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
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
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)
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
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
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
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
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
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
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)
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
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
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
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
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
