MM Inventory Management

Inventory Management 

Inventory Management in SAP (SAP MM-MI) deals with goods. Actually the process of Procurement starts with collecting the business requirement for goods and goes to getting the goods from Vendors in SAP MM.

Once received; Goods have to be place on premise of the company in order to be accessible for consumption or reselling. Here Inventory Management helps dealing with Goods Placement and management of SAP Stocks

The key points about inventory management are as follows:

• Inventory management deals with management of stock either on value or quantity basis.
• Planning, entry and keeping records of all goods movement comes under inventory management.
• Goods movement will create a document that will update all stock quantity and value in inventory that is known as material document.
• Material document will be referred by a document number and document year.

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

• Movement Type
• Goods Receipt
• Reservation
• Goods Issue

Movement Type:

Movement type describes the type of stock posting in inventory. It represents the posting in stock is due to which type of order like whether stock is posted against goods receipt or goods issue.

Goods Receipt:

Goods receipt is the phase in which the material is received by the ordering party and the condition and quality are verified. Depending upon the movement type stock is posted in inventory with the help of goods receipt. Goods receipt will show increase in warehouse stock.

Reservation:
Sometimes, stock need to be blocked in advance so that it can be available at a particular point of time. This is known as reservation. Reservation ensures that stock is available and it can be used when required. Reserved quantity can be viewed by TCode MMBE. Provide the material number and plant.

Goods Issue:
Goods issue means moving stock out of inventory that may be due to several reasons like withdrawing of material for sampling or returning the goods back to vendor. So, goods issue will result in decrease in quantity in warehouse.

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