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SAP INVENTORY

MANAGEMENT

5500/ 0827/ 1
‫‪SAP INVENTORY MANAGEMENT‬‬
‫נכתב ונערך ע"י‪CompuGenius, Inc. :‬‬

‫חוברת זו נכתבה בלשון זכר‪ ,‬מטעמי נוחות בלבד‬

‫‪ ‬כל הזכויות שמורות ל‪CompuGenius Logistic Management & Consulting Group-‬‬


‫אין להעתיק‪ ,‬לשכפל‪ ,‬להעביר לאמצעי ממוכן‪ ,‬או לעשות כל שימוש אחר‬
‫בכלי התקשורת‪ ,‬בחוברת זו או בחלקים ממנה‪ ,‬ללא נטילת רשות‬
‫מ‪CompuGenius Logistic Management &Consulting Group" -‬‬
‫ומ‪" -‬ג'ון ברייס"‬
Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

CompuGenius, Inc.

SAP Inventory Management


(Part of Logistic Courses)

mySAP Logistic 4.6d


Copyrighted by:
CompuGenius Logistic Management & Consulting Group
10575, Katy Freeway Houston TX 77024 Ph: 713-787-6687

Copyright © 2002 Compu-genius Inc -1-


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Inventory Management
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

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

Integration of Inventory Management in the Logistic System:

Inventory Management is part of the Materials Management module and is fully


integrated throughout the Logistics system:

Copyright © 2002 Compu-genius Inc -2-


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

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

Goods Movement:

Goods Movement can be define as: Transaction resulting in a change in stock.


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.

Structure of Goods Movement:

• 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.

Copyright © 2002 Compu-genius Inc -3-


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

• 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:

o Transfer postings from material to material


o Release from quality inspection stock
o Transfer of consignment material into company's own
stock

Movement Type:
When you enter a goods movement in the system, you must enter a movement type to
differentiate between the various goods movements.
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

A movement type is a three-digit identification key for a goods movement.


The following table contains examples of movement types.

Goods Movements Movement Types

Goods receipts from a Purchase Order 101


Goods issue for a cost center 201

Result of a Good Movement:

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.

Copyright © 2002 Compu-genius Inc -4-


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com
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 update

Copyright © 2002 Compu-genius Inc -5-


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com
Organizational Structure - Levels

Client

Company Code A Company Code B

Controlling Area B
Controlling Area A

Plant A1 Plant A 2 Plant B

Storage Location Storage Location Storage Location


0001 0002 0003

Purchasing Organization
(Cross Company Code)

The structure of an enterprise is represented in the SAP R/3 System by the following
organizational levels:

Client:
Client is highest organizational level in Hierarchy. The Client is a Commercial,
Organizational unit within the R/3 System, with its own data, Master Records and Set of
tables. From a business perspective, the clients form a corporate group.

Company code:
Company code is the smallest unit in organization structure.
This level represents an independent accounting unit within a client. Balance sheet and
Profit & Loss statements, required by law, are created at company code level. You can
set up several company codes in one clients level.
Example: a subsidiary company, member of a corporate group.

Copyright © 2002 Compu-genius Inc -6-


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Plant:
Plant can be a manufacturing plant in the true sense, or can represent a branch office or
site within a company code. A plant is an organizational logistic unit that structures the
enterprise from the perspective of production, procurement, plant maintenance and
material planning.
In SAP system, a plant must be assigned to one or more purchasing organizations.
Furthermore, a plant must always be assigned to a company code.

Storage Location:
The storage location is an organizational unit that allows the differentiation of material
stocks with in a plant. Physical inventory is carried out at storage location level.

Purchasing organization:
Purchasing organization is an organizational unit responsible for procuring materials and
services for one or more plants and for negotiating prices and terms of delivery with
vendors. The purchasing organization assumes legal responsibility for all external
purchase transactions.
You can incorporate purchasing into the company structure by assigning purchasing
organization to company code and plants. You can have a combination of centralized
and decentralized organizations.

Copyright © 2002 Compu-genius Inc -7-


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Material Master:
The Material Master record is a company’s main source of material- specific data. It is
used by all components in the R/3 system.
The material master database (often referred to simply as the "material master",
comprising all the individual material master records stored in the system) contains
descriptions of all materials that an enterprise procures, produces, and keeps in stock. It
is the central repository of information on materials (such as inventory levels) for the
enterprise. The integration of all material data in a single database objects prevents the
problem of data redundancy. Every area, such as Purchasing, Inventory Management,
Material Planning and Invoice verification can use the data stored.

Material master
Transaction code: MM01
Since materials are processed by
various user departments within a
company and each department
stores different information for the
materials. The Material Master is
sub divided into information
grouped by user departments.
Each user department has a
different view of the material
master record and id responsible
for maintaining the data to support
its function.
Menu path:
SAP main menu> Logistics>
Material Management> Material
Master > Material> Create
(General) >Immediately

Copyright © 2002 Compu-genius Inc -8-


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com
When editing Material Master
data, you go through a number
of series.
Create Material initial screen will
display
Material: leave blank this field
system will assign Material
Number after save.
Industry sector: Industries sector
has a control function in the R/3
system. Choose any industry ex
mechanical. The Industry sector
you assign to a material cannot
be change later.

Material type: select material


type, ex Finished product. Various
material types are provided in
SAP R/3 system.

You can also copy material


Master from this screen.

Click on “Select View”


Pop up window will be display

Choose Basic Data 1,


Basic Data 2, Purchasing,
General Plant Data/Storage 1,
General Plant Data/Storage 2,
Accounting 1,and Accounting 2.

Click on Enter to Continue.

A popup window will be display.


Plant: enter your plant ID.

Click on Enter.

Copyright © 2002 Compu-genius Inc -9-


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Basic data 1
Enter Description of material

Enter Base unit of measure

Enter Material Group ex 103 for


electronics

Click on Enter

Click on Basic data 2

Click on Enter

Click on purchasing
Click on Enter

Click on plant data/ stor 1

Click on Enter

Copyright © 2002 Compu-genius Inc - 10 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Click on Accounting 1
In the field Valuation Class,
enter valuation class number or
use F4 to choose one value.

In the field Price Control, enter


S like standard price.

In the field Standard Price,


enter 10.

Click on Save/ Post


(Create more than one material
master)

Copyright © 2002 Compu-genius Inc - 11 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

SAP R/3 Inventory Management

Table of Contents

Step 1: Goods Receipts: Purchasing Order

Step 2: Creating Reservation

Step 3: Goods Receipts: Reservation

Step 4: Display a Reservation

Step 5: Change Reservation

Step 6: Goods Issue: Purchase Order

Step 7: Goods Issue: Reservation

Step 8: Stock Overview

Step 9: Stock for Posting Date

Step10: Return Delivery

Step11: Stock Transfer: One step (With out Reservation)


(Storage Location to Storage Location)

Step12: Stock Transfer: One step (With Reservation)


(Storage Location to Storage Location)

Step13: Transfer Posting for Reservation

Step14: Stock Overview: After Transfer Posting

Step15: Stock Transfer from Plant to Plant

Step16: Plant Stock Availability

Step17: Stock Transfer: Two Step Procedure

Step18: Place In Storage

Copyright © 2002 Compu-genius Inc - 12 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Step19: Stock for Posting Date

Step20: Physical Inventory:


Creating Physical Inventory Document

Step21: Creating Sessions

Step22: Changing Physical Inventory Document

Step23: Physical Inventory Count

Step24: Inventory Count With out Reference

Step25: Changing physical Inventory Count

Step26: Initiating of Recount

Step27: Posting Inventory Differences

Step28: Posting Count & Differences Simultaneously

Step29: Physical Inventory Information

Step30: Consignment: Creating Info Record

Step31: Procurement of Consignment Material

Step32: Stock Movement: Goods Receipts (Consignment Material)

Step33: Displaying Consignment Overview

Step34: Goods Issue: Consignment Stock

Step35: Transferring Consignment Material

Step36: Settling Consignment Stock

Step37: Pipeline: Creating Pipeline Material

Step38: Pipeline: Creating Info Record

Step39: Goods Issue: Pipeline

Step40: Settling Pipeline Liabilities

Copyright © 2002 Compu-genius Inc - 13 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Goods Receipts:

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.

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.

The R/3 System distinguishes between the following types of goods receipts:

• Goods receipts for Purchase Order


• Goods receipts with reference to a reservation
• Other goods receipts

Goods receipts For Purchase Order:

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.

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 (over deliveries and under
deliveries).
• 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

Copyright © 2002 Compu-genius Inc - 14 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Step1:

Goods Receipts For


Purchase Order

Transaction code: MIGO

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.

Menu path:

SAP main menu> Logistics>


Materials Management>
Inventory Management Goods
Movement> Goods Receipts>
For Purchase Order> PO
Number Known

Enter PO number that you’ve


Created.

Document Date: enter


Document date
Posting Date: enter Posting
date

Click on Enter to move next


screen.

Copyright © 2002 Compu-genius Inc - 15 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Next screen will display:

Enter storage location under


Storage location field

Make sure the box Item OK


is flag.

Then click icon Post/Save.

SAP will display a message


"Material Document Posted"

When you post a goods


receipt, the system
automatically creates a
material document which
serves as proof of the goods
movement

Note:

(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.)

Copyright © 2002 Compu-genius Inc - 16 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Step 2:

Reservation:

A reservation is a request to the warehouse to keep materials ready for a goods issue at
a later date and for a certain purpose. A reservation for goods issue can be requested by
various departments for various account assignment objects, (such as cost center,
order, asset, etc.)

Purpose of a Reservation:

The purpose of a reservation is to ensure that a material will be available when it is


needed. It is also to simplify and accelerate the goods issue process and to prepare the
tasks at the point of goods issue.
Also important is that Material Requirements Planning (MRP), which means that
required materials are procured in time if they are out of stock, takes reservations into
account.

In a reservation, information is stored that is relevant for the goods issue and for MRP,
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?)

Note: 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).

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.

Copyright © 2002 Compu-genius Inc - 17 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Creating A Reservation:

Transaction code: MB21

Menu Path:

SAP Main menu> Logistics>


Material Management>
Inventory Management>
Reservation> Create

Create Reservation screen will


display:

Movement type: click on


possible button and select 210
Different movement type open
different screen.
Or select movement type>
consumption> for cost center
at top menu bar

201 is consumption for cost


center from warehouse

(Note: for this Reservation


you should have at least one
Cost center

Click on Enter

Copyright © 2002 Compu-genius Inc - 18 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Next screen will display:

Cost Center: enter cost center

Material: enter material no


Quantity: enter quantity for
reservation

Sloc: enter storage location

Click on back arrow

Overview screen will display:

Click on Save / Post


SAP will display a message
Document posted xxxxxxxx.

Copyright © 2002 Compu-genius Inc - 19 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Step 3:

Goods Receipts
(Reservation)

Transaction code: MIGO

In this step we will post Goods


Receipts with Reservation

Menu path:
SAP main menu> Logistics>
Inventory Management> Goods
Movement > MIGO

Select Reservation
Enter your Reservation number

Enter document date

Enter posting date

Click on Enter

Copyright © 2002 Compu-genius Inc - 20 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Goods Receipts Reservation


screen will display:

Enter storage location

Window scroll down

Check on Item ok

Click on Save / Post

SAP will display a message at


bottom for Goods receipts
posting.

Copyright © 2002 Compu-genius Inc - 21 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Step 4:

Display a Reservation

Transaction code: MB23

Menu Path

SAP main menu> Logistics>


Material Management > Inventory
Management> Reservation>
Display

Display Reservation Screen will


display

Reservation: enter Reservation


number

Click on Enter

Copyright © 2002 Compu-genius Inc - 22 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Next screen will display overview

You can see details of Reservation

Step 5:

Change Reservations:

Transaction code: MB22

You can change a manual


reservation at any time, even if
the reserved quantity has
already been withdrawn. You
cannot process automatic
reservations.

You can change requirement date,


quantity, movement allowed
indicator

Menu Path:

SAP main menu> Logistics>


Material Management > Inventory
Management> Reservation>
Change

Copyright © 2002 Compu-genius Inc - 23 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Change Reservation screen will


display:

Reservation: enter Reservation


number

Click on Enter:

Now you can change quantity.

Click on details from item

You can change unit and


Requirement date

After change click on save.

SAP will display a message


changes were saved.

Copyright © 2002 Compu-genius Inc - 24 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com
Step 6:

Goods Issues:

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.
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.
Materials can be withdrawn not only for production but also for other purposes (for
example, for cost center, CO order, maintenance order, or asset).
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
• 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 (over
deliveries and under deliveries) 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!

Copyright © 2002 Compu-genius Inc - 25 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Goods Issue (Purchase Order)

Transaction Code: MB1A

Menu Path

SAP main Menu> Logistics>


Materials Management>
Inventory Management> Goods
Movement> Goods Issue.

Document date : enter


Document date

Posting date: enter date of


posting

Movement type: enter


movement type, you can select
from possible entry button, Ex
(201: consumption of cost center
form warehouse.)
Or you can select Movement
Type> Consumption> Cost
Center> From Warehouse form
top menu bar

Plant: enter the plant ID

Reason for movement: select


reason for movement from
possible entry button.

Click on Enter

Copyright © 2002 Compu-genius Inc - 26 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Next screen will display


Cost center: enter cost center
Material: enter Material no
Quantity: enter issuing Quantity

Sloc: Enter storage location

Click on overview button at


menu bar
Next screen will display
Overview of Goods issue

Click on Save/Post,
SAP will display a message
Document xxxxx Posted.

Step 7:

Goods Issue for Reservation

Transaction code: MB1A

Menu Path:

SAP main Menu> Logistics>


Materials Management> Inventory
Management> Goods Movement>
Goods Issue.

Copyright © 2002 Compu-genius Inc - 27 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Document date : enter


Document date

Posting date: enter date of


posting

Movement type: enter


movement type, you can select
from possible entry button, Ex
(201: consumption of cost center
form warehouse.)
Or you can select Movement
Type> Consumption> Cost
Center> From Warehouse form
top menu bar

Plant: enter the plant ID

Reason for movement: select


reason for movement from
possible entry button.

Click on To reservation

Reference Reservation screen will


popup:

Reservation: enter 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).

Plant: enter Plant ID

Click on Enter

Copyright © 2002 Compu-genius Inc - 28 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Goods Issue Selection Screen will


display:

Material: enter Material No.


Quantity: enter issuing Quantity

Sloc: Enter storage location

Click on Enter

Click on Save/Post

SAP will display a message


document xxxxx posted.

Copyright © 2002 Compu-genius Inc - 29 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Step 8:

Stock Overview

Transaction Code: MMBE

Stock overview display detail


status of stock. There are
several methods to check stock
overview.

Menu Path:
SAP main menu> Logistics>
Materials
Management>Inventory
Management> Environment>
Stock> Stock Overview

Stock overview screen will


display:

Material: Enter material no.

Plant: Enter Plant ID

Click on Execute button

Copyright © 2002 Compu-genius Inc - 30 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Next screen will display stock


balances.

Double click on line item it will


display more detail about material.

Step 9:

Stock for Posting Date:

Transaction code: MB5B

Menu Path:

SAP main menu> Logistics>


Materials Management>Inventory
Management> Environment>
Stock> Stock for Posting date

Copyright © 2002 Compu-genius Inc - 31 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Enter material no:

Enter Plant Id

Click on Execute Button

Next screen will show you material


stock for periods.

Double Click on Line Items,


System will display more detail.

Click Back Arrow to go back.

Copyright © 2002 Compu-genius Inc - 32 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Step 10:

Return Delivery
Transaction Code: MBRL

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.

Menu Path:
SAP main menu> Logistics>
Material Management>
Inventory Management>Material
Document > Return Delivery

Return Delivery Initial Screen


will display:

Posting Date: enter Date of


posting

Material doc.: enter Material


Document No. Or you can
Search from Possible entry
Button.

Mat. Doc. Year: enter your


document year

Vendor: enter vendor number


Reason for material: enter
reason for Material return.

Click on Enter

Copyright © 2002 Compu-genius Inc - 33 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Selection Screen will display:

It will show you all description of


material.

Quantity: enter material quantity,


which you want to return.

Click on Adopt+ details

Next screen will display Return


Delivery information:

Movement Type, Unit of


Quantity, Storage location,
vendor, material
Etc.

Click on Enter

Next screen will display


Overview

Click on Save/Post

Copyright © 2002 Compu-genius Inc - 34 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Stock Transfer:
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

Copyright © 2002 Compu-genius Inc - 35 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

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.

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.

Copyright © 2002 Compu-genius Inc - 36 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Step 11:

Stock transfer from Storage


location to Storage location:
(One step procedure without a
Reservation)

Transaction code: MB1B

Menu Path:

SAP main menu> Logistics>


Materials Management>Inventory
Management> Goods Movement>
Goods Receipt > Transfer Posting

Transfer Posting Initial screen will


display

Document date : enter


document date
Posting date: enter date of
posting
Movement type: select
movement type EX: 311(transfer
posting storage location for one
step)
Or click on Movement Type>
Str. Loc to Str loc> Unrestr. To
Unrestr. At upper menu bar.

Plant: enter plant Id.

Click on Enter to move next


screen.

Copyright © 2002 Compu-genius Inc - 37 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Next screen will display


Recv. Sloc.: enter Receiving
storage location ID, you can
select from possible entry
button.

Material: enter Material


Quantity: enter quantity you
want to transfer.
Sloc: enter storage location
(sender)

Click on overview Button

Next Screen will display overview

Click On Save/ Post

Copyright © 2002 Compu-genius Inc - 38 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Step 12:

Stock transfer from Storage location to Storage location:

(One step procedure with a reservation): For stock transfer with Reservation you
must create
Reservation for movement Type (Storage Location to Storage Location)

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.

Create Reservation for Movement


Type

Transaction code: MB21

Menu Path:

SAP Main menu> Logistics>


Material Management>
Inventory Management>
Reservation> Create

Copyright © 2002 Compu-genius Inc - 39 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Create Reservation Screen will


display

Base date: enter base line date

Movement type: select


movement type EX: 311(transfer
posting storage location for one
step)

Plant: enter plant Id.

Click on Enter

Next screen will display:


Recv. Sloc.: enter receiving
storage location ID, you can
select from possible entry
button.

Material: enter Material

Quantity: enter quantity, you


want to reserve

Sloc: enter storage location


(sender)

Click on save/ post

Copyright © 2002 Compu-genius Inc - 40 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Step 13:

Transfer posting for


Reservation
Transaction code: MB1B

Menu Path:

SAP main menu> Logistics>


Materials Management>Inventory
Management> Goods Movement>
Goods Receipt > Transfer Posting

Transfer Posting Screen will


display

Document date : enter


document date
Posting date: enter date of
posting

Movement type: select


movement type EX: 311(transfer
posting storage location for one
step)

Plant: enter plant Id.

Click on To Reservation Or F6

Copyright © 2002 Compu-genius Inc - 41 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Reference Reservation screen will


popup

Reservation: enter Reservation no.


Which you created for Transfer
Posting

Plant: enter Plant ID

Click on Enter

Transfer Posting Selection screen


will display

Click on adopt icon

Click on save/ post,

Sap will display a message


Document Posted.

Copyright © 2002 Compu-genius Inc - 42 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Step 14:

Stock overview:
(After Transfer Posting)

Transaction code: MB5B

Menu Path:

SAP main menu> Logistics>


Materials Management>Inventory
Management> Environment>
Stock> Stock for Posting date

Stock on Posting Date Will be


display:
Material no.: enter material
number

Plant: enter Plant ID

Click on Execute

Copyright © 2002 Compu-genius Inc - 43 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Next screen will display Material


Stock With Posting date

Click on Back arrow or F3 to


move Back

Copyright © 2002 Compu-genius Inc - 44 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Step 15:

Stock Transfer: from Plant to


Plant

(Using the one step procedure


with out a Reservation)

Transaction code: MB1B


In this step we will transfer stock
from one plant to another Plant

Menu Path:

SAP main menu> Logistics>


Materials Management>Inventory
Management> Goods Movement>
Goods Receipt > Transfer Posting

Transfer Posting Screen will


display

Document date : enter


document date
Posting date: enter date of
posting

Movement type: select


movement type EX: 301
Or Select movement type> Plant
to plant> Rem. frm/pl. in storage
from top menu bar

Plant: enter plant Id.

Copyright © 2002 Compu-genius Inc - 45 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Click on Enter

Receiving plant: enter Receiving


plant Id

Recv.Sloc: enter receiving


storage location

Material: enter material no.

Quantity: enter quantity for


transfer
Sloc: enter storage Location
(sender)

Click on Overview button

Copyright © 2002 Compu-genius Inc - 46 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Transfer Posting Overview


Screen will display:

Click on Save/ Post

Step 16:

Stock Overview: (after transfer


posting in plant)

Plant stock availability

Transaction code: MB53

Menu Path:
SAP main menu> Logistics>
Materials
Management>Inventory
Management> Environment>
Stock> Plant Stock Availability

Copyright © 2002 Compu-genius Inc - 47 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Plant Availability initial screen


will display:

Material: enter Material No

Plant: enter Plant Id

Click on Execute

Next screen will display Material


Stock availability in Plant

Use Back Arrow key or F3 to


go back

Copyright © 2002 Compu-genius Inc - 48 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Step 17:

Stock transfer Two-step procedure- Storage Location:

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.

Stock transfer Two-step procedure-


Storage Location

Removal from storage at


issuing storage location

Transaction Code: MB1B

Menu Path:

SAP main menu> Logistics>


Materials
Management>Inventory
Management> Goods
Movement> Goods Receipt >
Transfer Posting

Copyright © 2002 Compu-genius Inc - 49 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Transfer Posting Screen will


display

Document date : enter


document date
Posting date: enter posting date

Movement type: enter


Movement type field, Ex: 313 or
Select Movement type> Stor loc
to stor loc > Rem.from storage
Sloc, form menu bar

Plant: Enter the plant Id

Click on Enter

Recv Sloc: Enter receiving


storage location

Material: enter material no.

Quantity: enter quantity for


transfer

Sloc: enter storage Location


(sender)

Click on overview

Copyright © 2002 Compu-genius Inc - 50 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Next screen will display


Transfer posting overview:

Click on Save/ Post

Step 18:

Placement Into Storage at


receiving storage location
With Reference to the Stock
Removal Document

Transaction code: MBSV

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.

Menu Path:
SAP main menu> Logistics>
Materials Management>
Inventory Management>
Material Document> Place in
Storage

Copyright © 2002 Compu-genius Inc - 51 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Place in storage for material


Document
Posting date: enter posting date

Material doc.: enter material


document number

Mat. Doc. Year: enter document


year

Click on Enter

Selection screen will display:

You can change in quantity if u


wants.

Click on Adopt+ Details

Click on Save /Post

Copyright © 2002 Compu-genius Inc - 52 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Step 19:

Stock for posting date:

Transaction Code: MB5B

Menu Path:

SAP main menu> Logistics>


Materials
Management>Inventory
Management> Environment>
Stock> Stock for Posting Date

Stock on Posting date Screen


will display:

Material Number: enter material


number

Plant: enter Plant Id

Click on Execute

You can see Material stock


position

Click on Back Arrow Icon to


move back

Copyright © 2002 Compu-genius Inc - 53 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com
Physical Inventory

Physical Inventory allows you to carry out a physical inventory of your company’s
warehouse stocks for balance sheet purposes.

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 unrestricted-use 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

Copyright © 2002 Compu-genius Inc - 54 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

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.

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.

Copyright © 2002 Compu-genius Inc - 55 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Step 20:

Physical Inventory
The physical inventory procedure is carried out in three steps:

1. Creating a Physical Inventory Document


2. Entering the Physical Inventory Count
3. Posing inventory differences

Creating a Physical Inventory


Document

Transaction code: M01

There are two methods of


creating a physical inventory
document, as follows:
1 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.
2 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

Menu Path:

SAP main menu> Logistics>


Material Management> Physical
Inventory> Physical Inventory
doc > Create

Copyright © 2002 Compu-genius Inc - 56 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Next screen will display:

Document date: enter document


date
Planned count date: enter date
from which you want count
physical inventory.

Plant: enter Plant Id


Storage location: enter storage
location of material/plant

Click on Enter

Material: enter material Id


(You can enter more than one
material)

Click on document Header Icon

Copyright © 2002 Compu-genius Inc - 57 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Next screen will show you


document header.
You can see document details.

Planned count date: Enter


Planned count date

Click on overview Icon

Next screen will display


Document Overview

Click on Post/Save. SAP will


display a message Physical
Inventory Document xxxxxx
created.

Copyright © 2002 Compu-genius Inc - 58 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Step 21:

Creating Sessions

Transaction code: MI31

This is another method of


creating Physical Inventory
document.

Menu Path:

SAP main menu> Logistics>


Material Management> Physical
Inventory> Sessions> Create
Phys. Inv. Docs > W/o Special
Stock

Copyright © 2002 Compu-genius Inc - 59 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Next screen will display:

Material: enter material for


Physical inventory

Plant: enter Plant Id

Storage location: enter Storage


location

Click on execute button

Copyright © 2002 Compu-genius Inc - 60 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Next screen will show you Batch


Input session for Physical
Inventory Documents.

Click on Process session to


move on Next screen

Next screen will display Session


Overview
This screen will show you
Session details

Step 22:

Copyright © 2002 Compu-genius Inc - 61 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Changing Physical Inventory


Document
Transaction Code: MI02

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

Menu Path:

SAP main menu> Logistics>


Material Management> Physical
Inventory> Physical Inventory doc
> Change

Initial Screen will display

Physical inventory doc.: enter


Physical Inventory Document
number (or You can select from
possible entry button, enter
material number or plant name
click on enter you can find your
document number)

Fiscal Year: enter Fiscal year

Click on Enter

Copyright © 2002 Compu-genius Inc - 62 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Collect. Processing screen will


display

You can change Stock type

Click on Goto > header from top


menu bar

Change Document header screen


will display

You can change fields like,


Planned count date, Document
date and other fields

After changes click on Save.


Changed Data will be saved.

Step 23:

Copyright © 2002 Compu-genius Inc - 63 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Physical inventory Count:


Transaction Code: MI04

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:
1 Entering the count with
reference to a physical inventory
document
2 Entering the count without
reference to a physical inventory
document
During the inventory count, all
the materials being inventoried
are counted and entered
physically.
Process Flow

-The stocks are counted for


individually for the materials in a
physical inventory document.
-The count results are written on
the printout of the physical
inventory document.
-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.

Menu Path:

SAP main menu> Logistics>


Material Management> Physical
Inventory> Inventory Count>
Enter

Copyright © 2002 Compu-genius Inc - 64 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Phys. Inventory doc.: enter


Physical Inventory Document
number
Fiscal year: enter fiscal Year
Count date: enter date for
counting:

Click on Enter

Inventory Count Collect.


Processing screen will display

Click on Save/ Post

Step 24:

Copyright © 2002 Compu-genius Inc - 65 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Inventory count without


Reference:
Transaction Code: MI09

Menu Path:

SAP main menu> Logistics>


Material Management> Physical
Inventory> Inventory Count>
Enter W/o Doc Ref.

Initial Screen will display

Count date: enter date for


counting
Document Date: enter
Document Date

Plant: Enter Plant Id


Storage Location: Enter Storage
Location
Phys. Inventory No.: enter
Physical Inventory Document
number

Click on Enter

Copyright © 2002 Compu-genius Inc - 66 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Next screen will display:

Material description: enter


material number
Quantity: enter Quantity

Click on Goto> Header on top


menu bar

Next screen will show you


Header Data for Document

Enter Planned document date

Click on Save/ Post, SAP will


display a message " count enter
for phys. Inv. Document xxxxx"

Copyright © 2002 Compu-genius Inc - 67 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com
Step 25:

Changing a Physical Inventory


Count
Transaction Code: MI05

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,
and then post the document.

Menu Path:

SAP main menu> Logistics>


Material Management> Physical
Inventory> Inventory Count >
Change

Phys. Inventory doc.: enter


physical inventory doc no.:
Fiscal year: enter fiscal year

Click on Enter:

Copyright © 2002 Compu-genius Inc - 68 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Next screen will display:


You can change Quantity if you
want

Select line item and click on


Phys. Inve. History button on
tool bar

Next screen will display physical


inventory history

You can see quantity, book


quantity and difference quantity

If you changed any field click on


save to go back.

Step 26:

Copyright © 2002 Compu-genius Inc - 69 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Initiating of Recount
Transaction code: MI11

Menu Path:

SAP main menu> Logistics>


Material Management> Physical
Inventory> Phys. Inventory Doc.
> Recount

Initial Screen will display:

Phys. inventory doc.: enter


document number, which you
want to initiate a Recount.

Fiscal year: enter fiscal year


Planned count date: enter date
for planned count

Document date: enter document


date

Click on Enter

Copyright © 2002 Compu-genius Inc - 70 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Next Screen will display Material


and Difference Quantity

Select Goto> Overview from


top menu bar

Overview screen will display:

Select Line item which you want


Recount.

Click on Save/ Post


Sap will display a message"
Physical inventory document
xxxxxx created.”

Copyright © 2002 Compu-genius Inc - 71 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Step 27:

Postings Inventory Differences:

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

Physical Inventory
Difference
Transaction Code: MI07

Menu Path:

SAP main menu> Logistics>


Material Management> Physical
Inventory> Difference> Post

Copyright © 2002 Compu-genius Inc - 72 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Post Inventory Differences initial


Screen will display

Phys. inventory doc.: enter


document number

Fiscal year: enter fiscal year


Posting date: enter date for
Posting

Threshold: 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 pre selected.

Click on Enter

Selection Screen will display:

Screen will show you material


and difference Quantity with
Value

Click on physical Inventory


History

Copyright © 2002 Compu-genius Inc - 73 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Next screen will display inventory


Hostory
click on back arrow and

Click on save/Post

SAP will display a message


Difference physical document
posted with Mat. Document xxx

Step 28:

Posting Count and


differences Simultaneously
Transaction code: MI08

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.

Menu Path:

SAP main menu> Logistics>


Material Management> Physical
Inventory> Difference> Count
/Difference

Copyright © 2002 Compu-genius Inc - 74 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Phys. inventory doc.: enter


document number

Fiscal year: enter fiscal year


Posting date: enter date for
Posting

Click on Enter

Collect. Processing Screen will


display:

Enter Quantity for count and


posting

Select Goto> Overview from


top menu bar

Click on Save/Post

SAP will display a message Diff.


for I-document xxx posted with
M-document xxxxx.

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.

Copyright © 2002 Compu-genius Inc - 75 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com
Step 29:

Physical Inventory Information:

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

Physical Inventory Information


The following functions in the
physical inventory menu provide
information on the physical
inventory:

Displaying the physical inventory


documents for a material (MI22)
Choose Environment > Phys.
inv. doc. for mat.

Displaying the physical inventory


data for a material (MI23)
Choose Environment > Phys. in.
data for mat.

Displaying the physical inventory


overview (MIDO)
Choose Environment > Physical
inv. overview.

Displaying the physical inventory


list ( MI24)
Choose Environment > Physical
inv.list

Displaying changes to physical


inventory documents (MI12)
Choose Environment > Changes
to phys. inv. Doc

Displaying Stock Overview


(MMBE)
Choose Environment > Stock
Overview

Copyright © 2002 Compu-genius Inc - 76 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Example 1

Displaying the physical inventory


data for a material (MI23)

Choose Environment > Phys.


in. data for mat.

Next screen will display

Enter Material no.


Enter Plant
Enter Storage location

Click on Execute button

Next screen will display


Inventory data for Material

You double click on any line


item
It will show you more details with
stock and value

Copyright © 2002 Compu-genius Inc - 77 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Example 2

Displaying Material Document


for Material (MB51)

Choose Environment > Mat.


Doc. For Material

Material document screen will


display:

Enter Material no.


Enter Plant
Enter Storage location

Click on Execute button

Next screen will display Material


document for particular material

You double click on any line


item it will display you more
details

Copyright © 2002 Compu-genius Inc - 78 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

When you double click on any


line item it will show you
material document details.

Copyright © 2002 Compu-genius Inc - 79 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Step 30:

Consignment:

In consignment processing, the vendor provides materials and stores them on your
premises. The vendor remains the legal owner of the material until you withdraw
materials from the consignment stores. Only then does the vendor require payment. The
invoice is due at set periods of time, for example, monthly. In addition, you can also
arrange with the vendor that you take over ownership of the remaining consignment
material after a certain period of time.

Features
The consignment stock is managed under the same number as your own stock.
Consignment stock can, therefore, be transferred to the available stock.

You can define consignment prices in foreign currency. The currency in which the order
is placed with the vendor applies for consignment withdrawals.
You can determine period-specific consignment prices.

You can specify the consignment price in any unit of measure. The conversion factor is
stored in the info record.

Using consignment info records, you can make use of other condition functions used in
Purchasing, such as discounts and price quantity scales.
Consignment stocks of the same material from different vendors can be managed
independently from one another and at the price of the individual vendors.
Consignment stocks are not valuated. When the material is withdrawn it is valuated at
the price of the respective vendor.

A consignment material can be allocated to one of three stock types:


Unrestricted-use stock
Quality inspection stock
Blocked stock

You can make transfer postings between these three stock types. Withdrawals can only
be posted from unrestricted stock, however.

Pricing for Consignment Stock

Before you can order a material from a vendor or post a goods receipt to consignment
stock, you must maintain the consignment price for the vendor in an info record.
The price is required for material valuation and accounting purposes.

If you order consignment material from several vendors, the system maintains the
consignment stock separately for each vendor, since the individual quantities of the
material can have different prices with each vendor

Copyright © 2002 Compu-genius Inc - 80 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Creating Info Record:


(Consignment)

Transaction Code: ME11

Menu Path:

SAP main menu> Logistics>


Materials Management> Master
Data> Info Record > Create

Create Info Record screen will


display

Vendors: enter Vendors Id


Material: enter Material Number
Purchasing org: enter
purchasing org
Plant: enter plant

Select check box of


Consignment under Info
category

Click on Enter

Copyright © 2002 Compu-genius Inc - 81 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

General Data screen will display:

Double click on Purchasing


organization data:

Purchasing organization data


screen will display:

You can see Plant consignment


type

Plnd delay time: enter no of


days for delay time
Purch. Group: enter Purchasing
group

Standard Quantity: enter


number of quantity.
Minimum quantity: enter
minimum order quantity

Net Price: enter Net Price of


Material

Click on Texts

Copyright © 2002 Compu-genius Inc - 82 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Text Overview screen will


display

Enter the texts for Info record &


Purchase order

Click on Save/ Post

SAP display a message


Purchasing Info Record
XXXXXXXX created

Copyright © 2002 Compu-genius Inc - 83 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Step 31:

Procurement of Consignment Material:

You can procure consignment material via purchase requisitions, purchase orders and
outline agreements for consignment material.

Creating the Purchase Order for Consignment Material:

Enter the item category K for the consignment item. To ensure that the goods receipt is
posted to the consignment stores and an invoice receipt cannot be generated for the
item.
Do not enter a net price.

Creating the Purchase


Order for Consignment

Transaction Code: ME25

Menu Path:

SAP Main Menu> Logistics>


Materials Management>
Purchase Order> Create>
Vendor Known

Copyright © 2002 Compu-genius Inc - 84 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Vendor : enter Vendor id

Document date : enter


Documnet Date

Purchasing org. : enter


purchasing organisation

Purch. Group : enter purchasing


group

Company code : enter company


code

Item : enter item no.

Item category: enter K


(consignment)
Material: enter material no.
Quantity: enter quantity for
consignment

Delivery date: enter date of


delivery
Click on Enter

Click on Save / Post

Copyright © 2002 Compu-genius Inc - 85 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Step 32:

Stock Movement for consignment Material:

Posting Goods Receipts for consignment material

Goods receipts to your consignment stores can either:


• Refer to a purchase order or
• Be made by the vendor directly without a purchase order

The posting procedure differs slightly.

Goods Receipts for


Consignment Material:
(Refer to a purchase order)

Transaction code: MIGO

Menu path:

SAP main menu> Logistics>


Materials Management>
Inventory Management Goods
Movement> Goods Receipts>
For Purchase Order> PO
Number Known

Copyright © 2002 Compu-genius Inc - 86 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Enter purchase order number


(which you create for
consignment)

Enter Document date

Enter Posting date

Click on Enter

Enter storage location

Check on Item Ok

Click on Post/Save

Step 33:

Copyright © 2002 Compu-genius Inc - 87 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Displaying Consignment
Overview:
Transaction code: MB54

You can display data for


consignment stock using the
following functions:

-Display consignment info record


-Display the stock overview
-Display consignment stocks

Menu Path:

SAP Main menu> Logistics>


Materials Management>
Inventory Management>
Environment> Consignment>
Consignment from Vendor>
Stock

Consignment Stock screen will


display:

Material: enter Material


Plant: enter Plant id

Click on Execute

Copyright © 2002 Compu-genius Inc - 88 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Next screen will display


Consignment Stocks:

Click Back Arrow or F3 to go


back

Copyright © 2002 Compu-genius Inc - 89 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Step 34:

Goods Issue from


consignment stock:
Transaction Code: MB1A

You can only post a goods


issue from consignment stock
to consumption if the material
belongs to unrestricted-use
stock. If the consignment
material is in quality inspection
or blocked stock, you must first
transfer it to the unrestricted-
use stock.

Menu Path:

SAP main Menu> Logistics>


Materials Management>
Inventory Management> Goods
Movement> Goods Issue.

Goods Issue Initial Screen will


display

Document date : enter


document date
Posting Date: enter posting date
Movement Type: click on
possible entry button and select
consumption for cost center
type (201K)

Click on enter:

Copyright © 2002 Compu-genius Inc - 90 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Cost center: enter your cost


center

Vendor: enter Vendor


Material: enter material number

Quantity: enter quantity for


goods issue

Sloc: enter storage location

Click on Overview

Next screen will display


Overview for goods issue.

Click on Save/ Post

SAP will display a message


document posted.

Copyright © 2002 Compu-genius Inc - 91 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Step: 35

Transferring consignment
Material

Transaction Code: MB1B

Supposing you agreed with the


vendor that after six months you
will take over ownership of the
remaining consignment stock.
To do this, carry out the
following goods movement

Menu Path:

SAP main menu> Logistics>


Materials
Management>Inventory
Management> Goods
Movement> Goods Receipt >
Transfer Posting

Document date : enter


document date
Posting Date: enter posting date

Movement Type: select (411k)

Or select Movement type>


Transfer posting> Vendor
consignment> Consignment to
own form top menu bar

Click on Enter

Copyright © 2002 Compu-genius Inc - 92 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Vendor: enter Vendor

Receiving Sloc: enter Receiving


storage Location

Material: enter Material No.

Quantity: enter quantity for


transfer

Sloc: enter storage location


(Sender)

Click on Overview

Next screen will display Transfer


Posting Overview.

Click on Save/ Post

Copyright © 2002 Compu-genius Inc - 93 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com
Step 36:

Settling Consignment Liabilities:

Removing material from consignment stores or transferring material to your company’s


own stock results in liabilities towards the vendor. You should settle these liabilities at
regular intervals.
Consignment materials are settled without the vendor issuing an invoice, as the vendor
company is unable to track withdrawals directly. The vendor can only manage its
consignment stock by taking deliveries and payments into account.

Settling Consignment
Liabilities:

Transaction code: MRKO

Menu Path:

SAP main menu> Logistics>


Materials Management>
Inventory Management>
Environment>
Consignment>Consignment
from Vendor> Liability

Company code: enter company


code

Check on consignment box

Select Display

Check on Withdrawals not


settled and settled withdrawals

Click on Execute button

Copyright © 2002 Compu-genius Inc - 94 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Next screen will display line


items before consignment
settlement

Double click on any line item it


will display details of
consignment material.

Click on back arrow or F3 to go


back For settlement

Select the Settle check box

Select settled withdrawal


check box

Click on execute

Copyright © 2002 Compu-genius Inc - 95 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Next serene will display after


consignment settlement

Click on back arrow or F3 to go


back

Step 37:

Pipeline
A pipeline material is a material that flows directly into the production process from a
pipeline (for example, oil), from a pipe (for example, tap water), or from another similar
source (for example, electricity).
A material from the pipeline is always available; i.e. it can be withdrawn from the pipeline
at any time and in any quantity.
Depending on the system configuration, a material can be withdrawn only from the
pipeline or, in addition to the pipeline; normal stocks of the material can also be
managed.

Materials with Material Type PIPE


Pipeline handling is mandatory for materials with material type PIPE; i.e. only
withdrawals from the pipeline can be posted for these materials.
These materials have the following characteristics:
They are neither procured nor planned. They can be withdrawn from the pipeline at any
time and in any quantity.
They are not stored or kept in stock. No physical inventory is taken.
Pipeline movements are mandatory in all valuation areas; i.e. no other goods
movements may be posted.

Other Material Types


For each material type, you can specify in the valuation area whether pipeline
movements are:
Mandatory
Allowed
If pipeline movements are not mandatory but allowed, the material can be kept in stock
and both pipeline and other movements can be posted.
A material of this type can be withdrawn from your company’s own stock, from
consignment stock, or from the pipeline.

Copyright © 2002 Compu-genius Inc - 96 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com
Activities

Pipeline Withdrawal

You can enter a pipeline withdrawal for an order or for a cost center. Pipeline
withdrawals differ from other goods movements in that they are entered with the special
stock indicator P.
The withdrawal is valuated at the price defined in the pipeline info record.
A withdrawal from the pipeline results in the following updates in the system:
• The pipeline withdrawal results in a vendor liability that must be settled
periodically in a similar way to the management of consignment stocks. In
the standard system the same account is used for both pipeline and
consignment liabilities, but a different pipeline liabilities account can be
defined in Customizing.
• A consumption history is kept.
The pipeline withdrawal has no effect on existing warehouse stock or on the availability
of the material.

Creating Pipe Line Material:

Transaction code: MM01

When creating a pipeline


material, it is important that you
note the following:
Assign the material a material
type that allows pipeline
movements. Pipeline
movements are mandatory for
material type PIPE.

Menu Path:

SAP Main Menu> Logistics>


Materials Management>
Material Master> Create
(General) Immediately

Copyright © 2002 Compu-genius Inc - 97 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Create Material initial Screen will


display:

Material: Leave blank, System


will generate internally Material
no.

Industry sector: select industry

Material Type: Select Pipeline


Material Type.

Click on “Select View”

Select View Pop up window will


be display:

Choose Basic Data 1,


Basic Data 2,
Purchasing,
General Plant Data/Storage 1,
General Plant Data/Storage 2,
Accounting 1,and Accounting 2.

Click “Continue”.

Copyright © 2002 Compu-genius Inc - 98 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Enter Plant id

Click on Enter

Copyright © 2002 Compu-genius Inc - 99 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Basic data screen will display:

Material: enter text of material

Base unit of measure: enter


Measurement unit, ex: Liter, you
can select from possible entry
button.

Material group: enter material


group, Ex: oil

Click on Purchasing:

Click on Accounting 1: to move


next screen

Copyright © 2002 Compu-genius Inc - 100 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Price control: select V (Moving


Average) or You can select S
(standard Price)

Choose price control V (moving


average price), so that any
pipeline consumption is posted
to the consumption account at
the pipeline price. In this case,
the moving average price
entered is not relevant since
withdrawals are posted at the
pipeline price.

With price control S (standard


price), the difference between
the pipeline price and the
standard price is posted to a
price difference account. In
extreme cases (standard price =
0), the total pipeline
consumption is posted to the
price difference account. When
a withdrawal for an order occurs,
the consumption account is
updated by an amount
corresponding to the actual cost
in the order.

Enter Moving Price (if you chose


S
Enter standard Price)

Price Unit: 1

Click on Accounting 2:

Copyright © 2002 Compu-genius Inc - 101 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Click on Save/ Post

SAP Display a message Material


XXX created.

Step 38:

Creating a Pipe Line Info


Record:

Transaction Code: ME11

You determine the price of a


pipeline material from a vendor
in a pipeline info record. You
can only post pipeline
movements after you have
created the pipeline info record.

Menu Path:
SAP main Menu> Logistics>
Materials Management>
Purchasing> Master Data>Info
Record > Create

Copyright © 2002 Compu-genius Inc - 102 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Info Record Initial Screen will


display:

Vendor: enter Vendor


Material: Enter Pipeline Material
no.

Purchasing Org: enter


purchasing organization

Plant: enter Plant Id

Info Category: Select Pipeline

Click on Enter

General Data screen will display:

Click on Purch. Org data 1

Copyright © 2002 Compu-genius Inc - 103 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Create Info record ; Purchasing


Organization data 1 will display

Plnd dely time: enter no of days

Purch. Group: enter Purchasing


group
Standard quantity: enter quantity

Net Price; enter net price

Click on text:

Enter Texts for Info record note

Click on Save / Post

Copyright © 2002 Compu-genius Inc - 104 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Step 39:

Posting Goods Issue from


Pipeline:
Transaction Code: MB1A

Menu Path:

SAP Main Menu> Logistics>


Materials Management>
Inventory Management> Goods
Movement> Goods Issues

Goods Issue Screen will display:

Document Date : enter


document date
Posting Date: enter Posting date

Movement Type: select


Movement Type 201(P) or

Click on Movement Type >


Consumption>To cost center>
From pipeline, at top menu

Click on Enter

Copyright © 2002 Compu-genius Inc - 105 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Cost center: enter Cost center

Material: enter Material No.


Quantity: enter quantity for
goods issue

Click on overview Icon

Next screen will display Goods


issue Overview

Click on Save/Post

Copyright © 2002 Compu-genius Inc - 106 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com
Step 40:

Settling Pipeline Liabilities:

Transaction code: MRKO

If pipeline liabilities are to be


posted to the same account as
consignment liabilities, you have
to settle consignment and
pipeline liabilities together.
If pipeline liabilities and
consignment liabilities are to be
posted to different accounts, you
settle them separately

Menu Path:
Sap main menu> Logistics >
Materials Management>
Inventory
Management > Environment>
Consignment> Consignment
from Vendor> Liability

Company code: enter company


code
Plant: enter plant id
Material: enter material number

Check Pipeline

Select settle

Check settled withdrawals

Click on Execute Icon

Copyright © 2002 Compu-genius Inc - 107 -


Compu-Genius Inc. Document Number: GD-2002-MM 4.6
10575 Katy Freeway Created by: Gyanesh Dadhich
Suit#250 Dated: Sep, 2002
Houston-Tx-77024 gd@compu-genius.com

Next Screen will display Pipeline


settlement

Double click on line item it will


show details about Material

Click Back Arrow or F3 to go


back

Copyright © 2002 Compu-genius Inc - 108 -