This document provides an overview of inventory management processes and key concepts. It describes goods receipt, goods issue, transfer posting, and stock transfer processes. It also defines important master data and key terms such as materials management, inventory management, warehouse management, storage locations, and material documents. The document outlines the course content which includes stock handling processes, master data, reports, and conclusions.

1. Inventory Management Processes

2. Course Description and Prerequisites
Description
This course covers the Inventory Management process to work
with batches, transfer postings, goods movements, and receipts
process for IM managed goods.
Prerequisites
SAP_ECC_Introduction and Navigation_100_C_EN
SAP_SCM_SCM_Overview_100_C_EN
2

3. Training Methodology
Process
DemoPractice
Concepts
Concepts
• Outline new
concepts
• List key terms
and changes
Practice
• Practice
transactions
in SAP
• Use exercise guide
and data to complete
exercises
Process
• Describe the
processes and
integration
points
Demo
• Interactive
demonstrations
of transaction in
SAP
3

4. Ground Rules
Participate
actively and
share your
experiences
Keep cell
phones off or
silent –
no e-mail
Please sign the
attendance sheet
Refrain from
side
conversations
Feel free to ask
questions
Break when
needed
4

5. Key Terms
Term Definition
Materials
Management (MM)
SAP module that governs processes form material procurement to
vendor payment.
Inventory
Management (IM)
SAP module that allows inventory data to be captured at the Plant-
Storage Location level.
Warehouse
Management
(WM)
SAP module that allows inventory data to be captured at a level more
granular than IM (for example, Warehouse or Bin Level).
Goods Receipt
(GR)
A representation of a physical receipt of goods.
Goods Issue (GI) A representation of a physical withdrawal of goods.
Storage Location
(SLOC)
An organizational unit allowing the differentiation of material stocks
within a Plant.
Purchasing
Information
Record (PIR)
An element of master data that tracks vendor specific purchasing
data for a specific material.
Stock Transport
Order (STO)
Physical movement of materials from one plant to another.
55

6. Key Terms
Term Definition
Radio Frequency
Scanner (RF
Scanner)
Device used for accessing warehouse data in real-time.
Shelf Life
Expiration Date
(SLED)
Expiration date for goods received. It is the maximum time a material
can be stored in the warehouse.
Transfer
requirement (TR)
Serves as a planning aid for putaway and stock removal. A TR tells
the warehouse, “Something needs to be done”. A TR acts as a
notification that, for instance, a IM stock transfer has taken place.
Transfer order
(TO)
An instruction to move materials from a source storage bin to a
destination storage bin in a warehouse. TO is created with reference
to a TR.
Plant Site or location number.
Material
Movement
Plays a central role as the instrument for controlling goods receipt,
goods issue, and posting change activities. If material is being
transported in any fashion, a movement type is instrumental for the
move.
66

7. Key Terms
Term Definition
Material document Any document which records a goods movement at the IM level.
Batch status An indication of the usability of a batch. Can be either unrestricted or
restricted.
Stock type Is the status of the stock within a storage location. For example
Unrestricted, Quality Inspection, Blocked, Restricted.
Consignment
material
Goods which are stored at a FSBP facility but technically still belong
to the supplier until sold for use in a production or process order.
Transfer posting A “logical” movement of stock. For example the movement of
unrestricted material to quality inspection (stock status change). This
is a logical movement, because the material remained in the same
storage location. Because the stock went from unrestricted to quality
stock, a goods movement did take place.
Transfer
confirmation
A verification that the transfer of stock for a transfer order was
performed.
Stock transfer The physical removal of stock from one storage location and
the putaway of the stock into another storage location.(Sloc to Sloc
material movement).
77

8. Key Terms
Term Definition
Storage type A collective storage location of similar conditions, such as
temperature or humidity.
Storage section A subdivision of a storage type used for putaway strategies.
Storage bin Location within warehouse-managed storage location where materials
are stored.
Quant The smallest area within a bin. One bin many contain one or more
material and/or batch combinations. A data record. Data record.
88

9. Course Content
Stock Handling Overview
Master Data
Stock Handling, GR, GI Posting and
Transfer Posting
Reports
Conclusion
99

10. Define the Receiving, Plant, and Issuing
processes at the plant
Understand material movements
Understand how stock is managed
Define common movement types
Describe the results of goods movements
Stock Handling Overview – Learning Objectives
10

11. Process Overview
• Goods management
 Moving goods into warehouse for putaway
 Managing goods movements within warehouse
 Replenishment
 Physical inventory activities
• Goods receipt
 Receiving goods at loading dock from external vendors
 Receiving goods from manufacturing
 Receiving goods from other FSBP locations
• Goods issue
 To sales order
 To production order
 To scrap
 To cost center
1111

12. Manage Inventory Storage and Movements
• Goods Receipt
 Purchase Order
 Work Order
• Goods Issue
 Material withdrawal
 Material Consumption
 Shipment of goods to affiliates
• Transfer Posting
 Stock Type conversion
 Material to material conversion
 Changing the batch number
• Stock Transfer
 Plant to plant
 Storage location to storage
location
 Storage bin to storage bin
• Results of a goods movement:
 Material Document Generated
 Accounting documents being generated
 Updated Stock Types quantities
 Updated Inventory Balances (quantity and cost)
12

13. • Stock Types in IM:
 Unrestricted
 Quality Inspection
 Blocked
• Special Stock:
 Q Quality
 S Blocked
Manage Stock
13
• Stock Types in WM:
 Unrestricted
 Quality Inspection
 Blocked
• Batch Stock:
 Unrestricted Use
 Restricted Use

14. Goods Receipt Process Flow
Material received
on dock and
packing slip
validated Visually
inspect for
damage
Accept
material?
SAP Step:
Receive a
product against
purchasing
document
Goods
Receipted
Call buyer
and define
next steps
Purchasing
Document
Released
Verify
quantities
No
Yes
14

15. Goods Receipt
• Goods movement – receipt of goods from vendor, another
plant, or production
 Leads to increase in warehouse stock
 If coming from manufacturing, may lead to increase in storage
location stock at IM level
• FSBP distinguishes between the following types of GRs:
 with reference to a reservation
 with reference to an order
o Purchase order
o Inbound delivery
o Production/process
 Other goods receipts
15

16. Material Goods Receipt and Putaway
16

17. Stock Transfer – Internal goods movement
• Stock transfers are used to remove material from one storage
location and place them into another storage location.
• Both stock transfers and transfer postings consist of a “goods
issue” from an issuing point and a “goods receipt” at a receiving
point.
Transfer Description
Storage Location to Storage
Location
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.
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.
17

18. Location to Location Movements (Sloc to Sloc – IM)
18

19. Location to Location Movements (IM to WM)
19

20. Goods Issues
• Using a Goods Issue (GI), you can
 post a material withdrawal
 a material issue
 a shipment of goods to a customer
• GI results in physical issue of stocks and decrease in stock qty
• The following business transactions normally trigger GI
Trigger Application WMS Document
Internal Material Consumption
(cost center or scrap)
MM-IM Transfer Order
Material Staging for Production
Orders
Production Transfer Requirement
Delivery to Affiliate Customers or
DC
LE-SHP Outbound Delivery
20

21. • Materials that are not WM managed in the warehouse have to
be issued to a production order using transaction MIGO_GI-
261Goods Issue to an order.
21
Stage Raw Materials for Production (IM Managed)

22. 22
Pick, Pack and Ship

23. Transfer Posting
• A transfer posting usually refers to a change in a material’s stock
status (for example, release from quality inspection stock to
unrestricted stock)
• In a transfer posting, the material can remain in its original
storage location or be transferred
• The following business transactions normally trigger a transfer
posting:
Trigger Description
Stock Type Change Need to change material quantity from one
stock type to another stock type. For example
from blocked stock to unrestricted stock.
Material to Material Change Need to change material from one material
number to another material number.
23

24. Transfer Posting Stock Type/Category Change
• Results of the Post Change for stock type/category are:
 Creation of material document (movement type 344-IM, movement
type 944-WM)
o Updates the quantity and value of the materials moved
 WMS posting change notice created
 WMS transfer order created (either same bin or different bin)
 WMS transfer order confirmed
24

25. When Are Material Documents Generated?
• Material documents are necessary to record:
 Stock transfers
 Transfer postings
 Material staging (IM)
 Deliveries for WM staging
25

26. Material Documents
• Material documents serve as:
 Proof of movement
 Source of information for any applications that follow
 A data record for all IM movements
• A material document consists of:
 A header
• Contains general data about movement (for example, its date)
 At least one item
• Each item describes one movement
26

27. Material Documents contd
• Every movement of a material has a material document to
support it.
 The material document is a historical record of the movement
• Material documents contain information such as:
 Material(s) associated with the movement
 Movement type
 Plant
 Storage location
 Batch number
• You can also view relevant accounting documents such as:
o customer invoice
o material master
o document date
o posting date
27

28. Material Document List
• Use the Material Document List (MB51) to display transaction
history for a material or group of materials.
• Enter material number(s) to retrieve all material documents
related to those material codes.
28

29. Demos and Exercises
Demo Exercise T-code Scenario
N/A Knowledge Check
2929

30. Define the Receiving, Plant, and Issuing
processes at the plant
Understand material movements
Understand how stock is managed
Define common movement types
Describe the results of goods movements
Stock Handling Overview – Unit Summary
30

31. Course Content
Stock Handling Overview
Master Data
Stock Handling, GR, GI Posting and
Transfer Posting
Reports
Conclusion
3131

32. Identify Organizational Elements
Describe the characteristics and
importance of Master Data
Identify difference between Master
Data and Transactional Data
Master Data Overview – Learning
Objectives
32

33. Basic Data: Material Master Record
• Data in a material master record is subdivided by user
department.
33

34. Master Data vs. Transactional Data
Master Data Transactional Data
Mostly static Dynamic
The accuracy of master data
is essential to efficient
performance of the system
Accuracy of transactional data is
dependent on master data
Creation of master data is
independent of transactional
data
Master data is a prerequisite for
executing transactional data
Examples: Cost Centers,
Customers
Examples: Sales orders,
Invoices
3434

35. What is a Material Master Record?
View tabs
35
Material
details

36. Demos and Exercises
Demo Exercise T-code Scenario
a MM03 Display Material
3636

37. Identify Organizational Elements
Describe the characteristics and
importance of Master Data
Identify difference between Master
Data and Transactional Data
Master Data Overview – Unit Summary
37

38. Course Content
Stock Handling Overview
Master Data
Stock Handling, GR, GI Posting and
Transfer Posting
Reports
Conclusion
3838

39. Goods Receipts
Stock Movements
Goods Issues
Transfer Requirements
Transfer Postings
Stock Handling, GR, GI Posting and
Transfer Posting – Learning Objectives
39

40. Stock Overview
• Use MMBE to view stock availability by material number
• You can display:
 All locations for a material (Plant, Storage Location)
 Material type
 Unit of measure
 Batch information
 Stock status (Unrestricted, On-Order, Reserved, etc.)
40

41. Stock Overview List
41
Material number
field
• You can enter a
material number to
list all locations for a
material
• You can look up a
material by material
number and batch

42. Stock Overview List
42
Use the scrollbar to
display additional
stock types
Double-click an item
to display additional
details

43. Demos and Exercises
Demo Exercise T-code Scenario
a MMBE Stock Overview List
4343

44. RF MENU (IM ONLY)
This is the initial RF Menu screen for IM that
appears after you logon.
Your choices are:
1. Receiving > which is used to process a
PO/STO (Stock Transfer Order) goods
receipt.
2. Picking > which is used to pick material for an
order. Load verification for a shipment (start
and stop times for the physical loading
process).
3. InternalMove > which is used to process a
move from storage location to storage
location.
4. Shipping > which is used to post goods
issues for shipments.
44

45. RF IM Receiving
45

46. RF IM Receiving – PO/Non-Batch
PO/STO Goods Receipt Screen
 Skd Qt – Total number of skids for the Qty input.
 Lbl – Number of labels you desire to print
 Del Nt – Enter packing slip or BOL for the order.
46

47. RF IM Receiving – PO/Non-Batch Continued
47
Display MB03 -
material document
Scan Label
Printer Name
• After the RF is posted, perform GR, print label

48. Demos and Exercises
Demo Exercise T-code Scenario
a RF Scanner /
LM01
Receive IM Non-batch items
4848

49. Results Goods Receipts
• Results of the goods receipts are:
 Material document is created
 Stock update (goods receipt updates the inventory)
 Increases the stock in the Sloc / warehouse
 Gives instant inventory numbers
 Accounting document is updated (allows the vendor to be paid)
49

50. RF IM Receiving – STO/Batch
PO/STO Goods Receipt Screen
 Skd Qt – Total number of skids for the Qty input.
 Batch No – This will default into the screen.
 Lbl – Number of labels you desire to print.
 Del Nt – Enter packing slip or BOL for the order.
50

51. RF IM Receiving – STO/Batch Continued
51
Scan batch number from
Putaway Label

52. Demos and Exercises
Demo Exercise T-code Scenario
a RF Scanner /
LM01
Receive IM Batch-managed items
5252

53. Reprint Labels
• Use ZMM_ONDEMAND to reprint labels for goods receipts
53
• Indicate whether the material is IM or WM managed
WM / IM
Managed radio
buttons

54. Demos and Exercises
Demo Exercise T-code Scenario
a a ZMM_ONDEMAND Reprint labels
5454

55. Sloc to Sloc - IM
55

56. Check Stock locations and Quantities
• Use MMBE to check the
storage locations and
quantities before each
move
56

57. RF Internal Moves (IM or WM)
57
• SLOC to SLOC Moves are the same for IM or WM.
• Currently we will be using this process at Prescott,
Anoka and Salt Lake City.

58. Check Stock locations and Quantities
• Use MMBE to make sure
the move was successful
58

59. Demos and Exercises
Demo Exercise T-code Scenario
a MMBE Check stock before the
move – Stock Overview
a RF Scanner /
LM01
Logon to RF
Perform internal move
(IM)
a MMBE Confirm move – Stock
Overview
5959

60. Plant to Plant Movements (IM to WM)
60

61. What happens before you move the material?
• Use MMBE to check the storage locations and quantities before
each move
• Creation of STO using ME21N
• Creation of delivery number using VL10B
• Picklist printed using ZWM_PICKLIST
• This is an example of a picklist
61

62. Use the picklist to pick material for the move
62
• A stock transfer plant to plant is a move where one plant is IM
managed and the other is WM managed
• Decreased inventory in the IM level
• Increased inventory in the WM level
• Normally, theses types of moves will involve:
 Finished goods
 MRO (spare parts)

63. RF IM Picking
63
3 line items on the
delivery

64. RF IM Picking – Confirm Pick
64
• Use transaction VL02N to ensure the picks
happened correctly

65. Demos and Exercises
Demo Exercise T-code Scenario
a RF Scanner /
LM01
Pick IM batch and non-batch
items
6565

66. What happens next?
• Move the material to the dock
• Shipment is created using VT01N
• Load verification process used to load truck
66

67. RF IM Load Verification
67

68. RF IM Load Verification (continued)
68
Select N until load
is complete
Loading has just completed
– go back into RF to
complete load verification

69. RF IM Load Verification Continued
69
• Warning message:
This means you have
the shipment open,
usually in Shipping
office.
• It will require the Load
Verification ending to
be reprocessed.
Shows the start stop
times entered in the
scanners.

70. Demos and Exercises
Demo Exercise T-code Scenario
a RF Scanner /
LM01
Perform load verification
7070

71. What happens next?
• When the load is completed in the system using VT02N,
appropriate shipping documentation is created
 Bill of Lading (BOL)
 Hazardous documents
 Customs paperwork
71
BOL

72. RF Shipping Pathway
72

73. RF Shipping Pathway Continued
73

74. Demos and Exercises
Demo Exercise T-code Scenario
a RF Scanner /
LM01
Perform shipping
7474

75. Goods Issues
• Goods issue to cost center
• Goods issue to scrap
75

76. Stage Material to Cost Center
• Use MIGO_GI (201) to issue goods to a cost center
76

77. Use MIGO_GI transaction to issue to cost center
• Ensure you have A07-Goods Issue and R10 Other in the
movement transaction fields
• Make sure to press Enter when you enter the movement type
77

78. Use MIGO_GI transaction to issue to cost center
78
• Each time you enter a value in a
field press Enter to validate your
entries.

79. Use MIGO_GI transaction to issue to cost center
• Enter Batch information if the material is batch-managed
• Enter G/L and Cost Center
• Review WM entries for WM materials
79

80. Use MIGO_GI transaction to issue to cost center
• Always use Check to check your posting before you save
• Use Post to post MIGO goods issues
80

81. Use MIGO_GI transaction to issue to cost center
81

82. Demos and Exercises
Demo Exercise T-code Scenario
a a MIGO_GI Perform Goods Issue 201
Issue to Cost Center
8282

83. You enter a scrap posting if a material can no longer be used (i.e. shelf life has
been exceeded or material is damaged). Scrapping is possible from each of the
three stock types and is entered as a goods issue without reference in SAP
ECC.
Scrapping causes a reduction in the associated stock. The value of scrapped
material is posted from the stock account to a scrap account.
Issue Material to Scrap
83

84. Scrapping Material
• Enter the movement
type
• Enter or select the
cost center
• Enter the material
and quantity to be
scrapped
84

85. Scrapping Document
• You can display the
material document
using MB51 to
ensure the correct
posting was made
85

86. Accounting Document
• Use FB03 to display the
accounting postings and
print or email the document
for necessary signature(s)
86

87. Accounting Document
• Email or print the accounting document using FB03 for
necessary signature
87
Print icon
email icon

88. Results Scrapping
• Converts raw material to a scrap material number
• Material document is created
• Accounting documents are updated
88

89. Demos and Exercises
Demo Exercise T-code Scenario
a a MB1A (551) Issue material to scrap
8989

90. Transfer Postings Overview
• Transfer postings are used to change the status of a material
for the following reasons:
 Quality to unrestricted (Movement type 321)
 Quality to blocked (Movement type 350)
 Unrestricted to quality (Movement type 322)
 Unrestricted to blocked (Movement type (344)
 Blocked to quality (Movement type 349)
 Blocked to unrestricted (Movement type (343)
90

91. 91
• Perform MIGO_TR transaction to move material from a stock type
of Unrestricted to Blocked . Movement type is 344 (Unrestricted to
Blocked)
Transfer Posting – Unrestricted to Blocked

92. 92
Transfer Posting – Unrestricted to Blocked
• You can move the columns that display in MMBE to show the
information you need to see every day

93. 93
• Perform MIGO_TR transaction to move material from a stock type
of Blocked to Unrestricted. Movement type is 343 (Blocked to
Unrestricted)
Transfer Posting – Blocked to Unrestricted
Movement type
field

94. 94
Transfer Posting – Blocked to Unrestricted
• Look at MMBE to make sure the move was successful

95. Demos and Exercises
Demo Exercise T-code Scenario
a a MIGO_TR Perform transfers of stock:
--unrestricted to blocked (344)
--blocked to unrestricted (343)
a a MMBE Stock Overview – check status
of material
9595

96. Goods Receipts
Stock Movements
Goods Issues
Transfer Postings
Stock Handling, GR, GI Posting and
Transfer Posting – Unit Summary
96

97. Course Content
SCM Overview
Stock Handling Overview
Master Data
Stock Handling, GR, GI Posting and Transfer
Posting
Reports
Conclusion
9797

98. Run Reservations List for a Material
List Stocks in Transit
Display Warehouse Stocks
Shelf Life Expiration Date List
Review Material Document
IM Reports –
Learning Objectives
98

99. IM Reports Overview
• The reports discussed in this unit include:
 MB24 – Reservations List for Material
 MB5T – Stock in Transit
 MB52 – Display Warehouse Stocks of Material
 MB5M – Shelf Life Expiration Date List
 MB03 – Material Document
99

100. MB5T – Stock in Transit
• Transaction MB5T is used to check stock that is in transit
company-wide or by specific plant
100

101. MB24 – Reservations List for Material
• Use MB24 to view reservations for a material
101

102. Display Warehouse Stocks of Material
• Use MB52 when you want to look up material stocks based on
material(s) and/or plant(s)
• You can view warehouse stocks for:
 A single material
 Multiple materials
 All materials within a plant
• You can display the following information:
 Material type
 Batch record
 Quantity and value
• Use this report to research data for project-related uses
• You can export the list to use off-line
102102

103. Display Warehouse Stocks of Material
103
• You need to enter a material number to use this report
Material number
field

104. Display Warehouse Stocks of Material
104
• Highlight an
item and use
the Details
icon to display
additional
details

105. Shelf Life List
• Use SAP transaction MB5M to display a list of materials that
have a shelf life
• Displays the remaining shelf life status for a material or
material group in a storage location
105105

106. Shelf Life Selection Criteria
106
• You should specify a plant or range of plants
• Enter the remaining shelf life in days
Remaining shelf
life (Days)

107. Shelf Life List
107
• Batches with a red status are not qualified to ship out to
customers
Expired material
/ batches
• Double-click a
material to be
directed to the
MSC3N – Display
Batch screen to
see when the
material was
received

108. MB03 – Material Document
• Use SAP transaction MB03 to display a material document to
verify that goods are received or issued
• You need to know the material document number to use this
transaction
 Use MB51 to find the material document number if you do not
have the information from the movement
108

109. MB03 – Material Document
• You can drill down to additional details from MB03
109

110. Demos and Exercises
Demo Exercise T-code Scenario
a a MB5T Stock in Transit
a a MB52 Display Warehouse Stocks of
Material
a a MB5M Shelf Life Expiration Date List
a MB03 Material Document
110110

111. Run Reservations List for a Material
List Stocks in Transit
Display Warehouse Stocks
Shelf Life Expiration Date List
Review Material Document
IM Reports –
Unit Summary
111

112. Course Content
SCM Overview
Stock Handling Overview
Master Data
Stock Handling, GR, GI Posting and Transfer
Posting
Reports
Conclusion
112112

113. SAP Transactions Covered in this Course
T-code Scenario
LM01 Miscellaneous RF transactions
ZMM_ONDEMAND Reprint labels
MIGO_GI Goods Issues
MIGO_TR Transfer Postings
MM03 Display Material Master
MMBE Stock Overview
MB1A Goods issue to scrap
LS24
LX03
LS26
Confirm STO – Stock Overview (this is only
for the WM portion of the movement)
113113

114. SAP Transactions Covered in this Course
T-code Scenario
MB24 Reservations List for Material
MB5T Stock in Transit
MB52 Display Warehouse Stocks of Material
MB5M Shelf Life Expiration Date List
MB03 Material Document
114114

115. Questions?
115