbers of the order items you want to
post into goods receipt blocked stock.
6. Press ENTER. The new items are copied with movement type 103 into the item selection
list. No storage location is specified for these items.
7. Process all selected items and post the material document.
Results of the Goods Receipt Posting
A goods receipt posting into goods receipt blocked stock has the following results:
Creation of the material document
If the entire delivery is posted into goods receipt blocked stock, the material document
serves only as a log recording the arrival of the goods.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Posting a Goods Receipt into Goods Receipt Blocked Stock
64 April 2001
For line items that are posted into goods receipt blocked stock no accounting-relevant
posting lines are created. No accounting document is created.
Stock update
In a goods receipt into goods receipt blocked stock, neither total valuated stock nor any
of the stock types are updated. Goods receipt blocked stock is increased in the purchase
order history.
Update of G/L accounts
No values are posted to accounts, since the actual goods receipt has not yet been
entered.
Updates in the purchase order
However, the open purchase order quantity is not reduced by this quantity.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Displaying Goods Receipt Blocked Stock
April 2001 65
Displaying Goods Receipt Blocked Stock
Use
You can display goods receipt blocked stock from two viewpoints:
Goods receipt blocked stock for a material (at plant level)
Goods receipt blocked stock for a purchase order item
Activities
Displaying goods receipt blocked stock for a material
Choose Environment Stock Stock overview. From the basic list, you can call up the plant
stocks, in which the GR blocked stock is also displayed.
Displaying goods receipt blocked stock for a purchase order item
Choose Environment Information Purchase order. In the display for the purchase order you
have chosen, select an item and choose Item Statistics General.
By choosing Item Statistics PO history and then Views Blocked stock you can display
the purchase order history with respect to goods receipt blocked stock.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Releasing Material from Goods Receipt Blocked Stock
66 April 2001
Releasing Material from Goods Receipt Blocked Stock
Once the conditions of acceptance for a delivery are met, the material can be released from
goods receipt blocked stock, and its goods receipt can be posted into stock or consumption.
You can use either of the following two documents as a reference for the return delivery:
the material document with which you posted the goods into goods receipt blocked stock
the purchase order to which the goods receipt referred
Using the Material Document
When you use as a reference the material document that was created for posting the material
into goods receipt blocked stock, the system proposes for release only those items from the
material document that were posted into goods receipt blocked stock. Order items that were
posted into goods receipt blocked stock with another material document are not proposed.
To release a material from goods receipt blocked stock using a material document, follow the
steps shown here:
1. From the Inventory Management menu, choose Material document Release blocked
stock. The initial screen for the function is displayed.
2. On the initial screen, enter the number of the material document you want to reference, along
with the material document year.
3. Press ENTER. The item selection list is displayed. The list contains all of the items from the
material document that were posted into goods receipt blocked stock. The system gives the
items movement type 105 (blocked stock to warehouse).
4. Select and edit the items you want to release. If items are intended for the warehouse, enter
a storage location. Enter a stock type, if required.
5. Post the document.
Using the Purchase Order
If you use the purchase order as a reference, all of the order items that were posted into goods
receipt blocked stock are proposed for release.
You enter the release from goods receipt blocked stock like a normal goods receipt for a
purchase order, except that you use movement type 105 (Blocked stock to warehouse) instead of
movement type 101 (PO to warehouse).
1. Select Goods movement Goods receipt For purchase order.
2. Maintain the data on the initial screen. Select movement type 105 (Movement type
Blocked st. to whse).
3. Press ENTER. The item selection list is displayed.
4. Select and edit the items you want to release. If items are intended for the warehouse, enter
a storage location. Enter a stock type, if required.
5. Post the document.
Results of the Goods Receipt Posting
A release from goods receipt blocked stock has the following results:
SAP AG Inventory Management and Physical Inventory (MM-IM)
Releasing Material from Goods Receipt Blocked Stock
April 2001 67
creation of the material document
A material document is created as proof of the goods receipt. Since the goods receipt is
valuated, an accounting document is also created.
stock update
In the purchase order history, goods receipt blocked stock is reduced by the received
quantity. If the goods are intended for the warehouse, total valuated stock and the stock
type to which the posting has been made are increased accordingly. If the purchase
order item has an account assignment, consumption of the material is increased.
update of G/L accounts
The system valuates the items of the goods receipt the same way it valuates items
procured through a purchase order.
updates in the purchase order
The release leads to an update of the purchase order history. The open purchase order
quantity is reduced by the received quantity.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Goods Receipts for Orders
68 April 2001
Goods Receipts for Orders
Use
If your company uses the PP Production Orders component, deliveries from production are the
result of orders used as a basis for manufacturing the materials required.
The production order is not only the document on the basis of which a material is manufactured;
it is also an important planning and tracking tool for the following departments: Materials Planning
and Inventory Management.
Features
Reference to an Order
When material resulting from a production order is delivered, it is important for the departments
involved that the goods receipt entry in the system reference this order, for the following reasons:
Goods receiving can check whether the delivery actually corresponds to what has been
planned.
The system can propose data from the order during entry of the goods receipt (for
example, the material produced, its quantity, and so on). This simplifies both the data
entry and checking (overdeliveries and underdeliveries).
The quantity delivered and the delivery date are updated in the order.
The order number is usually listed on the slip accompanying the delivered material. If it is not
listed on the slip accompanying the delivered material, you can find the order pertaining to the
delivery via the material number (see Entering a Goods Receipt for an Order [Page 70]).
Destination of the Goods
Finished goods can be posted either to the warehouse or consumption. Goods receipts into the
warehouse and into consumption are posted with the same movement type.
Warehouse
If the material is intended for the warehouse, a storage location can be defined in the order. This
storage location is then automatically proposed by the system during entry of the goods receipt,
and you can accept or change it. If no storage location has been entered in the order, you must
define a storage location when you enter the goods receipt.
Goods receipts for the warehouse can be posted to three different stock types:
Unrestricted-use stock
Stock in quality inspection
Blocked stock
It can be defined in the order whether or not the material is to be posted to stock in quality
inspection. However, at the time of goods receipt you decide to which stock type the material is
posted.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Goods Receipts for Orders
April 2001 69
Consumption
If the material is intended for consumption (order items with account assignments), a recipient or
an unloading point can be specified in the order. Both specifications are then automatically
proposed by the system during entry of the goods receipt. You can still change the unloading
point when you enter the goods receipt, but you cannot change the recipient.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Entering a Goods Receipt for an Order
70 April 2001
Entering a Goods Receipt for an Order
Prerequisites
If you have received the accompanying documents for the goods, and have verified that the
delivery resulted from an order, you can enter the goods receipt.
Procedure
1. Choose Goods movement Goods receipt For order.
The initial screen appears.
2. Enter the data required:
a) Enter the header data.
Document header data consists of general information about the material document.
b) Choose the desired movement type.
If the delivered quantity is intended for the warehouse or for consumption/usage,
choose Movement type Order to warehouse (movement type 101).
c) Enter the order number. When you choose Goods receipt Create w. reference To
order... from the menu, a dialog box appears in which you can enter criteria such as plant
and material to find the appropriate order.
d) Choose Continue. You obtain a list of orders corresponding to the entered criteria. In this
list, you can select individual order items and adopt them using the Copy function.
The item selection list appears. This list contains all of the items (materials) that
satisfy the criteria entered. If you entered or selected only one order, the list contains
only one item.
3. Select the items that you want to be copied into the material document.
If necessary, you can change data in the selected items on this screen.
4. Copy (adopt) the selected items.
5. Post the document.
Result
A goods receipt for an order has simliar effects in the R/3 System as those of a goods receipt for
a purchase order (refer to Results of a Goods Receipt Posting [Page 44]).
The following data in the order is also updated when a goods receipt is posted:
The goods receipt quantity is updated in the order as the quantity produced.
The order status is set to fully delivered or to partially delivered.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Underdeliveries, Overdeliveries, and Final Deliveries
April 2001 71
Underdeliveries, Overdeliveries, and Final Deliveries
Use
During entry of a goods receipt for an order, the system proposes the open order quantity as the
quantity received. If the quantity delivered differs from the open order quantity, you can change
the proposed quantity. The system compares the quantity delivered with the open order quantity.
The R/3 System can therefore determine and report under or overdeliveries immediately.
"Delivery Completed" Indicator
The "delivery completed" indicator specifies whether the delivery for an order is considered
complete. This means that no more goods receipts of the material produced are expected for this
order. The order then has the status fully delivered. If the "delivery completed" indicator is set,
the open order quantity becomes zero, even if the full quantity has not been delivered. You can
still post goods receipts for remaining quantities, but these no longer change the status.
The functions you can carry out for underdeliveries, overdeliveries, and final
deliveries when you receive goods for an order are the same as those you can carry
out when you receive goods for a purchase order (refer to Underdeliveries,
Overdeliveries, and Final Deliveries [Page 46]).
Inventory Management and Physical Inventory (MM-IM) SAP AG
72 April 2001
Goods Receipt of By-Products
Use
The SAP System allows you to post receipts of planned by-products and unplanned by-products
directly from an order or a network.
A by-product is a product that is created automatically during the production process of another
item, the main product. For example, coke and tar are obtained as by-products in the production
of gas.
Unplanned By-Products
If the by-product has not been planned in the order, you must enter the goods receipt manually.
Planned By-Products
A by-product can be planned in the order as a component with negative quantity. For this
component, a reservation item is created automatically with movement type 531 (receipt of byproduct).
You can enter the goods receipt as follows:
automatically during order completion confirmation
manually with reference to the order or reservation
Unplanned
by-products
Goods issue
of components
+ GR of by-product
Miscellaneous
goods receipt
Miscellaneous
goods receipt
Reservation
Order
Planned
by-products
SAP AG Inventory Management and Physical Inventory (MM-IM)
Entering an Unplanned Goods Receipt
April 2001 73
Entering an Unplanned Goods Receipt
1. From the Inventory Management menu, choose Goods movement Goods receipt
Other.
The initial screen for this function appears.
2. Enter the data on the initial screen:
a. Enter the header data.
b. Choose Movement type Receipt By-product To unrestricted (531) or From
network to unrestricted (581).
c. Enter the default values (plant and, if required, storage location) for the individual items.
3. Choose Continue. The collective entry screen appears. On this screen, enter the individual
items. You can enter the order or the network number representing the account assignment
object for the movement.
4. Check data on the overview screen.
5. Post the document.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Entering a Planned Goods Receipt
74 April 2001
Entering a Planned Goods Receipt
Prerequisites
To enter the receipt of a planned by-product manually, you have to reference the order or the
reservation when you enter the goods movement. This will cause the order and the reservation to
be updated.
You can enter the goods receipt as follows:
together with the goods issue of the components
by means of a separate posting
Entering Goods Receipt Together With Goods Issue of
Components
1. From the Inventory Management menu, select Goods movement Goods issue.
The initial screen for this function appears.
2. Enter the data on the initial screen:
a. Enter the header data.
b. Choose Goods issue Create w. reference To order... or To reservation...
A dialog box appears in which you can enter the order number or the reservation
number. In the By-products field, enter the value 1, so that the system also takes the byproducts
reservation items into account.
3. The system displays the item selection list for the order or the reservation. The list comprises
several pages containing
- the by-product items (movement type 531)
- the component items (movement type 261)
On each page, select, edit, and adopt (copy) the required items.
4. Check data on the overview screen.
5. Post the document.
Entering Goods Receipt Separately
1. From the Inventory Management menu, select Goods movement Goods receipt Other.
The initial screen for this function appears.
2. Enter the data on the initial screen:
a. Enter the header data.
b. Choose Goods receipt Create w. reference To order... or To reservation...
A dialog box appears in which you can enter the order number or the reservation
number. In the By-products field, enter the value 2, so that the system only selects the
by-products reservation items.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Entering a Planned Goods Receipt
April 2001 75
3. The system displays the item selection list for the order or the reservation. The list only
contains the by-product items (movement type 531).
On each page, select, edit, and adopt (copy) the desired items.
4. Check data on the overview screen.
5. Post the document.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Other Goods Receipts
76 April 2001
Other Goods Receipts
Use
In addition to the goods receipts described previously, you can enter goods receipts without
referencing another document. You enter such goods receipts by selecting Goods movement
Goods receipt Other.
Features
You can enter the following types of goods receipts this way:
initial entry of stock balances
Using this goods movement, you can transfer book inventory balances from an existing
system to the R/3 System when you first implement the Inventory Management
component.
external goods receipts without a purchase order
If your company does not use the MM Purchasing component, you enter an external
receipt as a miscellaneous goods receipt. You can plan such a movement with a
reservation.
internal goods receipts without a production order
If your company does not use the PP Production Orders component, you enter a receipt
from production as a miscellaneous (other) goods receipt. You can plan such a
movement with a reservation.
goods receipts of by-products
Goods receipts of by-products can also be entered as miscellaneous goods receipts (see
Receipt of By-Products [Page 72]).
deliveries free of charge
If you receive a delivery from a vendor free of charge for which no purchase order was
placed, you must enter the receipt of the goods as a miscellaneous (other) goods receipt.
returns from the customer
Even without a returns delivery, you can post returns from a customer into blocked stock
returns.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Initial Entry of Inventory Data
April 2001 77
Initial Entry of Inventory Data
Use
You must carry out an initial entry of stock balances when implementing the R/3 System in order
to transfer physical warehouse stocks or book inventories from an existing system into the R/3
System as book inventories. No physical movements actually take place. The initial entry of stock
balances can be carried out for the following three stock types:
Unrestricted-use stock
Stock in quality inspection
Blocked stock
If the stocks are to be transferred from a legacy system, the initial entry of stock balances for
large volumes of data is carried out via the Data Transfer Workbench (see MM Goods
Movements: Data Transfer Workbench [Ext.]).
You can also carry out the initial entry of stock balances manually.
Activities
You use the following movement types to enter an initial entry of stock balances manually:
Unrestricted-use stock (561)
Stock in quality inspection (563)
Blocked stock (565)
The quantity taken over into book inventories is posted to the appropriate stock and increases
the total valuated stock of the material.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Entering an External Goods Receipt Without a Purchase Order
78 April 2001
Entering an External Goods Receipt Without a Purchase
Order
Prerequisites
If your company does not use the Purchasing component, you cannot reference a purchase
order from the R/3 System when entering a goods receipt. In this case, you enter the external
goods receipt as a miscellaneous (other) goods receipt.
You can plan this type of movement with a reservation (see Planned Goods Receipts using
Reservations [Page 38]).
Procedure
1. From the Inventory Management menu, choose Goods movement Goods receipt
Other.
2. Enter the data on the initial screen:
a. Enter the header data.
b. Choose the movement type Receipt W/o purchase order and select the desired stock
type.
c. Enter a plant and, if necessary, a storage location as defaults for the items in the
document.
3. Maintain the data on the collective entry screen:
a. If required, enter a vendor.
b. Enter the items.
4. Check data on the overview screen.
5. Post the document.
Result
The delivered quantity is posted into the appropriate stock and increases the total valuated stock
of the material.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Entering an Internal Goods Receipt Without a Production Order
April 2001 79
Entering an Internal Goods Receipt Without a
Production Order
Prerequisites
If your company does not use the PP-Production Orders component, you cannot reference a
purchase order from the R/3 System when entering a goods receipt. In this case, you enter the
internal goods receipt as a miscellaneous (other) goods receipt.
You can plan this type of movement with a reservation (see Planned Goods Receipts using
Reservations [Page 38]).
Procedure
1. From the Inventory Management menu, choose Goods movement Goods receipt
Other.
2. Enter the data on the initial screen:
a. Enter the header data.
Choose the movement type Receipt W/o production order and choose the required
stock type.
c. Enter a plant and, if necessary, a storage location as defaults for the items in the
document.
3. Maintain the data on the collective entry screen:
a. Check account assignment data. If necessary, enter the order number representing the
account assignment for the goods movement.
b. Enter the items.
4. Check data on the overview screen.
5. Post the document.
Result
The delivered quantity is posted into the appropriate stock and increases the total valuated stock
of the material.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Entering a Goods Receipt With Reference to a Reservation
80 April 2001
Entering a Goods Receipt With Reference to a
Reservation
Prerequisites
If the external or internal goods receipt has been planned with a reservation, you can link the
goods receipt to the reservation.
Procedure
1. From the Inventory Management menu, choose Goods movement Goods receipt
Other.
2. Enter the data on the initial screen:
a. Enter the header data.
b. You do not need to enter the movement type or the plant, because these values are
copied automatically from the reservation.
3. Choose Other goods receipts Create w.reference To reservation....
A dialog box appears for selecting the reservation. Depending on whether you know the
reservation number or not, proceed as follows:
Entering a Reservation Directly
If you know the reservation number, you can enter it. You can also enter a reservation
item number.
Searching for a Reservation
If you do not know the reservation number, you can search for it by entering selection
criteria in the dialog box (for example, material number and plant).
The system displays the list of selected items. You can select and adopt (copy) the
desired items.
Extended selection
If you set the Extended sel. indicator, the system displays a dialog box in which you can
enter selection criteria and default values for the items of the selected reservation.
You can also enter a percentage of the total quantity to be processed.
4. Process the items of the selected reservation as follows:
a. Choose Continue to access the item selection screen. On this screen, you can select
and process the items to be copied.
b. You can use the Copy function to automatically copy all of the selected reservation
items. The overview screen appears.
5. Check the data on the overview screen and post the document.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Entering a Delivery Free of Charge
April 2001 81
Entering a Delivery Free of Charge
Use
If you receive a delivery free of charge from the vendor, you must first determine whether a
purchase order was created for it or not.
A delivery free of charge increases both total valuated and unrestricted-use stock of the material.
Activities
Entering a Delivery Free of Charge with Reference to a Purchase Order
If the Purchasing component ordered a material with a price of zero and specified in the
purchase order that no invoice is expected for the delivery, you post the goods receipt with
reference to the purchase order.
Entering a Delivery Free of Charge Without Reference to a Purchase Order
If you receive a delivery from a vendor free of charge for which no purchase order was placed,
you post the receipt of the goods as a miscellaneous (other) goods receipt.
Choose Goods movement Goods receipt Other. Enter the data as required and choose
movement type 511. When you process the items, the system prompts you, for every item, to
maintain a text for the delivery free of charge on the detail screen. This entry is mandatory, since
without a purchase order there is no other way of entering information about the delivery.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Entering a Customer Return
82 April 2001
Entering a Customer Return
Use
If a customer returns goods, you must first determine whether or not a returns delivery exists for
the returns in the Sales (SD-SLS) component. You then enter the return with or without a returns
delivery.
Since returns from the customer are usually examined, the quantity returned is first posted to
blocked stock returns. As is the case with goods receipt blocked stock, blocked stock returns are
neither valuated nor do they count as unrestricted-use stock.
If an examination proves that the returned quantity should be taken over into unrestricted-use
stock, you enter the transfer to unrestricted-use stock in a second step. It is at that time that the
valuation of the goods receipt occurs.
Activities
Entering Returns with a Returns Delivery
If a returns delivery exists, the return should be posted in the Sales (SD-SLS) component, not in
the Inventory Management component.
Depending on how Customizing for Sales is configured (the movement type is configured in the
step Define Schedule Line Category), the delivery is posted to the following stock:
Blocked stock returns (non-valuated, not unrestricted-use) (movement type 651)
Unrestricted-use stock (movement type 653)
Quality inspection stock (movement type 655)
Blocked stock (movement type 657)
If the given quantity is posted to blocked stock returns first, you can make a manual goods
movement posting in the Inventory Management component to transfer the quantity to valuated
stock.
Entering Returns with a Returns Delivery
If no returns delivery has been entered for the return because the return is unexpected or
because your company does not use the Sales (SD-SLS) component, you can only post the
return to returned blocked stock in the Inventory Management component as a miscellaneous
(other) goods receipt. Choose the movement type 451 (Returns from customer without Shipping).
If blocked stock returns are to be transferred into your company's own stock, you enter the
transfer as a transfer posting. Choose movement type 453 (to unrestricted-use stock), 457 (to
stock in quality inspection stock), or 459 (to blocked stock).
See also:
Returns [Ext.]
SAP AG Inventory Management and Physical Inventory (MM-IM)
Goods Issue
April 2001 83
Goods Issue
Purpose
Using this component, you can post a material withdrawal, a material issue, or a shipment of
goods to a customer (without the involvement of the SD Shipping component). A goods issue
leads to a reduction in warehouse stock.
Features
The Inventory Management system supports the following types of goods issues:
Withdrawal of material for production orders
Scrapping and withdrawal of material for sampling
Return deliveries to vendors
Other types of internal staging of material
Deliveries to vendors without the involvement of the SD Shipping component
Inventory Management and Physical Inventory (MM-IM) SAP AG
Goods Issues - General
84 April 2001
Goods Issues - General
Purpose
Companies usually distinguish between various types of goods issues, each of which is handled
in the R/3 System as follows:
Stock Scheduled for Delivery
Withdrawal, picking, and shipping of goods to customers are carried out in the Sales &
Distribution (SD) component and are dealt with in detail in the document SD Shipping Guide.
They are not dealt with in this section.
The Inventory Management system provides two movement types for posting goods issues to
customers if your company does not use the SD module. These are the movement types
"Consumption to sales order” and "Consumption to sales”.
Material Withdrawals for Production Orders
Inventory Management provides for the staging of components for production. You enter
withdrawals for production as goods issues with reference to the production orders for which the
components are required.
Other Types of Internal Staging of Material
Materials can be withdrawn not only for production but also for other purposes (for example, for
cost center, CO order, maintenance order, or asset).
Return Deliveries to Vendors
Return deliveries to vendors are entered with the function Material document Return delivery
or with the function Goods receipt For purchase order.
Scrapping/Sampling
If a material is no longer usable, it must be scrapped. Scrapping of a material is entered in the
R/3 System as a goods issue. The withdrawal of samples must also be entered as a goods issue.
This section explains the following goods issues:
Material withdrawals for production orders
Other types of internal staging of material
Scrapping/sampling
Process Flow
Entering a Goods Issue with/Without Reference Document
Before entering a goods issue, you have to find out whether any reference document or data
exists in the system.
When you enter a goods receipt, you can reference:
Reservations
Production orders
SAP AG Inventory Management and Physical Inventory (MM-IM)
Goods Issues - General
April 2001 85
Bills of material
If a reference document (reservation/order) exists, it is important to enter the goods issue with
reference to this document, for the following reasons:
The goods issuing department can check whether what was requested is actually issued.
During entry of goods issue, the system can suggest data from the reference document
(for example, account assignment, requested material, quantity, etc.). This simplifies
both data entry and checking (overdeliveries and underdeliveries) when entering a goods
issue.
After a withdrawal, the quantity withdrawn is updated in the reference document and the
reserved quantity is reduced accordingly. Thus, Inventory Management can monitor the
withdrawal process and Materials Planning can update the stock/requirements list.
If you do not reference the corresponding reference document during the goods
issue, the reservation remains open and the requested quantity remains reserved,
although the request no longer really exists. Consequently, available stock in
Materials Planning no longer corresponds to the stock actually available!
How do you find the reference document?
If you do not know the number of the reference document, you can find it in the system using the
material number or the account assignment.
Entering a Goods Issue Using Storage Location/Batch Selection and Stock
Determination
If you do not know the storage location or batch number when you enter a goods issue, or you
want to withdraw materials from various storage locations and stocks according to a particular
stock determination strategy, the R/3 System can support you using the following functions:
Storage Location and Batch Selection [Page 101]
Stock Determination [Page 208]
Inventory Management and Physical Inventory (MM-IM) SAP AG
Goods Issue Without Reference
86 April 2001
Goods Issue Without Reference
If no reference document exists, because the goods issue has not been planned (for example,
urgent request of a material), you enter the goods issue without reference. If you want to issue
components of a bill of material, you can reference the relevant BOM (refer to Goods Issue With
Reference to a Bill of Material [Page 95]).
Entering Goods Issue Without Reference [Page 87]
Entering Material Scrapping [Page 89]
Drawing of a Sample [Page 90]
SAP AG Inventory Management and Physical Inventory (MM-IM)
Entering Goods Issue Without Reference
April 2001 87
Entering Goods Issue Without Reference
Entering a goods receipt without referencing a document involves the following steps:
1. Select Goods movement Goods issue from the Inventory Management menu. The initial
screen for this function appears.
2. Enter the data on the initial screen:
a. Enter the header data.
b. Select Movement type Consumption and the desired option.
c. Enter a plant and, if necessary, a storage location, as defaults for the items in the
document.
3. Press ENTER. The collective entry screen appears. Here you enter the account assignment and
the individual items (refer to Maintaining Account Assignment Data [Page 88]).
4. Check data on the overview screen.
5. Post the document.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Maintaining Account Assignment Data
88 April 2001
Maintaining Account Assignment Data
Depending on the movement type and the system setting, the system provides different account
assignment fields in the upper part of the screen. The following table shows which fields you
have to maintain for each movement type (Movement type column) in the standard system
Entry of Account Assignment Data
MvT Consumption for... Data to be entered
201 Cost center Cost center
221 Project WBS element/networks
231 Sales order Sales order no., sales order item
241 Asset Main asset number, asset sub-number
251 Sales Cost center
261 Order Order number
281 Network Network or operation
291 All account assignments Any account assignment
You can enter additional account assignment data in the other fields, or this additional data is
copied automatically from the account assignment object.
When you select movement type 291 (Consumption All acct assignments, the system
displays fields for various account assignment objects.
The G/L account to which the goods movement is posted is determined by the system through
automatic account assignment. You need not enter a G/L account unless you want to post the
goods movement to a different account.
The account assignment data that you enter is used for every item.
By selecting Edit Default values, you can enter new account assignment data for additional
items. By selecting Edit New item or Edit New items, you can enter new items with a
different account assignment on either the detail screen or the collective entry screen.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Entering Material for Scrapping
April 2001 89
Entering Material for Scrapping
Use
You might scrap a material if you cannot use it any more, for example because:
the quality has been reduced due to long storage time
it is out of date
the material has been destroyed (for example, a container of crystal glasses falls off the
forklift during transport). You have to enter this as a scrapping.
In the R/3 System, you post a scrapping like a goods issue without reference.
Features
You can scrap materials from the stock types below:
unrestricted-use stock
quality inspection stock
blocked stock
A scrapping has the following results in the system:
the relevant stock is reduced
the value of the scrapped material is posted from the stock account to a scrap account
the costs of the scrapped material are assigned to the cost center specified.
The value used is the value from the material master record at the time of the posting.
Activities
From the Inventory Management menu, choose Goods movement Goods issue and post the
scrapping using the required movement type.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Drawing of a Sample
90 April 2001
Drawing of a Sample
Drawing a samples is a goods movement that has usually to do with quality inspection. Often,
only a small subset of the total quantity in quality inspection stock is actually inspected. The
result of this inspection is then used as a basis for the usage decision that determines further
processing of the entire amount.
If you want to ensure that the quantity inspected is removed from stock, you can draw a sample.
This type of sampling can be destructive, that is, you can no longer use the material after the
inspection. In this case, then, sampling is the same as scrapping the material.
If the material is actually still usable after the inspection, you can post it back into stock (using a
reversal posting).
You can draw a sample from the following types of stock:
Unrestricted-use stock
quality inspection stock
Blocked stock
To draw a sample, proceed as follows:
1. From the Inventory Management menu, select Goods movement Goods issue.
2. Enter the data on the initial screen:
a. Enter the header data.
b. Select the movement type Issue To sampling plus the desired stock type.
c. Enter the plant and storage location.
3. Maintain the data on the collective entry screen:
a. Enter the cost center to be debited. If the material is being inspected because it is an
external delivery, you can enter the purchase order number and the item number to
which the sample refers, for information purposes.
b. Enter the items.
4. Check the data on the overview screen and post the document.
The results of this posting are the same as the results of scrapping a material.
If inspection processing is active for a material, quality inspection of the material is
carried out in the Quality Management system. Please note that issues from quality
inspection stock are not carried out in the Inventory Management system but in the
framework of inspection processing.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Goods Issue With Reference to a Reservation
April 2001 91
Goods Issue With Reference to a Reservation
To enter a goods issue with reference to a reservation proceed as follows:
1. From the Inventory Management menu, select Goods movement Goods issue. This takes
you to the initial screen for this function.
2. On the initial screen, enter the header data.
You need not enter the movement type or the plant, as these are automatically copied
from the reservation.
3. To reference the reservation, select Goods issue Create w.reference To reservation....
A box for selecting the reservation appears.
Refer to Searching for a Reservation Number [Page 92]
4. Adopt (copy) the desired reservation items.
The account assignment specified in the reservation is automatically used in the goods
issue items.
If no account was entered in the reservation, the system determines the accounts to
which postings are to be made through automatic account determination.
If an account was entered manually in the reservation, the system uses this account from
the reservation as the offsetting entry for the inventory posting.
5. Check data on the overview screen.
6. Post the document.
Final Issue for Reservations
If you issue the total reserved quantity for a reservation item, the final issue indicator is set
automatically in the reservation item when you post the goods issue.
If you issue only a partial quantity for a reservation item but want the item to be considered
completed, you have to set the final issue indicator manually either in the reservation or at the
time of the goods issue. You can set or reset this indicator on the collective entry screen or on
the detail screen.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Searching for a Reservation Number
92 April 2001
Searching for a Reservation Number
If you do not know the reservation number, you can search for it using various selection criteria
(for example, material number and plant).
The system displays the list of selected reservation items. Here you can select the reservation
items to be processed. This list contains all items that satisfy the selection criteria entered. The
following items will not be included in the list:
items for which movements are not yet allowed
items marked for deletion
Items already fully issued are not preselected.
Extended selection
If you set the Ext. sel. indicator, the system displays a window in which you can enter selection
criteria (plant, requirement date) and default values (storage location, "final issue" status) for the
items of the selected reservations.
Adopting (Copying) Items
There are several ways to adopt (copy) the items of the reservations selected:
When you select Continue, the item selection screen is displayed. On this screen, you can
select and process the items to be copied.
Choose Copy (adopt) to adopt all of the items entered. The overview screen appears.
Choose Copy (adopt) + Detail to adopt all of the items entered. The detail screen for the first
item appears.
If the item currently displayed on the detail screen is not one that you want to be copied,
you can skip that item by selecting Cancel.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Goods Issue with Reference to an Order
April 2001 93
Goods Issue with Reference to an Order
Use
When withdrawing components for an order, the system distinguishes between the following
types of goods issues:
Planned Goods Issue (for Reservation/Order)
With this type of withdrawal the system automatically creates a reservation for the components
planned in the order. When you enter the goods issue, you can reference the order or the
reservation. The system determines all components to be withdrawn.
Unplanned Goods Issue
With this type of withdrawal, it is determined during the production process that an additional
material or an additional quantity of a component already withdrawn is required for an order. This
withdrawal is unplanned because there is no reservation to be referenced. You enter this
withdrawal as a goods issue without reference (see section Goods Issue Without Reference
[Page 86]).
Backflush
This type of withdrawal means that the components are already available at the production site.
They are physically consumed during the production process. However, the quantity consumed is
not reported until it is known how much has been actually consumed, that is not until order
completion confirmation. For these components, you need not enter a goods movement in the
Inventory Management system.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Entering a Goods Issue With Reference to an Order
94 April 2001
Entering a Goods Issue With Reference to an Order
Prerequisites
You enter a goods issue for an order by referencing the relevant order or reservation. To
reference the order, proceed as follows:
Procedure
1. From the Inventory Management menu, select Goods movement Goods issue.
This takes you to the initial screen for this function.
2. On the initial screen, enter the header data.
You need not enter the movement type or the plant, as these are automatically copied
from the order.
3. Choose Goods issue Create w.reference To order....
A dialog box for selecting the reservation appears.
If you know the order number, enter it directly. Using the By-products indicator, you can
simultaneously post the goods receipt of planned by-products (refer to Goods Receipt of
By-Products [Page 72]). Using the Choose transaction/event (Ch.trans/event) indicator,
you can display all transactions/events for an order and choose the transaction/events
for which you want to post a goods issue.
If you do not know the order number, you can search for the corresponding reservation
using various selection criteria (refer to Searching for a Reservation Number [Page 92]).
4. Copy (adopt) the desired items.
5. Check data on the overview screen.
6. Post the document.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Goods Issue With Reference to a Bill of Material
April 2001 95
Goods Issue With Reference to a Bill of Material
To withdraw all components of a bill of material (production BOM or equipment BOM), you can
reference the relevant bill of material. In this case, all of the components in the BOM are
automatically copied for goods issue.
Entering Goods Issue With Reference to a Bill of Material
To enter a goods issue with reference to a bill of material, proceed as follows:
1. From the Inventory Management menu, select Goods movement Goods issue. This takes
you to the initial screen for this function.
2. Enter the data on the initial screen:
a. Enter the header data.
b. Select Movement type Consumption plus the desired movement type.
c. Enter a plant and, if necessary, a storage location, as defaults for the items in the
document.
3. Select Goods issue Create w.reference To BOM.... A dialog box appears in which you
enter the BOM.
The BOM application is usually suggested automatically by the system.
Enter a material or a piece of equipment. If you do not enter an alternative BOM, the
system automatically determines an alternative on the basis of the application specified.
Enter a quantity. On the basis of this quantity, the system calculates the quantity to be
withdrawn for the individual components.
4. There are several ways to adopt (copy) the component items:
a. When you select Continue, the item selection screen is displayed. On this screen, you
can select and process the items to be copied.
b. Choose Copy (adopt) to adopt all of the items entered. The overview screen appears.
c. Choose Copy (adopt) + Detail to adopt all of the items entered. The detail screen for the
first item appears.
If the item currently displayed on the detail screen is not one that you want to be
copied, you can skip that item by selecting Cancel.
5. Check data on the overview screen.
6. Post the document.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Results of a Goods Issue Posting
96 April 2001
Results of a Goods Issue Posting
A goods issue has the following results in the system:
Material document is created
Accounting document is created
Goods receipt/issue slip is created
Stock update
Update of G/L accounts
Consumption update
Reservation update
Order update
Update in other applications
Transfer requirement is created when the Warehouse Management System (LE - WM) is
connected
Inspection lot is created when QM is connected
Creation of a Material Document
When you post a goods issue, the system automatically creates a material document which
serves as proof of the goods movement.
You can display the material document (see Displaying a Material Document [Page 18]).
Creation of an Accounting Document
Parallel to the material document, the system creates an accounting document. The accounting
document contains the posting lines (for the corresponding accounts) that are necessary for the
movement.
From the screen displaying the material document, you can display the accounting document.
Creation of a Goods Receipt/Issue Slip
When you enter the goods issue, you can print the goods issue slip at the same time (refer to
Print Functions [Page 214]).
Stock Update
The following stocks are reduced by the issued quantity:
Total valuated stock
Unrestricted-use stock
Reserved stock if the goods issue is entered with reference to a reservation or an order.
From the point of view of Materials Planning, available stock remains unchanged when posting a
planned goods issue because the quantity withdrawn was reserved and therefore no longer
available anyway. When posting a goods issue without reference to a reservation or an order,
available stock is reduced accordingly from the point of view of Materials Planning.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Results of a Goods Issue Posting
April 2001 97
The stocks are updated both at plant level and at storage location level.
Update of G/L Accounts
When the goods issue is posted, the system automatically creates posting lines on the accounts
of the accounting system. For more information, refer to the MM-Material Price Change [Ext.]
component.
Consumption Update
In addition to causing an inventory update in the material master record, a goods issue posting
causes an update of the consumption statistics if the material is planned with MRP.
You can see the consumption statistics when you display plant stock availability or the material
master record.
MRP uses the consumption statistics of a material for creating forecasts. In doing so, MRP
distinguishes between planned and unplanned withdrawals.
If the withdrawal is planned, total consumption is updated. If the withdrawal is unplanned, both
total consumption and unplanned consumption are updated.
The system does not update the consumption statistics in the material master record, if you post
goods movements using the special stock types Sales order stock and Project stock.
Reservation Update
With a goods issue that references a reservation or a sales order, the quantity withdrawn is
updated in the reservation item. The reservation item is completed when the total reservation
quantity has been withdrawn or when the final issue indicator is set manually at goods issue.
Order Update
In the case of a goods issue with reference to an order, the quantities withdrawn for the
components are updated in the order.
Update in Other Applications
Updates can also occur in other related applications. For example, In the case of a goods issue
for internal consumption the point of consumption (such as cost center, order, asset) is debited.
Creation of a Transfer Requirement when the Warehouse Management
System (LE - WM) Is Connected
If the storage location is managed with the Warehouse Management system (LE-WM), the goods
issue posting creates a quant at the goods issue interim storage area, as well as a transfer
requirement, which starts an action in the Warehouse Management system.
Creation of an Inspection Lot When QM is Connected
If inspection processing is active in the Quality Management system (QM), an inspection lot is
created at the time of goods issue. The Quality Management system uses this inspection lot to
carry out the inspection.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Availability Check
98 April 2001
Availability Check
Use
There are two types of availability check:
Availability check for the various stock types in Inventory Management
Check for the available stocks in Materials Planning (MRP)
Availability check of the stock types is carried out automatically and cannot be manually set in the
system. Non-availability results in an error message.
The available stocks check in MRP is activated in the material master record and can be
configured in Customizing for MRP (refer to Net Requirements Calculation [Ext.]).
Your system administrator can define:
Whether an availability check is to be carried out
Whether non-availability is to result in a warning message or an error message
In Customizing for Inventory Management, you can configure the dynamic availability
check for goods movements. In the step Define Checking Rule, you determine for
each checking rule which stocks, receipts, and issues should be included in the
availability overview (transaction code CO09).
Remember that the system does not update the consumption statistics in the material master
record if you post goods movements using the special stock types Sales order stock and Project
stock.
Features
Checking Availability of Stock Types
For every material movement, the system automatically performs an availability check of the
stock types if this has been defined for a material. The availability check prevents the book
inventory balance of the various physical stock types (for example, unrestricted-use stock) from
becoming negative.
If several withdrawals of material are entered in a single document (for example, for different
account assignments), the system checks the availability of the material for each item entered. It
checks whether the desired quantity can be withdrawn. The system takes into account those
items of the document that have already been entered, but not yet posted.
If there is not enough stock to cover the withdrawal, the system issues an error message.
The availability check includes the stock in question at plant, storage-location, and special-stocks
level, for the current month and, if necessary, for the previous month. Different stocks are
checked, depending on the movement type:
In the case of a withdrawal for consumption, unrestricted-use stock is checked.
In the case of a release from stock in quality inspection, quality inspection stock is
checked.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Availability Check
April 2001 99
In the case of consumption of consignment material, consignment stock for unrestricted
use is checked.
Checking Available Stocks
In addition to checking the various types of physical stock, you can also check available stock
from a Materials Planning perspective. With this type of availability check, you can, for example,
prevent a quantity already reserved from being used for another purpose.
There are 100 pieces of a material in unrestricted-use stock. 70 pieces of these 100
have been reserved for a particular requirement date.
You want to withdraw 50 pieces for a different purpose. If the availability check is
active, depending on how the system is set, you will receive:
A warning message
An error message
No message
See also:
Availability Check for Materials [Ext.]
Material Requirements Planning [Ext.]
MM - Consumption-Based Planning [Ext.]
Inventory Management and Physical Inventory (MM-IM) SAP AG
Dynamic Stock Balance Display
100 April 2001
Dynamic Stock Balance Display
When entering a goods movement, you can display the stock that is relevant for that movement.
So, when you enter a goods issue item, you can check for yourself how much of that stock is in
the warehouse and can be withdrawn. Please note that the availability display takes into account
the quantity entered in the item, that is, only the remaining stock is displayed.
The stocks that are displayed during dynamic stock display vary according to the movement type.
Only stocks that are relevant to the movement are displayed.
To call the dynamic stock balance display from the detail screen of an item, select Goto More
functions Movable quantity.... A box appears in which the stocks relevant for this movement
are displayed.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Storage Location and Batch Selection
April 2001 101
Storage Location and Batch Selection
Use
If you do not know the storage location or batch number when you enter a goods issue, or if the
required quantity is to be taken from various storage locations or batches, you can use the
storage location and batch selection function.
Storage location selection
Batch selection
Depending on whether the material is handled in batches, either just the storage location
selection list or the storage location and batch selection list are displayed.
Integration
The R/3 System can also use automatic functions to determine storage locations and batches:
Stock determination
Batch Determination
When stock determination is active, the storage location selection list is not
displayed. Stocks are determined via a stock determination strategy that you must
have defined in advance (refer to Stock Determination [Page 208]).
If batch determination is active, the system will display the screen for batch
determination instead of the batch selection list for materials handled in batches
(refer to Batch Determination [Page 203]).
When both batch determination and stock determination are active, the stocks from
which material is withdrawn depends on how batch determination and stock
determination have been configured. You define this in the relevant search
strategies.
Activities
Storage Location Selection List
If the material is not handled in batches, the storage location selection list contains all of the
storage locations at which the material is stored.
To display this list, enter * in the Storage location field for the item in question.
Storage Location and Batch Selection List
If the material is handled in batches, the selection list contains all of the batches of the material,
with the respective storage location.
To display this list, enter * in the Storage location field. Alternatively, you can enter a storage
location and enter * in the Batch field. The list is limited to batches belonging to the specified
storage location.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Storage Location and Batch Selection
102 April 2001
Sorting the List and Automatic Quantity Distribution Proposal
You can sort the resulting list according to various criteria, as follows:
By stock quantity, in ascending or descending order
By the first in first out (FIFO) principle or by the last in first out (LIFO) principle (for batch
list only)
By the shelf life expiration date (for batch list only)
The system automatically proposes a distribution of the quantity to be withdrawn according to the
selected sort criterion. You can still change the proposed distribution manually.
Using Parameter IDs for Your Specifications
You can maintain the following values in the parameter ID MB_SORT as a specification for a sort
criterion.
ABST: Quantity in descending order
AUFS: Quantity in ascending order
FIFO: First in first out
LIFO: Last in first out
FIFV: Shelf life expiration date in ascending order
LIFV: Shelf life expiration date in descending order
Working with the Storage Location and Batch Selection List
Displaying the List
Enter * in the Storage location field for an item. If the material is handled in batches, you can, as
an alternative, enter a storage location in the Storage location field and * in the Batch field.
The storage location selection list, or the storage location and batch selection list appears.
The quantity to be withdrawn is distributed in descending order by stock quantity: In the example,
the system suggests distributing the requirement quantity.
Accepting the Proposed Distribution
To accept the proposed distribution, select Back. The system creates a goods issue item for
every selected line of the list.
Re-distributing the Proposed Quantity
If you wish to distribute the quantity differently, you can do so manually or have the system
propose a different distribution.
Distributing the Quantity Manually
To distribute the quantity manually, proceed as follows:
1. Select the items (storage locations/batches) you want to process and deselect those that you
do not want to use.
2. Enter the quantity for every item selected. Make sure you take the available stock (last
column on the right) and the quantity to be distributed (Targ. qty field) into account.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Storage Location and Batch Selection
April 2001 103
3. Select Back to adopt the selected items as goods issue items.
You can cancel the manual distribution and request the system to create a new
distribution proposal by selecting Edit Reapportion.
Having the System Propose a Different Distribution
To have the system create a new distribution proposal, proceed as follows:
1. Select Proposal and the desired sort criterion (for example, Quantity ascending).
A dialog box appears, in which you inform the system whether you want to keep the
current distribution.
a) If you choose Yes only the items on the list are re-sorted. The system does not
propose a redistribution of the quantity.
b) To have the system re-sort the items and propose a new distribution of the target
quantity according to the new criterion, select no.
2. Select Back to adopt the selected items as goods issue items.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Reversing a Planned Goods Issue
104 April 2001
Reversing a Planned Goods Issue
If a material movement that was entered with reference to a reservation is reversed (or if the
quantity withdrawn is returned, for example because it is not needed until later), you can enter
the reversal (or return) with reference to either of the following two documents:
the material document with which the goods issue was posted
the reservation
In both cases, the system references the reservation during reversal; the "old" reservation is reactivated
and the open required quantity in the reservation is increased by the quantity reversed.
If you enter the reversal without referencing the material document or the
reservation, the quantity in the reservation is still considered withdrawn, meaning that
the request no longer exists.
Referencing the Material Document
If during the reversal you reference the material document with which the goods issue was
posted, the system proposes for reversal only the quantity withdrawn with this material
document.
See also:
Cancelling a Material Document [Page 19]
Referencing the Reservation
If during the reversal you reference the reservation, the system proposes for reversal the total
quantity withdrawn to-date, even if several withdrawals (material documents) were posted for the
reservation.
See also:
Entering a Reversal or Return With Reference to a Reservation [Page 106]
Results of a Cancellation/Reversal
Regardless of whether you reference the material document or the reservation, all of the updates
carried out during the goods issue posting are reversed as a result of a reversal. The most
important results of a reversal for a reservation are listed here:
A material document (reversal document) is created. This document serves as proof of the
reversal.
An accounting document is created. This document contains the account postings that are
necessary for the reversal.
The following stocks are increased due to the reversal:
total valuated stock
unrestricted-use stock
reserved stock
SAP AG Inventory Management and Physical Inventory (MM-IM)
Reversing a Planned Goods Issue
April 2001 105
The consumption of the material is reduced by the quantity reversed.
The following updates occur in the reservation item:
The quantity withdrawn is reduced by the quantity reversed.
If the reservation item was marked as completely issued, the final issue indicator is reset.
Reservations that have been deleted cannot be reactivated. If you post a reversal for
a material that is still needed, but the reservation was already deleted, you must
enter a new reservation manually.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Entering a Reversal or Return With Reference to a Reservation
106 April 2001
Entering a Reversal or Return With Reference to a
Reservation
You enter a reversal or a return with reference to a reservation as follows:
1. From the Inventory Management menu, select Goods movement Goods issue.On the
initial screen, select Goods issue Reverse w.reference To reservation...
2. A dialog box appears. Enter the reservation or search for the reservation as described in the
section Goods Issue With Reference to a Reservation [Page 91].
3. If you entered the reservation number, or if only one reservation exists for the search criteria
entered, the item selection list appears.
If several reservations exist for the search criteria entered, the list of reservations that
can be cancelled appears. On this list, the quantity that can be reversed is displayed for
every reservation item. When you select a reservation, the item selection list appears, on
which all of the items that can be cancelled are proposed with the quantity withdrawn todate.
4. On the item selection list, select the items you want to process. If you do not want to reverse
the entire quantity withdrawn, change the quantity.
If no storage location was specified in the reservation item, you must enter the storage
location from which the goods were withdrawn.
5. Check the data on the overview screen.
6. Post the document.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Return Delivery
April 2001 107
Return Delivery
Use
If you want to return delivered goods to the vendor for some reason (for example, due to poor
quality or because they are damaged), you can use this function to return the goods, even if you
have already posted the goods receipt.
If the vendor sends you a substitute delivery after you have returned goods, you can reference
the return delivery when you post the goods receipt.
Integration
Return Delivery via Shipping
When you post a return delivery, you can use the functions of the Shipping (LE-SHP) application
component (for example, picking and packing, as well as detailed shipping papers and delivery
notes). You can post a return delivery via Shipping from the following stock types:
Unrestricted-use stock
Quality inspection stock
Blocked stock
Goods receipt blocked stock
You can use return deliveries via Shipping for standard purchase orders, purchase orders with
account assignment and material number, and purchase orders with special stocks. Refer to
Goods Movements via Shipping [Page 27].
Prerequisites
When you enter a return delivery, you should reference the purchase order or the material
document, so that the system can:
Suggest data to simplify data input (for example, the storage location)
Check that the returned quantity does not exceed the delivered quantity
Reduce the quantity delivered to date
Reverse other updates that occurred (for example, for a goods receipt into consumption)
when the goods receipt was entered
Before you enter a return delivery with reference to a purchase order, you have to determine
whether the goods were posted to stock or to consumption, or whether they were posted into
goods receipt blocked stock. If you posted the goods to a particular stock type at goods receipt
(for example, quality inspection stock), you have to return them from the same stock type.
Activities
Posting a Return Delivery with Reference to the Material Document
Choose the Enjoy transaction MIGO for posting goods movements.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Return Delivery
108 April 2001
Enter the number of the material document and the material document year. If you do not know
the number of the material document, you can also enter the delivery note number in the Delivery
note input field.
If you want to return the material via the Shipping application component, set the Via delivery
indicator in the header data to create a delivery in Shipping.
Posting a Return Delivery with Reference to the Purchase Order
Choose the Enjoy transaction MIGO for posting goods movements. Enter the purchase order. In
goods-receipt-based invoice verification, the system displays all the GR items. Choose the items
that you want to return, specify the quantities, and choose movement type 122.
Posting a New Goods Receipt with Reference to a Return Delivery
If you receive a substitute delivery after you have returned goods to a vendor, it is advisable to
reference the associated return delivery by using a reverse posting when you post the new goods
receipt. This enables the system to suggest and update the data for this particular business
process. This is particularly important in goods-receipt-based invoice verification, so that the link
between the goods receipt, the return delivery, and the invoice remains intact (see also
Subsequent Delivery [Page 112]).
The table below shows which reversal movement types you can use to reference the associated
return delivery.
Goods receipt Return Delivery Substitute delivery
101 122 123
103 124 125
105 122 123
For example, if you posted the goods into goods receipt blocked stock using
movement type 103, you return them using movement type 124 (return delivery from
goods receipt blocked stock). To post the substitute delivery back into goods receipt
blocked stock, you do not use movement type 103, but reverse the material
document for the return delivery. The system automatically suggests movement type
125, which maintains the link between the goods receipt, the return delivery, and the
invoice.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Return Deliveries from Warehouse or Consumption
April 2001 109
Return Deliveries from Warehouse or Consumption
Use
If you posted a goods receipt with reference to a purchase order into unrestricted-use stock, you
can use this function to return the material to the vendor.
Activities
You can use either of the following two documents as a reference:
The material document with which you posted the goods receipt
In this case, the items are assigned with the movement type 122 (return delivery to
vendor).
The purchase order that is linked with the goods receipt
In this case, choose movement type 122.
Post the goods receipt as described in the section Return Delivery [Page 107].
Results of the Return Delivery Posting
Material document is created
The system creates a material document for the return delivery. You can print this
document as a return delivery slip. Since the return delivery is valuated, the system also
creates an accounting document.
Stock and G/L accounts are updated
In the case of a return delivery, the system reverses all stock and G/L account updates
that occurred during the goods receipt posting.
Purchase order is updated
The system cancels the updates posted as a result of the goods receipt. The open
purchase order quantity is increased by the returned quantity.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Return Deliveries from Goods Receipt Blocked Stock
110 April 2001
Return Deliveries from Goods Receipt Blocked Stock
Use
If you accepted the goods conditionally, i.e. by posting them to goods receipt blocked stock, you
enter the return delivery with movement type 124 (return delivery from GR blocked stock) instead
of movement type 122 (return delivery to vendor).
Activities
You can use either of the following two documents as a reference:
The material document with which you posted the goods receipt into goods receipt blocked
stock
In this case, the items are assigned with movement type 124.
The purchase order to which the goods receipt referred
In this case, choose movement type 124.
Post the goods receipt as described in the section Return Delivery [Page 107].
Results of the Return Delivery Posting
Since the goods in goods receipt blocked stock are not yet part of the company’s own stock and
are not valuated, the return delivery simply reduces goods receipt blocked stock in the purchase
order history.
The system creates a material document, which serves as proof of the return delivery.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Return Delivery in Goods-Receipt-Based Invoice Verification
April 2001 111
Return Delivery in Goods-Receipt-Based Invoice
Verification
Use
When GR-based invoice verification has been defined, every goods receipt is settled separately.
This means that an invoice always refers to a material document. When you want to return
material, you therefore have to reference the material document that you used to post the goods
receipt.
Prerequisites
If the invoice for a goods receipt has already been entered, but you reverse the goods receipt or
return the goods, you have to ensure that
either the relevant invoice is canceled as well
or another goods receipt which refers to the same invoice is posted.
In Customizing for Inventory Management, you can define for every movement type
whether a GR reversal or a return delivery is allowed when GR-based invoice
verification has been defined, even though the relevant invoice has already been
entered.
If a GR reversal or a return delivery is not allowed, you must cancel the invoice before entering
the reversal of the goods receipt or the return delivery.
If a GR reversal or a return delivery is allowed, you can post the material document and cancel
the invoice later. If you do not want to cancel the invoice, you can enter the next goods receipt
with reference to the return delivery or the reversal document so that the link to the invoice
remains intact.
Activities
Posting a Goods Receipt with Reference to a Return Delivery
Proceed as described in the section Return Deliveries [Page 107]
Posting a Goods Receipt with Reference to a Reversal Document
Proceed as described in the section Cancelling a Material Document [Page 19]
Inventory Management and Physical Inventory (MM-IM) SAP AG
Subsequent Delivery
112 April 2001
Subsequent Delivery
Use
In goods-receipt-based invoice verification, you can post goods receipts as subsequent deliveries
for previous goods receipts by referencing the original goods receipt document. In this process,
the system copies the original reference document number (MSEG-LFBNR) to the new material
document, thereby maintaining the link between the goods receipts and the corresponding
invoice.
Subsequent deliveries are useful, if, for example:
You reverse a goods receipt after you have entered the corresponding invoice and then want
to post another goods receipt
You post a return delivery and want to enter the next goods receipt with reference to the
return delivery document so that the link with the invoice remains intact.
Features
You can use the subsequent delivery function for the following business transactions:
Goods receipt (movement type 101)
In this case, you post a further goods receipt for a purchase order (for example, in the
case of partial deliveries or additional deliveries).
Return delivery (movement type 122)
In this case, you post another goods receipt after you have entered a return delivery
(also refer to Return Delivery [Page 107]).
Reversal of goods receipt (movement type 102)
In this case, you post another goods receipt after you have reversed a goods receipt.
Activities
To post a subsequent delivery, call up the Enjoy transaction MIGO for posting goods movements
and choose Subsequent delivery.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Stock Transfer and Transfer Posting
April 2001 113
Stock Transfer and Transfer Posting
Purpose
You can use this component to remove materials from storage in one storage location and place
them in another storage location. Stock transfers can occur either within one plant or between
two plants or company codes.
Features
A transfer posting usually refers to a change in a material’s stock (for example, release from
quality inspection, accepting consignment material). In a transfer posting, the material can remain
in its original storage bin or be transferred.
Stock transfers and transfer postings are used to represent organizational-relevant transfers
within the company (for example, decentralized storage).
Inventory Management and Physical Inventory (MM-IM) SAP AG
Transfer Postings and Stock Transfers: Overview
114 April 2001
Transfer Postings and Stock Transfers: Overview
Levels for Stock Transfers
In a company, goods movements do not only occur in the form of goods receipts and goods
issues. Depending on the organization of the company (for example, decentralized storage) and
its sales policy, internal stock transfers might also be necessary.
Stock transfers can occur at three different levels:
Stock transfer from company code to company code
Stock transfer from plant to plant
From storage location to storage location (in the plant)
Stock Transfer from Company Code to Company Code
A stock transfer from company code to company code corresponds to a stock transfer from plant
to plant, with both plants belonging to different company codes.
Stock Transfer From Plant to Plant
A stock transfer from plant to plant not only leads to a change in stock quantity in both plants; if
both plants are assigned to different valuation areas, an accounting document is also created.
This type of stock transfer can only be carried out from unrestricted-use stock of the issuing plant
to unrestricted-use stock of the receiving plant.
Stock transfers from plant to plant are relevant for Material Planning, since Materials Planning
operates at plant level.
From Storage Location to Storage Location (in the Plant)
A stock transfer from storage location to storage location in the same plant simply causes an
update of the stock quantities in both storage locations. The stock value remains unchanged, and
the event is not relevant for accounting.
A stock transfer from storage location to storage location is possible for all stock types.
Transfer Postings and Stock Transfers: Differences
You can post both stock transfers and transfer postings in the R/3 System. Transfer postings
differ from stock transfers in that transfer postings are not connected with a physical goods
movement. They usually involve a change in stock type, batch number, or material number.
An example of transfer posting is the release from inspection into the company's own stock.
Stock Transfer Procedures
There are three different procedures for carrying out a stock transfer:
Stock transfer via stock transfer posting using one-step procedure
Stock transfer via stock transfer posting using two-step procedure
Stock transfer using stock transport order
SAP AG Inventory Management and Physical Inventory (MM-IM)
Transfer Postings and Stock Transfers: Overview
April 2001 115
For more information on stock transfers or stock transfer orders, see Stock Transfer
Using a Stock Transfer Order [Ext.].
One-Step Procedure Versus Two-Step Procedure
Both stock transfers and transfer postings consist of a “goods issue” from an issuing point and a
“goods receipt” at a receiving point. You can post a stock transfer from storage location to
storage location or from plant to plant either in one step or in two steps.
The advantage of the one-step procedure is that you enter a single transaction in the system.
The two-step procedure, on the other hand, allows you to monitor the stocks in transit. After the
goods issue is posted at the issuing point, the stock appears "in stock transfer" at the receiving
point and is managed as such in the system.
The two-step procedure is also required if users have authorizations only for their own plants.
To carry out a stock transfer from plant to plant for a material that is subject to split
valuation at the receiving point, you have to use the one-step procedure or a stock
transport order.
Stock Transfers and Transfer Postings Using the Stock Determination
Function
If you want to withdraw material for transfer postings and stock transfers from various storage
locations and stocks according to a particular strategy, the R/3 System can support you using
Stock Determination [Page 208].
Material Documents for Stock Transfers
One-Step Procedure
During a one-step stock transfer, the system creates two material document items for every item
you enter:
An item for the removal from storage at the issuing point
An item for placement into storage at the receiving point
Two-Step Procedure
During a two-step stock transfer, two material documents are created:
Upon the removal from storage at the issuing point, the system creates a material
document. For every item you enter, two material document items are created, namely:
An item for the removal from storage at the issuing point
An item for the placement into stock in transfer at the receiving point
Upon placement into storage at the receiving point, the system again creates a material
document. For every item you enter, only one material document item is created,
because the quantity is only transferred from stock in transfer into unrestricted-use stock
at the receiving point.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Planning Stock Transfers and Transfer Postings via Reservations
116 April 2001
Planning Stock Transfers and Transfer Postings via
Reservations
Use
You can plan stock transfers using stock transfer reservations. Stock transfer reservations are
reservations that plan the goods issue from the issuing point. Stock transfer reservations are
intended for one-step stock transfers only. They cannot be used for transfer postings, because
transfer postings are not planned in advance. Stock transfer reservations can also be created
automatically by MRP.
The reserved quantity is managed in the unrestricted-use stock and in the reserved stock of the
issuing point. In MRP, the reserved quantity reduces available stock in the issuing plant.
Activities
You enter a stock transfer reservation like a standard reservation (refer to Reservations [Page
136]).
SAP AG Inventory Management and Physical Inventory (MM-IM)
Stock Transfers From Storage Location to Storage Location
April 2001 117
Stock Transfers From Storage Location to Storage
Location
Use
A stock transfer from storage location to storage location takes place within a plant. It is usually
posted without value, since the transferred material is managed in the same plant and therefore
with the same valuation data as before. If the material is subject to split valuation, and the
valuation type of the material changes due to the stock transfer, the system also creates an
accounting document during the stock transfer.
Activities
You can enter this stock transfer using either the one-step procedure or the two-step procedure,
whereby you can only plan the one-step procedure with a reservation.
Inventory Management and Physical Inventory (MM-IM) SAP AG
The One-Step Procedure Without a Reservation: Storage Location
118 April 2001
The One-Step Procedure Without a Reservation: Storage
Location
Use
This stock transfer procedure reduces the corresponding stock type at the issuing storage
location and increases the same stock type at the receiving storage location. At plant level, the
stock level does not change, except that the stock is distributed differently among the storage
locations in the plant. The system does not create an accounting document for the material
document.
Activities
Choose the relevant movement type to enter the transfer posting, for example, 311 (Transfer
posting of unrestricted use stocks from one storage location to another). Maintain the data as
required and save the document.
If the receiving storage location does not yet exist in the material master record, it is
automatically created, provided that automatic creation of storage locations is allowed in this
plant.
SAP AG Inventory Management and Physical Inventory (MM-IM)
The One-Step Procedure With a Reservation: Storage Location
April 2001 119
The One-Step Procedure With a Reservation: Storage
Location
Use
This stock transfer procedure reduces unrestricted-use stock and reserved stock at the issuing
storage location and increases the same stock at the receiving storage location. At plant level,
the stock level does not change, except that the stock is distributed differently among the storage
locations in the plant. The system does not create an accounting document for the material
document. The quantity becomes available again for Materials Planning.
Activities
You enter the transfer posting with reference to the reservation. Enter the reservation number or
search for the reservation using the material number or the plant and the receiving storage
location). Maintain the data as required and save the document.
If the receiving storage location does not yet exist in the material master record, it is
automatically created, provided that automatic creation of storage locations is allowed in this
plant.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Two-Step Procedure - Storage Location
120 April 2001
Two-Step Procedure - Storage Location
Use
Posting a stock transfer in two steps involves the following:
In the first step, you enter the removal from storage at the issuing storage location.
In the second step, you enter the placement into storage at the receiving storage
location.
In the two-step procedure, you can only transfer material from the unrestricted-use stock of the
issuing storage location into the unrestricted-use stock of the receiving storage location.
Reservations are not possible with this procedure.
After posting the removal from storage, the quantity is deducted from the issuing storage
location. The quantity is managed in the stock at the receiving storage location (not in
unrestricted-use stock, but in stock in transfer). Also at plant level, the quantity is not available for
unrestricted use.
When the goods are actually received at the receiving storage location, the quantity is taken over
from stock in transfer into unrestricted-use stock.
A C
B
D
E
A C
B
D
E
In transfer
A C
B
D
E
SLoc 0001 SLoc 0002
Unrestricted-use
stock
Unrestricted-use
stock
Damage During Transportation
Damage that occurs during transport and that leads to scrapping of the goods must be reported
in the system, so that the transfer stock can be corrected accordingly. You can do this in two
ways:
You reverse the removal from storage from the issuing storage location and then post
the goods for scrapping. (Refer to Entering Material for Scrapping [Page 89].)
Alternatively, you can post the placement of the entire quantity into storage at the
receiving storage location and then post the goods for scrapping.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Two-Step Procedure - Storage Location
April 2001 121
Which method you select is not important for valuation of the scrapped quantity, since the
material is not valuated at storage location level.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Removal From Storage at Issuing Storage Location
122 April 2001
Removal From Storage at Issuing Storage Location
Use
Posting the removal from storage changes the stock situation in the following way:
Plant stock situation:
Unrestricted-use stock is reduced by the posted quantity because the goods are in transit at
the moment and are therefore managed as stock in transfer.
Stock situation in issuing storage location:
The quantity has been deducted from unrestricted-use stock.
Stock situation in receiving storage location
The quantity is already managed in stock, but is not yet available for unrestricted use. It is
contained in the stock in transfer at storage location level.
Since the stock transfer occurs within the plant, no accounting document is created in addition to
the material document.
Activities
Choose the relevant movement type to enter the transfer posting for removing the material from
storage (movement type 313). Maintain the data as required and save the document.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Placement Into Storage at Receiving Storage Location
April 2001 123
Placement Into Storage at Receiving Storage Location
Use
You have the option of entering the placement into storage at the receiving storage location with
or without reference to stock removal document.
Posting the placement into storage changes the stock situation in the following way:
Plant stock:
The transferred quantity is now part of unrestricted-use stock.
Stock in the receiving storage location:
The quantity from stock in transfer has been posted into unrestricted-use stock.
Since the stock transfer occurs within the plant, no accounting document is created in addition to
the material document.
Activities
Placement Into Storage With Reference to the Stock Removal Document
If you know the material document with which the removal from storage was posted, you can
enter the placement into storage by choosing Material Document Place in Storage. Refer to
the number of the stock removal document. The system suggests all items of the stock removal
document for placement into storage. Maintain the data as required and save the document.
Placement Into Storage Without Reference to the Stock Removal Document
Choose the relevant movement type to enter the transfer posting for placing the material into
storage (movement type 315). Maintain the data as required and save the document. The
transferred quantity is posted from the stock in transfer to the unrestricted-use stock in the
receiving storage location.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Stock Transfer From Plant to Plant
124 April 2001
Stock Transfer From Plant to Plant
A stock transfer from plant to plant generally takes place within a company code. It can, however,
also take place between two company codes, if the plants are assigned to different valuation
areas, which belong to different company codes.
Unlike a stock transfer from storage location to storage location, a stock transfer from plant to
plant affects both accounting and Materials Planning, as follows:
Accounting
Accounting is affected if both plants are assigned to different valuation areas. This
means that a stock transfer leads not only to a quantity update but also to a value update
(stock value, G/L accounts). Thus, parallel to the material document for stock transfer, an
accounting document is created.
Materials Planning
Materials Planning is affected because a change of plant stock is taken into account by
Materials Planning.
You can enter this stock transfer using either the one-step procedure or the two-step procedure,
whereby only the one-step procedure can be planned with a reservation.
Using the One-Step Procedure Without a Reservation [Page 125]
Using the One-Step Procedure With a Reservation [Page 126]
Using the Two-Step Procedure [Page 127]
You can only post a plant-to-plant stock transfer in one step if you have the relevant
authorization in both plants.
For split-valuated materials, a plant-to-plant stock transfer in two steps is not
possible for technical reasons. In this case, you have to enter the stock transfer
using either the one-step procedure or a stock transfer order.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Using the One-Step Procedure Without a Reservation - Plant
April 2001 125
Using the One-Step Procedure Without a Reservation -
Plant
Procedure
1. Choose Goods movement Transfer posting.
2. Enter the data on the initial screen:
a. Enter the header data.
b. Select movement type Transfer posting Plant to plant Rem.fm/pl.in storage.
c. Enter the issuing plant and the issuing storage location as default values for the
individual items.
3. Maintain the data on the collective entry screen:
a. Enter the receiving plant and the receiving storage location. The plant must already exist
in this material's master record. If the storage location does not yet exist in the material
master record, it is automatically created (provided that automatic creation of storage
locations is allowed in this plant).
b. Enter the items. For each item, you can still change the issuing plant and the issuing
storage location.
4. Check the data on the overview screen and post the document.
The stock transfer reduces unrestricted-use stock in the issuing plant and increases the same
stock in the receiving plant. Parallel to the material document, an accounting document is
created.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Using the One-Step Procedure With a Reservation - Plant
126 April 2001
Using the One-Step Procedure With a Reservation -
Plant
Procedure
1. Choose Goods movement Transfer posting.
2. Enter the data on the initial screen:
a. Enter the header data.
b. Select Transfer posting Create w.reference To reservation.... A box appears for
selecting the reservation.
Enter the reservation number or search for the reservation using selection criteria
(material number or receiving plant and receiving storage location).
3. Select the items that you want to process and, If necessary, change the data suggested from
the reservation.
4. Check the data on the overview screen and post the document.
The stock transfer reduces total valuated stock, unrestricted-use stock, and reserved stock in the
issuing plant and increases the total valuated stock and the unrestricted-use stock in the
receiving plant. An accounting document is created. The quantity becomes available again for
Materials Planning.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Two-Step Procedure - Plant
April 2001 127
Two-Step Procedure - Plant
Use
If you post a stock transfer from plant to plant using the two-step procedure, you post the removal
from storage at the issuing plant first. After you post the removal from storage, the quantity being
transferred is managed in stock in transfer at the receiving plant. It is not yet part of
unrestricted-use stock, however.
You post the placement into storage at the receiving plant in a second step. Only then is the
event completed and the transferred quantity part of unrestricted-use stock.
"Unrestricted”
stock
Plant 0001 Plant 0002
"Unrestricted” Stock in transfer
stock
E
A C
B
D
E
A C
B
D
E
A C
B
D
Possible reasons for carrying out the a stock transfer in two steps may be: The plants are located
at quite a distance from each other and the goods are in transit for a prolonged period of time; or
there is one employee responsible at each plant, and each can only post movements for his/her
own plant.
What if the Goods Are Damaged During Transport?
Damage that occurs during transport and that leads to scrapping of the goods must be reported
in the system, so that the transfer stock can be corrected accordingly. There are two ways of
doing this:
You reverse the removal from storage from the issuing plant and then post the goods for
scrapping. Refer to Entering Material for Scrapping [Page 89].
Alternatively, you can post the placement of the entire quantity into storage at the
receiving plant and then post the goods for scrapping.
It is important that the scrapped quantity does not remain in stock in transfer, but is reported in
the system as scrapped.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Entering the Removal From Storage At the Issuing Plant
128 April 2001
Entering the Removal From Storage At the Issuing Plant
You enter the removal from storage at the issuing plant as follows:
1. Choose Goods movement Transfer posting.
2. Enter the data on the initial screen:
a. Enter the header data.
b. Select the movement type Transfer posting Plant to plant Rem.fm.stor. to plant.
c. Enter the issuing plant and the issuing storage location as default values for the
individual items.
3. Maintain the data on the collective entry screen:
a. Enter the receiving plant in this field. The plant must already exist in this material's
master record. For the removal from storage, entry of the receiving storage location is
not necessary. The storage location is not defined until the placement of the material into
storage.
b. Enter the items. For each item, you can still change the issuing plant and the issuing
storage location.
4. Check the data on the overview screen and post the document.
Stock Situation After Removal From Storage
The posting of the removal from storage has the following effects on the stock situation:
Stock in the issuing plant (0001):
The quantity has been deducted from total valuated stock and from unrestricted-use
stock in the issuing plant and the issuing storage location.
Stock in the receiving plant (0002):
The quantity is already managed in total valuated stock in the receiving plant, but is not
yet available for unrestricted use. It is in stock in transfer, at plant level. At this time, the
receiving storage location is not yet known to the system.
If the plants belong to different valuation areas, an accounting document is created parallel to the
material document for the removal from storage, because the stock is transferred from one plant
into another.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Entering the Placement Into Storage At the Receiving Plant
April 2001 129
Entering the Placement Into Storage At the Receiving
Plant
You have the option of entering the placement into storage at the receiving plant with or without
reference to stock removal document.
Placement Into Storage With Reference to the Stock Removal Document
If you know the material document with which the removal from storage was posted, you can
enter the placement into storage as follows:
1. Choose Material document Placement into storage.
2. On the initial screen, enter the number of the document with which the removal from storage
was posted (stock removal document) and - if required - a storage location. The system
suggests all items of the reference document for placement into storage.
3. Copy the desired items.
4. Post the document.
Placement Into Storage Without Reference to the Stock Removal Document
You enter the placement into storage without reference to the stock removal document as
follows:
1. Choose Goods movement Transfer posting.
2. Enter the data on the initial screen:
a. Enter the header data.
b. Select the movement type Transfer posting Plant to plant Pl.in stor. in plant.
c. Enter the receiving plant and the receiving storage location, as defaults for the items.
3. Enter items on the collective entry screen. You do not need to enter the issuing plant,
because the transferred quantity is simply transferred from the stock in transfer to the
unrestricted-use stock of the receiving plant.
4. If you want to check the amount of stock in transfer for a particular item, select the item and
then select Goto More functions Movable quantity.
5. Check the data on the overview screen and post the document.
Stock Situation After Placement Into Storage
Posting the placement into storage has the following effects on the stock situation:
Stock in the receiving plant:
In the receiving plant, the quantity has been transferred from stock in transfer to
unrestricted-use stock. It is also managed in unrestricted-use stock at the receiving
storage location.
Since the transfer posting from stock in transfer to unrestricted-use stock occurs within the plant,
an accounting document is not created in addition to the material document.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Entering the Placement Into Storage At the Receiving Plant
130 April 2001
SAP AG Inventory Management and Physical Inventory (MM-IM)
Stock Transfer from Company Code to Company Code
April 2001 131
Stock Transfer from Company Code to Company Code
Use
You post a stock transfer from company code to company code the same way as you post a
Stock Transfer from Plant to Plant [Page 124], except that both plants belong to different
company codes.
You can enter this stock transfer using the one-step or the two-step procedure.
During the stock transfer, two accounting documents are created in addition to the material
document:
An accounting document for the removal from storage at the issuing company code
An accounting document for the placement into storage at the receiving company code
The stock posting is offset against a company code clearing account.
To display the value of the cross-company-code stock in transit with a report, choose
Environment Stock Stock in transit Cc.
Stock transfers from company code to company code can be carried out using stock
transport orders. For information on stock transport orders, refer to Stock Transfer
Using a Stock Transport Order [Ext.].
Inventory Management and Physical Inventory (MM-IM) SAP AG
Transfer Postings From Material to Material
132 April 2001
Transfer Postings From Material to Material
If a material changes over time in such a way that it no longer corresponds to the features
defined in the material master record, but to the features of a different material number, you have
to carry out a transfer posting from material to material. This is often the case in the chemical and
pharmaceuticals industry, for example.
A transfer posting from material to material results in the transferred quantity being managed
under a different material number. A material master record must already exist for the receiving
material.
In order to carry out a transfer posting from material to material both materials must
be managed in the same stockkeeping unit.
Such a transfer posting is always carried out in one step and without advance planning. The
posting can only be carried out from the unrestricted-use stock of the issuing material into the
unrestricted-use stock of the receiving material.
Entering a Transfer Posting From Material to Material
To enter a transfer posting from material to material, proceed as follows:
1. From the Inventory Management menu, select Goods movement Transfer posting.
2. Enter the data on the initial screen:
a. Enter the header data.
b. Select the movement type Transfer posting Material to material.
3. Maintain the data on the collective entry screen:
a. Enter the number of the receiving material. Enter a plant and a storage location only if
you simultaneously want to post the stock to another plant or storage location. If the
receiving material is handled in batches, the system prompts you to enter a batch.
b. Enter the items. For each item, you can still change the plant and the issuing storage
location.
4. Check the data on the overview screen and post the document.
Results
The transferred quantity is deducted from unrestricted-use stock of the issuing material and
posted into unrestricted-use stock of the receiving material.
For every item you enter, two material document items are created:
an item for the issuing material
an item for the receiving material
Parallel to the material document, an accounting document is created. The issuing material
master record determines the value of the transfer posting.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Entering a Transfer Posting From Stock to Stock
April 2001 133
Entering a Transfer Posting From Stock to Stock
Procedure
1. Select Goods movement Transfer posting.
2. Enter the data on the initial screen:
a. Enter the header data.
b. Select the movement type Transfer posting Stock to stock or Reverse tfr. posting
Stock to stock plus the required stock types.
3. Maintain the data on the collective entry screen:
a. Only enter a receiving storage location if the material should be stored in another storage
location.
b. Enter the items.
4. Check the data on the overview screen and post the document.
See also: General Information on Stock Types [Page 134]
Inventory Management and Physical Inventory (MM-IM) SAP AG
General Information on Stock Types
134 April 2001
General Information on Stock Types
There are three types of stock in Inventory Management. Each of these stock types indicates
whether the material concerned can currently be used.
Unrestricted-use stock
Quality inspection stock
Blocked stock
When Batch Management is active, a further stock type is supported: restricted-use stock (refer
to Batch Status Management [Page 194]).
At the time of goods receipt, you decide the type of stock to which a given quantity is to be
posted. The stock type is relevant for the determination of available stock in Materials Planning
(MRP) and for the withdrawal of materials in Inventory Management (refer to Availability Check
[Page 98].
Withdrawals
You can post withdrawals for consumption from unrestricted-use stock only. You can only
withdraw materials from stock in quality inspection or blocked stock for random sampling
purposes or for scrapping. Stock quantities of such stocks may also be reduced as a result of
inventory difference postings.
Receipts
Withdrawals
Scrapping / sampling
Unrestricted-use
stock
Stock in
quality inspection
Blocked
stock
SAP AG Inventory Management and Physical Inventory (MM-IM)
General Information on Stock Types
April 2001 135
Transfer Postings
If the utilization of a material changes, you have to carry out transfer postings between the
various stock types. An example of a transfer posting is the release of a given quantity from stock
in quality inspection. This means that the quantity is transferred from stock in quality inspection to
unrestricted-use stock.
If inspection processing in the Quality Management System is active for a material,
you cannot post any issues from stock in quality inspection in Inventory
Management. These movements can only be carried out within inspection
processing.
If you posted a specific quantity into blocked stock at the time of goods receipt, you can either
post this quantity directly into unrestricted-use stock, or first post it into stock in quality inspection
and then transfer it into unrestricted-use stock after it has been inspected.
Selection of Movement Type for Transfer Posting
The following movement types are used for transfer postings:
Blocked stock to stock in quality inspection (349)
Blocked stock to unrestricted-use stock (343)
Stock in quality inspection to unrestricted-use stock (321)
The reverse movements are defined as reversal transfer postings.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Reservation
136 April 2001
Reservation
Purpose
With this component, you make a request to the warehouse to keep materials ready for
withdrawal at a later date and for a certain purpose. This simplifies and accelerates the goods
receipt process.
A reservation for goods issue can be requested by various departments for various account
assignment objects (such as cost center, order, asset, etc.).
Features
The purpose of a reservation is to ensure that a material will be available when it is needed. It
also serves to simplify and accelerate the goods issue process and prepare the tasks at the point
of goods issue.
It is also important that reservations are taken into account by Material Requirements Planning
(MRP), which means that required materials are procured in time if they are out of stock.
Planning a Goods Issue
You can handle both planned goods issues and unplanned goods issues.
You can also use reservations to plan goods receipts and stock transfers (see
Planning Goods Receipts [Page 31] and Planning Stock Transfers and Transfer
Postings [Page 116]). This section deals only with reservations for goods issues.
Information in a Reservation
In a reservation, information is stored that is relevant for the goods issue and for materials
planning, for example:
What? (which material?)
How much?(in which quantity?)
When? (for which requirement date?)
From where? (from which plant or warehouse?)
To where? (to which recipient or customer?)
A reservation document consists of a header and at least one item. The header contains general
data about the reservation (creator, movement type, account assignment). The items describe
individual planned movements (material, quantity, requirement date).
You can create a reservation for exactly one purpose only; that is, in a reservation,
you can only enter one movement type and one account assignment object (for
example, a cost center).
SAP AG Inventory Management and Physical Inventory (MM-IM)
Reservation
April 2001 137
Reservation Level
The system makes reservations at plant or storage-location level. For materials handled in
batches, you can also create reservations at batch level.
Manual and Automatic Reservations
The R/3 System supports manual and automatic reservations. Manual reservations are entered
directly by the user. Automatic reservations are generated automatically by the R/3 System.
There are two types of automatic reservations:
Reservations for orders, networks, WBS elements:
When an order, a network, or a project is created, the components from the warehouse
are reserved automatically.
Stock transfer reservations:
If reorder point planning is used at storage location level and the available stock on hand
falls below the reorder point, the system generates a stock transfer reservation in the
plant for the replenishment quantity.
You cannot manually process automatic reservations. For example, it is not possible to change
reservations for an order directly. You have to change the components in the order. The system
then updates the reservation automatically.
What are the Results of a Reservation?
When a reservation is entered, the following events occur in the system:
The system creates a reservation document, which serves as proof of the request.
In the material master record, total stock and unrestricted-use stock of the material
remain unchanged. Reserved stock is increased by the reserved quantity.
In MRP, available stock is reduced by the reserved quantity. This is visible in the current
stock/requirements list. The reservation causes an entry to be made in the requirements
planning file.
Displaying Reserved Stock
There are two functions available for displaying reserved stock (also refer to Reporting in
Inventory Management [Page 227] ):
Stock overview at plant level:
When you use this function, the system displays the total reserved stock for the material
at plant level. From the stock overview, you can choose Environment Reservations to
display a list of the reservations for the material.
Current stock/requirements list:
When you use this function, the system lists all of the open reservations for the material
at plant level, along with the reserved quantity for each.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Creating a Reservation
138 April 2001
Creating a Reservation
1. Choose Reservation Create.
The initial screen appears.
2. Enter the following data:
a. Base date
b. Movement type
c. plant
3. Choose Continue.
The collective entry screen appears.
Enter an Account Assignment
The upper part of the screen contains the header data for the reservation. Depending on
the movement type, you must maintain different account assignment fields (for example,
cost center, order, or asset).
Some of the account assignment fields (for example, G/L account) need not be
maintained manually. The relevant information is automatically copied from the account
assignment object.
Enter a G/L Account
If the G/L account field is available, you can enter a G/L account used as the offsetting
entry for the inventory posting (usually a consumption account).
a. If you do not enter an account, the system will automatically determine the G/L account
when the goods movement is entered.
b. If you enter an account, automatic account determination does not take place when the
goods movement is entered. The system uses the G/L account entered in the
reservation.
Enter Items
In the lower part of the screen, you can enter several items. If you need to enter more
items in the reservation, you can choose Edit New items to enter additional items.
Availability Check
If an availability check has been defined for the material or for the movement type, the
system performs this check for each item. If a material will not be available on the
requirement date, the system issues either a warning or an error message, depending on
the corresponding setting.
4. Check data on the overview screen.
5. Post the reservation.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Creating a Reservation Using a Reference Document
April 2001 139
Creating a Reservation Using a Reference Document
Prerequisites
You use this function to copy items from an existing reservation when entering a new reservation.
When doing this, you can:
change the account assignment and the base date
select and change the items to be adopted (copied)
enter new items
Procedure
1. Choose Reservation Create.
The initial screen appears.
2. Enter the base date of the new reservation.
Enter a movement type only if you want a movement type that differs from the movement
type of the reservation to be copied.
Enter the number of the reservation to be copied in the Reservation field (under Ref.).
You can also choose Reservation Create w. reference To reference. A dialog box
is displayed where you enter the base date and the reference reservation.
3. Choose Continue.
The item selection screen is displayed. The list contains all items from the reference
reservation.
4. If necessary, change the account assignment.
5. Select the items to be copied to the new reservation. You can edit the items directly on the
item selection list.
6. To adopt the selected items, choose Edit Item(s) Adopt.
The overview screen appears.
7. Post the new reservation.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Displaying a Reservation
140 April 2001
Displaying a Reservation
Use
You can display reservations in the following ways. You can:
Display an individual reservation
Display a list of all reservations
Activities
Displaying an Individual Reservation
Choose Reservation Display.
Display a List of All Reservations
Choose Reservation Reservation list (report RM07RESL).
For more information, see the report documentation.
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Processing Reservations
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Processing Reservations
Changing Header Data
By selecting Goto Header, you can display the header data screen where you can change the
base date and the account assignment.
Entering New Items (on Detail Screen)
If you do not want to enter a new item on the Collective processing screen, but rather directly on
the detail screen, select Edit New item.
Once you have entered the new item, you can display the detail screen for entry of the next new
item by selecting Edit New item.
If you want to enter all of the items directly on the detail screen instead of on the
collective entry screen, you can call the New item function directly from the initial
screen. When you do this, you first receive a box in which you enter the account
assignment data. Choose Continue to go the detail screen for entry of the first item.
Entering New Items (on Collective Processing Screen)
To enter several new items at once on the collective processing screen, choose Edit New
items.
Alternatively, you can select Goto Collective process.. The collective processing screen
appears, and you can enter new items, but the items already entered are also listed. For those
items, you cannot change the material number or the plant.
Deleting an Item
If a material no longer needs to be withdrawn, or if you entered an incorrect material number or
plant, you can delete the item.
1. On the collective processing screen, choose the item to be deleted.
2. Choose Edit More functions Delete item.
Changing an Item on Detail Screen
To display or change detailed information about an item (for example, its quantity in the various
units of measure, or its account assignment), select an item.
If you only entered one item for the reservation, the detail screen for that item immediately
appears.
If you entered more than one item, a dialog box appears in which you enter the number of
the required item.
On the detail screen, you can change all of the item data (for example, the requirement date).
You cannot change the material number or the plant.
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Changing Default Values for New Items
You use this function to enter new items for a different requirement date or for another plant.
Choose Edit Default values.... A dialog box appears in which you define the new default
values.
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Changing a Reservation
April 2001 143
Changing a Reservation
Use
You can change a manual reservation at any time, even if the reserved quantity has already
been withdrawn.
You cannot process automatic reservations.
This section begins by describing the general procedure for changing a reservation. It then goes
on to explain several change functions.
How Can I Change a Reservation?
1. Choose Reservation Change.
2. On the initial screen, enter the reservation number. If you do not know the reservation
number, you can search for it using the Possible entries button.
The collective processing screen for the reservation appears.
3. You can change the data (for example, quantity or storage location) directly on the collective
processing screen. Alternatively, you can select one particular item and change the data on
the detail screen.
4. Post the changes.
Which Data Can I Change?
change general item data (for example, storage location, batch, recipient)
change the requirement date for one item or for all items
change the quantity of a reservation item if you need more or less than the quantity reserved
until now
set or reset various indicators (final issue indicator, Movement allowed indicator)
check the availability of the material for the base date specified
delete items
enter new items
Constraints
You cannot change the account assignment data (for example, cost center or order). If the
account assignment is incorrect, you must delete the reservation and enter a new
reservation.
You cannot change the material number or the plant for an item. If either of these entries is
incorrect, you must delete the item and enter a new item.
Availability Check
If you change data relevant to materials planning (for example, quantity, storage location,
requirement date), the system automatically performs a new availability check, if this has been
defined for the material or for the movement type.
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Changing a Reservation
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If you do not change any data relevant to materials planning, you can still initiate the availability
check manually.
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Changing the Requirement Date
April 2001 145
Changing the Requirement Date
Use
You can change the requirement date for individual items or for all items of the reservation. You
change the requirement date for a certain item on the detail screen. You change the requirement
date for all items by changing the base date in the header.
Activities
1. Choose Goto Header.
2. Change the base date.
3. Choose Continue.
In the Check requirement dates dialog box, the system proposes a new requirement date
for all the items. You can still change the requirement date of any item in this box if you
want.
4. Choose Continue. The system adopts the new requirement date for all items.
5. Choose Goto Overview.
The overview screen appears.
6. Post the changes.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Changing the Quantity
146 April 2001
Changing the Quantity
Use
You can change the requirement (or required) quantity of an item at any time.
You can change the quantity on the collective processing screen or on the detail screen. On the
detail screen, the required quantity (in the stockkeeping unit) and the quantity withdrawn to-date
are also displayed.
If you change the quantity for a reservation item and do not reset the “final issue”
indicator, this item will be suggested as deselected when you enter the goods
movement (see Changing the Final Issue Indicator [Page 148]).
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Changing the Movement Allowed Indicator
April 2001 147
Changing the Movement Allowed Indicator
Use
If you specified that movements are not yet allowed for the reservation items when you entered
the reservation (for example, because the requirement date is in the far future), you must set the
Movement allowed indicator before you can post the first goods issue for the reservation item.
Activities
You have various options of setting or resetting the Movement allowed indicator:
You can use the reservations management program to set the indicator automatically (see
Functions of the Reservations Management Program [Page 152]).
You can set or reset the indicator manually for individual items on the collective processing
screen (M column) or on the detail screen (Mvt. allowed field).
To set or reset the indicator for all items, choose Edit More functions For all items
Movement on/off on the collective processing screen. The system automatically sets the
indicator for all of the items (or resets it if it has already been set).
Inventory Management and Physical Inventory (MM-IM) SAP AG
Changing the Final Issue Indicator
148 April 2001
Changing the Final Issue Indicator
Use
The final issue indicator is used to mark a reservation item as completed. It is set automatically
during goods issue posting if the entire reserved quantity is withdrawn.
If the indicator is set for a reservation item, this item will no longer be suggested as selected for
the goods issue.
Activities
If you want a reservation item to be considered completed by a particular goods issue despite the
fact that the entire quantity was not issued, you can manually set the final issue indicator when
you enter the goods issue item.
Entering goods issues with reference to a reservation is explained in detail in Goods
issues [Page 83].
There are other situations in which you can manually change the final issue indicator in the
reservation, namely:
If a reservation item was completed by a partial withdrawal, but the final issue indicator was
not set when the goods issue was entered, you can set the final issue indicator directly in the
reservation.
If a reservation item has already been marked as completed, but you want to reserve an
additional quantity, reset the indicator, so that the item will be appear as selected when the
goods issue is entered.
You can set or reset the final issue indicator for an item directly on the collective processing
screen (FIs column) or on the detail screen (Final issue field).
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Checking Availability
April 2001 149
Checking Availability
Use
If you change MRP-relevant data, the system automatically checks whether the material will be
available on the requirement date. If you have not changed any MRP-relevant data, you can
manually initiate the availability check.
Activities
To perform the availability check for a particular item, choose Edit More functions
Check availability from the detail screen.
To perform the availability check for all items, choose Edit More functions For all items
Check availability from the collective processing screen.
If the material is not available on the requirement date, the system issues either a warning or an
error message, depending on how Customizing is configured.
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Deleting an Item
150 April 2001
Deleting an Item
Use
If a material is no longer to be withdrawn, or if you entered an incorrect material number or
incorrect plant, you can delete the reservation item.
Activities
1. Choose the item that is to be deleted.
2. Choose Edit More functions Delete item, or select the column D (deleted).
This marks the item for deletion. Although the item still appears in the list, it can no
longer be changed.
3. Post the change.
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Managing Reservations
April 2001 151
Managing Reservations
Use
Management of reservations involves the following:
deletion of the reservation file
mass changes of reservations
Deletion of the reservation file
You should regularly delete completed, old, or unnecessary reservations to keep the reservation
file from becoming too big. Reservations are deleted as follows:
1. Reservation items that are completed or that are in the system longer than a certain number
of days are marked for deletion by the reservations management program.
2. If all of the items of a reservation are marked for deletion, the reservation is physically
removed from the file.
Bulk Change of Reservations
When you enter reservations for which movements are not yet allowed, you must set the
Movement allowed indicator so that you can post goods movements for these reservation items.
It is possible to make this change for all reservation items whose requirement date is in the near
future (for example, within the next 10 days).
Selecting Reservations To Be Processed
You can limit the list of reservations to be processed by entering various selection criteria, as
follows:
reservation number (defining a range is allowed)
base date (To date)
account assignment
This function cannot be used to manage automatic reservations which were created
for an order. You can only do this via the maintenance functionality of the order.
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Functions of the Reservations Management Program
152 April 2001
Functions of the Reservations Management Program
Use
The management program RM07RVER carries out the following activities:
Marking items for deletion
Deleting reservations
Allowing movements for reservation items
Marking Items for Deletion
The reservations management program sets the deletion indicator for reservation items:
that are completed (final issue indicator has been set)
whose requirement date is earlier than the date calculated by the system
Consequently, old or unnecessary reservations that no longer represent an "actual" request are
deleted (for example, because the material was withdrawn without the reservation being
referenced during the goods issue posting).
Calculating the Deletion Date
To allow the system to calculate a date for the deletion of the reservations, you must enter a
base date on the selection screen. The system calculates the deletion date using the base date
you enter minus a predefined number of days (in the standard SAP System: 30 days).
You enter 10. 01 as a base date. In this case, all reservation items whose
requirement date is on or before 09.01 are marked for deletion.
Deleting Reservations
If all of the items of a reservation are marked for deletion, the entire reservation is removed from
the file.
It is possible to delete only those reservations that were entered for a certain account assignment
(for example, a cost center or an order). To do so, enter the account assignment as a selection
criterion.
Allowing Movements for Reservation Items
The reservations management program sets the Movement allowed indicator for all items whose
requirement date falls within a certain period. For these items, goods movements are allowed.
Calculating the Period
To enable the system to calculate a period for allowing movements, you must enter a base date
on the selection screen. The system calculates the period using the base date you enter plus a
predefined number of days (in the standard SAP System: 10 days).
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Functions of the Reservations Management Program
April 2001 153
You enter 10/01 as a base date. In this case, movements are allowed for all items
whose requirement date is before 10/12.
The default number of days (30 days for the deletion indicator, 10 days for the
Movement allowed indicator) can be changed by the system administrator in
Customizing for Inventory Management.
Delete
reservations 30 days
Allow
movements
10 days
09/01 10/01 10/11
Requirement date
for reservations
Base date for
reservation
management
Inventory Management and Physical Inventory (MM-IM) SAP AG
Running the Reservations Management Program
154 April 2001
Running the Reservations Management Program
1. Choose Reservation Manage.
The Reservations Management selection screen is displayed.
2. Enter a range for the reservations to be processed. You can also narrow down the number of
reservations to be processed by entering an account assignment as a selection criterion.
Enter the base date:
a. Only reservations whose base date is on or before the date entered are taken into
account.
b. Using the base date, the system calculates the date for deletion of the reservation items
and the period for allowing movements.
Select the actions to be carried out (for example, Set deletion indicator/delete reservation
or Allow goods movement).
If the Only completed items indicator is set, only items that are completely issued or
marked as completed are marked for deletion.
If you run the program as a test run, you obtain a list of all reservations and reservation
items with the changes to be carried out. You can make the changes by choosing List
Save.
If you do not run the program as a test run, the changes are carried out immediately. A
log of the changes that are carried out is only issued if you selected the issue log
indicator.
3. Choose Program Execute to run the reservations management program.
Depending on the function you selected, one of the following collective processing
screens will be displayed:
a. collective processing screen for the reservations to be deleted
b. collective processing screen for the reservation items to be changed
If you selected both functions, the collective processing screen for the reservations to be
deleted is displayed. Choose Goto Reservation items to be changed to display the
screen for the items to be changed
On the collective processing screen, select the required reservations or reservation
items.
4. Choose Goto Overview.
The list of the selected reservations or reservation items is displayed.
5. Choose List Save to delete the reservations or set the Movement allowed indicator.
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Physical Inventory
April 2001 155
Physical Inventory
Purpose
This component allows you to carry out a physical inventory of your company’s warehouse
stocks for balance sheet purposes. Various procedures can be implemented for this.
Features
In the R/3 System, physical inventory can be carried out both for a company’s own stock and
for special stock. Inventory for a company’s stock and for special stocks (such as, consignment
stock at customer, external consignment stock from vendor or returnable packaging) must be
taken separately (in different physical inventory documents), however.
Furthermore, the stock can be divided into stock types. In the standard system, a physical
inventory can be carried out for the following stock types:
Unrestricted-use stock in the warehouse
Quality inspection stock
Blocked stock
If batch status management is active, the first stock type covers both unrestricteduse
stock and restricted-use stock.
Inventory of all stock types mentioned can be taken in a single transaction. For the materials to
be inventoried, one item is created in the physical inventory document for every stock type.
Physical inventory takes place at storage location level. A separate physical inventory document
is created for every storage location.
If a material does not exist in a storage location, this means that no goods movement has ever
taken place for the material in the storage location. The material, therefore, has never had any
stock in this storage location. The material does not exist at stock management level in the
storage location. It is therefore not possible to carry out a physical inventory for the material in
this storage location.
This is not to be confused with a material for which a goods movement has taken place and for
which the stock balance is currently zero. A physical inventory must be carried out in this case,
since storage location data is not deleted when the stock balance is zero.
Physical Inventory Procedures
The R/3 System supports the following physical inventory procedures:
Periodic inventory
Continuous inventory
Cycle counting
Inventory sampling
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Physical Inventory
156 April 2001
Periodic Inventory
In a periodic inventory, all stocks of the company are physically counted on the balance sheet
key date. In this case, every material must be counted. During counting, the entire warehouse
must be blocked for material movements.
Continuous Inventory
In the continuous inventory procedure, stocks are counted continuously during the entire fiscal
year. In this case, it is important to ensure that every material is physically counted at least once
during the year.
Cycle Counting
Cycle counting is a method of physical inventory where inventory is counted at regular intervals
within a fiscal year. These intervals (or cycles) depend on the cycle counting indicator set for the
materials.
The Cycle Counting Method of Physical Inventory [Page 189] allows fast-moving items to be
counted more frequently than slow-moving items.
Inventory Sampling
In MM Inventory Sampling [Ext.] randomly selected stocks of the company are physically counted
on the balance sheet key date. If the variances between the result of the count and the book
inventory balance are small enough, it is presumed that the book inventory balances for the other
stocks are correct.
Updating the Logistics Information System (LIS)
The physical inventory is connected to the Logistics Information System (LIS). When inventory
differences are updated in the LIS, they are displayed both on a quantity and on a value basis.
The physical inventory items are aggregated at inventory number level, plant level, storage
location level, and material level. If you need more detailed information on the inventory
differences in the LIS, you can access the list of inventory differences directly from the LIS and
continue the analysis at item level.
Constraints
The posting of physical inventory differences is subject to certain time constraints:
The posting period is automatically set during counting. Therefore, the inventory difference
must be posted to the same period or - if postings to the previous period are allowed - in the
following period.
The fiscal year is set by specifying a planned count date when creating a physical inventory
document. All subsequent postings to this document must take place in this fiscal year and/or
in the first period of the following fiscal year, if postings to the previous period are allowed.
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Physical Inventory Process
April 2001 157
Physical Inventory Process
Purpose
Regardless of the physical inventory method, the process of physical inventory can be divided
into three phases:
1. Physical Inventory Preparation [Page 159]
Create a physical inventory document.
Blocking Materials for Posting
Print and distribute the physical inventory document.
2. Physical Inventory Count [Page 160]
Counting stocks
Entering the result of the count on the physical inventory document printout
3. Physical Inventory Analysis [Page 161]
Entering the result of the count into the system
Initiating a recount, if necessary
Posting inventory differences
Process Flow
The physical inventory procedure is carried out in three steps:
1. Creating a Physical Inventory Document
2. Entering the Physical Inventory Count
3. Posting inventory differences
You can also group together individual phases and carry them out in a single step, as follows:
posting the physical inventory count without reference to a physical inventory document
In this step, the following are combined:
– a physical inventory document is created.
– the count is posted.
posting the physical inventory count and inventory differences
If a physical inventory document exists, the following are combined in this step:
– the count is posted.
– any inventory differences are posted.
posting the physical inventory count without reference to a physical inventory document
In this step, the following are combined:
– a physical inventory document is created
– the count is posted
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Physical Inventory Process
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– any inventory differences are posted
Monitoring the Inventory Status
To monitor physical inventory processing, each physical inventory document records the
inventory steps that have been carried out. This information is contained in the item data and the
document header.
Inventory history in the item data
The inventory history informs you which steps have been carried out for the item.
Document header
In the document header, the fields Count status, Adjustment status and Delete status
specify whether some or all of the items have been counted, posted (inventory
differences), or deleted.
You can also display statistics for the physical inventory document; the statistics list how many
document items are open, counted, posted (inventory differences), recounted, or deleted.
Result
When you post the inventory differences, the system adjusts the book inventory values and book
values so that they correspond with the actual stocks and stock values.
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Physical Inventory Preparation
April 2001 159
Physical Inventory Preparation
Purpose
To ensure that the physical inventory count goes smoothly, you have to carry out a number of
steps in preparation.
Process Flow
1. Create a physical inventory document.
A physical inventory document contains, among other things, the following data:
the plant and storage location in which the count is to take place
when the count is to take place
which materials are to be counted
for material handled in batches: which batches are to be counted
in the case of split valuation: which sub-stocks are to be counted
which stock types are to be counted
2. Blocking Materials for Posting
Due to the delay between a material movement and the posting of that movement, there is a
short-term discrepancy between actual warehouse stock and book inventory. To avoid such a
discrepancy during physical inventory, it is recommended that you block the materials for
posting during the physical inventory. You can set a posting block two ways:
You block the relevant materials when you enter the physical inventory document. This
is recommended if you create the physical inventory document immediately before the count.
You block the relevant materials later by changing the posted physical inventory
document. This is recommended if you do not create the physical inventory document
immediately before the count.
The posting block is automatically cancelled when you post the counting results for the
physical inventory document.
3. Print and distribute the physical inventory document.
You must print out the physical inventory document for the physical inventory count and pass
it on to the people responsible for doing the counting.
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Physical Inventory Count
160 April 2001
Physical Inventory Count
Purpose
During the inventory count, all the materials being inventoried are counted and entered
physically.
Process Flow
1. The stocks are counted for individually for the materials in a physical inventory document.
2. The count results are written on the printout of the physical inventory document.
3. The printout is then directed back to the person responsible, so that he or she can enter the
count into the system and analyze it.
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Physical Inventory Analysis
April 2001 161
Physical Inventory Analysis
Purpose
During the physical inventory analysis, you enter the count results in the system, determine
whether a recount is necessary if there are any discrepancies, and post the inventory differences.
Process Flow
1. Entering the count results in the system
After the count has been taken, you must enter the results of the count into the system. You
enter the counted stocks for every item of a physical inventory document.
If non-SAP programs are used to carry out the inventory count, you can import the count data
into the R/3 System using the following functions:
Using batch input for entering count results
Transfer PDC (Portable Data Capture) inventory count data
2. Initiating a recount
It is possible to initiate recounts for individual items on a physical inventory document. This is
recommended if you suspect that an error was made during counting. When you initiate a
recount, a new physical inventory document is created.
3. Posting inventory differences
If the physical inventory is different from the book inventory, you must correct the book inventory
balance by posting the differences. This step ends the physical inventory.
Result
When you post the physical inventory difference, the system creates a material document that
records the adjusted stock balances and an accounting document that contains the necessary
account activities.
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Examples of Physical Inventory Documents
162 April 2001
Examples of Physical Inventory Documents
Material A
For material A, in one storage location, you have your company’s own stock and consignment
stock belonging to vendors 7 and 8. For material A, you want to inventory the unrestricted-use
stock belonging to your own company and consignment stock. To do this, you create the
following physical inventory documents:
1. Document: plant 0001, storage location 0001, special stock _
Item Material Stock type
1 A 1
2. Document: plant 0001, storage location 0001, special stock K, vendor 7
Item Material Stock type
1 A 1
3. Document: plant 0001, storage location 0001, special stock K, vendor 8
Item Material Stock type
1 A 1
Material B
You place material B in storage locations 0001 and 0002. For material B, you want to inventory
the unrestricted-use company’s own stock and the company’s own stock in quality inspection. To
do this, you create the following physical inventory documents:
1. Document: plant 0001, storage location 0001, special stock _
Item Material Stock type
1 B 1
2 B 2
2. Document: plant 0002, storage location 0001, special stock _
Item Material Stock type
1 B 1
2 B 2
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Examples of Physical Inventory Documents
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Inventory Management and Physical Inventory (MM-IM) SAP AG
Carrying Out the Physical Inventory
164 April 2001
Carrying Out the Physical Inventory
Use
The following topics describe how to perform each of the physical inventory tasks in the R/3
System:
SAP AG Inventory Management and Physical Inventory (MM-IM)
Creating Physical Inventory Documents
April 2001 165
Creating Physical Inventory Documents
Use
There are two methods of creating a physical inventory document, as follows:
Creating Single Documents
In this case, you explicitly specify the materials to be counted. This method is recommended if
you want to take inventory of only a few materials.
Creating Sessions
In this case, you enter the criteria that should determine which materials are to be inventoried in
which plants and storage locations. The system then creates a physical inventory document for
each plant and storage location with the materials that fulfill the criteria. This method is
recommended if you want to take inventory of a lot of materials (refer to Managing Sessions
[Page 179]).
Grouping Physical Inventory Documents by Physical Inventory Number
Above the physical inventory document number, there is a physical inventory number. You can
use this to group physical inventory documents that belong together organizationally in order to
manage them more efficiently. This allows you to display the physical inventory documents for a
particular month or department directly without having to search the list of inventory differences.
You issue physical inventory numbers when creating and changing physical inventory
documents. To do this, enter a number or term of you choice on the initial screen or in the
Physical inventory number field in the physical inventory document header.
Creating Single Documents
1. Choose Phys. inventory doc. Create. The initial screen appears.
2. Enter the data required. Choose EditNew items to display the item screen.
3. Enter the materials that are to be inventoried.
4. To post the document, choose Phys. inventory doc.Post. The system confirms the posting
and displays the number of the physical inventory document.
Creating Sessions
1. Choose Sessions Create phys.inv.docs
Without special stock for physical inventory of company’s own stock
Own special stock for physical inventory of own special stocks
Externally owned special stock for physical inventory of external special stock
The initial screen appears.
2. Enter the data required.
3. Choose ProgramExecute from the menu. The system creates a session. A list appears
with all of the items that are to be inventoried according to your selection. The system issues
a message with the name of the session created.
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Creating Physical Inventory Documents
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For more information on creating sessions, refer to the respective report
documentation.
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Changing Physical Inventory Documents
April 2001 167
Changing Physical Inventory Documents
You can make the following changes to a physical inventory document:
In the document header
change the planned count date
set or remove the posting block
freeze the book inventory balance
create or change the physical inventory number
In an item still to be counted
change the stock type
change the count unit of measure
set the deletion indicator
Enter new items, provided no count has taken place
Delete the document
Please note when deleting:
If you set the deletion indicator for an item, the item remains in the document but cannot be
processed. This will unblock the material.
If you delete a document, it is physically deleted if there are no inventory difference postings
for its items. If a difference has been posted, the document is proof of the posting. Therefore,
it is simply flagged for deletion. This means it can then be displayed, but no longer
processed. The document is physically deleted when the next reorganization program is run.
To change a physical inventory document, proceed as follows:
1. Select Physical inventory document Change from the physical inventory menu. The initial
screen appears.
2. On the initial screen, enter the number of the physical inventory document.
To make changes to the document header, select Goto Header. Make the change and
save with Physical inventory document Post.
To make changes to an item, select Goto Collective processing. Make the change and
save with Physical inventory document Post.
To add a new item, select Goto New items. Enter the items and save with Physical
inventory document Post.
To delete the document, select Document More functions Delete.
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Blocking Materials for Posting
168 April 2001
Blocking Materials for Posting
There are two ways to block materials for posting for the duration of the physical inventory count:
Blocking when Creating
Blocking Later
Blocking when Creating
To block the materials of a physical inventory document when you create the document, do the
following:
When creating an individual physical inventory document, select the Posting block field on
the initial screen.
When creating a session, select the Posting block field on the selection screen.
Blocking Later
You can block materials later either for an individual physical inventory document or (using
sessions) for several physical inventory documents. To do this, proceed as follows:
individual processing
a. From the inventory screen, select Physical inventory document Change. The initial
screen appears.
b. On the initial screen, enter the number of the physical inventory document. Since the
posting block is specified in the document header, select Goto Header from the
menu. The header data screen appears.
c. On the header data screen, select the Posting block field.
d. Post the document by selecting Physical inventory document Post from the menu.
session processing
a. From the Physical Inventory menu, select Sessions Block material. The criterion
screen appears.
b. On the criterion screen, enter the number of the physical inventory document (or a range
of physical inventory document numbers), and select the Posting block field.
c. Select Program Execute from the menu. The system creates a session. A list
appears with all of the physical inventory documents that are to be blocked according to
your selection. The system displays a message with the name of the session.
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Printing Physical Inventory Documents
April 2001 169
Printing Physical Inventory Documents
To print physical inventory documents, proceed as follows
1. From the inventory screen, select DocumentPrint. The criterion screen appears.
2. On the criterion screen, enter the criteria that should determine which physical inventory
documents are to be printed.
The fields Physical inventory documents and Physical inventory items are used to limit
the printout according to the status of the physical inventory documents or items.
3. Choose ProgramExecute. If you selected a field in the Status selection area, a window
appears in which you can limit the printout according to the status of the documents or the
items.
Select which statuses you want to print.
4. Select ProgramExecute from the menu. A window appears in which you can enter the
defaults for the printout.
5. To print the physical inventory document, press F13=Print.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Entering the Physical Inventory Count
170 April 2001
Entering the Physical Inventory Count
After the count has been performed, you must enter the results of the count into the system. As
well as the standard procedure (refer to Physical Inventory Process [Page 157]), the R/3 System
enables you to enter the result of the count for a material for which no physical inventory
document has been created. In this case, a physical inventory document is automatically created
upon entry of the result of the count.
Thus, there are two methods for entering a physical inventory count, as follows:
entering the count with reference to a physical inventory document
entering the count without reference to a physical inventory document
Furthermore, it is possible to change an already entered physical inventory count. This might be
necessary, for example, if an error is made during entry, or if you receive a correction for a count
without a recount having taken place.
Entering the Count with Reference
To enter a physical inventory count with reference to a physical inventory document, proceed as
follows:
1. From the Physical Inventory menu, select Inventory count Enter. The initial screen
appears.
2. On the initial screen, enter the number of the physical inventory document. Select Goto
Collective processing from the menu to display the item screen of the physical inventory
count.
3. On the item screen, enter the counted quantities into the Quantity column. If necessary, enter
the unit of measure in which the count was carried out in the UnE field.
If a quantity of zero was counted for an item, enter this by selecting the ZC (zero
count) column. It is not sufficient to enter 0 in the Quantity in column, because the
system interprets a zero as "not yet counted."
4. To post the count, select Inventory count Post from the menu.
Entering the Count Without Reference
To enter a physical inventory count without reference to a physical inventory document, proceed
as follows
1. From the Physical Inventory menu, select Inventory count Enter without document
reference. The initial screen appears.
2. On the initial screen, enter the plant and the storage location from which the count originates.
Select Edit New items from the menu to display the item screen of the physical inventory
count.
3. Enter the materials, the stock types, and the counted quantities.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Entering the Physical Inventory Count
April 2001 171
4. To post the count, select Inventory count Post from the menu. A new physical inventory
document is created during posting, and the system displays the message Count entered for
physical inventory document nn.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Freezing the Book Inventory Balance
172 April 2001
Freezing the Book Inventory Balance
If you have not completed your inventory count, you can freeze the book inventory balance in the
physical inventory document. This is to prevent the book inventory balance, which is relevant for
physical inventory, from being changed by any movements. These could otherwise lead to
incorrect inventory differences.
You have physically counted all items in a physical inventory document, but have not
yet entered the count results in the system for all items. For one of these items, the
book inventory balance is 100 pieces. 90 pieces were counted, corresponding to a
difference of 10 pieces.
You freeze the book inventory balance of 100 pieces in the physical inventory
document.
Before you enter the count, a goods receipt of 20 pieces is posted. The current book
inventory balance is now 120 pieces. For the physical inventory document, the book
inventory balance of 100 pieces continues to be relevant, however.
If the inventory balance had not been frozen, there would have been a difference of
30 pieces for the item.
In the Customizing system of Inventory Management, you specify whether the
freezing of book inventory balances in the storage location is allowed.
From the Physical Inventory menu, you can freeze the book inventory balance using the following
functions:
Physical inventory document Create (initial screen)
Inventory count Change (Header)
Sessions Freeze book inventory (Batch input)
SAP AG Inventory Management and Physical Inventory (MM-IM)
Setting Zero Count
April 2001 173
Setting Zero Count
If a quantity of zero was counted for an item, enter this by selecting the ZC (zero count) column.
It is not sufficient to enter 0 in the Quantity in column, because the system interprets a zero as
"not yet counted."
Setting Zero Count Automatically
When entering inventory counts with reference to a physical inventory document which contains
many items with a stock balance of zero, it is possible to set “zero count” automatically for all
items not counted.
Consequently, you only need to enter the quantity counted for inventory items with stock. You no
longer need to set the indicator Zero count for every single item with zero stock.
Procedure
1. First enter the count results for those items with a stock balance other than zero.
2. Then select Edit Set zero count.
The zero count indicator is set automatically for each item that has not been counted.
3. Save your count results.
You can also use a batch input report for setting this indicator. To do this, select Sessions
Set zero count.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Changing a Physical Inventory Count
174 April 2001
Changing a Physical Inventory Count
To change a physical inventory count, you proceed exactly as you would for entering a physical
inventory count, with one difference. On the item screen, the Quantity in column is already filled.
Overtype the entry with the corrected quantity, then post the document.
If you have initiated a recount for an item, you can no longer change the physical
inventory count. The quantity determined during recounting can only be entered in
the physical inventory document for the recount.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Initiating a Recount
April 2001 175
Initiating a Recount
To initiate a recount, proceed as follows
1. From the Physical Inventory menu, select Physical inventory documentRecount. The
initial screen appears.
2. On the initial screen, enter the physical inventory document for which you want to initiate a
recount. By specifying a threshold value, you can limit the number of items in the recount to
only those which display a larger difference than the threshold value. Select Goto
Overview to obtain a list of the document items.
3. Select the items for which you want a recount.
4. Select Physical inventory documentPost from the menu. A new physical inventory
document is created that contains the selected items. The system confirms the posting and
displays the number of the physical inventory document.
The recounted items are deactivated in the original document and can no longer be processed
via this document.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Posting Inventory Differences
176 April 2001
Posting Inventory Differences
Use
There are various options for posting inventory differences depending on the processing status of
the physical inventory transaction.
Posting differences after the count has been posted
A physical inventory document has already been created, and the count has already
been posted. You only have to post the inventory differences.
Posting the count and inventory differences simultaneously after the physical
inventory document has been created
A physical inventory document has been created, but the count has not yet been posted.
The count results are available. You enter the count and post the differences in one step.
Entering the count without a document reference
You have a count result without reference; that is, no physical inventory document has
yet been created for this physical inventory transaction. You create a physical inventory
document, enter the count, and post the differences in one step.
Prerequisites
The posting of physical inventory differences is subject to certain time constraints:
The posting period is automatically set during counting. Therefore, the inventory
difference must be posted to the same period or - if postings to the previous period
are allowed - in the following period.
The fiscal year is set by specifying a planned count date when creating a physical
inventory document. All subsequent postings to this document must take place in this
fiscal year and/or in the first period of the following fiscal year, if postings to the
previous period are allowed.
You can give a reason for the inventory difference for each item. For example, you can specify
that a physical inventory difference resulted because of theft.
In Customizing for Inventory Management, you can define the following value
tolerances for posting inventory differences for a user group:
maximum amount per physical inventory document
maximum amount per document item
If the amount of a document exceeds the document tolerance defined for the user
group, the user is not allowed to post any inventory differences for this document.
If the total value of the document is less than the document tolerance, but some
items exceed the maximum amount per item, the user is not allowed to post any
differences for these items. However, other items can be processed by the user.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Posting Inventory Differences
April 2001 177
Posting Differences After the Count Has Been Posted
1. Choose Difference Post.
The initial screen appears.
2. On the initial screen, enter the number of the physical inventory document.
By entering a value in the Threshold value field, you can control that, on the following
overview screen, all of the differences that are smaller than or the same as the threshold
value are preselected.
3. Choose Continue.
An overview appears with the items whose difference is larger than the threshold value
so that differences are to be posted.
(Since the inventory difference is calculated as the quantity counted minus the book
inventory balance, it can be a negative number. The threshold value is independent of
the sign. Thus, for a threshold value of 100, all differences that are not between -100 and
+100 are listed.)
4. On the overview screen, you can deselect items and select further items.
5. Choose Difference Post
The items whose difference is smaller than the threshold value and the items that you
selected in the overview are balanced.
Posting the Count and Differences Simultaneously
1. Choose Difference Count/difference.
The initial screen appears.
2. On the initial screen, enter the number of the physical inventory document.
3. Choose Goto Collective processing.
The collective processing screen for the physical inventory count is displayed.
4. On the collective processing screen, enter the counted quantities in the Quantity column.
If necessary, enter the unit of measure in which the count was performed in the UnE
field.
If a quantity of zero was counted for an item, enter this by selecting the ZC (zero
count) column. It is not sufficient to enter 0 in the Quantity in column, because the
system interprets a zero as "not yet counted."
5. Choose Difference Post
Entering the Count Without a Document Reference
1. Choose Difference Enter w/o doc. ref.
The initial screen appears.
2. Specify the plant and storage location for which the count result is available.
3. Choose Edit New items.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Posting Inventory Differences
178 April 2001
The item selection screen is displayed.
4. On the item screen, enter the counted materials, along with their stock types and
quantities.
If a quantity of zero was counted for an item, enter this by selecting the ZC (zero
count) column. It is not sufficient to enter 0 in the Quantity in column, because the
system interprets a zero as "not yet counted".
5. Choose Difference Post.
Result
After the inventory differences have been posted successfully, the system issues the message:
Diff. for I-document nn posted with M-document mm.
When you post the physical inventory difference, the system creates a material document that
records the adjusted stock balances and an accounting document that contains the necessary
account activities.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Managing Sessions
April 2001 179
Managing Sessions
Use
If you want to carry out a transaction for many objects (for example, create physical inventory
documents for many materials), the R/3 System can automatically execute it according to your
specifications.
One advantage of this procedure is that you save monotonous entry time. Another is that a
session can be processed at various times, allowing your system administrator to better utilize
the capacities of the computer.
Features
This process consists of two parts:
1. You create a session for the objects in question.
2. The session is “processed”. The session is "processed," meaning the system carries out
the transaction for every object.
In physical inventory, work with sessions is supported for the following functions:
creating a physical inventory document (see Creating Physical Inventory Documents
[Page 165])
blocking material (see Block Materials for Posting [Page 168])
entering the count or transferring PDC count data (*)
freezing the book inventory balance (see Freezing the Book Inventory Balance [Page
172])
setting zero count automatically (see Setting Zero Count [Page 173])
posting differences (see Posting Differences [Page 176])
posting the count and differences (*)
posting the physical inventory document, the count, and the differences (*)
The functions marked with an asterisk (*) cannot be carried out by the R/3 System alone, since
the system does not know the count results. These functions are used to transfer physical
inventory data into the R/3 System if the count was carried out with another system.
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Serial Numbers in Physical Inventory
180 April 2001
Serial Numbers in Physical Inventory
Use
When carrying out a physical inventory for materials that have serial numbers, you can enter the
serial numbers while you are entering the results of the physical inventory count.
This is possible for the following transactions/events:
Entering the physical inventory count (MI04)
Entering the physical inventory count without reference to a document (MI09)
Entering the count and posting differences in one step (MI08)
Creating a physical inventory document, entering the count, and posting differences in one
step (MI10)
Changing the physical inventory count (MI05)
Prerequisites
Physical inventory with serial numbers is carried out for all materials that require serial numbers.
You have to make the following settings for this:
In the material master record, a serial number profile must be entered in which the indicator
for serial number use is configured so that serial numbers have to be assigned for the
serialization procedure MMSL (maintaining goods receipt and goods issue documents).
The stock check indicator in the serial number profile should be configured so that an error
message appears when there are inconsistencies in Inventory Management.
You maintain the basic settings for the serial numbers in the step Serial Number Profiles in
Customizing for Serial Number Management.
You can configure serial number management for physical inventory in the Settings for Physical
Inventory step in Customizing for Inventory Management.
Features
You cannot enter the serial numbers first and then deduce the counted quantity from that
number. Inspection lot comparison (stock type 2) with serial numbers is not supported.
Activities
Entering and Editing Serial Numbers
When entering or changing a count, you can edit the serial numbers entered for every item from
collective processing or the overview by choosing Edit Change serial number. To do this,
place the cursor on the line number whose serial numbers you want to change.
Displaying Serial Numbers
You can display the serial numbers from the display of the physical inventory document item.
Choose Goto Serial numbers.
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Serial Numbers in Physical Inventory
April 2001 181
Solving Problems with the Status Management of Serial Numbers
If a serial number is not correctly assigned to an individual material because the serial number
and the serialized material are assigned to two different stock types, you cannot post inventory
differences.
If, for example, you mix up the serial number when you transfer a serialized material between two
storage locations, the serial number is assigned to one storage location while the serialized
material pertaining to it is located in the other storage location. In this case, the system does not
allow you to post the inventory difference for this item and issues an error message.
To enable you to post the inventory difference, you have to create a new physical inventory
document via a recount for the item concerned. Choose Phys. inventory doc. Recount. After
you create the new physical inventory document, you can carry out a transfer posting for the
serialized material so that the serial number assignment is consistent again.
You can obtain an overview of the items for which you have initiated a recount by going to the
inventory history of the original document. If you do not require information on the inventory
history, you can proceed as follows:
Delete from the physical inventory document the item that cannot be posted. Carry out a transfer
posting for the serialized material. Create a new physical inventory document for the serialized
material you have transferred.
Difference Posting for Serial Numbers only
Even if you did not determine differences in stock during the count, the system may still
determine differences for the relevant serial numbers in a stock type. This occurs when the
available serial numbers differ from the counted serial numbers. The system may therefore post
differences for the serial numbers concerned only.
See also:
Serial Numbers in Inventory Management [Ext.]
Inventory Management and Physical Inventory (MM-IM) SAP AG
Information on Physical Inventory
182 April 2001
Information on Physical Inventory
As well as providing a wide range of options for carrying out an inventory of your stocks, the
physical inventory functions in the R/3 System allow you to obtain an overview of the progress of
the physical inventory for each material at each stage of the process - from creating the physical
inventory document to posting the physical inventory differences.
With all the functions listed, you only call up data that is stored in the system. You
cannot change any data.
The following functions in the physical inventory menu provide information on the physical
inventory:
Displaying the physical inventory documents for a material (RM07IMAT)
Choose Environment Phys. inv. doc. for mat.
Displaying the physical inventory data for a material (RM07IINV)
Choose Environment Phys. in. data for mat.
Displaying the physical inventory overview (RM07IDOC)
Choose Environment Physical inv. overview.
Displaying the physical inventory list (RM07IDIF)
Choose Environment Physical inv.list
Displaying the list of physical inventory differences (RM07IDIF)
Choose Difference List of differences
Displaying changes to physical inventory documents (RM07ICDD)
Choose Environment Changes to phys. inv. doc.
Displaying a Physical Inventory History
When you display or change a physical inventory document, you can display the
physical inventory history for every physical inventory item. Choose Goto
Physical inventory. history.
The documentation for each report contains detailed information on evaluation options.
You can also call up additional functions from the Environment menu.
Displaying material documents for a material
Displaying a material document for a physical inventory document
Displaying a stock overview for a material
Displaying the material master record
Displaying archived documents
SAP AG Inventory Management and Physical Inventory (MM-IM)
Information on Physical Inventory
April 2001 183
Inventory Management and Physical Inventory (MM-IM) SAP AG
Account Activity During Posting of Inventory Differences
184 April 2001
Account Activity During Posting of Inventory
Differences
The account activity during posting of the inventory differences depends on which stock was
inventoried:
company’s own stock
consignment stock from vendor
SAP AG Inventory Management and Physical Inventory (MM-IM)
Inventory Differences in Company’s Own Stock
April 2001 185
Inventory Differences in Company’s Own Stock
When you post inventory differences, the material master record is changed, total stock is
automatically adjusted to the counted quantity. From the accounting point of view, this
corresponds to a goods receipt or goods issue, meaning that when the inventory difference is
posted, the stock account is debited or credited:
If the counted quantity is smaller than the book inventory balance, the stock account is
credited with the following value, inventory difference x price. The offsetting entry is made in
the "Expense from physical inventory" account.
If the counted quantity is greater than the book inventory balance, the stock account is
debited with the value of the inventory difference x price. The offsetting entry is made to the
"Income from physical inventory" account.
Since the amount posted is calculated on the basis of the current standard or moving average
price, posting inventory differences does not lead to a price change.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Example of Inventory Difference in Own Stock
186 April 2001
Example of Inventory Difference in Own Stock
The following graphic shows an example of a material with a standard price and a material with a
moving average price.
Mov.av.price 10
Total stock 100
Total value 1000
Material master Material A Material master Material B
Material master Material B
MA price 10
Total stock 110
Total value 1100
Material master Material A
Standard 10
Total stock 80
Total value 800
Posted inventory count
Material A 80 Material B 110
Post inventory differences:
Stock account for Material
Expense from
Stock account for Material
Income from
Standard 10
Total stock 100
Total value 1000
200 -
200 +
100 +
100 -
SAP AG Inventory Management and Physical Inventory (MM-IM)
Inventory Differences in Consignment Stock
April 2001 187
Inventory Differences in Consignment Stock
When you post inventory differences, the material master record is changed, the vendor
consignment stock is automatically adjusted to the counted quantity. Since this stock type is not
managed by value, from the accounting point of view, there is no posting.
An accounting document is still created, however. This is due to the way the R/3 System
interprets the difference:
Counted Stock Smaller than Book Inventory Balance
If the counted consignment stock is smaller than the book inventory balance, the system
assumes that the difference was withdrawn from consignment stock and did not "disappear" until
afterwards. The inventory difference is posted as a withdrawal and the withdrawal has to be paid
to the vendor. When you post inventory differences, that’s why the same account movements
take place as those that take place when you carry out a transfer posting from consignment stock
to your company’s own stock, with the exception that the amount that was posted to the stock
account is posted to the “Expenditure from inventory differences” account.
Counted Stock Greater than Book Inventory Balance
If the counted consignment stock is greater than the book inventory balance, the system
assumes that larger withdrawals were posted from consignment stores than actually occurred.
Thus, the inventory difference is posted as a withdrawal reversal. Since withdrawals are posted
to the "Payables from consignment stores" account, postings must be made to this account when
the inventory difference is posted.
Consequently, the postings made are the exact opposite of those made in the case of “counted
stock smaller than the book inventory balance”.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Example of Inventory Difference in Consignment Stock
188 April 2001
Example of Inventory Difference in Consignment Stock
The following graphic shows an example of a material valuated at standard price.
10
100
Material master Material A
Standard price
Consignment stock
07
11
Material A
Vendor
Consignment price
Vendor
consignment
from Vendor 07
Posted inventory count
Consignment stock of Material A for Vendor 80
Post inventory differences:
Payables from
consignment stores
Expense from phys.
Expense from consumption
-++
220
200
20
Since 20 pieces are missing in consignment storage, the "Payables from consignment stores"
account is posted with the amount of 20 pieces x $11/piece = $220. Due to the variance between
the consignment price and the price from the material master record, the offsetting entry is
divided as follows: the value from the difference quantity x the price variance (20 pieces x $1.00)
is posted to the “expenditure from consumption” account and the remaining amount is posted to
the “expenditure from physical inventory” account.
For a material with a moving average price, postings are only made to the "Payables for
consignment stores" and "Expense from physical inventory" accounts.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Cycle Counting Method of Physical Inventory
April 2001 189
Cycle Counting Method of Physical Inventory
Use
Cycle counting is a method of physical inventory whereby inventory is counted at regular
intervals within a fiscal year. These intervals depend on the cycle counting indicator set for the
material.
Cycle Counting allows you to count fast-moving items more frequently than slow-moving items,
for example.
General Procedure
Mark all materials that are to be included in cycle counting with a cycle counting indicator in the
material master record (storage data). The cycle counting indicator is used to group the materials
together into various cycle counting categories (for example, A, B, C, and D). In Customizing for
Inventory Management, you can define for each category the time intervals at which the
materials are to be counted.
You can use the program ABC Cycle Counting Analysis (RMCBIN00) to perform an analysis. In
this analysis, the system assigns the materials to the individual categories according to
consumption or requirements. You can also specify whether this analysis is to consider only the
materials with cycle counting indicator or all materials. The cycle counting indicator in the
material master records can be updated automatically by this program.
For the planning of cycle counting, run the program Create physical inventory documents for
cycle counting (RM07ICN1). This program checks all cycle counting materials to determine
whether a physical inventory is due to be carried out.
For more information on programs used for cycle counting, see the relevant report
documentation.
You can create physical inventory documents for the following stock types, as well as
unrestricted-use stock (stock type 1):
quality inspection stock
blocked stock
The system calculates the planned count date for all stock types as folllows:
Date of last physical inventory of unrestricted-use stock + predefined interval
If a material needs to be counted, use the program to create a batch input session for creating
physical inventory documents. To create the physical inventory documents, process the batch
input session .
When the inventory differences are posted, the actual count date is recorded in the physical
inventory data of the material as the date of the last physical inventory.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Cycle Counting Method of Physical Inventory
190 April 2001
Activities
Marking Materials for Cycle Counting
This step is only required if you perform cycle counting for the first time or if you want to update
the cycle counting indicators.
In the material master record (storage data), maintain the cycle counting indicator for all the
materials that are to be included in cycle counting.
You can set the indicator in one of the following two ways:
manually in the material master record. To do this, choose Material Change from the
Material Master menu.
automatically using ABC analysis To do this, choose Special procedures Cycle
counting Set CC indicator from the Physical Inventory menu.
Creating Physical Inventory Documents for Cycle Counting
1. From the Physical Inventory menu, select Special procedures Cycle counting
Create physical inventory documents.
2. Enter the data required.
3. Carry out the evaluation.
4. Choose Edit Generate session to create the batch input session.
5. Select System Services Batch input Edit from the menu to process the session.
6. Carry out the physical inventory for the physical inventory documents created.
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Batch Handling
April 2001 191
Batch Handling
Use
The structure of the material master record allows you to manage stocks of a material by value at
plant level or company-code level and by quantity down to storage-location level. Under certain
conditions, you may need to make further subdivisions for a material and manage batches.
Certain materials' features cannot always be guaranteed to be exactly alike in production. For
example, you cannot guarantee that a certain color will always have the same shade. Minor
differences between production lots cannot be avoided. You need to be able to uniquely identify
the individual production lots of the same material and manage them separately in inventory.
Materials that require such precise identification, for example pharmaceutical products, are
identified and managed in stock not only according to material number, but also according to
batch number.
With batch handling, you can manage not only production lots from in-house production, but also
production lots from vendors as separate entities.
It is possible to supplement standard batch management with batch status management.
Features
What Is a Material Handled in Batches?
Before you can manage batches of a material in stock, you must first specify in the material
master record that the material is to be managed in batches for the specified plant. To do this,
you must set the batch management requirement indicator in the material master record (for
example, in the Purchasing or Storage view).
Level of Batch Number Assignment
If a material is subject to management in batches, every quantity of that material must be
assigned to a batch. Each batch of a material is identified by a unique batch number, under
which it is managed. This number is either entered by the user (external number assignment) or
assigned automatically by the system.
You can define number assignment for batches at various levels:
Uniquely at client level for a material
Uniquely at material level
Uniquely at plant level
In the standard R/3 System, numbers are assigned to the individual materials at plant level.
Structure of Batch Data
For every batch, there are two types of data:
General data on the batch (for example, shelf life expiry date, date of the last goods
receipt), which is defined in the master batch. The master batch applies to all storage
locations in which the batch is located. No stocks are managed at this level.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Batch Handling
192 April 2001
Stock data, which is managed separately for every storage location in which the batch is
located. For example, if the batch C1 of a material is spread across two different storage
locations, the stock quantity is tracked for each storage location.
Must the Batch Exist Before the First Goods Receipt?
Both the master batch and the stock data for the batch are created automatically during the first
goods receipt. Thus, you do not need to create this data manually.
However, if you want to define specific data for a batch, such as the shelf life expiration date, you
have to manually maintain the batch data.
What Sorts of Batch Stocks Are There?
The following stocks are managed separately at batch level:
Unrestricted-use stock
Restricted-use stock
Quality inspection stock
Blocked stock
Stock in transfer
Blocked stock returns
Working with Materials Handled in Batches
When you enter goods movements for materials handled in batches, you must enter the batch
number in addition to the material number. If you do not know the batch number, you can search
for the batch using the required characteristics.
See also:
LO – Batch Management [Ext.]
MM Material Valuation [Ext.]
SAP AG Inventory Management and Physical Inventory (MM-IM)
Working with Batches
April 2001 193
Working with Batches
Use
When working with materials handled in batches, note the following:
Entering a batch
Partial stock of a batch material must always be assigned to a batch. Consequently, for
any goods movement you post (such as a goods receipt, goods issue, or transfer
posting) you must include a batch number. If several batches of a material are moved,
you must enter one material document item per batch.
Master data
Two types of master data exist for every batch in the warehouse, namely:
General data for the batch at plant level, material level, or client level (master batch)
Stock data for the batch at storage location level
Stock types
The following stock types are managed at batch level:
Unrestricted-use stock
Quality inspection stock
Blocked stock
Restricted-use stock (only with batch status management)
Stock in transfer (for stock transfers between storage locations)
Blocked stock returns
All other stock types for the material are managed on a cumulative basis at storagelocation
or plant level.
Searching for a batch
If you do not know the batch number for a goods movement (for example, a goods
issue), you can use a help function to display the list of available batches for a material
(enter * in the Storage location or Batch field).
When you issue goods, you can search for batches according to various search
strategies (refer to Storage Location and Batch Selection [Page 101] and Batch
Determination [Page 203]).
Inventory Management and Physical Inventory (MM-IM) SAP AG
Batch Status Management
194 April 2001
Batch Status Management
Use
Standard batch handling can be supplemented by batch status management. Batch status
management can be activated in the Customizing system.
In batch status management, the system differentiates between two different statuses: A batch
can either have the status unrestricted use or the status restricted use. The status is stored
centrally as part of the batch and is used as a batch characteristic in classification, which, in turn,
is responsible for batch selection in batch determination.
Features
In Inventory Management, the status is first set to unrestricted use upon receipt of a new batch. A
batch can only be given the status restricted use in the following instances:
Quality Management specifies the status restricted use in its usage decision.
You set the status to restricted use using the Change batch function.
Upon a goods movement, the status of a batch is specified in the RU (restricted use) column on
the collective entry screen.
Upon a withdrawal, the system issues a warning or an error message (depending on the
configuration) if the batch to be withdrawn is restricted (part of the restricted-use stock).
Stock Types
Depending on whether a batch is unrestricted or restricted, the relevant stock is managed as
unrestricted-use stock or restricted-use stock. It is not possible to have both unrestricted-use
stock and restricted-use stock for the same batch.
If a partial quantity of an unrestricted batch is to be managed as a restricted batch, you must
transfer this partial quantity to another batch (using a transfer posting).
In addition to the unrestricted-use stock or restricted-use stock, you can also have quality
inspection stocks and blocked stocks for a batch.
Activities
Changing the Status of a Batch
To change the status of a batch, proceed as follows:
1. From the Material Master menu, choose Batch Change.
2. On the initial screen, enter the batch data.
3. Select or deselect the indicator restricted-use.
Results of Changing the Status
A posting is made which transfers the stock of the given batch from the unrestricted-use stock to
the restricted-use stock or vice versa.
At the same time a material document is created.
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Batch Status Management
April 2001 195
Inventory Management and Physical Inventory (MM-IM) SAP AG
Goods Receipts of Batch Material
196 April 2001
Goods Receipts of Batch Material
Use
Goods receipts of batch material differ from other goods receipts in that you must enter the batch
number for every item.
With a goods receipt for a purchase order assigned to an account, it is not necessary
to enter a batch number. If a batch where-used list is active, however, you can enter
a batch number to allow you to track the receipt and consumption of the batch via the
batch where-used list.
Features
Update of Batch Data in the Batch Master Record
If the batch does not yet exist for the plant, it is automatically created.
If the batch already exists for the plant, the new quantity is simply posted as a receipt in the
specified storage location.
When posting a goods receipt, the system updates the following data in the batch master record:
Goods Receipt Date
In a goods receipt with reference to a purchase order or an order, the goods receipt date (the
posting date) and the vendor are recorded in the general data of the batch.
The goods receipt date is always the date of the last goods receipt. This date is used later to
select a batch according to specific search strategies (LIFO, FIFO), or it is used in the framework
of batch determination.
Shelf life expiration date
If the shelf life expiration check is active, you have to enter the production date or the shelf life
expiration date of the batch when you enter the goods receipt. The shelf life expiration date is
updated in the batch master record every time a receipt is entered (though not in the case of
goods issues, stock transfers, and transfer postings). Refer to Shelf Life Expiration Date [Page
55].
Vendor and Batch Number with Vendor
When entering a goods receipt with reference to a purchase order, the system updates the
following data in the batch master record: the vendor and the batch number used by the vendor
(vendor batch). When you enter the next goods receipt, the system checks whether the vendor
and the vendor batch of the goods movement are identical to the batch data in the batch master
record. If they are not, the system issues a warning or an error message.
Batch Classification
If batch classification is active, you can assign characteristic values to the batch when entering
the goods receipt. Refer to Batch Classification [Page 201].
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Goods Receipts of Batch Material
April 2001 197
Delivery of Several Batches of a Material
If an ordered quantity is supplied in several batches, you must enter a material document item for
every batch. Also refer to Several Goods Receipt Items Per Order Item [Page 48]
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Goods Issue of Batch Material
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Goods Issue of Batch Material
Use
Batch material can be reserved at three levels for a goods issue:
plant level
The reservation does not specify batches or storage location. You enter these during
goods issue posting.
storage location level
The reservation does not specify batches, but it specifies a storage location. You enter
the batch during goods issue posting. The storage location is automatically copied from
the reservation into the goods issue posting and cannot be changed.
batch level
You want to reserve a certain batch. In this case, you enter a reservation that specifies
the plant, the batch, and, if desired, a storage location. You cannot change these
specifications during goods issue.
Although you can reserve material at storage-location or batch level, all reserved
stock is displayed at plant level only.
Batch Selection for Goods Issue
If, when you enter the goods issue, you do not know the batch number, or if the required quantity
is to be taken from different batches, you can enter * in the Batch field:
If batch determination is active, the system displays the screen for Batch Determination
[Page 203]
If batch determination is not active, the system displays the screen for Storage Location and
Batch Selection [Page 101].
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Stock Transfers and Transfer Postings of Batch Material
April 2001 199
Stock Transfers and Transfer Postings of Batch Material
Prerequisites
For materials handled in batches, you can carry out stock transfers from plant to plant and from
storage location to storage location as well as transfer postings from material to material.
An issuing batch and a receiving batch are always involved in a stock transfer or transfer posting
of a batch material. The issuing batch number is copied as the receiving batch number (except in
the case of a plant-to-plant stock transfer in two steps). The batch number can, however, still be
changed.
Stock Transfers in Two Steps
In a stock transfer from plant to plant using the two-step procedure, you enter only the
receiving plant for the removal from storage. The stock in transfer is managed only at plant level
in the receiving plant, independent of storage location and batches. You must enter the receiving
storage location and the receiving batch when you post the placement into storage.
In a stock transfer from storage location to storage location using the two-step procedure,
the receiving storage location and the receiving batch are already determined during the removal
from storage.
After posting the removal from storage, the quantity is in stock in transfer. Stock in transfer is
managed at plant level, as well as at storage-location level and batch level. As a consequence,
you must enter the same receiving batch for the placement into storage. If you do not know the
batch, enter * in the Batch field. The batch selection list is displayed. This list displays the stock in
transfer for the batches in the Stock column.
Procedure
You can post a transfer from batch to batch by entering a different batch for a stock transfer
using the one-step procedure. To do this, proceed as follows:
1. From the Inventory Management menu, select Goods movement Transfer posting.
2. Maintain the data on the initial screen. Choose one of the following movement types:
– Movement type Transfer posting Plant to plant Remove from storage/place
in storage
– Movement type Transfer posting Stor. loc. to stor. loc. Unrestr. to unrestr.
– Movement type Transfer posting Material to material
To maintain the items directly on the item detail screen instead of on the collective entry
screen, select Edit New item.
3. On the detail screen, you can enter an issuing and a receiving batch.
4. Post the document.
In a transfer posting to a new batch, batch data (such as shelf life expiration date or
vendor) is copied to the new batch. Classification data is copied as well.
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Stock Transfers and Transfer Postings of Batch Material
200 April 2001
In a transfer posting to an already existing batch, the data of the existing batch is
retained.
Transfer Postings From Batch to Batch, With Status Management
In a transfer posting to a new batch, the new batch is given the status unrestricted use (even if
the issuing batch has the status restricted use), unless the restricted-use status has been
predefined by Quality Management.
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Batch Classification
April 2001 201
Batch Classification
Use
The R/3 System allows you to classify batches. For example, you can use the batch classification
functionality to store specific batch data (such as active substance content, weight, or technical
data) not contained in the batch master record. Classification of batches is mandatory if you want
to use the batch determination feature.
Characteristics of a Class
Characteristics are criteria according to which you can search for batches. These characteristics
are defined when creating a class. There are two different types of characteristic:
User-defined characteristics
These are characteristics which are not defined as fields in the batch master record.
For example: Active ingredient potency, viscosity, color, weight
Fields in the batch master record
Data that is stored in the batch master record can also be defined as characteristics of a
class.
For example: Goods receipt date, shelf life expiration date, batch status
Characteristic Values
When classifying a batch, you define one or more values for each characteristic.
For example: Characteristic color, value blue; characteristic status, value restricted use
If the characteristic is a field from the batch master record, the value of this field is automatically
used as the characteristic value.
In batch determination, you can search for batches according to specific values or value
intervals.
For example: You can search for all restricted batches with the color blue whose shelf life has
already expired.
Activities
If you want to change the characteristic values of a batch or classify an existing batch, choose
Batch Change from the material master menu.
In Customizing for Inventory Management, you can define that a batch is to be classified at
goods receipt. You can only use this function if the material or a batch of this material has been
classified before.
Defining the Class of a Batch
You can use the function Create Material or Change material to define the class in the material
master record (classification data). This class is valid for all batches of the material. You can also
enter the class directly when classifying the first batch.
Depending on how the system is configured, the class is assigned to one of the class types
below:
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Batch Classification
202 April 2001
022 for batches at plant level
023 for batches at material level/client level
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Batch Determination
April 2001 203
Batch Determination
Use
When entering the goods issue of a material handled in batches, you can enter * in the Batch
field in order to initiate automatic batch determination. The system then uses a specific search
strategy to find batches with certain characteristic values (such as status, shelf life, etc.) and
suggests these batches in a list. In this list, the batches are sorted by specific criteria (sort
sequence), and the characteristic values are displayed. The system suggests how to distribute
the given quantity to the batches found. You can accept the system’s proposal for the goods
movement or you can distribute the quantity manually.
If the system could not find any batches via batch determination (for example, because the
batches had not been classified or because there was no batch corresponding to the
characteristic values in the search strategy), you can carry out a search without selection criteria.
In this case, the system generates a list of all batches for the material. From this list, you select
the desired batches.
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Creating Batch Search Strategies
204 April 2001
Creating Batch Search Strategies
The system can only search for batches on the basis of search strategies. Therefore, you have to
define these strategies. In a search strategy, you define the values according to which the
system is to find batches.
A search strategy is assigned to a strategy type. Strategy types are defined in the Customizing
system. Depending on the configuration of the strategy type, you can define a search strategy at
various levels.
In the Customizing system, strategy type ME01 is defined. This strategy type allows
you to define search strategies at the following levels, for example.
plant/movement type
plant/movement type/material
When entering a goods issue for a cost center (movement type 201), you wish to
search for unrestricted batches. When entering the scrapping of a material
(movement type 551), you wish to search for restricted batches only. When entering
a goods issue of material XY for a cost center, you wish to search for unrestricted
batches with the color blue.
You want to assign values to the following characteristics:status and color.
In this case, you have to define three search strategies for strategy type ME01:
Search Strategy
plant MvT material Status Color
0001 201 unrestr.
0001 551 restr.
0001 201 XY unrestr. blue
Creating Search Strategies
To create a search strategy, follow these steps:
1. From the Inventory Management menu, select Environment Batch search strategy
Create.
2. On the initial screen, enter a strategy type.
3. Press ENTER. A dialog box for selection of a key combination (for example, plant/movement
type) appears. Select a key combination.
4. Enter the values of the key combination to which the search strategy applies (for example,
plant 0001, movement type 201). Press ENTER.The system then suggests the values of the
strategy type.
Via Selection criteria, you can define the characteristic values by which to search for the
batches.
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Creating Batch Search Strategies
April 2001 205
Via Sort, you can define the sequence by which to sort the batches in the list (for
example, in ascending order by shelf life expiration date).
5. Save the strategy.
When you now enter a goods movement involving the values of the key combination (for
example, movement type 201, plant 0001), the system will use this strategy for batch
determination.
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Finding Batches Using the Batch Determination Function
206 April 2001
Finding Batches Using the Batch Determination
Function
If batch determination is active in the Customizing system, you can search for a batch when
entering the goods issue, as follows:
1. When entering a goods issue item, specify * in the Batch field. If a search strategy has been
defined for the data of the movement (for example, plant 0001, movement type 201), the
system suggests the batches of the material according to the characteristic values and sort
sequence specified in the search strategy.
This list also includes the available quantity.
From this list, you can perform the following functions:
– To obtain a list of all batches without considering any selection criteria, select Batch
determination W/o class selection.
– To display a log of the search strategy, select Goto Strategy analysis.
– To display the strategy data, select Goto Strategy info.
– To display the characteristic values of a batch, select Goto Classification.
– To display the characteristic values used by the system to search for the batches, select
Goto Selection criteria.
– To display details on the availability of the batch, select Environment Display
availability.
2. If the quantity is to be withdrawn from several batches, either enter the quantity to withdraw
from each batch manually or select Edit Distribute quantities to have the system allocate
the quantities to the individual batches.
3. When you select Copy, the system generates one item for each selected batch.
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Goods Movements of Split-Valuated Material
April 2001 207
Goods Movements of Split-Valuated Material
When you work with split-valuated materials, note the following:
You enter goods movements of split-valuated materials the same way you enter goods
movements of batch materials. In the Batch field, you simply enter the valuation type instead
of a batch number. To display a list of valid valuation types for the material, enter * in the
Storage location or Batch field.
You can change valuation types in the case of stock transfers and transfer postings, just as
you can change valuation types in the case of batch management. When you change the
valuation type during a transfer posting, an accounting document is created in addition to the
material document.
To carry out a stock transfer from plant to plant for a material that is split-valuated at
the receiving point, you have to use the one-step procedure or a stock transport
order for technical reasons.
If the material is both handled in batches and split-valuated, the system prompts you to enter
the batch and then allocate the batch to a valuation type.
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Stock Determination
208 April 2001
Stock Determination
Use
Stock determination enables you to implement various strategies to withdraw material for goods
issues and stock transfers. You configure these strategies in Customizing. Based on the material
requirements entered, the R/3 system determines how and when the material should be
withdrawn, and from which storage locations and stocks.
When planning your materials requirements, it is not always important that you define the stocks
and storage locations from which the materials are later to be withdrawn. Automatic stock
determination takes care of this decision for you, thus preventing you from defining these
parameters too early and restricting your business processses unnecessarily. The R/3 system
does not determine the values you require until the goods movement is posted.
Based on the stock determination strategy you predefine, the system makes decisions on
material withdrawal depending on the material, plant, and the business process.
You can use stock determination for the following stocks:
unrestricted-use stock
vendor consignment stock (K)
pipeline material (P)
sales order stock (E)
project stock (Q)
Scenario 1:
The backflushing of material in repetitive manufacturing or for a production order
should be carried out for a company’s own stock first of all and then for vendor
consignment stock. The most reasonable vendor’s stock should be used first.
Scenario 2:
There is always a preferred vendor for all forms of material withdrawal. Material
should be withdrawn from this vendor’s stock first. If there are several preferred
vendors, you can use split valuation for price and quantity.
Scenario 3:
When staging material for production, you should firstly withdraw from a central
buffer store a particular component manufactured in-house. When this store is
empty, you should be able to withdraw the components from the issue storage
location.
Scenario 4:
If you cannot cover the requirements from the stocks on-hand, you should withdraw
the remaining quantity from the pipeline supply.
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Stock Determination
April 2001 209
Integration
Stock determination functions are of significance to the integration of the R/3 System as a whole,
and can be used in several R/3 application components. You can use stock determination in the
following application components:
MM – IM (Inventory Management)
LE – WM (Warehouse Management)
PP – SFC (Production Orders)
PP – REM (Repetitive Manufacturing)
PP – KAB (Kanban)
LO – BM (Batch Management)
SD (Sales and Distribution)
In Customizing, you can define how stock determination interacts with the settings of the
Warehouse Management System and Batch Determination.
Prerequisites
In order to work with stock determination, you must configure the following:
In Customizing for Inventory Management, you define a cross-application strategy for stock
determination, according to which stocks should be reduced. Each strategy is determined at
plant level based on a stock determination group and stock determination rule.
You assign a stock determination group to the material in the material master record.
In Customizing for the application you are using, assign a stock determination rule to the
business transaction/event.
Activities
The R/3 System can carry out stock determination in two ways:
automatically in the background
Using this procedure, you do not have any way of intervening in the stock determination
process as processing only takes place in the background. It is entirely up to the R/3
System to determine the stock from which materials are withdrawn and posted.
via online processing during the stock determination process
If you have configured online processing in Customizing, you can have the R/3 System
display the result of stock determination in a dialog box and you can change the result
manually.
If the stock determination procedure did not remove materials from the stock you
requested, you can only cancel this posting via a reverse posting in the application
you are using.
You should always prepare each strategy thoroughly and configure and test the
application components extensively before you start using them.
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Stock Determination
210 April 2001
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Creating Stock Determination Strategies
April 2001 211
Creating Stock Determination Strategies
Use
You can define stock determination strategies for goods issues and stock transfers depending on
the material, the plant, and the business transaction. However, these strategies are independent
of the application in which they are called. The strategy you use therefore depends on:
the plant
the object of the stock determination (material) stock determination group
the calling context (application in which it is called) stock determination rule
Since the stock determination rule is assigned by the application in which it is called, various
strategies can be assigned for the same object in various calling contexts.
In a stock determination strategy, you therefore define,
which stocks can be used for the transaction/event type
unrestricted-use stock
vendor consignment stock
pipeline material
sales order stock
Project stock
from where stocks should be withdrawn (storage location)
whether stock determination should be processed online or in the background
which preferences should be taken into consideration (sort criteria)
which priority these preferences should have when used with other strategies (batch
determination, storage type search)
whether the valuation type should be taken into account for materials with split valuation
Using a user-defined program (user exit), you can also differentiate between the following
attributes:
vendor (who is the preferred vendor for this material?)
valuation type (for material with split valuation)
Integration
You can use stock determination instead of the storage location selection list (refer to Storage
Location and Batch Selection [Page 101]) and can combine it with the functions batch
determination in the LO Batch Management component and storage location determination in the
LE Warehouse Management component.
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Creating Stock Determination Strategies
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Prerequisites
You must have analyzed the business transactions involved in material withdrawal and worked
out a concept for the stock determination strategies you require. You must know which
combination of stock determination groups and stock determination rules are necessary.
Activities
Define a stock determination strategy in Customizing for Inventory Management.
Assign a stock determination rule in Customizing for the application in which it is called
up. You can also do this in Customizing for Inventory Management. But here you only
have a limited view of the settings in Customizing for the calling application.
Assign the stock determination group to the required materials in the MRP 2 or Plant
data/storage 2 screen of the material master record.
Example of Stock Determination Strategies
The following example illustrates the combinations you can use to define a stock determination
strategy for the MM Inventory Management component. This example applies to all other calling
applications, for example, PP Production Orders or SD Sales and Distribution.
Material stock det. group Movement type Stock det. rule Stock det. strategy
4711 0001 201 0003 0001/0003
4712 0002 201 0003 0002/0003
4711 0001 221 0004 0001/0004
In this example, stock determination groups vary according to the material. Therefore, different
stock determination strategies can be determined for the same movement type and the same
stock determination rule.
On the other hand, a material has a different stock stock determination rule for different
movement types. Therefore, one material has various strategies depending on the application
and the stock determination rule.
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Starting Stock Determination
April 2001 213
Starting Stock Determination
1. When you enter a goods issue or transfer posting, enter a * in the Storage location field.
2. Choose Continue.
If you have activated the stock determination dialog box in Customizing, the system
displays the dialog box, indicating the stocks it has determined for withdrawal.
If you work without the stock determination dialog box, on the overview screen, the R/3
System suggests the stocks that are to be withdrawn.
3. Change the proposals as required.
4. Post the document.
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Print Functions
214 April 2001
Print Functions
Use
A physical goods movement generally requires a document in printed form to serve the following
functions for the following areas: as a transfer document (goods receipt slip, goods issue slip) for
the warehouse, as a label for identification of the material (pallet slip), and as a goods issue slip
for goods issue. In the Inventory Management system, this category of document is called a
goods receipt/issue slip (also referred to as a GR/GI slip or goods accompanying slip). In addition
to printing GR/GI slips, Inventory Management allows you to print material document information
on labels.
Features
The Inventory Management system uses the output technique to process GR/GI slips and labels.
Output is a text that is generated at the time of goods movements.
Depending on the output type, output can either be printed or sent to a recipient through some
other means of communication (for example, through the MAIL system). Output for GR/GI slips
or labels is usually printed.
The system distinguishes between various types of output. The output type varies according to
the following factors (see also Output Types [Page 216]):
Type of GR/GI slip or label
Version
Types of Goods Receipt/Issue Slips
The Inventory Management system supports three types of GR/GI slip, as follows:
Goods receipt slip for external goods receipts
For goods receipts with reference to purchase orders as well as return delivery slips
Goods receipt slip for internal goods receipts
For goods receipts with reference to orders
Goods issue slip
For goods issues and other goods movements
At the time of goods movement, the system automatically determines the type of GR/GI slip
relevant for the given movement.
Versions
There are three printout versions available for printing a goods receipt slip or goods issue slip:
Version 1: Individual slip
In this version, one GR/GI slip is printed per material document item.
Version 2: Individual slip with inspection text
In this version, one slip is also printed per material document item. In addition, the
printout includes any quality inspection text if contained in the material master record.
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Print Functions
April 2001 215
Version 3: Collective slip
In this version, a collective slip is printed containing all of the items of the material
document.
You can specify the desired version when you enter a goods movement.
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Output Types
216 April 2001
Output Types
Use
An output type is defined in the system both for each type of GR/GI slip or label and for each
version. The output type is a four-digit key that contains any information relevant for printing
output. For example:
SAPscript form
A form in SAPscript defines the format and content of output. You can stipulate that
specific data (such as the material number) is output as a barcode.
Timing of output
The system can issue output at the following times:
immediately
at regular intervals
only on manual print request
The standard system provides the following output types for printing GR/GI slips and labels.
Type Description
WA01 GI slip, version 1
WA02 GI slip, version 2
WA03 GI slip, version 3
WAE1 GI label, version 1
WAE2 GI label, version 2
WAE3 GI label, version 3
WE01 GR slip (POs), version 1
WE02 GR slip (POs), version 2
WE03 GR slip (POs), version 3
WF01 GR slip (orders), version 1
WF02 GR slip (orders), version 2
WEE1 GR label, version 1
WEE2 GR label, version 2
WEE3 GR label, version 3
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Output Types
April 2001 217
Separate output types are available in the system for special cases such as the processing of
subcontract orders.
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Printing Output
218 April 2001
Printing Output
Purpose
You can print output that the R/3 System issues, for example, goods receipt/issue slips.
Prerequisites
You have to configure output determination and printer control in Customizing for Inventory
Management.
Process Flow
1. When you enter or change data for a goods movement, you can activate the output
determination function through an indicator.
When the output determination function is active, the system checks:
whether any output is to be generated
which output type is to be generated
which printer is to be used for printout
the timing of output
2. Normally, printout occurs automatically. However, if the output type specifies that printout is
to be initiated manually, you must process the output manually in order to print it.
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Generating Output for Goods Movement
April 2001 219
Generating Output for Goods Movement
Use
When you enter a goods movement, you can proceed in one of two ways to generate output:
Generating Output Automatically
Entering Output Types Manually
Output is usually generated when a goods movement is entered. If you want to generate output
for a goods movement that has already been posted, you can use the Change Material
Document function to enter desired output types manually.
Generating Output Automatically
1. From the Inventory Management menu, select the function for entering the desired goods
movement.
2. Set the Print via output control indicator by selecting it. This indicator activates the output
determination function.
3. Enter and post the goods movement. If an output type is available for this particular
movement, it is generated automatically. Depending on the timing of the output defined,
printout either occurs automatically or has to be requested manually (refer to Processing
Output [Page 221]).
It is possible to maintain the Print via output control indicator as one of the
parameters (parameter NDR) in the user master record. When you do so, the Print
indicator will be preselected on the initial screen. Enter the value X (capital letter) for
this parameter.
Entering Output Types Manually
1. From the Inventory Management menu, select the function for changing a goods movement
(for example, Material Document Change).
2. Check the individual items.
3. To generate output for a particular item choose that item. To generate output for a collective
slip, choose the first item.
4. On the detail screen of the item, select Goto More functions Output. A screen appears
on which you can enter the output types manually. If the Print indicator is set, the system
may already have determined one or more output types.
5. Specify the desired output type (by entering the four-digit key) and the language. To specify
the printer destination and other print parameters used for printout, select Edit
Communication method.
6. Select Back to return to the detail screen of the item.
7. Post the document.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Generating Output for Goods Movement
220 April 2001
Result
When posting the goods movement, the system generates output of the specified output type.
Depending on the timing of the output defined, printout either occurs automatically or has to be
requested manually (see also Processing Output [Page 221]).
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Processing Output
April 2001 221
Processing Output
Use
If the system generated output when you entered or changed a goods movement, you will have
to manually process the output if
Printout should only be possible using a manual print request
You want to repeat output, in order to obtain another printout of a particular GR/GI slip
Procedure
1. From the Inventory Management menu, select Material document Process output.
2. Enter a material document number or a number range. Select the indicator Reprocessing if
you wish to re-print output that has been printed before.
Do not enter a material document if you wish to process all of the output to be printed.
You obtain a list of material document items for which output has been generated.
3. Select the items to be processed. From this list screen, you can choose the following
functions:
Select Process to enter a print request for the output. Depending on how the system is
set, the output is either issued immediately or placed in the spool file.
Select Goto Parameter to change the printer setting and the print parameters.
Select Goto Preview to display the output on the screen. This function allows you to
display the GR/GI slip before entering the print request.
Select Goto Log to display a log of all output that has been processed. The system
only creates a log when the Process function is used.
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Printer Control
222 April 2001
Printer Control
Use
Printer Name
The system automatically determines the printer on which the GR/GI slip is to be printed. In
Customizing for Inventory Management, you can specify the printer depending on various
parameters:
Printer by condition
Printer by user
Printer by output type, plant, storage location
Printer by output type, plant, storage location, user group
You can also enter a printer destination manually when processing output. To do this, select Edit
Communication method from the output detail screen.
The relevant Customizing settings are described in detail in the Implementation
Guide (IMG) for Inventory Management.
Print Parameters
In Customizing for Inventory Management, the print parameters for the spool file are maintained
for each condition. However, you can manually change the print parameters when processing
output. To do this, select Edit Communication method from the output detail screen.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Multiple Printout of Goods Receipt/Issue Slips
April 2001 223
Multiple Printout of Goods Receipt/Issue Slips
Use
It is possible to have the system calculate the number of pallets during entry of a goods receipt
with reference to a purchase order or production order and print a copy of the GR/GI slip for
every pallet received.
Prerequisites
Printing multiple copies requires the following:
You have to choose either 1 (individual slip) or 2 (individual slip with quality inspection text)
for the version of the GR/GI slip.
You must activate multiple printout for the printer in Customizing.
You must define the pallet capacity (number of units of entry per pallet) must be defined in
the material master record (storage data), in the Number of GR slips field.
Features
The system determines how many copies to print by dividing the quantity of goods received by
the pallet capacity, then rounding this figure up to the next whole number. If the Number of GR
slips field in the material master record does not contain an entry, only one GR/GI slip is printed.
If the multiple printout indicator is set, an additional field (No. of GR slips) appears on the detail
screen of an item during entry of a goods receipt for a purchase order or a production order. As a
default, this field contains the number of copies to print as calculated by the system. You can
change this number simply by entering a different value.
If you manually enter the number of GR slips to print, and you later change the
quantity of goods received, the system does not suggest a new number.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Printing Purchase Orders With Multiple Account Assignment
224 April 2001
Printing Purchase Orders With Multiple Account
Assignment
Use
If a purchase order contains more than one account assignment, the system issues both a GR/GI
slip and an account assignment slip for each item. The account assignment slip lists all account
assignments including the relevant order quantity.
Since the account assignment slip is printed for each item, it is not possible to print a collective
slip in the case of multiple account assignment. Even if you select version 3 (collective slip), the
system will print individual slips.
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Archiving
April 2001 225
Archiving
Use
You can archive the following documents in Inventory Management and Physical Inventory:
Material documents
Physical inventory documents
Reservation documents are not archived. They can be deleted using the reservations
management program (refer to Managing Reservations [Page 151])
SAP’s archiving tool is used for archiving documents. For more information on archiving, refer to
the BC Archiving Application Data component, under Archiving in Inventory Management (MMIM)
[Ext.].
The R/3 standard system contains the following archiving objects:
MM_MATBEL for material documents
MM_INVBEL for physical inventory documents
To access the archiving function, proceed as follows:
From the Inventory Management menu, choose Material document Archive.
From the Physical Inventory menu, choose Physical inventory document Archive.
Activities
Displaying Archived Documents
When the system archives material documents, it creates indexes and short documents that
enable you to access the archived material documents quicker. When you are searching for a
material document, you only have to enter the short document belonging to it and the system
accesses the archive via indexes.
You also have the option of defining your own selection options. For example, as a selection
criterion, you can define that only a particular vendor’s material documents are displayed.
To display archived documents, proceed as follows:
From the Inventory Management menu, choose Environment List display
Archived material documents.
From the Inventory Management menu, choose Environment List display
Material documents.
From the Physical Inventory menu, choose Environment Archived physical inventory
documents.
For more information, see the relevant report documentation.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Archiving
226 April 2001
Archive Research with the Archive Information System (SAP AS)
The Archive Information System (SAP AS) offers a wide range of options for searching for and
displaying archived data. For more information, refer to the Archive Information System (SAP AS)
[Ext.].
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Reporting in Inventory Management
April 2001 227
Reporting in Inventory Management
Use
To simplify your day-to-day work with the Inventory Management component, there are a range
of functions and reports that provide extensive information on all materials with their stock data.
This section provides an overview of the reporting function in Inventory Management. For more
information, refer to the documentation on each function or the relevant report documentation.
Features
Environment Menu
List displays
This provides reports for documents posted in Inventory Management. Example: material
documents for a material.
Stock
This provides information on a material’s stocks. Example: current stock/requirements
list.
The stock overview provides an overview of all stocks of a material over all
organizational levels (see also Plant/Storage Location Stocks [Ext.]).
Information
This allows you to display data (master data, transaction/movement data) from other
applications. Example: displaying a purchase order.
Balances display
This provides reports on the GR/IR clearing account.
Consignment
You can use this to display all information on consignment stocks. Example: displaying
vendor consignment stocks.
Batch where-used list
This provides all the functions on the Batch Where-used List [Ext.].
Batch search strategy
You use this to define the strategies for Batch Determination [Page 203].
Inventory Controlling
You can also analyze and evaluate material stocks using Inventory Controlling. For more
information, refer to the LO – Logistics Information System [Ext.] component.
Periodic Processing Menu
List of stock values
This report is used to display the total stock quantity and the total stock value for a
material at plant and storage location level.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Reporting in Inventory Management
228 April 2001
Consistency check
You can use this to check the consistency of your stocks at company code level,
valuation area level, and material level.
Managing held data
When you enter a goods receipt, this function allows you to display and delete data that
you have held for further processing but not yet posted.
Analysis of rounding differences
This function allows you to analyze rounding differences that resulted from conversion
between units of entry and base units. This applies when you work with a material with
metric and non-metric units of measurement, for example.
Activities
For the reports that work with the ABAP List Viewer, you can configure the output list as you
require to display and evaluate further data. To extend the current display variant (basic list) or
choose another existing display variant, choose Settings Display variant. You can also create
your own display variants and choose them on the initial screen. For more information on the
ABAP List Viewer, see the ABAP List Viewer [Ext.] component.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Storing Documents
April 2001 229
Storing Documents
Use
In Inventory Management, you can use SAP ArchiveLink to store print-format documents in
external content servers. You can store the following documents with this function:
Incoming print-format documents for goods receipts for purchase orders and goods
movements without reference (for example, delivery notes from vendors or goods
receipt/issue slips).
Inventory count results that have been entered on paper
The scanned print-format documents are stored in an external content server and linked with the
R/3 documents upon which they are based. You can display the stored print-format documents
from the display of the R/3 documents.
Prerequisites
You configure storage for print-format documents in Customizing.
Documents for goods movements
In Customizing for Inventory Management, in the step Activate Storage for Incoming Documents,
you define for each transaction and movement type whether you want to store the incoming
documents.
Documents for physical inventory
In Customizing for SAP ArchiveLink, in Administration Settings Activate Bar Code Storage,
you specify whether you want to store documents containing physical inventory count results with
bar codes.
See also:
Storing Incoming Delivery Notes (MM-IM) [Ext.]
Storing Inventory Count Results (MM-IM) [Ext.]
Inventory Management and Physical Inventory (MM-IM) SAP AG
Handling Units in Inventory Management
230 April 2001
Handling Units in Inventory Management
Use
If you use the Inventory Management (MM-IM) component, you can use Inventory Management
[Ext.] functions for goods movements involving handling units. The following goods movements
are supported:
Goods receipts
Goods issues
Transfer postings
Stock transfers
When you post a goods movement in a storage location that is subject to handling
unit management, the system creates a delivery. It does not create a material
document. The goods issue is not valuated until the delivery is posted in Shipping
(also refer to Goods Issue [Ext.]).
Prerequisites
Setting Up and Cancelling the HU Requirement in a Storage Location
To set up or cancel the handling unit requirement in a storage location, all the stocks in the
storage location have to be posted out, so that the stock balances are zero for all materials. This
also applies to special stocks that are managed at storage location level. After the handling unit
requirement is changed, you can re-post the stocks to the storage location. You can define the
handling unit requirement in Customizing for Handling Unit Management, in the step HU
Requirement for Storage Locations and Default Values for Deliveries.
Creating a Delivery
To create a delivery in the Shipping [Ext.] (LE-SHP) application component, the following data
must be maintained in the R/3 System (also refer to Creating Outbound Deliveries [Ext.]):
Plant data (sales organization, distribution channel, shipping point, and division)
The sales and distribution data in the material master record
The Customer field in the central vendor master record, as the vendor for shipping is also the
customer
You can define the required plant data in Customizing for Handling Unit Management, in the step
HU Requirement for Storage Locations and Default Values for Deliveries.
Features
You can use all the functions of Inventory Management, with the exception of the following:
Physical inventory in Inventory Management does not support Handling Unit Management.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Handling Units in Inventory Management
April 2001 231
When goods are received for a purchase order, you cannot subsequently enter a freight
vendor that is different from the vendor. You can only enter a different freight vendor by
changing the relevant purchase order.
When goods are received for a purchase order, you cannot create a purchase order
automatically, as goods movements in a storage location with handling unit requirement are
carried out using deliveries.
You cannot post a goods receipt with reference to an inbound delivery.
The EAN128 functionality is not supported.
Handling Unit Management is only supported for special stocks if the special stocks are
managed at storage location level.
Partner Storage Location for Stock Transfers
If, in a storage location that is subject to handling unit management, you want to increase or
decrease the stock of a handling unit by transferring stock, you can define another storage
location as a partner storage location. The system then suggests this partner storage location
any time you do not enter any other storage location. You configure this in Customizing for
Handling Unit Management, in the step HU Requirement for Storage Locations and Default
Values for Deliveries.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Material Master (LO-MD-MM)
232 April 2001
Material Master (LO-MD-MM)
Purpose
The material master contains information on all the materials that a company procures or
produces, stores, and sells. It is the company's central source for retrieving material-specific
data. This information is stored in individual material master records.
Integration
The material master is used by all components in the SAP Logistics System. The integration of
all material data in a single database object eliminates redundant data storage. In the SAP
Logistics System, the data contained in the material master is required, for example, for the
following functions:
In Purchasing for ordering
In Inventory Management for goods movement postings and physical inventory
In Invoice Verification for posting invoices
In Sales and Distribution for sales order processing
In Production Planning and Control for material requirements planning, scheduling, and work
scheduling
In Customizing for the Material Master [Ext.], you can configure the material master to suit your
specific requirements. You do this in the section Configuring the Material Master [Ext.].
Additional Information
Transfer and Distribution of Material Master Data [Ext.]
Information Sheet on Transferring Material Master Data (Industry) [Ext.]
SAP AG Inventory Management and Physical Inventory (MM-IM)
Corporate Structure
April 2001 233
Corporate Structure
Definition
The material master has a hierarchical structure resembling the organizational structure of a
company. Some material data is valid at all organizational levels, while other data is valid only at
certain levels. The organizational units are as follows:
Client [Ext.]
Company code [Ext.]
Plant [Ext.]
Storage location [Ext.]
Purchasing organization [Ext.]
Sales organization [Ext.]
Warehouse number [Ext.]
Storage type [Ext.]
Structure
The client is the top level. Several company codes can be assigned to it. In turn, several plants
can be assigned to a company code, and several storage locations assigned to a plant.
Plants must always be consecutively numbered for all company codes. Consequently, plants
assigned to different company codes cannot have the same number. However, the numbers of
storage locations can be repeated, as long as they are assigned to different plants.
Integration
The following graphic representation contains a possible corporate structure:
Inventory Management and Physical Inventory (MM-IM) SAP AG
Corporate Structure
234 April 2001
Company
codes
Plants
Client
Storage
locations 00000011 00000022 00000033 00000011
00000033 00000044
000011
00000011 00000022
00000011 00000022
SAP AG Inventory Management and Physical Inventory (MM-IM)
Corporate Structure
April 2001 235
Inventory Management and Physical Inventory (MM-IM) SAP AG
Material Master Records
236 April 2001
Material Master Records
Definition
All the information your company needs to manage a material is stored in a data record in the
material master, sorted by various different criteria.
Use
You can enter and change most of the data in a material master record yourself. However, some
information can only be updated by the system. For example, the system updates the
administrative data when you process a material master record, and stock balances when goods
receipts or goods issues are posted.
Structure
The data in a material master record can be divided into two categories:
Data of a purely descriptive nature
This is data with an information content such as name, size, or dimension.
Data that the system uses to perform a control function
This is data such as MRP type and price control.
Integration
Since different departments in a company work with the same material, but each department
uses different information on the material, the data in a material master record is subdivided by
user department. For more information, see User Departments [Page 246].
SAP AG Inventory Management and Physical Inventory (MM-IM)
Material Numbers
April 2001 237
Material Numbers
Definition
Number uniquely identifying a material master record, and thus a material.
Use
For every material that your company uses, you must create a material master record in the
material master. This record is uniquely identified by a material number.
You can assign mnemonic keys or nonmnemonic keys as material numbers, depending on the
method your company prefers. For this reason, you have the following types of number
assignment in the R/3 System:
External number assignment
If your company uses mnemonic keys (normally alphanumeric), you enter the character
string you want to use as the material number when you create the material master
record.
Internal number assignment
If your company uses nonmnemonic keys, you do not enter a material number when
creating a material master record. Instead, the system assigns a consecutive number to
the material. This number is visible when you maintain the material master record.
Your system administrator defines the required type of number assignment in Customizing for the
Material Master in Define Number Ranges [Ext.]. After defining a number range, he or she can
flag it, if external number assignment is required, as an external number range. Your system
administrator then assigns it to one or more material types. As a result, when creating a material
master record, the type of number assignment allowed depends on the material type chosen. In
the standard R/3 System, one external number range and one internal number range can be
defined for each material type or group of material types.
Further options are provided by the following SAP Enhancements:
SAP Enhancement MGA00002
This enhancement contains three customer exits that you can use for the following
purposes:
To modify material numbers entered externally by users, for example, by appending
a check digit
To assign material numbers internally by customer programs
SAP Enhancement MGA00003
This enhancement allows you to edit the display of material numbers as required. For
example, a material is assigned the number 123. With this enhancement, you can define
that the material number is displayed with, for example, the prefix MAT-, even though the
number in the database is still 123.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Material Numbers
238 April 2001
Structure
You can define the length of your material numbers to suit your company’s requirements. This is
done by your system administrator in Customizing for the Material Master in Define Output
Format of Material Numbers [Ext.]. Material numbers can be up to 18 characters long.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Industry Sectors
April 2001 239
Industry Sectors
Use
When you create a material master record, you are required to classify the material according to
industry sector and material type.
Like material types, industry sectors have control functions in the R/3 System. For example, it is
a factor determining the screen sequence and field selection [Ext.] in a material master record.
Once you have assigned an industry sector to a material, you cannot change the industry sector
again afterwards.
CChheemmiiccaall iinndduussttrryy
MMeecchhaanniiccaall eennggiinneeeerriinngg
Features
The standard R/3 System contains the following industry sectors. The ID used to identify the
industry sector internally appears in parentheses.
Plant engineering and construction (A)
Chemical industry (C)
Mechanical engineering (M)
Pharmaceuticals (P)
The other sectors are for retail.
Activities
Your system administrator can define other industry sectors in Customizing for the Material
Master in Define Industry Sectors and Industry-Sector-Specific Field Selection [Ext.].
Inventory Management and Physical Inventory (MM-IM) SAP AG
Material Types
240 April 2001
Material Types
Use
Materials with the same basic attributes are grouped together and assigned to a material type.
This allows you to manage different materials in a uniform manner in accordance with your
company's requirements. Examples of material types are given in the graphic below.
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RRaaww mmaatteerriiaallss
SSeemmiiffiinniisshheedd pprroodduuccttss
Integration
When creating a material master record, you must assign the material to a material type. The
material type determines certain attributes of the material and has important control functions.
For example, it is a factor determining the screen sequence and field selection [Ext.] in a material
master record.
Features
When you create a material master record, the material type you choose determines:
Whether the material is intended for a specific purpose, for example, as a configurable
material or process material
Whether the material number can be assigned internally or externally
The number range from which the material number is taken
Which screens appear and in what sequence
Which departmental data you may enter
What procurement type the material has; that is, whether it is manufactured in-house or
procured externally, or both
Together with the plant, the material type determines the material's inventory management
requirement; that is:
Whether changes in quantity are updated in the material master record
Whether changes in value are also updated in the stock accounts in financial accounting
In addition, the accounts affected by a material entering or leaving the warehouse depend on the
material type.
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Material Types
April 2001 241
Activities
Material types are configured by your system administrator in Customizing for the Material
Master in Define Attributes of Material Types [Ext.].
Inventory Management and Physical Inventory (MM-IM) SAP AG
Standard Material Types
242 April 2001
Standard Material Types
Definition
See Material Types [Page 240].
Use
The standard R/3 System comes with the following material types. The ID used to identify the
material type internally appears in parentheses. It is sometimes necessary to know this ID, for
example, when defining the attributes of material types in Customizing for the Material Master.
Additionals (VKHM)
Additionals are assigned to a material to be sold to ensure its effective presentation to
customers.
Clothes hangers
Care labels
Services such as pressing clothing for display or arranging it on hangers
For more information on the retail side, see Additionals [Ext.] in the SAP library
documentation SAP Retail.
Advertising media (WERB)
Means of presentation used in advertising, grouping together advertising messages
about a number of materials.
Printed mail-order catalogs
Computer catalogs on CD-ROM
Promotional fliers
Apparel, seasonal (MODE)
Beverages (FGTR)
Competitive products (WETT)
Observing and evaluating the activities of your competitors is essential for optimum
market analysis. You can enter basic data on the products of your competitors in material
master records of this material type. By specifying a competitor number, you can assign
the product to a particular competitor. For more information, see Competitive Products
[Ext.] in the SAP library documentation SD Sales Support: Computer-Aided Selling
(CAS).
Configurable materials (KMAT)
Configurable materials are materials that can have different variants. For example, an
automobile can have different types of paintwork, trim, and engine. The Material is
configurable indicator is already set for this material type in Customizing for the Material
SAP AG Inventory Management and Physical Inventory (MM-IM)
Standard Material Types
April 2001 243
Master in Define Attributes of Material Types [Ext.]. For more information on configurable
materials and variants, see the SAP library documentation LO Variant Configuration
[Ext.].
Empties (industry LEER, retail LGUT)
Empties are a type of returnable transport packaging generally subject to a deposit. They
can consist of several components grouped together in a bill of material (BOM) that are
assigned to a full product. For example, an empty crate and the empty bottles are
assigned to the full product beer. Each of the components in the BOM has a separate
material master record. For more information on the retail side, see Articles: Empties and
Full Products [Ext.] in the SAP library documentation SAP Retail.
Finished products (FERT)
Finished products are produced in-house. Since they cannot be ordered by Purchasing,
a material master record of this material type does not contain purchasing data.
Foods excluding perishables (FOOD)
Full products (VOLL)
Full products are the counterpart to empties. For example, with a crate of lemonade, the
full product is the lemonade itself, while the empties are the individual bottles and the
crate. For more information on the retail side, see Articles: Empties and Full Products
[Ext.] in the SAP library documentation SAP Retail.
Intra materials (INTR)
Intra materials exist only temporarily between two processing steps. A material master
record of this material type contains neither purchasing nor sales data.
KANBAN containers (CONT)
This material type is recommended for creating KANBAN containers as a material. In the
standard R/3 System, only the Basic Data view is offered. Using this material type makes
it easy to search for KANBAN containers.
Maintenance assemblies (IBAU)
Maintenance assemblies are not individual objects, but logical elements to separate
technical objects into more clearly defined units in plant maintenance. For example, an
automobile can be a technical object, and the engine, gearbox, chassis, and so on the
maintenance assemblies. A material master record of this material type can contain
basic data and classification data.
Manufacturer parts (HERS)
Manufacturer parts are materials that can be supplied by different manufacturers and/or
vendors who use different manufacturer part numbers to identify the materials. For more
information, see Manufacturer Part Numbers (MPNs) [Ext.] in the SAP library
documentation MM Purchasing.
Nonfoods (NOF1)
Nonfoods are items sold in grocery stores, other than food.
Paper products
Inventory Management and Physical Inventory (MM-IM) SAP AG
Standard Material Types
244 April 2001
Magazines
Nonstock materials (NLAG)
Nonstock materials are not held in stock because they are consumed immediately.
Nonvaluated materials (UNBW)
Nonvaluated materials are managed on a quantity basis, but not by value.
Operating supplies (HIBE)
Operating supplies are procured externally and required for the manufacture of other
products. A material master record of this material type can contain purchasing data, but
not sales data.
Packaging materials (VERP)
Packaging materials are used to transport goods and come with the goods free of
charge. A material master record of this material type is managed on both a quantity
basis and value basis.
Perishables (FRIP)
Goods that are perishable in an assortment.
Fruit and vegetables
Dairy products
Meat
Pipeline materials (PIPE)
Materials such as oil, power, or water that flow into the production process directly from a
pipeline, line, or other type of conduit. Since pipeline materials are always available, they
are not planned.
Process materials (PROC)
Process materials are used in the manufacture of co-products. They are not physical
entities, but represent production processes. They are useful if production is initiated by
the availability of input materials and capacities, and not by material requirements
planning.
Product groups (PROD)
Product groups aggregate materials according to certain freely definable criteria. For
example, the products may be similar to each other in some way, or they may be finished
products that were produced on the same machine.
Production resources/tools (FHMI)
Production resources/tools are procured externally and used in production or plant
maintenance. A material master record of this material type can contain purchasing data,
but not sales data. It is managed on a quantity basis.
Jigs and fixtures
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Standard Material Types
April 2001 245
Measuring and test equipment
Raw materials (ROH)
Raw materials are always procured externally and then processed. A material master
record of this type contains purchasing data, but not sales data since they cannot be
sold.
Semifinished products (HALB)
Semifinished products can be procured externally and manufactured in-house. They are
then processed by the company. A material master record of this material type can
contain both purchasing and work scheduling data.
Services (DIEN)
Services can be performed internally or procured externally (outsourced). They cannot
be stored or transported.
Construction work
Janitorial/cleaning services
Legal services
Spare parts (ERSA)
Spare parts are used to replace defective parts. They may be kept in stock. A material
master record of this material type can contain purchasing data, but not sales data.
Trading goods (HAWA)
Trading goods are always procured externally and then sold. A material master record of
this material type can contain purchasing data and sales data.
Value-only articles (WERT)
A value-only article represents a group of articles whose inventory is not managed on an
article basis. All goods movements for this group of articles are posted to the value-only
article. For more information, see Articles: Value-Only Articles [Ext.] in the SAP library
documentation SAP Retail.
Inventory Management and Physical Inventory (MM-IM) SAP AG
User Departments (Main Data)
246 April 2001
User Departments (Main Data)
Use
Since different departments in a company work with the same material, but each department
uses different information on the material, the data in a material master record is subdivided by
user department. This is illustrated in the following graphic representation:
Warehouse
management
Stocks in plant/
storage location
Material
master
record
A
B
Accounting
BBaassiicc ddaattaa
MMRRPP
Work
scheduling
Quality
management
FFoorreeccaassttiinngg
SSttoorraaggee
Material
Purchasing Sales
The industry material master contains the following user departments:
Accounting [Ext.]
Basic data [Ext.]
Classification [Ext.]
Costing [Ext.]
Forecasting [Ext.]
Material requirements planning [Ext.] (MRP)
Production resources/tools [Ext.]
Purchasing [Ext.]
Quality management [Ext.]
Sales [Ext.]
Stocks, plant and storage location [Ext.]
Storage [Ext.]
Warehouse management [Ext.]
Work scheduling [Ext.]
SAP AG Inventory Management and Physical Inventory (MM-IM)
User Departments (Main Data)
April 2001 247
Features
When you access a material master record, the user departments that you selected in the Select
View(s) dialog box are indicated by an icon in the tab index. Once you have accessed the user
department, this icon changes its appearance to remind you which user departments you have
already accessed in the current transaction.
By choosing Information on material on any of the main or additional screens, you can display
the following information:
Industry sector and material type
Whether the material is flagged for deletion, at what organizational level, when it was flagged
for deletion, and by whom
Person who created and/or last changed the user department data, at what organizational
level, and when
Even more detailed information is available in change documents. For more information, see:
Change Documents [Ext.]
Displaying Change Documents and the Relevant Changes [Ext.]
Activities
The following fields appear in each user department:
Material description
Base unit of measure
This information is mandatory and identical for all departments. Consult with the other users to
decide what you are going to enter here.
Additional Information
Maintenance Statuses [Ext.]
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Automatic Creation of Storage Data
248 April 2001
Automatic Creation of Storage Data
Use
If a material is located in a storage location, the storage data for that storage location must exist
in the material master record, so that the system can manage the stock quantities at storagelocation
level.
Physical inventory is only possible if the storage location data of the material is available in the
storage location.
Storage data can be manually entered when the material master record is created, or it can be
automatically created during the first goods movement in that storage location.
Features
Automatic Creation of Storage Data
If automatic creation of storage data is allowed in Customizing in that plant and for that
movement type, the storage data is created automatically during the first goods movement in that
storage location.
Storage data is only created automatically if the given quantity is posted to “normal”
storage location stock. They are not created upon receipts into any of the special
stocks (such as the sales order stock).
Manual Creation of Storage Data
You must enter the storage data for a storage location manually before you post the first goods
receipt to that storage location if:
Automatic creation of storage data is not allowed in that plant or for that movement type
You want to define special data for the material at the storage location (for example,
fixed bin location for the material in the storage location)
If the only data missing from the material master record for a new storage location is the storage
data, you can choose Other Create storage locations from the material master menu to add to
the material master record the storage data for this storage location (refer to Storage-Location-
Specific Data [Ext.]).
SAP AG Inventory Management and Physical Inventory (MM-IM)
Stocks in the Material Master Record
April 2001 249
Stocks in the Material Master Record
In Inventory Management, it is not only important to know what quantity of a material is in a
certain storage location or a certain plant, but also what quantities of the material are in what
types of stock. Part of the stock may be in quality inspection, for example.
In the material master record, various stocks are managed at plant level and at storage-location
level for both the current period and the previous period. The plant stocks (except for stock in
transfer and stock in transit at plant level) are calculated as the total of all the storage location
stocks.
The following section describes the stock categories in the material master record.
Total Valuated Stock
Sum of all valuated stocks of a material. It consists of all the stocks your company owns.
Unrestricted-Use Stock
Company's own stock that is physically located in the warehouse, valuated, and not subject to
any kind of usage restrictions.
Quality Inspection Stock
Company's own stock that is in quality inspection. Stock in quality inspection is valuated but does
not count as unrestricted-use stock.
Blocked Stock
Company's own stock that should not be used. It is not for unrestricted-use in Inventory
Management.
Restricted-Use Stock
Valuated stock of a material managed in batches held by a company (and belonging to that
company), usage of which is subject to certain restrictions. This category of stock is only used
when batch status management is active.
Blocked Stock Returns
Stock that was returned by the customer and conditionally accepted. It is not valuated and does
not count as unrestricted-use stock.
Stock in Transfer
Quantity that was already withdrawn from stock at the issuing location (plant, storage location)
during a two-step stock transfer but that has not yet arrived at the receiving location (plant,
storage location). Stock in transfer is managed in the valuated stock of the receiving location, but
it does not yet count as unrestricted-use stock.
Stock in Transit
Stock in transfer that is created for a stock transfer via a stock transport order.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Stocks in the Material Master Record
250 April 2001
SAP AG Inventory Management and Physical Inventory (MM-IM)
Other Stocks
April 2001 251
Other Stocks
In addition to the stock types that are managed in the material master record, the system can
display other stocks, which you can use various functions to display (see section Reporting in
Inventory Management [Page 227]). The list below contains examples of these dynamically
calculated stocks:
Available stock
Dynamic stock that is calculated by MRP (with respect to the time axis) taking any receipts,
issues, and the current available stocks into account. You can define how MRP is set up under
the plant parameters in Customizing for MRP (see also Availability Check [Page 98]).
Reserved stock
Sum of all quantities of a material that are reserved for withdrawal. Reserved stock is not
available from the point of view of MRP, but for Inventory Management it still counts as
unrestricted-use stock.
Planned receipts
Sum of all quantities whose receipt has been planned with reservations. Planned receipts are
already available from the point of view of MRP, but for Inventory Management they do not yet
count as unrestricted-use stock.
Open PO quantity (total)
Sum of all outstanding PO quantities for a material. The open PO quantity increases available
stock in MRP, but it does not increase unrestricted-use stock in Inventory Management.
Open order quantity (total)
Sum of all outstanding order quantities for a material. The open order quantity increases
available stock in MRP, but it does not increase unrestricted-use stock in Inventory Management.
Goods receipt blocked stock
The total of all quantities of a material that was delivered for purchase orders and accepted
conditionally. Goods receipt blocked stock is not valuated and does not count as unrestricted-use
stock.
Stock scheduled for delivery
Sum of all current deliveries to customers for which goods issues have not yet been posted. Like
reserved stock, stock scheduled for delivery is usually not available from the point of view of
MRP, but it counts as unrestricted-use stock for Inventory Management.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Allowing Negative Stocks
252 April 2001
Allowing Negative Stocks
Use
Negative stocks are required if, for example, goods issues are entered before the corresponding
goods receipts for organizational reasons and the material is already physically located in the
warehouse.
If the first movement of a material is an outward movement, in Customizing for Inventory
Management, you can activate the automatic creation of storage location data at goods issue for
plant and movement type.
Once the goods receipts have been posted, the book inventory balance must correspond to the
physical stock, that is, the book inventory balance must no longer be negative.
Prerequisites
To work with negative stocks, you have to:
explicitly allow this in the Customizing system for each valuation area and storage location
set the indicator Neg. stocks in plant in the material master record of the individual materials
(storage data)
Negative stocks are allowed for special stocks if you have activated negative stocks in the
valuation area and for the special stock concerned in the plant. You do not need to activate
negative stocks in each material master record.
Features
For unrestricted-use stock you can work with negative stocks for the following materials:
Materials with standard price
Materials with moving average price
and for the following special stocks:
Vendor consignment goods (K)
Stock of material provided to vendor (O)
Consignment stock at customer (W)
Sales order stock (E)
Project stock (Q)
Returnable packaging at customer (V)
Returnable transport packaging (R)
Example
Negative stocks always indicate that physical movements must be entered in the system at a
later stage.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Allowing Negative Stocks
April 2001 253
1000 pieces of a material are delivered. Due to insufficient time, the goods receipt is
not yet entered in the system.
Physical stock: + 1000 pieces
Book inventory balance: 0 pieces
The material is needed urgently, and 100 pieces are withdrawn from the warehouse.
The goods issue is entered in the system straightaway.
Physical stock: + 900 pieces
Book inventory balance: - 100 pieces
The goods receipt of 1000 pieces is posted at the end of the day.
Physical stock: + 900 pieces
Book inventory balance: + 900 pieces
Inventory Management and Physical Inventory (MM-IM) SAP AG
Units of Measure
254 April 2001
Units of Measure
Use
The R/3 System distinguishes between the following units of measure:
Base unit of measure
This is the unit of measure in which the stocks of a material are managed. The system
converts all quantities entered in other units to the base unit of measure.
Alternative units of measure
Individual departments may have their own units of measure. For example, Purchasing
may use a different unit than Sales or Warehouse Management (WM). All units of
measure other than the base unit of measure are referred to as alternative units of
measure. The R/3 System supports the following alternative units of measure:
Order unit
Allows a material to be ordered in a unit differing from the base unit of measure. The
order unit is proposed automatically in purchasing functions, where it can be
changed.
Sales unit
Allows a material to be sold in a unit differing from the base unit of measure. The
sales unit is proposed automatically in the sales order, where it can be changed.
Unit of issue
Unit of measure in which the material is issued from the warehouse. It allows
consumption, stock transfers, transfer postings, and physical inventories to be
recorded in a unit differing from the base unit of measure and from the stockkeeping
unit.
WM unit
Unit of measure in which materials are managed in Warehouse Management. For
inventory management, the system converts the quantities entered in the WM unit to
the base unit of measure. For example, if a material is normally managed using
pieces as the base unit of measure, but several thousand pieces are contained in a
box, it may be more appropriate to define a WM unit that is more manageable for
WM purposes.
The relationship between the base unit of measure and alternative units of measure is illustrated
below:
SAP AG Inventory Management and Physical Inventory (MM-IM)
Units of Measure
April 2001 255
Base unit of measure: piece
4 12 72
Box
(issue unit )
Carton
(order unit)
Pallet
(sales unit)
Prerequisites
All material data is updated in the base unit of measure. Choose this unit carefully since an exact
quantity can be expressed in an alternative unit of measure only if its value can be shown with
decimal places. It is therefore important to observe the following two principles when defining the
base unit of measure:
The base unit of measure is the unit that provides the maximum precision necessary.
Conversion from an alternative unit of measure to the base unit of measure should result in a
simple decimal, not a recurring (or repeating) decimal.
Features
Units of Measure Groups
A units of measure group contains several alternative units of measure and the factors for
converting them to the base unit of measure. You can define groups of this kind in Customizing
for the Material Master in Group Together Units of Measure. When entering alternative units of
measure, you can save time by specifying a units of measure group rather than entering the
same alternative units of measure individually.
Maintaining Units of Measure in Accordance with the Packaging Hierarchy
See Articles: Maintaining Units of Measure in Accordance with the Packaging Hierarchy [Ext.] in
the SAP library documentation SAP Retail.
Activities
All quantities that you enter in units other than the base unit of measure are converted to the
base unit by the system automatically. It does this using a central conversion table. If you use
units that are not contained in this table, you must state the factor for converting the alternative
unit of measure to the base unit of measure in the material master record. You normally enter
this information when specifying the alternative unit(s) of measure.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Units of Measure
256 April 2001
SAP AG Inventory Management and Physical Inventory (MM-IM)
Units of Measure in Inventory Management
April 2001 257
Units of Measure in Inventory Management
Use
The units of measure used in Inventory Management are:
Base unit or stockkeeping unit
Unit of entry
Order price unit
Features
Base Unit or Stockkeeping Unit
Unit of measure in which stocks are managed. All quantities you enter in other units are
converted into the stockkeeping unit
Unit of Entry
Unit of measure in which a goods movement is entered. The unit of entry can be different from
the stockkeeping unit.
You can enter a goods movement or a reservation in any unit of measure of the material.
However, if you do not specify a unit of measure, the system automatically uses the unit of entry
that has been defined for the given goods movement, that is:
order unit - used for a goods receipt with reference to a purchase order
production unit - used for a goods receipt with reference to an order
unit of issue - used for other goods movements
stockkeeping unit - used if no alternative unit of measure exists.
For the unit of entry to be used properly, the unit of measure must be defined in the material
master record (for the order unit, in the purchasing info record), or conversion to the relevant unit
of measure (for example, from g to kg) must be possible.
For example, you can enter a goods receipt in the unit of issue of the material. The system then
automatically converts the specified quantity to the stockkeeping unit. In the case of a goods
receipt for a purchase order, the system also converts the quantity to the order unit.
Order Price Unit
Unit of measure (differing from the order unit) in which the vendor invoice is issued. The order
price unit is defined in the purchase order or in the purchasing info record. If an order price unit is
defined in the purchase order, the goods receipt must be entered both in the unit of entry and in
the order price unit.
Inventory Management and Physical Inventory (MM-IM) SAP AG
Inventory Valuation
258 April 2001
Inventory Valuation
Use
The R/3 System allows you to valuate stocks of a material either together or separately, that is,
according to different valuation criteria. Split valuation is necessary if, for example:
Stock from in-house production has a different valuation price than externally procured
stock.
Stock obtained from one manufacturer is valuated at a different price than stock obtained
from another manufacturer.
Different batch stocks of a material have different valuation prices.
Integration
The way the stocks of a material are valuated depends on how you define the following:
Valuation category
This defines whether the stocks are valuated jointly or separately. If stocks are to be
managed separately, it also specifies the criteria used to valuate the stocks, that is,
whether they are valuated by origin, in-house production/external procurement, or
individual batches.
Valuation type
This is a further subdivision of the valuation category. For example, if the valuation
category is origin, a company may want to define the valuation types stock from Los
Angeles and stock from Detroit.
This data is stored in the material master record.
Prerequisites
Your system administrator has defined whether valuation at your company is at company code
level or plant level and whether split valuation is allowed. For more information see Accounting
[Ext.].
Activities
Joint Valuation
If you want to valuate all stocks of a material at the same price, you specify neither a valuation
category nor a valuation type.
Split Valuation
If you want to valuate stocks of a material separately, you must create a material master record
with the appropriate valuation category. This record is called the valuation header record. Each
material always has only one such record for each company code or plant (depending on
whether the material is valuated at company code level or plant level).
Once you have specified the valuation category, you can create a material master record for
each quantity of the material you want to valuate separately, with the appropriate valuation type
and accounting data.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Inventory Valuation
April 2001 259
Inventory Management and Physical Inventory (MM-IM) SAP AG
Specifying Split Valuation
260 April 2001
Specifying Split Valuation
1. Create a material master record, selecting the user department Accounting.
2. Enter your data as required on the Accounting data screen, specifying a valuation
category. Be sure that the price control indicator is V for moving average price and enter
a moving average price.
In the case of split valuation, you can create only one valuation header record with
price control V because the individual stock values are cumulated, and this total
value is written to the valuation header record.
3. Save your data.
The initial screen appears.
4. Extend the material by creating new material master records from the Accounting view.
For the first material, specify a valuation type in the Organizational Levels dialog box and
enter the respective accounting data on the data screen. Proceed likewise for the other
materials, distinguishing between them by valuation type.
You want to valuate the stock of material XYZ that you obtain from manufacturer A in
Los Angeles at a different price than the stock you obtain from manufacturer B in
Detroit. In this case, the valuation category is H for origin. Your valuation types can
be LOS ANGELES and DETROIT.
SAP AG Inventory Management and Physical Inventory (MM-IM)
Split Valuation in Inventory Management
April 2001 261
Split Valuation in Inventory Management
Use
If a material is subject to split valuation, every quantity (sub-stock) of this material must be
assigned to a valuation type (for example, country of origin).
For every valuation type, there are two types of data in the system, as follows:
Valuation data (for example, valuation price, total stock quantity, total stock value), which
is defined for every valuation type at valuation-area level and applies to all dependent
storage locations.
Stock data, which, like batch data, is managed separately for each storage location. If a
material that is subject to split valuation is also subject to management in batches, its
stock data is not managed by valuation type, but rather by batch. Every batch is
assigned to a valuation type.
The stock quantity, stock value, and valuation price for all valuation types are managed
cumulatively at valuation-area level.
Must the Valuation Type Exist Before the First Goods Receipt?
You can post the goods receipt of material of a certain valuation type only if the valuation data for
this valuation type already exists, because the system valuates the goods receipt at the price
defined in the valuation data. On the other hand, the stock data for the valuation type is created
automatically during the first goods receipt into the storage location, if this is defined in
Customizing for Inventory Management.
Goods Movements with Materials Subject to Split Valuation
If you want to enter goods movements for materials subject to split valuation, you must enter the
valuation type in addition to the material number. Enter the valuation type in the Batch field.
See also:
Split Valuation [Ext.]

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