Inventory Management

LO510 Inventory ManagementLO510

Release 630 25.08.2003

LO510 Inventory Management......................................................................................................................................0-1

Copyright....................................................................................................................................................................0-2

Materials Management...........................................................................................................................................0-3

Course Prerequisite.................................................................................................................................................0-4

Target Group..........................................................................................................................................................0-5

Course Overview........................................................................................................................................................1-1

Course Goals..........................................................................................................................................................1-2

Course Objectives...................................................................................................................................................1-3

Course Content.......................................................................................................................................................1-4

Course Overview Diagram.....................................................................................................................................1-5

Exercise Data Sheet................................................................................................................................................1-6

Course Overview Exercises....................................................................................................................................1-8

Course Overview Solutions..................................................................................................................................1-12

Goods Receipts...........................................................................................................................................................2-1

Goods Receipts: Unit Objectives............................................................................................................................2-2

Course Overview Diagram: Goods Receipts..........................................................................................................2-3

Goods Receipts: Business Scenario.......................................................................................................................2-4

Enjoy Transaction for Goods Receipts...................................................................................................................2-5

Goods Receipt Without Reference to PO...............................................................................................................2-6

Goods Receipt Blocked Stock................................................................................................................................2-7

Goods Receipt Blocked Stock and Release............................................................................................................2-8

Goods Receipt into Quality Inspection Stock........................................................................................................2-9

Goods Movements and Stock in Quality Inspection (Without QM)....................................................................2-10

Goods Receipt in GR-Based Invoice Verification...............................................................................................2-11

Setting the.............................................................................................................................................................2-12

Underdelivery and Overdelivery..........................................................................................................................2-13

Settings.................................................................................................................................................................2-14

Order Price Quantity Variance.............................................................................................................................2-15

Options for Carrying Out a Return Delivery........................................................................................................2-16

Reversals and Return Deliveries..........................................................................................................................2-17

Returns for Purchase Order..................................................................................................................................2-18

Automatic Purchase Order Generation I..............................................................................................................2-19

Automatic Purchase Order Generation II.............................................................................................................2-20

Shelf Life Expiration Date Check at GR..............................................................................................................2-21

Setting the Shelf Life Expiration Date Check......................................................................................................2-22

Latest Acceptable Goods Receipt Date................................................................................................................2-23

Message in Case of Early Goods Receipt.............................................................................................................2-24

User-Defined Units of Entry................................................................................................................................2-25

Creating a Storage Loc. Automatically for a Material.........................................................................................2-26

Reporting..............................................................................................................................................................2-27

Periodic Processing – List of Stock Values..........................................................................................................2-28

Stock Consistency Check.....................................................................................................................................2-29

Goods Receipts: Unit Summary...........................................................................................................................2-30

Goods Receipts Exercises....................................................................................................................................2-31

Goods Receipts Solutions.....................................................................................................................................2-46

Reservations and Goods Issues..................................................................................................................................3-1

Reservations and Goods Issues: Unit Objectives...................................................................................................3-2


Reservations: Business Scenario............................................................................................................................3-4

Reservations...........................................................................................................................................................3-5

Reservation Structure.............................................................................................................................................3-6

Creating Reservations.............................................................................................................................................3-7

Dynamic Availability Check..................................................................................................................................3-8

Reservation Management.......................................................................................................................................3-9

Settings for Reservations......................................................................................................................................3-10

Creating a Picking List.........................................................................................................................................3-11

Goods Issues.........................................................................................................................................................3-12

Enjoy Transaction for Goods Issues.....................................................................................................................3-13

Entering Goods Issues..........................................................................................................................................3-14

Application Areas of Stock Determination..........................................................................................................3-15

Stock Determination.............................................................................................................................................3-16

Customizing Settings for MIGO (1).....................................................................................................................3-17

Customizing Settings for MIGO (2).....................................................................................................................3-18

Negative Stocks....................................................................................................................................................3-19

Settings for Negative Stocks................................................................................................................................3-20

Reservations: Unit Summary................................................................................................................................3-21

Reservations and Goods Issues Exercises............................................................................................................3-22

Reservations and Goods Issues Solutions............................................................................................................3-30

Stock Transfers/Transfer Postings..............................................................................................................................4-1

Stock Transfers/Transfer Postings: Unit Objectives..............................................................................................4-2

Overview Diagram: Stock Trans./Trans. Postings.................................................................................................4-3

Business Scenario...................................................................................................................................................4-4

Stock Transfer/Transfer Posting.............................................................................................................................4-5

Stock Transfer Types..............................................................................................................................................4-6

Stor. Loc. to Stor. Loc. - One-Step Procedure........................................................................................................4-7

Plant to Plant - Two-Step Procedure......................................................................................................................4-8

Stock Transport Order: Two-Step Procedure.........................................................................................................4-9

Stock Transport Order: One-Step Procedure........................................................................................................4-10

Material to Material..............................................................................................................................................4-11

Stock Types: Goods Movements..........................................................................................................................4-12

Stock Types: Transfer Postings............................................................................................................................4-13

Stock Transfers/Transfer Postings: Unit Summary..............................................................................................4-14

Stock Transfers and Transfer Postings Exercises.................................................................................................4-15

Stock Transfers and Transfer Postings Solutions.................................................................................................4-28

Special Inventory Management Features...................................................................................................................5-1

Special Inventory Mgmt Features: Objectives.......................................................................................................5-2


Business Scenario...................................................................................................................................................5-4

Split Valuation........................................................................................................................................................5-5

The Split Valuation Procedure...............................................................................................................................5-6

Non-Valuated Stock Materials...............................................................................................................................5-7

Returnable Transport Packaging............................................................................................................................5-8

Handling Units.......................................................................................................................................................5-9

Example: Goods Rcpt Process with Handling Units............................................................................................5-10

Checklist for Handling Units (1)..........................................................................................................................5-11

Checklist for Handling Units (2)..........................................................................................................................5-12

Special Features: Unit Summary..........................................................................................................................5-13

Special Inventory Management Features Exercises.............................................................................................5-14

Special Inventory Management Features Solutions.............................................................................................5-24

Pipeline Processing.....................................................................................................................................................6-1

Pipeline Processing: Unit Objectives.....................................................................................................................6-2

Course Overview Diagram: Pipeline Processing...................................................................................................6-3

Pipeline Processing: Business Scenario.................................................................................................................6-4

Pipeline Material: Material Type PIPE..................................................................................................................6-5

Pipeline Material: Other Material Types................................................................................................................6-6

Pipeline Material: Process Flow.............................................................................................................................6-7

Settlement of Pipeline Consumption......................................................................................................................6-8

Pipeline Processing: Unit Summary.......................................................................................................................6-9

Pipeline Processing Exercises..............................................................................................................................6-10

Pipeline Processing Solutions..............................................................................................................................6-12

Consignment...............................................................................................................................................................7-1

Consignment: Unit Objectives...............................................................................................................................7-2

Course Overview Diagram: Consignment..............................................................................................................7-3

Consignment: Business Scenario...........................................................................................................................7-4

Vendor Consignment Goods..................................................................................................................................7-5

Consignment Info Records.....................................................................................................................................7-6

Consignment Stock.................................................................................................................................................7-7

Consignment Items in Purchasing..........................................................................................................................7-8

Goods Receipt to Consignment Stock....................................................................................................................7-9

Transfer Posting to Consignment Stock...............................................................................................................7-10

Goods Issue from Consignment Stock.................................................................................................................7-11

Settlement of Consignment Liabilities.................................................................................................................7-12

Consignment: Unit Summary...............................................................................................................................7-13

Consignment Exercises........................................................................................................................................7-14

Consignment Solutions.........................................................................................................................................7-20

Conclusion..................................................................................................................................................................8-1

Course Objectives...................................................................................................................................................8-2

Recommended Follow-up Courses........................................................................................................................8-3

Recommended Follow-up Activities......................................................................................................................8-4

ng

0

SAP AG 1999

LO510 Inventory Management

LO510LO510

Inventory ManagementInventory Management

R/3 System Release 4.6C October 2000 Material number 5004 0842

0.2

SAP AG 2002

Copyright 2002 SAP AG. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice.

Copyright

Notes on Trademarks: Some software products marketed by SAP AG and its distributors contain proprietary software

components of other software vendors. Microsoft®, WINDOWS®, NT®, EXCEL®, Word®, PowerPoint®, and SQL Server® are registered

trademarks of Microsoft Corporation. IBM®, DB2®, OS/2®, DB2/6000®, Parallel Sysplex®, MVS/ESA®, RS/6000®, AIX®, S/390®, AS/400®,

OS/390®, and OS/400® are registered trademarks of IBM Corporation. ORACLE® is a registered trademark of ORACLE Corporation. INFORMIX®-OnLine for SAP and INFORMIX® Dynamic ServerTM are registered trademarks

of Informix Software Incorporated. UNIX®, X/Open®, OSF/1®, and Motif® are registered trademarks of the Open Group. HTML, DHTML, XML, and XHTML are trademarks or registered trademarks of W3C®, World Wide

Web Consortium, Massachusetts Institute of Technology. JAVA® is a registered trademark of Sun Microsystems, Inc. JAVASCRIPT® is a registered trademark of Sun Microsystems, Inc., used under license for technology

developed and implemented by Netscape. SAP, SAP Logo, R/2, RIVA, R/3, ABAP, SAP ArchiveLink, SAP Business Workflow, WebFlow, SAP

EarlyWatch, BAPI, SAPPHIRE, Management Cockpit, mySAP.com Logo, and mySAP.com are trademarks or registered trademarks of SAP AG in Germany and several other countries all over the

world. All other products mentioned are trademarks or registered trademarks of their respective companies.

0.3

SAP AG 1999

Materials Management

Processes inProcurement

LO020 5 days

Inventory ManagementLO510 3 days

Invoice Verification

3 daysLO515

Consumption-BasedPlanning and Forecasting

LO525 2 days

Procurement of External Services

LO540 2 days

Foreign TradeLO640 3 days

QM in ProcurementLO715 2 days

KANBANLO235 2 days

Batch ManagementLO955 3 days

Pricing in Purchasing

2 days LO521

Cross-FunctionalCustomizing in MM

5 days LO550

Purchasing Details andOptimization

LO520 3 days

Cross-Application Business Processes in SD and MM

LO925 2 days

Level 2 Level 3

0.4

SAP AG 1999

LO020 Processes in Procurement

Course Prerequisite

0.5

SAP AG 1999

Target Group

Audience:

Project team members responsible for physical inventory

Duration: 3 days

Notes to the user The training materials are not teach-yourself programs. They complement the course instructor’s

explanations. Your material includes space for noting down this additional information.

1

SAP AG 1999

Course Goals

Course Objectives

Course Content

Course Overview Diagram

Main Business Scenario

Contents:

Course Overview

(C) SAP AG LO510 1

1.2

SAP AG 1999

This course will prepare you to:

Familiarize yourself with the basic functions of inventory management and perform them in the R/3 System.

Identify standard stock movements and their effects in the R/3 System.

Course Goals

(C) SAP AG LO510 2

1.3

SAP AG 1999

At the conclusion of this course, you will be able to:

Perform goods receipts, goods issues, and stock transfers

Process stock reservations

Identify special Inventory Management features, such as split value and non-valuated stock functionality

Explain consignment and pipeline stock

Course Objectives

(C) SAP AG LO510 3

1.4

SAP AG 1999

Unit 5 Special Inventory Management Features

Unit 6 Pipeline Processing

Unit 7 Consignment

Unit 8 Conclusion

Unit 1 Course Overview

Unit 2 Goods Receipts

Unit 3 Reservations and Goods Issues

Unit 4 Stock Transfers and Transfer Postings

Preface

Course Content

(C) SAP AG LO510 4

1.5

SAP AG 1999


Goods ReceiptsGoods Receipts

Reservations and Goods IssuesReservations and Goods Issues

Stock Transfers / Transfer PostingsStock Transfers / Transfer Postings

Special Inventory Management FeaturesSpecial Inventory Management Features

Pipeline ProcessingPipeline Processing

ConsignmentConsignment

00100100010001 00020002

AB BCB ??

(C) SAP AG LO510 5

1.6Exercise Data Sheet

Key to Icons in Exercises and Solutions

Exercises

Solutions

Objectives

Business Scenario

Hints and Tips

Warning or Caution

Data Used in Exercises

Type of Data Data in Training System

Vendor T-K10A##

T-K10B##

T-K10C##

Project E-9990

Cost center T-L##

Material T-RN1## T-RNA##

T-RN2## T-ZU1##

T-RN3## T-RNB##

T-RN4## T-ZP1##

T-RN5## T-RNC##

T-RN6## T-RND##

T-RN7## T-ZU2##

T-RN8##

T-RN9##

(C) SAP AG LO510 6

Purchasing organization 1000 IDES Deutschland

Purchasing group 0##

(C) SAP AG LO510 7

1.7Course Overview Exercises

Unit: Course Overview

Topic: Review of LO020 Concept

At the end of this exercise, you will be able to:

Log on to the system and summarize the procurement cycle

A new member has joined the Materials Management project team. Show your colleague the basic procurement process by creating a material and a purchase order, and posting the goods receipt. Then display the purchase order and the stock situation.

Since you are working through the complete procurement process, you cannot use a role-specific menu. Use the SAP menu to perform the following activities and add the activities used most often to your Favorites menu.

1-1 Create a new material using the following data for the Basic Data 1, Purchasing, Storage 1 and Accounting 1 views for plant 1000, storage location 0001.

(Create Material – General: Initial Screen)

Field Value

Material number T-RN0##

Industry sector M

Material type ROH

(Select view(s))

Basic Data 1

Purchasing

General Plant Data/Storage 1

Accounting 1

(C) SAP AG LO510 8

(Organizational levels)

Organizational Levels

Plant 1000

Storage location 0001

(Material views)

Field Value

Material description Standard rear light

Base unit of measure Piece

Material group 009


Valuation class 3000

Price control V

Moving average price 60.00

1-2 Create a purchase order for the new material using the following data:

(Create Purchase Order)

Purchase Order

Vendor T-K10A##

Purchasing organization 1000 (IDES Deutschland)


Company code 1000 (IDES AG 1000)

Material T-RN0##

Quantity 100

Delivery date Today’s date

Price 60.00

Plant 1000

Purchase order number ________________________________________

1-3 Display the stock overview for material T-RN0## and write down the stock situation for the following stock types:

(C) SAP AG LO510 9

Stock Overview

Unrestricted-use

Quality inspection

Open purchase order quantity

GR blocked stock

Blocked

1-4 Post the goods receipt for material T-RN0## into unrestricted stock using the following data:

(Goods Receipt for Purchase Order)

Field Value

Purchase order number See 1-2

Material description Standard rear light

OK

Quantity in UnE 100 PC


Movement type 101

Stock type Unrestricted-use

Plant Hamburg plant

Material document number ____________________________________

1-5 Check the stock situation for material T-RN0## and write down the details.

Stock Overview

Unrestricted-use

Quality inspection


GR blocked stock

Blocked

1-6 Display the PO history to see the effect of the goods receipt.

(C) SAP AG LO510 10

(C) SAP AG LO510 11

1.8Course Overview Solutions

Unit: Course Overview

Topic: Review of LO020 Concept

1-1 LogisticsMaterials ManagementMaterial MasterMaterialCreate (general)

1-2 LogisticsMaterials ManagementPurchasingPurchase orderCreateVendor/supplying plant known

1-3 LogisticsMaterials ManagementInventory ManagementEnvironmentStockStock Overview

Stock Overview

Unrestricted-use 0

Quality inspection 0

Open purchase order quantity 100

GR blocked stock 0

Blocked 0

1-4 Logistics Materials Management Inventory Management Goods MovementGoods Receipt For Purchase Order GR for Purchase Order (MIGO)

(C) SAP AG LO510 12

1-5 Logistics Materials Management Inventory Management Environment Stock Stock Overview

Stock Overview

Unrestricted-use 100



GR blocked stock 0

Blocked 0

1-6 Logistics Materials Management Purchasing Purchase Order Display

Choose the [Other purchase order] icon, enter the purchase order number from 1-2 and confirm by choosing [Other document].

The item detail screen contains the [PO history] tab.

In the purchase order history, the system updates the goods receipt with the movement type, date, quantity, and value.

(C) SAP AG LO510 13

2

SAP AG 1999

Contents:

Special Features of Goods Receipts

Goods Receipts

(C) SAP AG LO510 1

2.2

SAP AG 1999

Enter a goods receipt into blocked stock and quality inspection stock

Generate a purchase order automatically at goods receipt

Describe various functions, such as shelf life expiration date check and unit of entry

Identify other system settings for goods movements

At the conclusion of this unit, you will be able to:

Goods Receipts: Unit Objectives

(C) SAP AG LO510 2

2.3

SAP AG 1999


Reservations and Goods Issues

Stock Transfers / Transfer Postings

Special Inventory Mgmt Features

Pipeline Processing

Consignment

Course Overview Diagram: Goods Receipts

(C) SAP AG LO510 3

2.4

SAP AG 1999

You can enter goods receipts in your enterprise in several ways, depending on the material. You can transfer some materials directly to unrestricted-use stock. Others are subject to quality control and are posted to quality inspection stock first. If a material is already damaged at goods receipt, you can post it to blocked stock.

Goods Receipts: Business Scenario

(C) SAP AG LO510 4

2.5

SAP AG 1999

Enterreturn delivery

Enjoy Transaction for Goods Receipts

M I G OM I G O

Goods receipt for known purchase order Transaction codeMB01

Goods receipt for known purchase order Transaction codeMB01

Release blocked stock

Cancel material docmt for goods receipts

Goods receipt for unknown purchase orderTransaction codeMB0A

Display material docmt for goods receipts

Other goods receipts Transaction codeMB1C

Goods receipt for order Transaction codeMB31

4.6C 4.6C

As of Release 4.6, you can post goods receipts with the EnjoySAP transaction MIGO. You can use this function instead of the following old goods receipt transactions:

Goods receipt for known or unknown purchase order (transaction code MB01 and MB0A) Goods receipt for order (transaction code MB31) Other goods receipts ( transaction code MB1C) Enter return delivery (transaction code MBRL) Release blocked stock (transcation code MBSF) Enter subsequent delivery (transaction code MBNL) Cancel material document for goods receipts (transaction code MBST) Display material document for goods receipts (transaction code MB03).

The old transactions will remain fully functional until the limitations of the MIGO transactions have been fully resolved.

In the settings for Enjoy transactions in Customizing for Inventory Management, you can define which fields appear on the MIGO transaction screen and how they appear. See also the documentation in Customizing.

(C) SAP AG LO510 5

2.6

SAP AG 1999

TuesdayDec.

18, 1994

TuesdayDec.

18, 1994

Without purchase order

Without production order

Initial entry of stock balance

Without purchase order

Without production order

Receipt of by-products

Delivery free of charge

Returns from customer

Goods receipt

PreplanningPreplanning

Goods Receipt Without Reference to PO

With the initial entry of inventory data (movement type 561), you transfer the physical warehouse stocks or book inventory balances from a legacy system to the newly implemented SAP R/3 MM System. This initial inventory data entry is generally carried out via batch input.

The valuation of the inventory data to be transferred is dependent on two factors: The price control procedure and prices specified in the material master record from an accounting

view Whether you have entered a value for the quantity to be transferred

If the material has a standard price, the valuation of initially entered inventory data will be based on this standard price. If you have entered a different value, this difference is posted to a price difference account.

If the material has a moving average price, the initial inventory data is valuated as follows: If you entered a value for the initial inventory data entry, this value is used to valuate the quantity to

be transferred. If the quotient of initial inventory value and initial inventory quantity differs from the moving average price, the moving average price is changed through the initial entry of inventory data.

If you have not entered a value for the initial entry of inventory data, the quantity to be transferred is valuated according to the moving average price, and this price does not change in this case.

(C) SAP AG LO510 6

2.7

SAP AG 1999

Non-stock materials

Cost center

Project

Other

Stock in quality inspection

Blocked stock (valuated)

Vendor

Stock

Consumption

Conditionalacceptance

GR blocked stock Mvt 103

Goods Receipt Blocked Stock

Mvt101

Unrestricted-use stock

Mvt101 +

At goods receipt, you can post a material for consumption or to stock. But you can also manage it as GR blocked stock.

Goods that have been received subject to conditional acceptance (that is, damaged or unexpected deliveries) are posted to goods receipt blocked stock: Quantities are posted to stock. The material is not valuated. The transaction is entered in the purchase order history.

(C) SAP AG LO510 7

2.8

SAP AG 1999

R eturn to vendor

R elease to w arehouse

O R

Vendor

Purchase order h istory

updated

G R blocked stock

updated

G oods R eceip t B locked Stock and R elease

C onditional acceptanceC onditional acceptance(G R blocked stock)(G R blocked stock)

Once a material has fulfilled the acceptance conditions, it can be released. It is then valuated automatically.

If the goods are to be sent back to the vendor, you can send them back directly from GR blocked stock. This creates a material document and updates the purchase order history.

When you release material from GR blocked stock, you can transfer it to the following stocks: Unrestricted-use stock Stock in quality inspection Blocked stock (valuated)

Effects of the release of material from GR blocked stock: Material and financial accounting documents are created. Total valuated stock is updated. Purchase order and purchase order history are updated. The G/L accounts are updated.

(C) SAP AG LO510 8

2.9

SAP AG 1999

Quality inspection indicator is set

In material master

In the purchase order

At goods receipt

Purch.ord.

Goods receipt

AA

MaterialMaterial

Goods Receipt into Quality Inspection Stock

You can post goods receipts from vendors to quality inspection stock for the following reasons: If the material always has to undergo quality inspection before it is used. In this case, the employee

responsible for the purchasing data in the material master record sets the quality inspection indicator in the material master record. When you order the material, the indicator is copied to the purchase order.

If the material is received from a particular vendor and has to undergo quality inspection first. For example, you must always test the quality of goods if they have been procured from a new vendor. The Purchasing department then sets the quality inspection indicator in the additional data for the purchase order.

If you decide at the time of goods receipt that the material has to undergo quality inspection, for example, because you established that the packaging is damaged and suspect that the goods were also damaged during transportation.

You set the quality inspection indicator in the goods receipt item.

(C) SAP AG LO510 9

2.10

SAP AG 1999

Quality inspection

GR blocked stock

Vendor Unrestricted-use stock

MaterialMaterial

Stock in QI in anotherstor. loc.: laboratory Blocked stock

MaterialMaterial

Sampling

Goods Movements and Stock in Quality Inspection (Without QM)

If necessary, goods receipts from vendors can undergo quality inspection. You post the receipt of this delivery to quality inspection stock.

If you post a goods receipt directly to consumption (purchase order with account assignment), you cannot post the material to quality inspection subsequently, because the material is considered used at goods receipt.

You can post goods receipts from GR blocked stock to quality inspection first, so that you can decide whether you want to accept or reject the whole delivery.

If your warehouse sustained water damage, for example, some materials may have to undergo quality inspection again or for the first time. This is one of many possible reasons for posting material from unrestricted-use stock to quality inspection stock.

One of your materials is in a storage location in quality inspection stock. You want to transfer it from there to a different storage location – for example, to the laboratory – but want it to remain part of quality inspection stock.

To ensure that the partial quantity you are actually going to inspect is withdrawn from quality inspection stock during the inspection, you can post a sample withdrawal from quality inspection stock.

(C) SAP AG LO510 10

2.11

SAP AG 1999

Goods Receipt in GR-Based Invoice Verification

GR slipno. 4756Mat ABC800 pcs

Purch. ord.

Item 1Mat ABC

1000 pcs

GR slipno. 4711Mat ABC200 pcs

Subseq. del. for PO

Item 1Mat ABC

800 pcs

As of Release 4.6, if you use goods-receipt-based Invoice Verification, you can post goods receipts as subsequent deliveries for previous goods receipts by referencing the original goods receipt document. The R/3 System copies the original reference document number to the new material document and thereby maintains the link between the goods receipts and the invoice receipt.

This function is useful if: You reverse a goods receipt after entering an invoice and then intend to post another goods receipt You post a return delivery and intend to enter the next goods receipt with reference to the return

delivery document so that the link to the invoice remains intact You can use the subsequent delivery function for the following transactions:

Goods receipt (movement type 101)You post another goods receipt for a purchase order – for example, for partial deliveries or substitute deliveries.

Return delivery (movement type 122)You post another goods receipt after a prior return delivery.

Reversal of goods receipt (movement type 102)You post another goods receipt after a prior GR reversal.

(C) SAP AG LO510 11

2.12

SAP AG 1999

Purch. ord.

In the purchase order

Setting the “delivery completed” indicator

At goods receipt

Setting the “Delivery Completed” Indicator

The “delivery completed” indicator specifies whether a purchase order item is regarded as closed. This means that you do not expect any more goods receipts for this item. The open quantity is zero.

You can still post goods receipts for any residual quantities, but these will not change the open order quantity.

If the delivered quantity drops below the underdelivery tolerance (from the PO) as a result of a return delivery or cancelation, the system cancels the “delivery completed” indicator.When you enter the return delivery or cancelation, you can reset the “delivery completed” indicator if you do not expect any further deliveries. It will not be changed automatically by the system thereafter.

(C) SAP AG LO510 12

2.13

SAP AG 1999

80 90 100 110 120

PO quantity 100

Underdelivery tolerance 10% Overdelivery tolerance 10%

Overdeliveryerror message

No messagewithin

tolerance rangeUnderdelivery

warning

Underdelivery and Overdelivery

When goods are received with reference to a purchase order, the system proposes the open purchase order quantity of each item for the goods receipt. You can change this quantity if the delivered quantity differs from this.

When you enter a GR item, the system compares the PO quantity with the total GR quantity for this PO item (including the current GR quantity), and thereby identifies underdeliveries or overdeliveries.

As a rule, underdeliveries are allowed in the standard system.In the order item, you can also enter a percentage value for the underdelivery tolerance. If the quantity of goods received is smaller than the ordered quantity minus the underdelivery tolerance, this is interpreted and accepted as a partial delivery. When you check the goods receipt before posting it, the system points out that there has been an underdelivery and takes the underdelivery tolerance into account in the dialog message.

The standard system does not allow overdeliveries.If overdeliveries are to be allowed, you can specify a percentage overdelivery tolerance in the order item.You can switch off the overdelivery tolerance check in the order item by setting the “unlimited” indicator. This means that an unlimited overdelivery amount is possible.

(C) SAP AG LO510 13

2.14

SAP AG 1999

Any variances at GR?

Customizing Application

Should the “delivery completed” ind.be proposed automatically?

Set “delivery completed” indicator

Tolerance limits(Purchasing value key)

Settings

In Customizing for Purchasing, you can define purchasing value keys. Purchasing value keys deliver default values for underdelivery and overdelivery tolerances in purchase orders. You maintain purchasing value keys in the purchasing data of the material master.

But you can also maintain underdelivery and overdelivery tolerances directly in the order item. In Customizing, you also define for each plant whether the system should automatically set the “delivery

completed” indicator for goods receipts that are within the tolerances.

(C) SAP AG LO510 14

2.15

SAP AG 1999

PO quantity:Order price qty:

100 pcs400 kg

Variance

10%

No message

Warning plus mail mess.

Error message

PossiblePossiblereactionsreactions

Dependent on B1 and B2 tolerances (Customizing)

Purch. ord.

Quantity delivered:Order price qty:

100 pcs440 kg

Order Price Quantity Variance

Goods receipts are valuated on the basis of the incoming quantities in the order price unit. Invoice verification is also based on the GR quantity in the order price unit. Note:

If you enter a goods receipt with the EnjoySAP transaction MIGO, the system does not issue a warning message if the goods receipt quantity is above or below the tolerance limit B2.If you set the “GR message” indicator in the header data of the purchase order, the system informs the buyer of the purchase order price quantity variance by mail if the necessary Customizing settings have been maintained.

(C) SAP AG LO510 15

2.16

SAP AG 1999

Shipping docmts

Options for Carrying Out a Return Delivery

With ref. to purchase order from warehouse stock

With ref. to purchase order from blocked stock

Returns for purchase order

Packing

Picking

Delivery via shipping

Return delivery to vendor

When you post a return delivery, you can create a delivery via the Shipping (LE-SHP) application component. This means that you can use the functions of the Shipping component – for example, picking and packing – as well as detailed shipping documents and delivery notes. You can post a return delivery via Shipping from the following stock types: Unrestricted-use stock GR-blocked stock Stock in quality inspection Blocked stock

You can use return deliveries via Shipping for standard purchase orders, purchase orders with account assignment and material number, and purchase orders with special stocks.

To enable you to return a material via Shipping, you must maintain the following data in the R/3 System: Plant data, such as sales organization, distribution channel, and division The Shipping view in the material master record The customer field in the central vendor master record, as the vendor for shipping is also the customer.

(C) SAP AG LO510 16

2.17

SAP AG 1999

Reversal

Reason for movement

(optional entry)

(e.g.: wrong stor. loc.)

Reason for movement

(mandatory entry)

(e.g.: material damaged)

WithoutGoods rcpt/issue slip

Withreturn delivery slip

Returndelivery

The return delivery slip is returned to the vendor along

with the material.

Reversals and Return Deliveries

Whether or not a goods receipt / issue slip or a return delivery slip is to be printed can be made dependent on the movement type.

The “reason for movement” specified can also be determined per movement type.The “reason for movement” enables an analysis and display of vendor problems (for example, damaged packaging).

When returning material to a vendor, you can specify a reason for movement individually for each item or enter a reason for movement on the initial screen for goods movements.

(C) SAP AG LO510 17

2.18

SAP AG 1999

Return forpurchase

orderReturnsindicator

Purchase order:PO qty

10 100

Short text

FilterGasket

Material

TM510-01TM520-01

R

x

Trans.

-

+

Goods receipt for a purchase order:

Material TM510-01 MVT 161

Material TM520-01 MVT 101

Returns for Purchase Order

Returns to vendor are return deliveries of material from a plant to an external vendor. You include these as returns order items in purchase orders by setting a “returns indicator” in the item overview of the purchase order. For returns to vendor, you do not have to reference the preceding document used to procure the material you are returning.

For movement type 161, you can also set the indicator for the automatic generation of purchase orders.

(C) SAP AG LO510 18

2.19

SAP AG 1999

Goods receipt

1.1. 2.2. 3.3.

Co.Co. x y zPurch.ord.1

2

Purch. ord.1

2

Vendorinvoice

1. 2.

Automatic Purchase Order Generation I

You can configure Customizing in such a way that the R/3 System always creates a purchase order in the background after you receive goods for which no purchase order exists. You can also carry out invoice verification afterwards.

(C) SAP AG LO510 19

2.20

SAP AG 1999

MVT

101 102102161

Vendor : Material :

Price:

POauto. Mvt type text

GR goods receiptGR for PO reversalGR into blocked stockGR returns

LewisFilter

13 UNI / piece

IMG

Create PO automatically

activated

Info record

Conditions

Valuated materials

Automatic Purchase Order Generation II

In the step “Create purchase order automatically” in Customizing, you define for each movement type whether the R/3 System always creates a purchase order whenever you post a goods receipt. This means that you can also carry out invoice verification immediately after you have posted the goods receipt.

The R/3 System valuates the goods receipt with the price defined in the purchasing info record. You can create purchase orders automatically only for valuated materials.

(C) SAP AG LO510 20

2.21

SAP AG 1999

SLED

A

B B C

BMaterialMaterial

Min.remainingshelf life

Material

Warehouse

okNotokWarning or

error message

Purch. ord.

Item 1Mat ABC

Min.remainingshelf life

Shelf Life Expiration Date Check at GR

The shelf life expiration date is checked only if the following conditions have been fulfilled: The minimum remaining shelf life has been maintained in the material master or the purchase order. The minimum remaining shelf life value is the number of days that a material has to be usable in order

that the R/3 System will accept the goods receipt. The shelf life expiration date check is active in the plant. The shelf life expiration date check is activated for this movement type.

If the shelf life expiration date check is activated, you have to enter the expiration date or production date of the material at the time of goods receipt.

When the goods are received, the R/3 System checks whether the minimum remaining shelf life meets the requirements entered in the purchase order or the material master. If this is not the case, it issues a warning message or error message, depending on how it is configured.

When the goods entry has been posted, the shelf life expiration date is recorded in the material document.

The shelf life expiration date is printed on the goods receipt/issue slip.

(C) SAP AG LO510 21

2.22

SAP AG 1999

SettingSetting

ApplicationApplicationActivate for plant

Activate for movement type

Enter shelf life expiration dateat goods receipt

Setting the Shelf Life Expiration Date Check

Customizing

Maintain material master

Maintain PO data

Application

(C) SAP AG LO510 22

2.23

SAP AG 1999

Fa. Smith

Warning or error message

ToMayer & Co.

Purchase order:

Fireworks,1000 pcs

Latest GR date:12.31

Posting date:Dec.30

ok

Posting date:Jan.02

WE

Latest Acceptable Goods Receipt Date

If the latest acceptable goods receipt date has been entered in the purchase order, at goods receipt the R/3 System checks whether the posting date is after this date. If this is the case, it issues a warning message or error message, depending on how it is configured.

(C) SAP AG LO510 23

2.24

SAP AG 1999

Message in Case of Early Goods Receipt

Warning or error message

ToMayer & Co.

Purchase order:Delivery dateSept. 30, 99

W

E

Goods receipt date:Sept. 02, 99

GR blocked stock

As of Release 4.5, the R/3 System compares the goods receipt date with the planned delivery date from the purchase order. The user can configure whether it should issue a warning message or error message in the event of goods being received early.

This function is useful if capacity in your warehouse is limited or if you want to prevent the invoice for the goods receipt being paid too early.

If the message is configured as an error message, you can only post the goods receipt to GR blocked stock.

(C) SAP AG LO510 24

2.25

SAP AG 1999

Mat x

SKU: KgBUn: PcUoE: CRA

GR slip

Mat x10 kg

Purch. ord.

Mat x100 pcs

User-Defined Units of Entry

You can define any unit of entry for a goods movement or reservation, provided that the unit of entry is defined in the material master record or can be converted using standard calculations (for example, g – kg).

If you do not specify a unit of measure, the R/3 System uses the unit of measure that is intended for the relevant goods movement, that is the: Order unit for goods receipt with reference to purchase order Production unit for goods receipt for order Unit of issue for other movements and reservations

(C) SAP AG LO510 25

2.26

SAP AG 1999

A

NoYes

Update goodsreceived data

Update goodsreceived data

Create material for storage loc.

CustomizingCustomizing

Activate for plant

Activate formovement type

Goods movementGoods movement

Storage location data availablefor material?

Creating a Storage Loc. Automatically for a Material

(C) SAP AG LO510 26

2.27

SAP AG 1999

Reporting

MovementsStock situationof each material

Stock situationPlant / warehouse

List of material docmts

Accounting documents formaterial

Canceled materials docmts

Material documents withreason for movement

Report for analysis of conversion differences

Stock overview

Stock / requirements list

Availability of plant stock

Availability overview

Stocks with subcontractor

Warehouse stock

Consignment / returnablepackaging stock at cust.

Material stocks atposting date

GR/IR balances list

Display of stock in transit

Inventory controlling

Reporting

All functions in Inventory Management and Physical Inventory are subject to an authorization check.

If some users are no longer authorized to carry out certain analyses, assign them to the following authorization profile: M_BEFU_ANZ (all inventory management display authorizations).

A system-wide list viewer is used to format some reports. You can now output application tables with any contents in a convenient list.

Users can define and save their own display variants as well as choose their display variants on the initial screen for a report.

For Release 4.6, the plant stock availability display was converted to the ABAP List Viewer.

As of Release 4.6A, you can use the Analysis of Conversion Differences report to analyze the goods movements for a specified period of time for each material and plant. You can also determine the rounding differences separately for each stock type. The following stock types are listed individually:

Unrestricted-use stock, blocked stock, and stock in quality inspection All of a material’s special stocks All of a material’s batches

(C) SAP AG LO510 27

2.28

SAP AG 1999

Stock account balance Stock value ofmaterials

Raw materials 1

Raw materials 2

Valuation class 3000Raw materials 1

Valuation class 3000Raw materials 1

FI MM

RM07MBST

Periodic Processing – List of Stock Values

You can use report RM07MBST to display the total stock quantity and total stock value for one or more materials. It also determines the stock account that is posted when you post a goods movement for the material specified.

You can display the balance values for each company code and G/L account. The system compares the balance of the G/L account with the stock value of the specified material and displays the difference between the two.

If you start the report without specifying a material, the balance of each stock account must correspond to the total valuated stock of all materials belonging to the relevant valuation class. Variances can result for the following reasons: You made manual postings to the stock account. Other postings as well as stock postings are made to the stock account. In this case, you have to check

account determination in Customizing for valuation. Ensure that the stock accounts are used for transaction key BSX (stock postings) only.

Account determination for the stock accounts (transaction/event key) BSX were changed in the current operation, but the relevant stocks were not debited directly from the old account (MVT 562) and posted to the new one (MVT 561).

(C) SAP AG LO510 28

2.29

SAP AG 1999

Stock segment

Stock Consistency Check

Anonymous stock MBEWVal. sales order stock EBEWValuated project stock QBEW

Split valuation

Material - cost estimate number

Material subject to batch mgmt

Material ledger

As of Release 4.5A, a new report is available for checking the consistency of your stocks. To start the report, choose Period. Processing -> Consistency check. With this report you can check that your stocks are consistent at company code level, valuation level,

and material level. You can therefore determine possible errors in your stocks before they cause greater problems.

As of Release 4.6C, you can add inconsistent materials found in a previous run to the selection criteria via the “materials from last run” indicator.

(C) SAP AG LO510 29

2.30

SAP AG 1999

Enter a goods receipt into blocked stock and quality inspection stock

Generate a purchase order automatically at goods receipt

Describe various functions, such as shelf life expiration date check and unit of entry

Identify other system settings for goods movements

You are now able to:

Goods Receipts: Unit Summary

(C) SAP AG LO510 30

2.31Goods Receipts Exercises

Unit: Goods Receipts

Topic: Goods Receipts


Explain the difference between goods receipt blocked stock and blocked stock

Post a goods receipt into blocked stock

Goods receipts in your company can be processed in a variety of ways depending on the material. If a material is damaged, it is received into blocked stock or GR blocked stock.

In the exercises for the Goods Receipts unit, you are a storeperson and carry out the activities with the user menu.

1-1 Display the stock overview for materials T-RN1## and T-RN2## in plant 1000 to see the initial stock balance for the following stock types. Use the options or arrows to display the right columns.

Plant 1000 T-RN1## T-RN2##

Unrestricted-use

Quality inspection


GR blocked stock

Blocked

(C) SAP AG LO510 31

1-2 You receive the material for items 1 and 2 in purchase order 415101-## in one goods receipt as outlined below:

1-2-1 In the first item for material T-RN1##, you are sure that the correct material has been delivered. Enter the goods receipt for the entire quantity of 10 into storage location 0001.

Movement type __________________________________________

1-2-2 In the second item in purchase order 415101-##, you are not sure the correct goods were delivered. Therefore, enter a conditional acceptance by receiving all 10 of T-RN2## into GR blocked stock.

Movement type __________________________________________

Material document _____________________________________

1-3 Now display the material document. Is there an accounting document for this transaction?

____________________________________________________________

1-4 Now display the stock overview for materials T-RN1## and T-RN2## in plant 1000 to see what happened. Update the current stock situation in the table.


Unrestricted-use

Quality inspection


GR blocked stock

Blocked

(C) SAP AG LO510 32

1-5 Display the purchase order history for purchase order 415101-##.

1-5-1 What receipt quantity displays on the purchase order history for line 20 and why?

_____________________________________________________

1-5-2 How can you display the quantity received into GR block stock?

_____________________________________________________

_____________________________________________________

1-6 The 10 pieces of T-RN2## are deemed acceptable. Release the material from GR blocked stock into quality inspection stock with reference to the material document from part 1-2. The material is placed in storage location 0001.

Enter ‘Quality inspection’ in the Stock type field.

Movement type _______________________________________________

Material document ____________________________________________

1-7 You receive a delivery for purchase order 415102-## in plant 1000. It is not necessary to receive into GR blocked stock because you are sure the correct material has been delivered, but the material is damaged, so receive the total quantity into blocked stock.

Use the Stock Type field to post to blocked stock

Movement type _______________________________________________


1-8 Now display the material document for this receipt. Is there an accounting document?

___________________________________________________________

1-9 Now display the stock overview for material T-RN2## in plant 1000 to see what happened.

(C) SAP AG LO510 33

(Stock Overview)

Plant 1000 T-RN2##

Unrestricted-use

Quality inspection


GR blocked stock

Blocked

(C) SAP AG LO510 34

Exercises


Topic: “Delivery Completed” Indicator, Reversals, and Returns


Identify the movement type for a reversal and a return to vendor

Define the impact of tolerances at goods receipt and the “delivery completed” indicator

Explain how to enter reason codes for a movement type

Post a reversal and a return to vendor

You return material to the vendor if it is damaged or incomplete. The R/3 System is configured to require a reason code whenever you process a return to the vendor. This allows you to track the reasons why material is being returned. You use another transaction to reverse goods receipts that were entered with keystroke errors.

2-1 Display the stock overview for material T-RN1## in plant 1000 and write down the stock situation.

(Stock Overview)

Plant 1000 T-RN1##

Unrestricted-use


2-2 On purchase order 415103-## you have received a partial delivery of 40 pieces for the first item and the total quantity for the second item. Post the goods receipt for this delivery into plant 1000, storage location 0001.

Material document number _____________________________________

(C) SAP AG LO510 35

2-3 You receive a second delivery of 55 pieces of T-RN1## for purchase order 415103-##. On the delivery note, the vendor informs you that the remaining quantity for this item will not be delivered. Post the goods receipt to plant 1000, storage location 0001, and indicate that no further deliveries are expected for this purchase order by indicating that the delivery is a final delivery.

Movement type _______________________________________________

Material document ________________________________________________

2-4 Display the stock overview for material T-RN1## in plant 1000.

Plant 1000 T-RN1##

Unrestricted-use


2-5 You find out that 40 pieces of material T-RN1## from the second goods receipt are incomplete. Return these 40 pieces from storage location 0001, plant 1000 to the vendor, and specify the reason for the return. When you return them, reference the material document from exercise 2-3. You expect the vendor to make a subsequent delivery, so you verify the status of the “delivery completed” indicator.

2-5-1 What movement type do you use for the return delivery?

______________________________________________________

2-5-2 What is the reason code for “Incomplete”?

______________________________________________________

2-5-3 Why not use movement type 102?

______________________________________________________

______________________________________________________

Material document number _______________________________

2-6 Display the stock overview for T-RN1## in plant 1000.

Plant 1000 T-RN1##

(C) SAP AG LO510 36

Unrestricted-use


2-7 Display the Reason for Movement report for material T-RN1##. You want to display the reasons why this material was returned.

2-8 The vendor now delivers another 50 pieces of T-RN1## on purchase order 415103-##. Post the receipt into plant 1000, storage location 0001.

Can you post this overdelivery? _______________________


2-9 Why were you able to post the overdelivery?Display the delivery details for material T-RN1## in purchase order 415103-##.

Item details for item 10 Quantity

Underdelivery tolerance

Overdelivery tolerance

Also check which transactions were updated in the purchase order history for this item.

___________________________________________________________

___________________________________________________________

___________________________________________________________

2-10 At the receiving dock, you realize the second line on purchase order 415103-## was received by mistake. Post a reversal of line 20 with reference to the material document from step 2-2.

How do you proceed?

___________________________________________________________

Movement type _______________________________________________


2-11 Display the material and accounting documents for the reversal.

2-12 Display the purchase order history for material T-RN2## on purchase order 415103-##.

(C) SAP AG LO510 37

2-12-1 How many transactions were posted against this item?

______________________________________________________

2-12-2 Does the reversal update the purchase order history?

______________________________________________________

2-13 Now display the canceled material documents report. Use the material document number from 2-10.

(C) SAP AG LO510 38

Exercises


Topic: Automatic Generation of Purchase Order at Goods Receipt


Automatically create a purchase order at goods receipt

Verify how the movement type can be configured to allow a purchase order to be created automatically at goods receipt

You have a vendor who delivers tanks for your motorbikes and sends a packing slip along with the receipt. You enter the goods receipt and have configured the R/3 System to create the purchase order automatically at the time of goods receipt. This allows you to use the information in invoice verification.

3-1 In Customizing, verify the settings required to create an automatic purchase at goods receipt. As you will be verifying other Customizing settings in the following exercises, add the Customizing display function to your list of favorites.

Please do not change the settings!

Menu Path for Customizing: Tools AcceleratedSAP Customizing Edit Project

Choose [SAP Reference IMG]

Then choose Materials Management Inventory Management and Physical Inventory Goods Receipt Create Purchase Order Automatically

3-1-1 Is movement type 101 configured to allow automatic purchase orders at the time of goods receipt?

______________________________________________________

(C) SAP AG LO510 39

3-1-2 What is the standard purchasing organization assigned to plant 1000?

Menu Path for Customizing: Tools AcceleratedSAP Customizing Edit Project

Choose [SAP Reference IMG]

Then choose Enterprise Structure Allocation Materials Management Assign standard purchasing organization to plant

Standard purchasing organization ____________________________

3-2 Display the purchasing info record for vendor T-K10A## and material T-RN1## for purchasing organization 1000 (IDES Deutschland) and plant 1000 (Hamburg). Use the SAP menu and include this activity in your list of favorites.

What price is specified in the conditions?

Price ______________________________________________________

3-3 Use the automatic generation of purchase order function to post a goods receipt of 10 pieces for vendor T-K10A## and material T-RN1## into plant 1000, storage location 0001.

You can enter items without reference by choosing [Not ordered].Enter the material, quantity, and vendor.Then change the movement type.

Movement type _______________________________________________

Material document number _________________________________________

3-4 Display the material document number that was created as a result of the receipt. What is the number of the purchase order that was created automatically?

____________________________________________________________

(C) SAP AG LO510 40

3-5 Display the purchase order that was created automatically at goods receipt.

3-5-1 Who created the purchase order?

______________________________________________________

3-5-2 Which values were used for the following fields and how did the system determine them?

Field Value Origin

Purchasing org.

PO quantity

Delivery date

Net price

(C) SAP AG LO510 41

Exercises


Topic: Returns for Purchase Orders

Optional exercise*


Explain the process of creating a purchase order and indicating a return

Post a goods receipt and a return to the vendor on the same document

You purchase decorative calendars to give to your customers as gifts. Sometimes you have some left over at the end of the year. Your supplier allows you to return the left over calendars and purchase new ones. You like to process this receipt and return in one transaction.

4-1 Determine how many calendars T-RN3## and T-RN4## are in stock in storage location 0001, plant 1000.

Unrestricted-use, storage location 0001

T-RN3##

T-RN4##

4-2 You need to order 1000 new calendars for the upcoming year and return all old calendars to the vendor.

Create a purchase order for 1000 pieces of T-RN3## new calendars. Enter another item for 50 pieces of T-RN4## old calendars. Make sure you mark the old calendar as a return to the vendor. Use vendor T-K10C##, purchasing organization 1000 IDES Deutschland, purchasing group 0## and plant 1000. The price of each calendar is 60.00 UNI.

Purchase order __________________________________________________

(C) SAP AG LO510 42

4-3 Your purchase order is delivered. Enter the goods receipt into plant 1000, storage location 0001. Choose the two items and post the goods movement.


4-4 Display the material document and the accounting document. What are the accounting entries for this transaction?

4-4-1 What are the movement types for the two items?

Item 10 T-RN3## ______________________________________

Item 20 T-RN4## ______________________________________

4-4-2 What are the accounting entries for this transaction?

Account Value

(C) SAP AG LO510 43

Exercises


Topic: Settings


Explain goods receipt in various units of measure

Outline how to enter the latest acceptable delivery date for a purchase order

Explain how to check the expiry date of a material at the time of goods receipt

Goods receipts in your company can be processed in a variety of ways depending on the material. Some goods have a limited lifespan, so you have to check the expiry date when you receive them.

5-1 Make the following changes to the material master for material T-RN5##. Start the activity from the SAP menu. Select the Basic Data 1 and Storage 1 views for plant 1000:

5-1-1 In the Additional data, enter the following unit of measure conversion: 1 pair (pai) = 2 pieces (pc). (Piece is the base unit of measure.)

5-1-2 On the Plant Data/Storage 1 view, enter 30 days for the minimum remaining shelf life so that the system checks the expiry date at goods receipt.

5-2 Display purchase order 415104-##.

5-2-1 Check whether the remaining shelf life of 30 days is specified for material T-RN5## in this purchase order. Where can you find this information?

_____________________________________________________

5-2-2 You also want to check the latest acceptable delivery date for the second item on the purchase order. What is the latest acceptable date for goods receipt?

______________________________________________________

(C) SAP AG LO510 44

5-3 Now post a goods receipt for purchase order number 415104-##, plant 1000, storage location 0001.

5-3-1 For the first item, T-RN5##, the vendor has delivered 30 pairs (the sealing rings are packed in pairs). The vendor also informs you that the shelf life expiry date for this material is two months from today. Enter this data for the first item.

5-3-2 The second item, 1 piece of T-RN6## is also delivered. What message is displayed via the ‘Check’ function?

______________________________________________________

5-3-3 Can the goods receipt for the second item be accepted?

Why or why not?

______________________________________________________

Material document number __________________________________________

5-4 Display the material document and write down the unit of measure conversion.

____________________________________________________________

(C) SAP AG LO510 45

2.32Goods Receipts Solutions


Topic: Goods Receipts

1-1 Logistics Materials Management Inventory Management Environment Stock Stock Overview

(Stock Overview)


Unrestricted-use 0 0

Quality inspection 0 0

Open purchase order quantity 110 120

GR blocked stock 0 0

Blocked 0 0

1-2 Inventory Management Goods Movement Goods Receipt For Purchase Order Goods Receipt for Purchase Order (MIGO)

1-2-1 Choose the goods receipt for purchase order option, and enter the purchase order number and the data for the first item.

Movement type 101

1-2-2 For the second item in the item overview or detail data, change the movement type in the [Where] tab.

Movement type 103

Then post the goods receipt.

1-3 Menu path same as 1-2.Switch from the Enter Goods Receipt view to the Display Material Document view. Enter the material document number or choose it from the document overview.In the [Document info] tab of the header data, you can call the accounting document by choosing [FI documents].

There is one accounting document, but it only contains postings for the first item. The second item has not been valuated, as a goods receipt was posted into goods receipt blocked stock.

(C) SAP AG LO510 46

1-4 Inventory Management Environment Stock Stock Overview

Alternatively, you can display the stock overview directly from the material document display. To do this, go to the details for the required item, [Where] tab and choose the [Stock overview] icon next to the plant line.

(Stock Overview)


Unrestricted-use 10 0

Quality inspection 0 0


GR blocked stock 0 10

Blocked 0 0

1-5 Logistics Materials Management Purchasing Purchase Order Display When you choose [Other PO], the system displays a dialog box in which you can enter your purchase order number.

Alternatively, you can go to the purchase order from the material document display. To do this, go to the details for the required item, [PO data] tab and double-click the purchase order number.

1-5-1 The system shows the quantity in the PO history as zero because the material was posted to goods receipt blocked stock.

1-5-2 To go to the GR blocked stock display, choose [Switch view].


Choose Release GR blocked stock with reference to material document. You can enter the material document number directly or choose it from the document overview. In the Stock type field, enter “Quality inspection”.

Movement type 105.

(C) SAP AG LO510 47


To transfer the material to blocked stock, enter “Blocked” in the Stock type field.

Movement type 101.

1-8 Still using the MIGO transaction, switch from the Enter goods receipt view to the Display material document view. Enter the material document number or choose it from the document overview.In the [Document info] tab of the header data, you can call the accounting document by choosing [FI documents].

Yes.


(Stock Overview)

Plant 1000 T-RN2##

Unrestricted-use 0



GR blocked stock 0

Blocked 10

(C) SAP AG LO510 48

Solutions


Topic: “Delivery Completed” Indicator, Reversals, and Returns


(Stock Overview)

Plant 1000 T-RN1##

Unrestricted-use 10



Do not forget to change the received quantity in the first line from 100 to 40.


Do not forget to change the received quantity from 60 to 55.

Movement type 101.


(Stock Overview)

Plant 1000 T-RN1##

Unrestricted-use 105

(C) SAP AG LO510 49



Enter the transaction as a return delivery for the material document.Choose only the first line. Do not forget to change the quantity from 55 to 40.

2-5-1 Movement type: 122

2-5-2 Reason for movement: 0002

2-5-3 Movement type 102 is a reversal movement type. Movement type 122 is a return delivery. You use two different movement types so that you can distinguish between the two transactions. You might require a reason for movement code to carry out a return delivery but not for a reversal, or you can print a return delivery text with movement type 122.


(Stock Overview)

Plant 1000 T-RN1##

Unrestricted-use 65


2-7 Inventory Management Environment List Displays Reason for Movement


Change the received quantity from 45 to 50.

Yes, you can post the overdelivery because an overdelivery tolerance has been entered on the item detail screen. If the delivery quantity had been higher than the delivery tolerance, the system would have issued an error message to prevent the goods receipt.

(C) SAP AG LO510 50

2-9 Logistics Materials Management Purchasing Purchase Order DisplayIf you choose [Other PO], the system displays a dialog box in which you can enter your purchase order number.

An overdelivery tolerance is specified on the item detail screen. If the delivery quantity had been higher than the delivery tolerance, the system would have issued an error message to prevent the goods receipt.

Item Detail

Item details for item 10 Quantity

Underdelivery tolerance 10%

Overdelivery tolerance 10%

You can see all goods receipts and return deliveries in the purchase order history.

2-10 Inventory Management Material Document Cancel/Reverse orInventory Management Goods Movement Goods Receipt For Purchase Order GR for Purchase Order (MIGO) Then choose “Cancel”. The system proposes the reference to the material document. Extend the relevant document number ( for example, by searching for the material and movement type 101).

Movement type: 102

2-11 Do not leave the MIGO Transaction. From the cancel material document display, switch to the material document display. In the [Document info] tab of the header data, you can call the accounting document by choosing [FI documents].

2-12 From the MIGO Transaction, go directly to the purchase order item for material T-RN2##.

2-12-1 Two transactions were posted for this item. GR with movement type 101GR with movement type 102, reversal of goods receipt

2-12-2 Yes

2-13 Inventory Management Environment List Displays Cancelled Material DocumentsEnter the number of the cancelation document and the year posted.

(C) SAP AG LO510 51

Solutions


Topic: Automatic Generation of Purchase Order at Goods Receipt

3-1 Tools AcceleratedSAP Customizing Project Management

Choose [SAP Reference IMG].

Then choose Materials Management Inventory Management Goods Receipt Create Purchase Order Automatically

3-1-1 Yes

3-1-2 In the SAP Reference IMG, choose Enterprise Structure Allocation Materials Management Assign standard purchasing organization to plant

Standard purchasing organization: 1000

3-2 Logistics Materials Management Purchasing Master data Info record Display. Then choose [Conditions].

Price: 90.00 UNI

3-3 Inventory Management Goods Movement Goods Receipt For Purchase Order Goods Receipt for Purchase Order (MIGO). Then choose [Not ordered]. Enter the data as required.

Movement type: 101

3-4 Do not leave the MIGO Transaction. From the enter goods receipt display, switch to the material document display. The purchase order number is contained in the item details in the [PO data] tab.

(C) SAP AG LO510 52

3-5 To go directly from the material document to the purchase order, double-click the purchase order number.

3-5-1 The title bar displays the user Lo510-## who created the purchase order.

3-5-2

Field Value Origin

Purchasing org. 1000 Standard purchasing org. (Customizing)

PO quantity 10 pcs Goods receipt quantity

Delivery date Today’s date Date of goods receipt

Net price 90.00 UNI Price from purchasing info record

(C) SAP AG LO510 53

Solutions


Topic: Returns for Purchase Orders


Unrestricted-use, storage location 0001

T-RN3## 0 pcs

T-RN4## 50 pcs

4-2 LogisticsMaterials ManagementPurchasingPurchase orderCreateVendor/supplying plant known


4-4 Do not leave the MIGO Transaction. From the enter goods receipt display, switch to the material document display.

4-4-1 Item 10 T-RN3##: 101Item 20 T-RN4##: 161

4-4-2 In the [Document info] tab of the header data, you can call the accounting document by choosing [FI documents].

Account Value

Stock 60000

GR/IR 60000

Stock 3000

GR/IR 3000

(C) SAP AG LO510 54

Solutions


Topic: Settings

5-1 Logistics Materials Management Material Master Material Change Immediately

5-1-1 In the Basic Data view, choose [Additional data]. Then click [Units of measurement].

5-1-2 In the ‘Plant data/Storage 1’ view, enter 30 days in the ‘Minimum remaining shelf life’ field.

5-2 Purchasing Purchase order Display

You have to choose the delivery details for the two items. The delivery tab contains information on the shelf life (remaining shelf life) and the latest possible goods receipt date.


5-3-1 Change the goods receipt quantity for T-RN5## from 100 pcs to 30 pairs and enter the expiry date in the [Material] tab of the item details.

5-3-2 When you choose [Check], the system displays the “Last possible delivery date was ...” message.

5-3-3 Yes, the goods receipt is allowed because the message is a warning message, not an error message.

5-4 From the Enter Goods Receipt view, switch to the Display Material Document view. The [Quantity] tab of the item details for material T-RN5## contains the quantity conversion:

30 pairs = 60 pieces

(C) SAP AG LO510 55

3

SAP AG 1999


Contents:

Reservations

Goods Issues

(C) SAP AG LO510 1

3.2

SAP AG 1999

Reservations and Goods Issues: Unit Objectives


Preplan goods movements with reservations and create a picking list

Identify special goods issues, for example, inspection samples or scrapping

Process different goods issue options, planned or unplanned, and their respective updates

Create a goods issue using stock determination functionality

Manage materials with negative stock

(C) SAP AG LO510 2

3.3

SAP AG 1999

Goods Receipts




Pipeline Processing

Consignment


(C) SAP AG LO510 3

3.4

SAP AG 1999

Your company is currently testing purchase and production order processing transactions in R/3. Until you go live with Materials Management, you intend to plan goods receipts from external vendors and production order issues through the R/3 reservation systems.

Your company receives goods into stock and issues them to a consumption account (to a cost center in this case). The material manager responsible for the plant can analyze the stock situation by looking at stock overview and consumption statistics.

Reservations: Business Scenario

(C) SAP AG LO510 4

3.5

SAP AG 1999

=̂

Planningof anissue

Plant, stor. loc.

Controller Warehouse manager

Planningof a

receipt

Reservation

Planning goods movements

Planningof a

transfer posting

Reservations

Reservations are requests to the warehouse to have materials ready for issue at a later date and for a particular purpose.

A reservation can also be used to plan an inward movement in advance. A reservation ensures that a material is available when it is needed.

(C) SAP AG LO510 5

3.6

SAP AG 1999

Material

Plant/stor. loc./batch

Requirement date

Movements allowed

A

B B C

B

Acct assgt

Base date

Check calendar

Reservation Structure

ItemItem

Item

R header

The reservation list is used to analyze reservations. You can select reservations by material, requirement date, account assignment, or planned receipts and issues.

(C) SAP AG LO510 6

3.7

SAP AG 1999

XXXXXXXXXXX

W/o reference

With reference

Individual entry

Collective entry

With new base date

Different acct assignmentpossible with same movement type

Creating Reservations

Important functions when creating or changing reservations: Allow movement Set deletion indicator Change base date

(C) SAP AG LO510 7

3.8

SAP AG 1999

80pcs

50pcs

res.

P.ord.

(2.1) (2.2) (2.3)

(2.4)

d (days)

Today

100 pcs

230 pcs

res.30 pcs

res.30 pcs

OK

80 pcsres.

ok

1

W E

Dynamic Availability Check

Initial situation:Stock 100 pieces80 pieces reserved for withdrawal today + 2 days50 pieces ordered for today + 4 days

New reservation: (The messages issued by the system depend on the system settings. The following is an example.)

2.1 Reservation of 30 pcs for today + 1d => warning message2.2 Reservation of 30 pcs for today + 3d => warning message2.3 Reservation of 30 pcs for today + 5d => ok, no warning message2.4 Reservation of 80 pcs for today + 5d => warning message

If the dynamic availablility check is actively set for a type of reservation, the system includes imminent material requirements in the availability check.

(C) SAP AG LO510 8

3.9

SAP AG 1999

Allowmovements

Delete reservations

Reqmt dateReservations

30 days 10 days

Sept.01 Oct.11

Base dateManagement

Oct.01

Reservation Management

The management program for reservations can both reorganize the reservation file and make mass changes to reservations.

To do so, it: Flags items for deletion Deletes reservations (these are not archived) Allows movements for reservation items

The management program only includes reservations that have been manually created.

(C) SAP AG LO510 9

3.10

SAP AG 1999

=<111

111

=<

Days for movement allowed (1 day)

Retention period (2 days)

Reservation mgmtprogram

Reqmt dateCurrent date + 1 day Mvt allowed indicatorset

Reqmt dateCurrent date - 2 daysReservation flagged for deletion

Entry of reservation

Settings for Reservations

Number range with interval

Default values for mvt allowed indicator

Copy rules

Dynamic availability check

Field selection

Create storage location automatically

You can change the field selection depending on the movement type. As of Release 4.5A, you can define per plant whether the R/3 System is allowed to create stock segments

for reservations in a particular storage location automatically.

(C) SAP AG LO510 10

3.11

SAP AG 1999

Creating a Picking List

Printing a picking list

Posting the goods movements

Creating a picking list

Selection of reservations:Reservation number:Material:Cost center: ...

...

...Selection of production orders:Material:Production order:Controller:

As of Release 4.6A, you can use a report to create a picking list with reference to a reservation or a production order. However, you can also enter and post all goods movements in a single step by selecting all reservations for a material or cost center.

You can use filter functions to choose and sort items in a picking list (for example, selection by movement type) and filter out items that are not required. In addition, you can call up the stock determination and batch determination functions to determine which stocks are to be posted for stock transfers and goods issues.

(C) SAP AG LO510 11

3.12

SAP AG 1999

Cost center

Asset

Sales

Order

Consumption Issue

Sampling

Scrapping

From w/house

From consgmt

From pipelineGoods issue

Goods Issues

Goods issues can be planned or unplanned. The data to be entered depends on the type of goods issue. The system prepares various account assignment fields, depending on the movement type and system configuration. It uses automatic account determination to determine the G/L account to which the movement is posted. You enter a G/L account only if you want to post the goods movement to another account.

If a material is no longer of use, it is posted for scrapping. If a material is destroyed, this information must also be entered in the system. You can scrap material from unrestricted-use stock, stock in quality inspection, and blocked stock. When you post a material for scrapping, the system reduces the relevant stock, transfers the value of the scrapped material from the stock account to a scrap account, and debits the cost center entered.

Sample withdrawal is a goods issue generally linked to a quality inspection. The SAP sampling procedure assures you that the sample for testing is taken from the existing stock. The sampled goods are treated as destroyed – in other words, the system assumes that the material can no longer be used after the quality inspection. In this way, sampling is the same as scrapping, with the exception that the value of the sampled material is posted from the material stock account to the quality inspection expense account.

(C) SAP AG LO510 12

3.13

SAP AG 1999

Enjoy Transaction for Goods Issues

M I G OM I G O

Goods issue · Without reference · With reference

e.g. to a reservationto an order

Transaction code MB1A

Goods issue · Without reference · With reference

e.g. to a reservationto an order

Transaction code MB1A

Cancel materialdocmts for goods issues

Display materialdocmts for goods issues

4.6C

As of Release 4.6C, you can post goods issues with the EnjoySAP transaction MIGO. You can use this transaction instead of the following old goods issue transactions:

Goods issue with reference to an order, reservation, or bill of material, and a goods issue without reference (transaction code MB1A)

Display material documents for goods issues (transaction code MB03) Cancel material documents for goods issues (transaction code MBST)

The old transactions will remain fully functional until the limitations of the MIGO transaction have been fully resolved in a future release.

In the settings for Enjoy transactions in Customizing for Inventory Management, you can define which fields appear on the MIGO transaction screen and how they appear. Also refer to the documentation in Customizing.

(C) SAP AG LO510 13

3.14

SAP AG 1999

Entering Goods Issues

Goods issue

W/o reference

Direct entry of required data (material, quantity, account assignment, ...)

Direct inputSearch by material

With reference

To bill of material

To order

To reservationTo reservation Selection

Unplanned

Planned

Using stock determination

to determine the storage location and

stock

When goods are issued with reference to a reservation, the movement allowed indicator must be set in the reservation item.

To select the reservation, you can also specify the requirement date or a period of time for the requirement date.

If you carry out a goods movement with reference to a reservation, the system updates the reservation with the withdrawal quantity and the associated value.

If you no longer require the remaining quantity of a reservation item, you can mark the item as completed. You can set the final issue indicator when you enter the goods movement or you can set it directly in the reservation.

To automatically determine the storage location and the stock type (unrestricted-use or consignment), you can use the stock determination function.

(C) SAP AG LO510 14

3.15

SAP AG 1999

Materialsstaging list

PP orders

Repetitive manufacturing

WM

Inventory management

Kanban

Delivery

Stockdetermination

Application Areas of Stock Determination

The withdrawal sequence function from Release 3.0 was replaced in 4.0A by the stock determination function. In Customizing for Inventory Management, there is a conversion report for copying the old withdrawal sequence groups to stock determination.

Stock determination is a function that can be used on a cross-application basis. It enables you to determine the stock type from which materials should be removed for withdrawals, picking, and staging transactions.

Stock determination allows you to lay down strategies for material withdrawals by using predefined settings. This function is used in several applications, and is therefore important to the integration of the system as a whole.

(C) SAP AG LO510 15

3.16

SAP AG 1999

Material 1 Material 2 Material 3 Material 4 Application 1 Application 2 Application 3

Stock determination group 0001

Stock determination group 0002

Stockdetermination

rule PP1

Stock determination rule PP2

Strategy 0002

Priority of - Special stock indicator in the item table- Storage location

Stock Determination

Strategy 0001

Sort criteria of item table / price / quantity

Number of subsets/split criterion

WM processing

Optional pipeline withdrawal

User exit for item table

Valuation type in the item table

You enter the stock determination group in the material master at plant level. It controls material-related stock determination.

The stock determination rule is assigned by the application in which it is called. The stock determination group, along with the stock determination rule, forms the unique key for the

stock determination strategy at plant level. The stock determination strategy defines which stocks can be considered for a transaction (special stock

indicator, storage location), which preferences are to be included (sorting criteria), which priority these preferences should have when they are combined with other strategies, or whether stock determination is carried out online or in the background.

As of Release 4.5A, you can enter a valuation type directly in the item table, enabling you to more conveniently determine stocks for withdrawal in the case of materials with split valuation.

As of Release 4.5A, you can also include the special stocks E (sales order stock) and Q (project stock) in stock determination.

(C) SAP AG LO510 16

3.17

SAP AG 1999

Customizing Settings for MIGO (1)

Field selection for MIGO

Field selection per movement type

Modifiable field Input Mand. Disp. Foreground

Bill of ladingCollective slipDeliveryDelivery note

MvT Field name Mandatory entry Optional entry

SGTXTGRUNDSGTXTGRUND

101102102103

Refer to the Customizing documentation. Field selection for MIGO:

The characteristic required entry field is evaluated only for fields with the name GOHEAD... (header fields) and GOITEM... (item fields). The characteristic foreground is not supported.

Field selection dependent on an influencing value is not supported. Field selection per movement type:

In the EnjoySAP transactions, the Field Selection per Movement Type step replaces the Define Screen Structure activity. The settings from the Define Screen Structure activity are automatically copied to the EnjoySAP settings.

The table shows all visible fields (optional entry or mandatory entry). To hide a field, you delete the required entry from the table.

(C) SAP AG LO510 17

3.18

SAP AG 1999

Purchase order 101

Inbound delivery 101

Reservation

Customizing Settings for MIGO (2)

Settings for operations and reference documents

Operation Active

Goods receipt

Return delivery

Reversal

TransactionMIGOMIGO_GIMIGO_GOMIGO_GR

Reference doc. Active MvT

Refer to the Customizing documentation. Settings for operations and reference documents:

In Customizing, you can restrict the number of selectable operations (goods receipt, goods issue, and so forth) and the reference document (material document, purchase order, and so forth). You can also specify the movement type that the system should propose for every reference document.

If you require only certain operations, you can choose from the following transactions:MIGO Enter all goods movementsMIGO_GR Enter all goods receipts from external procurement MIGO_GO Enter all

goods receipts for production ordersMIGO_GI Enter all goods issues

(C) SAP AG LO510 18

3.19

SAP AG 1999

Goods receipt:1000 pcs

1000 pcs

Goods receipt:1000 pcs

100 pcs

Goods receipt

Goods issue

Physical stockBook inventory

1000 pcs0 pcs

+900 pcs-100 pcs


+900 pcs+900 pcs


8.8.0000

11.11.0000

16.16.0000

Negative Stocks

You can also manage negative stock balances for materials with moving average price control and for special stocks, such as vendor consignment, material provided to vendor, sales order stock, and project stock.

Negative stock balances are required if, for organizational reasons, goods issues are entered before the corresponding goods receipts, and the material is already physically located in the warehouse.

Once you have posted the goods receipts, the book inventory balance should correspond with the physical stock again – in other words, it should no longer be negative. Negative stocks always indicate that physical movements have to be entered in the system at a later stage.

If you work with negative stock balances, you have to ensure that you do not have negative stocks on the balance sheet key date or when you carry out a physical inventory.

As of Release 4.6A, blocked stock can also be negative.

(C) SAP AG LO510 19

3.20

SAP AG 1999

Set for valuation area

Set for storage locations

Activate in material master record

Set for plant and special stock types

Settings for Negative Stocks

To work with negative stock balances, you have to allow these for the relevant valuation area and storage locations in Customizing for Inventory Management.

You make the settings for negative stocks in Customizing for Inventory Management by choosing Inventory Management Goods Issue / Transfer Postings Allow Negative Stocks.

If the first movement of a material is an outward movement, you can define in Customizing that storage location data is created automatically for goods issues by choosing Create Storage Location Automatically.

(C) SAP AG LO510 20

3.21

SAP AG 1999

Reservations: Unit Summary

Preplan goods movements with reservations and create a picking list

Identify special goods issues, for example, inspection samples or scrapping

Process different goods issue options, planned or unplanned, and their respective updates

Create a goods issue using stock determination functionality

Manage materials with negative stock


(C) SAP AG LO510 21

3.22Reservations and Goods Issues Exercises

Unit: Reservations and Goods Issues

Topic: Reservations


Create and display reservations

Identify the settings needed to manage reservations

Your company is still testing purchasing and production order processing transactions in R/3. Until you go live with Materials Management, you intend to plan goods receipts from external vendors and production order issues through the R/3 reservations system. This ensures that MRP will have the necessary planning information.

As a storeperson, use the user menu to carry out the following activities.

1-1 Purchasing informs you that 500 pieces of material T-RN1## and 500 pieces of material T-RN2## are to be delivered to plant 1000, storage location 0002 in two weeks time.Create a reservation for this planned receipt without a purchase order.

Movement type _______________________________________________

Reservation number _________________________________________

1-2 Cost center T-L## informs you that it will require 100 pieces of material T-RN1## and 50 pieces of material T-RN2## in four weeks. The goods are to be withdrawn from storage location 0002. Enter the storage location in the reservation. Enter a reservation for these planned withdrawals and note as the goods recipient, the name of the person you spoke with, Mr. N. VanTory.

Movement type _______________________________________________


(C) SAP AG LO510 22

1-3 In 8 weeks, cost center T-L## will have the same material requirement again. The storage location for this withdrawal is not yet certain. Create another withdrawal reservation with reference to the reservation from part 1-2 above. Change the data as required!

Movement type _______________________________________________


1-4 A colleague has just informed you that the materials in the reservation created in 1-3 will now be required in one week. Therefore, you need to change the date for this reservation.

What menu path do you use?

____________________________________________________________

1-5 How can you display all of the reservations for materials T-RN1## and T-RN2##? What reservations are listed for each material?

____________________________________________________________

____________________________________________________________

1-6 Display the stock overview to see the reserved quantity for receipts and issues of materials T-RN1## and T-RN2##.

(Stock Overview)

Plant 1000 Reserved (issues) Reserved (receipts)

T-RN1##

T-RN2##

(C) SAP AG LO510 23

Exercises


Topic: Goods Issues


Enter goods issues

Outline the differences between planned and unplanned issues

Explain the stock determination function

In your company, you receive goods into stock and issue them to a consumption account. In this case, it will be a cost center. The material manager responsible for the plant can analyze the stock situation by looking at the stock overview and consumption statistics.

As a storeperson, use the user menu to carry out the following activities.

2-1 Display the stock overview and the consumption statistics for materials T-RN1## and T-RN2## in plant 1000.

____________________________________________________________

(Stock Overview and Consumption Statistics)

Plant 1000 Unrestr.-use stock

Reserved (issues)

Reserved (receipts)

Total consumption

T-RN1##

T-RN2##

Menu path for consumption statistics from the stock overview report: Position the cursor on the plant line. Choose Extras Display Material. Choose [Extras] and [Consumption].

(C) SAP AG LO510 24

2-2 The reservation for a goods receipt without purchase order for materials T-RN1## and T-RN2## created in part 1-1 of the previous exercise is to be received into unrestricted-use stock. Post this receipt with reference to the reservation.

Choose Goods Movement Goods Receipt Others (MIGO).Then choose Goods issue for reservation. Enter your reservation number or search for it by selecting Receipts and W/o account assignment.

In the standard configuration of the MIGO transaction, you can reference reservations only for goods issues. In Customizing for Inventory Management, you can configure that goods receipts can reference reservations by choosing Settings for Enjoy Transactions Settings for Transactions and Reference Documents.

Which movement type do you use? ____________________________

Material document number ________________________________________________

2-3 A goods issue is to be carried out for cost center T-L## from the warehouse stock of material T-RN1##. At the time of goods issue, check if there are open reservations for this material and cost center. Use the pick list to do this.

Menu Path: Reservation Picking List

Create the picking list by specifying the relevant material and cost center for selection.

Choose the reservation that is due first. Delete all other reservations from the picking list. The goods issue quantity equals the reserved quantity. If there is no storage location specified in the reservation, you determine a storage location via the stock determination function.

Which movement type does the system propose? ______________________

What storage location does the system propose or determine? _______________

Save the list to post the goods issue.

(C) SAP AG LO510 25

2-4 You need to issue materials T-RN1## and T-RN2## to cost center T-L##. Run a reservation list display for these materials and the cost center to determine if there is a reservation with open quantities for both of these materials. Do not use the picking list to do this.


2-5 Issue out to cost center T-L## with reference to the open reservation from step 2-4.

The cost center now requires a quantity different to that listed on the reservation. For material T-RN1##, issue 10 less than the reserved quantity. The remaining reserved quantity is no longer needed. Set the final issue indicator for this item.For material T-RN2##, issue the quantity that is listed on the reservation.


2-6 Another 80 pieces of material T-RN2## are to be issued to your cost center T-L##. Check whether there is a corresponding reservation. There is a reservation, but only for a quantity of 50 pieces. Enter the goods issue with reference to the reservation, change the quantity, and specify a storage location with enough stock.



2-7 Cost center T-L ## returns 60 pieces of material T-RN2##. Enter this movement as a reversal of a goods issue with reference to the reservation from part 2-6 above. The material is placed in storage location 0001.

Do not use the EnjoySAP transaction MIGO!

Menu Path: Goods Movement Goods Issue (Transaction MB1A)On the initial goods issue screen, choose Goods Issue Cancel with Reference To Reservation. Enter the reservation number from part 2-6, select the correct item, change the quantity, and enter the storage location.


2-8 Cost center T-L## needs 10 pieces of material T-RN1## immediately. There is no reservation for this transaction. Enter this unplanned goods issue for the cost center from plant 1000.

Movement type _______________________________________________

(C) SAP AG LO510 26

Material document number _______________________________________________

2-9 Cost center T-L## and project E-9990 each need 10 pieces of material T-RN1## immediately. There is no reservation for this transaction. Enter this unplanned goods issue for the cost center and the project on one material document. Use plant 1000, storage location 0002.

As in part 2-8, enter the item for the cost center with movement type 201.Then enter a second item with movement type 221 for WBS element E-9990.


2-10 Display the stock overview and consumption statistics for materials T-RN1## and T-RN2## in plant 1000.



Reserved (issues)

Reserved (receipts)

Total consumption

T-RN1##

T-RN2##

Menu path for consumption statistics from the stock overview report: Position the cursor on the plant line. Choose Extras Display material.Choose [Extras], then [Consumption].

(C) SAP AG LO510 27

Exercises


Topic: Negative Stock

Optional exercise*


Determine the Customizing settings that allow negative stock

Define the organizational levels for negative stock configuration

Post a goods issue to create negative stock

In your company, you sometimes need to allow negative stock for a material. Sometimes a delivery will arrive and you do not have time to process the receipt in the system. If a cost center needs the material right away, you post a goods issue, which leads to a negative stock balance. At the end of the day, you process the goods receipt in the system and this makes the inventory positive again.

3-1 Cost center T-L## needs 100 pieces of material T-RN6## immediately. Check the stock overview to see how much of material T-RN6## you have in stock. Write down the current stock situation.

Plant 1000 Unrestricted-use Open purchase order quantity

T-RN6##

3-2 Cost center T-L## needs 100 pieces of material T-RN6## urgently. The material manager confirms that a delivery has been received for this material, but the receipt has not been entered into the system because the receiving dock is busy.

3-2-1 Check to see if material T-RN6## will allow negative stock. In which view of the material master can you set the indicator to allow negative stock?

______________________________________________________

(C) SAP AG LO510 28

3-2-2 Issue 100 pieces of material T-RN6## to cost center T-L##. The receiving department will process the receipt later when they have time.

Material document number __________________________________________

3-3 Write down the result on the stock overview.

Plant 1000 Unrestricted-use stock


T-RN6##

3-4 Verify the configuration settings that affect negative stock. Use the SAP menu to do this.

Please do not change the settings!

3-4-1 What is the menu path for negative stock configuration?

______________________________________________________

______________________________________________________

3-4-2 What are the organizational levels in the configuration table for negative stock?

______________________________________________________

______________________________________________________

3-4-3 Display the configuration for plant 1000 and answer the following questions. How many special stock types can be configured to allow negative stock?

______________________________________________________

(C) SAP AG LO510 29

3.23Reservations and Goods Issues Solutions


Topic: Reservations

1-1 Inventory Management Reservation Create Then choose Movement type Receipt From vendor w/o PO To unrestricted

Movement type 501

1-2 Inventory Management Reservation CreateThen choose Movement type Consumption For cost center

Movement type 201

1-3 Inventory Management Reservation Create On the initial screen, enter today + 8 weeks as the base date and the reservation from part 1-2 in the 'Reference reservation' field.

Before you copy the default values, delete the storage location in the items.

Movement type 201

1-4 Inventory Management Reservation Change Then choose Goto Header

1-5 Reservation Reservation list

Use the multiple selection function so that you can select reservations using your two materials.

The system displays reservations for receipts (mvt 501) and issues (mvt 201) for the two materials.


(Stock Overview)

(C) SAP AG LO510 30

Plant 1000 Reserved (issues) Reservation (receipts)

T-RN1## 200 500

T-RN2## 100 500

(C) SAP AG LO510 31

Reservations and Goods Issues Solutions


Topic: Goods Issues

2-1 Inventory Management Environment Stock Stock OverviewPlace the cursor on the plant line, then choose Extras Display material. Then choose [Additional data] and use the arrow to scroll to the right until Consumption appears. Then choose Consumption.

or

Inventory Management Environment Stock Plant stock availability: Enter the material, the plant, and the scope of list. Choose Execute. Position the cursor on the plant line, then choose the option for consumption values.



Reserved (issues)

Reserved (receipts)

Total consumption

T-RN1## 125 200 500 0

T-RN2## 0 100 500 0

(Depending on how they have been processed up until now, the stocks might be different from those above)

2-2 Inventory Management Goods Movement Goods Receipt Others Choose the 'goods issue' option and the 'reservation' as a reference document. Enter the reservation number from part 1-1.

Movement type 501

2-3 Inventory Management Reservation Picking Delete all items that are not to be posted. Then post the goods issue.

You do not have to change the quantity.

Movement type 201

2-4 Reservation Reservation listThere is a reservation in which both materials are reserved.

(C) SAP AG LO510 32

2-5 Inventory Management Goods Movement Goods Issue (MIGO)'Goods issue' for reservation

You can also search for the reservation for cost center T-L## in this transaction. Copy the required reservation items from the search result.

Do not forget to change the withdrawal quantity for material T-RN1## to 90 pieces and set the final issue indicator.

2-6 Inventory Management Goods Movement Goods Issue (MIGO) 'Goods issue' for reservation

You change the quantity from 50 to 80 and choose Enter to bypass the warning message regarding the change in quantity.

2-7 Inventory Management Goods Movement Goods Issue Then choose Goods Issue Cancel with Reference To Reservation

On the selection screen, you select the item for material T-RN2## and change the quantity from 80 to 60.

You the copy the item and post the cancellation.

2-8 Inventory Management Goods Movement Goods Issue (MIGO), then choose 'Goods issue - Others'.Enter the material, quantity, account assignment, and the movement type.

Movement type 201

2-9 Inventory Management Goods Movement Goods Issue (MIGO), as in 2-8, enter the item for the cost center using movement type 201. Enter the material and quantity for the second item in the same way. You enter 221 for the movement type and can then also enter the details for the WBS element.

(C) SAP AG LO510 33

2-10 (Stock Overview and Consumption Statistics)


Reserved (issues)

Reserved (receipts)

Total consumption

T-RN1## 405 0 0 220

T-RN2## 430 30 0 70

(The values can vary depending on how the stocks have been processed in the exercises.)

(C) SAP AG LO510 34

Reservations and Goods Issues Solutions


Topic: Negative Stock



T-RN6## 1 100

3-2

3-2-1 Inventory Management Environment Information MaterialGeneral plant data/storage 2.

3-2-2 Inventory Management Goods Movement Goods Issue (MIGO) 'Goods issue - Others'; enter all required data.

You choose Enter to bypass the warning messages.



T-RN6## 99- 100

3-4

3-4-1 Tools AcceleratedSAP Customizing Project Management, then choose [SAP Reference IMG]

Materials Management Inventory Management and Physical Inventory Goods Issue/Transfer Postings Allow Negative Stocks

3-4-2 Valuation area, plant, storage location

3-4-3 You can allow negative stock levels for seven special stock types.

(C) SAP AG LO510 35

(C) SAP AG LO510 36

4

SAP AG 1999

Contents:

Stock Transfer

Transfer Posting

Stock Transfers/Transfer Postings

(C) SAP AG LO510 1

4.2

SAP AG 1999

Explain the difference between physical and logical transfers

Identify different ways to post inventory transfers using one and two-step movement types between companies, plants, and storage locations

Post a stock transfer between plants and storage locations and display the stock overview


Stock Transfers/Transfer Postings: Unit Objectives

(C) SAP AG LO510 2

4.3

SAP AG 1999

00100100010001 00020002

Goods Receipts




Pipeline Processing

Consignment

Overview Diagram: Stock Trans./Trans. Postings

(C) SAP AG LO510 3

4.4

SAP AG 1999

Business Scenario

In your company, you process stock transfers between plants using a two-step procedure because the plants are located in different towns. You also use stock transport orders for these stock transfers. However within the plant, you use a one-step procedure to transfer material because the storage locations are located within the same building.You also have materials that change over time and lose the properties of the original material.

(C) SAP AG LO510 4

4.5

SAP AG 1999

Trans. postingTrans. posting

Stock transfers

Physical goods movement

Stock transfers can have one or two steps or be related to a stock transport order

Transfer posting

QualityQuality inspecinspec. . toto

unresunres..--use stockuse stock

MaterialMaterialtoto

materialmaterial

Consignment Consignment toto

warehousewarehouse

Storage locationStorage locationtoto

storage locationstorage location

Plant Plant toto

plantplant

Stock transfers

Stock Transfer/Transfer Posting

Transfer posting

Change of stock type, batch number, or material number

A physical movement may also occur

Unlike stock transfers, transfer postings do not usually involve a physical goods movement, but a change in stock type, batch number, or material number.

Examples of transfer postings include release from quality inspection or transfer from consignment material to your company’s own stocks.

The system creates a material document so that the transaction can be entered. Documents in Financial Accounting (FI, CO, CO-PC) are created only if there is a stock change involving valuation (for example, goods are transferred from one plant to another).

You can also carry out stock transfers with reference to the purchase order. The entire process is explained in the training course LO925 Cross-Application Business Processes in SD and MM.

(C) SAP AG LO510 5

4.6

SAP AG 1999

Company code

001001

00010001 00020002

Company code

001001

00010001 00020002

Plant 0001 Plant 0002

SLoc. 0001

SLoc. 0002

Stock Transfer Types

Stock transfers can be carried out at three different levels: Stock transfer from one company code to another Stock transfer from one plant to another Stock transfer from one storage location to another

A stock transfer consists of a goods issue from the issuing point and a goods receipt in the receiving point. You can post stock transfers in one step or in two steps.

(C) SAP AG LO510 6

4.7

SAP AG 1999

A

B B C

B

A

B B C

B

Stor. loc. 0002

Unrestricted-usestock

Stor. loc. 0001


Stor. Loc. to Stor. Loc. - One-Step Procedure

A stock transfer from one storage location to another is carried out within one plant. As the material is transferred within the same plant, and is managed with the same valuation data as before, the transfer is not valuated.

The advantage of the one-step procedure is that you enter the stock transfer in a single transaction. You can also use the two-step procedure to transfer stock from one storage location to another.

(C) SAP AG LO510 7

4.8

S A P A G 1 9 9 9

A

B B C

B

A

B B C

B

P l a n t 0 0 0 2

U n r e s t r i c t e d - u s es t o c k

P l a n t 0 0 0 1

A

B B C

B

U n r e s t r i c t e d - u s es t o c k

I n s t o c k t r a n s f e r

P l a n t t o P l a n t - T w o - S t e p P r o c e d u r e

If you use the two-step procedure, you can monitor stocks while they are in transit. Once you have posted the goods issue from the issuing point, the stock is located in stock transfer at the receiving point, and is managed as such in the system.

You can also carry out cross-plant stock transfers using the one-step procedure.

(C) SAP AG LO510 8

4.9

SAP AG 1999

Plant 1

A

B B C

B

Unrestricted-use

stock

Goodsrcpt for PO

Goods issue

A

B B C

B

Stock intransit

A

B B C

B

Unrestricted-use

stock

Plant 2

1122

Purch. ord.

1

2

Stock Transport Order: Two-Step Procedure

(C) SAP AG LO510 9

4.10

SAP AG 1999

Plant 1Purch. ord.

1

2

A

B B C

B

Unrestricted-use

stock

Goods receiptfor

purchase order

Plant 2

A

B B C

B

Unrestricted-use

stock

Goods issue

Stock Transport Order: One-Step Procedure

You can also post stock transfers with reference to a stock transport order using a one-step procedure instead of the two-step procedure. This procedure does not involve stock in transit, and materials are posted directly to unrestricted-use stock in the receiving plant.

You can use the one-step procedure only if you use SD.

(C) SAP AG LO510 10

4.11

SAP AG 1999

MaterialMaterial

“New wine” “Old wine”

MaterialMaterial 1994

19961996

1996

Material to Material

A transfer posting from material to material requires that both materials are managed in the same unit of measure.

A transfer posting from material to material may be necessary when a material changes over time, for example. It may then no longer have the characteristics defined in the material master record, but those of another material master number. This is often the case in the chemical and pharmaceuticals industry.

(C) SAP AG LO510 11

4.12

SAP AG 1999

Withdrawals

Scrapping/inspection sample

A

B B C

B

Blockedstock

A

B B C

B

Stock inQI

Receipts

A

B B C

B


Stock Types: Goods Movements

At goods receipt, you choose the stock type into which you post the goods. You can post withdrawals for consumption only from unrestricted-use stock.

(C) SAP AG LO510 12

4.13

SAP AG 1999

A

B B C

B

A

B B C

B

Stock inQI

Blockedstock

A

B B C

B


A

B B C

B

Consignmentstock

Stock Types: Transfer Postings

If the usability of a material changes, you can transfer the material between the different stock types.

(C) SAP AG LO510 13

4.14

SAP AG 1999

Explain the difference between physical and logical transfers

Identify different ways to post inventory transfers using one- and two-step movement types between companies, plants, and storage locations



Stock Transfers/Transfer Postings: Unit Summary

(C) SAP AG LO510 14

4.15Stock Transfers and Transfer Postings Exercises

Unit: Stock Transfers and Transfer Postings

Topic: Transfer Postings


Explain the difference between stock transfers and transfer postings

Identify different ways to post inventory transfers using one- and two-step procedures between companies, plants, and storage locations


Post logical movements of stock, such as stock in quality inspection to unrestricted-use stock

In your company, you process transfer postings between plants using a two-step procedure because the plants are located in different towns. However, within the plant you use a one-step procedure to transfer materials because the storage locations are located in the same building.

As a storeperson, carry out the following activities with the user menu.

1-1 Extend material master record T-RN2## to include plant 1100. Enter the data for the Purchasing and Accounting 1 views using plant 1000 as a reference. Use the SAP menu.

(Create Material – General: Initial Screen)

Field Value

Material number T-RN2##

Industry sector Mechanical engineering

Material type Raw material

Copy from… Material T-RN2##

(C) SAP AG LO510 15

(Select view(s))

Purchasing

Accounting 1

(Organizational levels)

Organizational levels Copy from…

Plant 1100 1000

1-2 Display the stock overview for material T-RN2## in plant 1000 and plant 1100. Update the current stock situation on the worksheet at the end of this exercise.

Tip!You need to use the stock overview in the following exercises. You should therefore work with two sessions. In one session, keep the stock overview open. After each exercise, you then only have to refresh the overview instead of calling it up again.

1-3 Post an initial stock entry for material T-RN2## into unrestricted-use stock to the storage locations 0001 in plants 1000 and 1100. Use the correct quantity of receipts to end up with 500 pieces in plant 1000 and plant 1100 in storage location 0001.

The initial stock entry is an ‘other’ goods receipt. To post the initial stock entry, you can use the EnjoySAP transaction MIGO or the old transaction MB1C.

Movement type _______________________________________________


Update the stock situation on your worksheet.

1-4 In plant 1100, storage locations 0001 and 0002 are located in the same building. Therefore, you post stock transfers within plant 1100 using the one-step procedure.

Transfer 20 pieces of material T-RN2## from storage location 0001 to storage location 0002.

(C) SAP AG LO510 16

Movement type _______________________________________________



(C) SAP AG LO510 17

1-5 Due to the shipment duration, you enter stock transfers between plant 1000 and plant 1100 using the two-step procedure. Transfer 20 pieces of material T-RN2## from plant 1100 to plant 1000.

Enter the removal from plant 1100, storage location 0001.

Movement type _______________________________________________



1-6 Material T-RN2## has now arrived at plant 1000. Enter the receipt of 10 pieces in storage location 0001 and 10 pieces in storage location 0002. Update the stock situation on your worksheet.

Movement type _______________________________________________


1-7 In Unit 1, you posted a goods receipt into blocked stock. The remaining pieces of material T-RN2## are deemed acceptable. Transfer this material from blocked stock into unrestricted-use stock in plant 1000, storage location 0001. Then update the stock situation on your worksheet.

Movement type _______________________________________________


1-8 Display all inventory transactions posted today for material T-RN2##. Why are some documents listed twice?

____________________________________________________________

____________________________________________________________

(C) SAP AG LO510 18

1-9 Display the total value of material T-RN2## at plant level and storage location level by running the Warehouse Stock Report, which can be found by choosing Environment Stock Warehouse Stock in Inventory Management. Complete the information in the table.

Plant Material T-RN2##

Quantity Value

Plant 1000 Unrestricted-use stock storage location 0001

Unrestricted-use stock storage location 0002



(C) SAP AG LO510 19

Worksheet: Stock Transfers – Exercise 1-1

Material T-RN2##



Stock in transfer plant 1000

Blocked Plant 1000





1-2

1-3

1-4

1-5

1-6

1-7

(C) SAP AG LO510 20

Exercises


Topic: Material to Material Transfer

Optional exercise*


Post a material to material transfer

You have materials that change over time and lose the properties of the original material. This happens with chemicals you have in the warehouse. You use a material to material transfer to take a quantity of one material, and transfer it to another material.

Use the role SAP_MM_GR_CLERK to carry out the activities in this exercise.

2-1 Display the stock overview for T-RN7## and T-RN8-## in plant 1000 and write down the current stock situation.


T-RN7##

T-RN8##

2-2 Display the material master views Basic Data 1 and Accounting 1 for T-RN7## and T-RN8-##. Answer the following questions by filling in the table.

2-2-1 What is the base unit of measure for each material?What is the standard price or moving average price for each material?

Plant 1000 Base unit of measure Price

T-RN7##

T-RN8##

(C) SAP AG LO510 21

(C) SAP AG LO510 22

2-3 T-RN7## no longer has the characteristics associated with this material master record. Perform a material to material transfer and post a quantity of 100 pieces from T-RN7## to T-RN8##. The plant and storage location do not change in this transfer posting.

Movement type _______________________________________________




T-RN7##

T-RN8##

2-5 Display the material document. Is there an accounting document for this transaction?

____________________________________________________________

(C) SAP AG LO510 23

Exercises


Topic: Stock Transport Orders with MM

Optional exercise*


Explain how to post inventory transfers using a stock transfer order

Transfer a material to another plant using a stock transfer order

In your company, you transfer material between plants using stock transfer orders. This allows you to move stock between plants and see the effects the purchase order has on material availability on the stock/requirements list. This also allows you to add pricing conditions to the purchase order.

Use the SAP menu for the activities in this exercise.

3-1 Display the stock overview for material T-RN2## and write down the current stock situation in plant 1000 and plant 1100 for the following stock types.

Material T-RN2##

Unrestricted-use storage location 0001


Stock in transfer

Stock in transit

Plant 1000

Plant 1100

(C) SAP AG LO510 24

3-2 You need to transfer material T-RN2## to plant 1100. Process this stock transfer by creating a stock transfer order with the following information.

Order type: Stock transport order

Supplying plant: 1000

Purchasing org.: 1000Purchasing group: 0##Company code: 1000

Item category: UMaterial: T-RN2##Quantity: 40 piecesDelivery date: Today’s date + 1 weekReceiving plant: 1100Storage location:

Purchase order number ______________________________________________

3-3 Display the stock overview for material T-RN2## and write down the change in the stock situation in plant 1000 and plant 1100.

Material T-RN2##



Stock in transfer

Stock in transit

Plant 1000

Plant 1100

(C) SAP AG LO510 25

3-4 Display the stock/requirements list for plant 1000 and plant 1100 and analyze how the purchase order affects the stock situation in each plant. Which MRP element is used for the stock transfer order? What is the received quantity/required quantity? Answer these questions by filling in the table below.

Material T-RN2##

MRP element for the stock transfer order

Received/reqd qty

Supplying/receiving plant

Plant 1000

Plant 1100

3-5 Process this stock transfer by entering the transfer posting for stock in transit. The material is withdrawn from storage location 0001 in plant 1000.


____________________________________________________________

____________________________________________________________

Movement type _______________________________________________

Material document number ________________________________________

3-6 Display the material document and the accounting document.

3-7 Display the stock overview and write down the changes in the stock situation.

Material T-RN2##



Stock in transfer

Stock in transit

Plant 1000

Plant 1100

3-8 Enter the goods receipt for the purchase order in plant 1100 using movement type 101.

(C) SAP AG LO510 26

Material document number ________________________________________

3-9 Display the stock overview and note the change in the stock quantity in plant 1100.

Material

T-RN2##



Stock in transfer

Stock in transit

Plant 1000

Plant 1100

(C) SAP AG LO510 27

4.16Stock Transfers and Transfer Postings Solutions


Topic: Transfer Postings

1-1 Logistics Materials Management Material Master Material Create (special) Raw material

Enter material T-RN2## and copy it.

Don’t forget to enter plant 1000 as the organizational level for the reference document, as you otherwise cannot copy plant-specific data.


1-3 Inventory Management Goods Movement Goods Receipt Other (MIGO)Choose 'Goods issue - Other' To enter the initial stock balance, enter the material data, quantity, plant data, and storage location data. Enter 561 as the movement type.

Alternatively, you can enter the initial stock balance using the old transaction. Inventory Management Goods Movement Goods Receipt OtherOn the initial screen, enter movement type 561 and choose ENTER. Then enter the detailed data and post the initial stock entry.

1-4 Inventory Management Goods Movement Transfer Posting, then choose Movement type Transfer posting Stor. loc. to stor. loc Unrestr. to unrestr.

Movement type: 311

1-5 Inventory Management Goods Movement Transfer Posting, then choose Movement type Transfer posting Plant to plant Rem. fm. stor. to plant

Movement type: 303

1-6 Inventory Management Goods Movement Transfer Posting, then choose Movement type Transfer posting Plant to plant Pl. in. stor. in plant

Movement type: 305

(C) SAP AG LO510 28

1-7 Inventory Management Goods Movement Transfer Posting. Then you choose Movement type Transfer posting Stock to stock Blocked to unrestr.

Movement type: 343

1-8 Inventory Management Environment List Displays Material Document Use material T-RN2## to select the material document and choose today’s date as the posting date.

Some material documents are listed more than once because the transaction involves more than one storage location or plant.

1-9 Inventory Management Environment Stock Warehouse Stock

Plant Material T-RN2## Quantity Value


520 156000


380 114000


460 138000


20 6000

(C) SAP AG LO510 29

Worksheet: Stock Transfers – Exercise 1-1

The values you obtained in exercise 1-2 may not match those in the solutions because some of the previous exercises were optional.

Material T-RN2##



Stock in transfer plant 1000

Blocked Plant 1000





1-2 0 10 60 370 0 0

1-3 0 10 500 370 500 0

1-4 0 10 500 370 480 20

1-5 20 10 500 370 460 20

1-6 0 10 510 380 460 20

1-7 0 0 520 380 460 20

(C) SAP AG LO510 30

Solutions


Topic: Material to Material Transfer


Inventory Management Environment Stock Stock Overview


T-RN7## 100

T-RN8## 250

2-2 Logistics Materials Management Material Master Material Display Display current

2-2-1

Plant 1000 Base unit of measure Price

T-RN7## KG MAP 2.20

T-RN8## KG S 2.00

2-3 Inventory Management Goods Movement Transfer Posting, then choose Movement Type Transfer Posting Material to material

Movement type: 309



T-RN7## 0

T-RN8## 350

2-5 Inventory Management Material Document Display

Yes

(C) SAP AG LO510 31

Solutions


Topic: Stock Transport Orders with MM


Material T-RN2##



Stock in transfer

Stock in transit

Plant 1000 Various answers possible

100 0 0


0 0 0

3-2

3-2-1 LogisticsMaterials ManagementPurchasingPurchase orderCreateVendor/supplying plant known

Then choose ‘stock transport order’ as the order type.


Material T-RN2##



Stock in transfer

Stock in transit


100 0 0


40 0 0

3-4 Inventory Management Environment Stock Current Stock/Reqmt List

(C) SAP AG LO510 32

Material T-RN2##

MRP element for the stock transfer order

Received/reqd qty

Supplying/receiving plant

Plant 1000 BS-ABR 40 1100 (supplying plant)

Plant 1100 BS-EIN 40 1000 (receiving plant)

3-5 Inventory Management Goods Movement Goods Issue (MIGO); transaction 'goods issue', reference document 'purchase order'Enter the purchase order number from part 3-2 or search for it via the material and supplying plant. Enter the storage location and post the goods issue.

Movement type: 351

3-6 Inventory Management Goods Movement Goods Issue (MIGO); transaction 'Display', reference document 'material document'; double-click the last material document from the document overview.


Material T-RN2##



Stock transport order

Stock in transit


100 0 0


40 0 40

3-8 Inventory Management Goods Movement Goods Receipt For Purchase Order Goods Receipt for Purchase Order (MIGO) transaction ‘goods receipt’, reference document ‘purchase order’

(C) SAP AG LO510 33


Material

T-RN2##



Stock transport order

Stock in transit


100 0 0


0 0 0

(C) SAP AG LO510 34

5

SAP AG 1999

Split Valuation

Non-Valuated Material

Returnable Transport Packaging

Handling Units (HUs)

Contents:

Special Inventory Management Features

(C) SAP AG LO510 1

5.2

SAP AG 1999

Outline the procurement process for a split value material

Define the characteristics of material type UNBW

Outline the functions of returnable transport packaging

Explain what a handling unit is


Special Inventory Mgmt Features: Objectives

(C) SAP AG LO510 2

5.3

SAP AG 1999

?!?!

Goods Receipts




Pipeline Processing

Consignment


AB BCB

(C) SAP AG LO510 3

5.4

SAP AG 1999

In your company you have a raw material that is available as a domestic product and an imported product. The imported product costs more than the domestic product. You have established two different valuation types with a different price for each type. Analyze the impact of purchasing each type by looking at the material master and the stock overview.

For some materials, such as office supplies, you want to track the quantity in the stock overview, but it is not necessary to track the value of these materials. Therefore these materials are assigned to the non-valuated material type in the material master.

Business Scenario

(C) SAP AG LO510 4

5.5

SAP AG 1999

According toprocurement type

According tocountry of origin

According toquality

Valuation cat.

Valuation type

B O

Internal External Italy Switz. A B C D

Q

Split Valuation

The valuation category indicates whether the material’s stock is to be valuated as one unit or in parts. The valuation category is also a key that indicates the criteria for defining partial stock, and it determines which valuation types are allowed.

The valuation type is a key that identifies split-valuated stocks of material and indicates the characteristics of a partial stock.

You enter the valuation category in the material master. If you enter a goods movement using an “old transaction”, you have to specify the valuation type in the

Batch field. As of Release 4.5A, you can enter a valuation type directly in the item table within stock determination,

enabling you to more conveniently determine stocks for withdrawal for split-value materials.

(C) SAP AG LO510 5

5.6

SAP AG 1999

The Split Valuation Procedure

Plant

Plant 0001 / Material 1

SLoc

Valuation (valuation area 0001)

Valuation category O (origin)Quantity 100 piecesMoving ave. price 5.20 UNI

Valuation cat.Italy

Qty 40MAP 4.00

Valuation cat.France

Qty 60Std price 6.00

Stor. loc. 0002Quantity 70

ItalyQuantity 30

FranceQuantity 40

Stor. loc. 0001Quantity 30

ItalyQuantity 10

FranceQuantity 20

The stocks and stock values of split-value materials are cumulated at valuation area level. Moving average price control is required for material at valuation area level, because the moving average price is used for the entire valuation area.

The system also creates a valuation record containing specific valuation data for each valuation category used.

(C) SAP AG LO510 6

5.7

SAP AG 1999

GR value

GR quantity

Purch. ord.

UNBWUNBW ROHROH

Stock withdrawals are not valuated

Consumption acct Stock account Consumption acct

With acct assgt

To warehouse

W/o acct assgt With acct assgt

To warehouse To consumption

Non-Valuated Stock Materials

You manage low-value advertising or office materials in a warehouse, and can get an up-to-date report on stock levels at any time. Stock records are kept on a quantity basis, but the value is posted to a consumption account at the time of goods receipt. In cases such as this, you use the material type UNBW.

The purchase order must have an account assignment, even if the material is only managed on a quantity basis. This does not mean that the goods receipt is posted to consumption according to quantity, but rather that the costs are debited to the account assignment.

You cannot post a goods receipt of non-valuated material directly into consumption. You have to post the goods into the warehouse first and then enter the goods issue.

(C) SAP AG LO510 7

5.8

SAP AG 1999

MatM2

MatM1

Vendor A

Us/customerUs/customer

MATERIAL STOCKS

SPECIAL STOCK RTP

M1

M2

PALLETS DEL. C

PALLETS DEL. B

PALLETS DEL. A

Returnable Transport Packaging

Returnable transport packaging (for example, pallets and containers) is a medium for multiple transports of ordered materials between vendors and customers.

Returnable transport packaging belonging to the vendor and situated in the storage area is managed as special stock and clearly allocated to the relevant vendor. Because this packaging belongs to the vendor, it is not included in the valuated stock.

In addition to material master data, special stock data is necessary to keep returnable transport packaging belonging to different vendors separate.

This special stock data is defined at storage location level for each vendor. The R/3 System creates special stock data the first time you receive returnable transport packaging

stocks. The data cannot be maintained manually, but is automatically updated with every goods movement or inventory.

Returnable transport packaging can only be allocated to “unrestricted use” stock. You cannot take samples for quality inspections or create blocked stocks. Depending on how your R/3 System is configured, you can have negative stocks.

You can enter “other” goods receipts into returnable transport packaging stock, enter the quantity of returnable transport packaging when entering a goods receipt with reference to a purchase order, and carry out a transfer posting from one storage location to another (always with reversal and return).

(C) SAP AG LO510 8

5.9

SAP AG 1999

Handling Units

Handling unit 1234

Packing

Keyboard 03

PC 01

Monitor 02

Mouse 04Disks 05

A handling unit (= package) is the physical combination of materials and consists of: Packing materials (for example, pallet, box, shrink film, container) Goods (that are shipped, stored, consumed, and so forth)

A handling unit has a unique identification number, via which you can read all information about the handling unit.

Handling units can also be nested, with the result that several identification numbers are managed within the superordinate handling unit.

Handling units are used throughout the logistics process - in Inventory Management, Production, Quality Management, Warehouse Management, and SD.

Note: Handling units are dealt with in more detail in the course Lo610 Shipping.

(C) SAP AG LO510 9

5.10

SAP AG 1999

Example: Goods Rcpt Process with Handling Units

Inboundshipment

Inbound delivery/ shipping notification with HU no.

Transfer order/Plcmtin storage

HU no. 69179HU no. 69180

Goods receiptposting HU no. 69179

HU no. 69180HU no. 69181

HU no. 69181

If a goods receipt is to be posted to a storage location that is managed in handling units, you have to create an inbound delivery.

Within the inbound delivery, you can now create new handling units or copy existing ones. The handling units must exist before you create the transfer order for placement into storage. When the transfer order is confirmed, you can post the goods receipt for the inbound delivery using the

relevant handling units.

(C) SAP AG LO510 10

5.11

SAP AG 1999

Checklist for Handling Units (1)

You must maintain the following customizing settings:

In the IMG: Logistics - General -> Handling Unit Management

- Basic functions

• Basic technical functions

- Define number ranges for handling units

• Define packaging material types

• Materials Management

- HU requirement for storage locations

You must make certain settings in customizing in order to be able to use Handling Unit Management. The most important settings are as follows: You must define at least one internal number range for handling units, as the system assigns an

internal number when a handling unit is created. (Standard system: number range interval 01). You must define packaging material types, since handling units consist of packaging material and, for

example, trading goods. The packaging material type determines, for example, from which plant the packaging material comes and which number range interval should be used for number assignment.

You must decide which storage locations are to be managed using handling units. You can only set a handling unit requirement for storage locations for which no stock has been entered.

(C) SAP AG LO510 11

5.12

SAP AG 1999

Checklist for Handling Units (2)

• Delivery

- Packing control by item category

- Define sequence transfer order - goods receipt

- External Identification

• Define unique number assignment for handling unit

identification

• Maintain number ranges for handling unit identification

The packing control for the delivery item categories must permit packing, otherwise handling units cannot be created.

You can determine whether the goods receipt for the inbound delivery can already be booked before the transfer order is created. This decision will depend on the warehouse number and the delivery item category.

You must set the unique number assignment for handling unit identification to ensure that the handling units can be displayed, for example.

You can maintain number ranges for internal and external number assignment for handling units; these are then assigned to the packaging material types.

(C) SAP AG LO510 12

5.13

SAP AG 1999

Outline the procurement process for a split value material


Outline the functions of returnable transport packaging

Explain what a handling unit is


Special Features: Unit Summary

(C) SAP AG LO510 13

5.14Special Inventory Management Features Exercises

Unit: Special Inventory Management Features

Topic: Split Valuation


Explain valuation categories and valuation types

Explain the structure of the material master record

Display the stock overview for a material subject to split valuation

Outline the procurement process for a material subject to split valuation

In your company, you have a raw material that is available as a domestic product and as an imported product. The imported product costs more than the domestic product. You have established two different valuation types with a different price for each type. Analyze the impact of purchasing each type by looking at the material master record and the stock overview.

Carry out the activities in this exercise with the user menu.

1-1 Material T-RN9## is subject to split valuation with a foreign valuation type and a domestic valuation type. Display the Accounting 1 view for plant 1000 for each valuation type.

Answer the following questions by filling in the table on the next page.

1-1-1 What is the valuation category called?

1-1-2 What is the total stock quantity and the total stock quantity for this material, including all valuation types?

1-1-3 What price and price control is defined for each valuation type?

1-1-4 What is the total value and quantity for each valuation type?

Material T-RN9## subject to split

Valuation category

Valuation class

Price control

Price Total qty

Total value

(C) SAP AG LO510 14

valuation

Valuation area/ plant 1000

Valuation typeDomestic

Valuation typeForeign

1-2 Display purchase order 415106-##. What is the valuation type called? ____________________________________________________________

1-3 The goods receipt has been entered for purchase order 415106-##. Enter the goods receipt for 200 pieces in plant 1000, storage location 0001. Which tab in the item details contains the valuation type?

___________________________________________________________


1-4 Display the stock overview for material T-RN9## in plant 1000 and write down the current stock situation.

Material T-RN9## subject to split valuation

Quantity

Plant 1000 (total)

Foreign

Domestic

1-5 Cost center T-L## informs you that it requires 10 pieces of material T-RN9##. Enter a goods issue for the cost center and choose valuation type Foreign (Ausland).


(C) SAP AG LO510 15

1-6 Display the material document and the accounting document for the goods issue.

What value was used for the debit and credit postings?

___________________________________________________________

1-7 Display the Accounting 1 view in the material master for each valuation type. Write down the price for each valuation type. How have the prices changed in comparison to part 1-1 of this exercise?


Price control

Price Total qty

Total value




(C) SAP AG LO510 16

Exercises



Optional exercise*


Create a material subject to split valuation

In your company, you need to create a raw material that is available as a domestic product and an imported product. The imported product costs more than the domestic product. You create two valuation types and use a different price for each type.


2-1 Create raw material T-RNA## in plant 1000 using industry sector Mechanical engineering. Select the Basic Data 1, Purchasing, and Accounting 1 views.

Enter the following data on the Basic Data 1, Purchasing, and Accounting 1 views.

(Basic Data 1 View)

Field Value

Material description Wire harness

Base unit of measure PC

Material group 001

(Purchasing View)

Field Value


(C) SAP AG LO510 17

(Accounting 1 View)

Field Value

Valuation category H

Valuation class 3000

Price control V

Price

Choose ENTER to confirm any warning messages that the system issues about the moving average price.

2-2 Create the accounting views for each valuation type by going back to the Create Material screen and re-entering the same material number. Choose the Accounting 1 view. When the Organizational Levels dialog box appears, enter plant 1000 and valuation type Domestic (Inland). Use valuation class 3000, choose either V or S for price control, enter a price of 10.00 and save your work.

Repeat step 2-2 for valuation type Foreign (Ausland). Choose valuation class 3001 and enter 15.00 as the price.

2-3 Create a purchase order containing one item, for the Foreign (Ausland) valuation type. Use vendor T-K10B##, purchasing organization for IDES Deutschland, purchasing group 0##, and plant 1000. Enter a quantity, a delivery date, and a price.

Purchase order number ________________________________________

(C) SAP AG LO510 18

Exercises


Topic: Material Type UNBW



Post a goods receipt for a non valuated material and a valuated material

Post goods movements and analyze their effects on material valuation

For some materials, such as office supplies, you want to be able to track the stock quantities on the stock overview but it is not necessary to track the value of these materials. Therefore, you assign these materials to material type UNBW in the material master.

Carry out the activities in these exercises with the user menu.

3-1 Display material master record T-ZU1##, and write down the material type this material is assigned to.

Material type __________________________________________________

3-2 Display purchase order 415107-##. Which account assignment categories are the items assigned to? The Account assignment category field is labeled A.

Account assignment category

Item 10

Item 20

Item 30

(C) SAP AG LO510 19

3-3 Write down the stock situation for materials T-RNB## and T-ZU1##.

(Stock Overview)

T-RNB## T-ZU1##



3-4 Enter a goods receipt in plant 1000, storage location 0001 for the entire quantities of purchase order 415107-##.

Movement type _______________________________________________


3-5 Display the material document and the accounting document. Which G/L accounts have been updated?

____________________________________________________________

____________________________________________________________

____________________________________________________________

3-6 Write down the stock situation for materials T-RNB## and T-ZU1##.

(Stock Overview)

T-RNB## T-ZU1##



3-7 Enter a goods issue for material T-ZU1## to cost center T-L## for a quantity of 50 pieces from plant 1000, storage location 0001.

Movement type _______________________________________________


3-8 Display the material document for this transaction. Is there an accounting document?

____________________________________________________________

(C) SAP AG LO510 20

3-9 Now display the stock situation and the consumption statistics for material T-ZU1##.

Menu path for consumption statistics:

From the Stock Overview Report: Position the cursor on the plant line and choose Extras Display Material. Choose [Additional data], then [Consumption].

(Stock Overview and Consumption)

T-ZU1##



Consumption

(C) SAP AG LO510 21

Exercises


Topic: Handling Units

Optional exercise*


Enter a goods receipt into a storage location that uses handling units

Issue goods managed in handling units to a cost center

Your vendor informs you of the goods you have ordered via an inbound delivery document and sends you the packing information at the same time. When you enter the goods receipt you have to enter only the handling unit.

4-1 A purchase order 415109-## has been created for the material T-RND##. Display this purchase order and answer the following questions.

4-1-1 For which plant and which storage location is the material being procured?

____________________________________________________

4-1-2 What confirmation control key is specified in the item for material T-RND##?

Where do you find the control key?

______________________________________________________

Confirmation control key?

______________________________________________________

4-2 The vendor T-K10C## informs you that you will soon receive the delivery for purchase order 415109-##. He or she also tells you that there are 10 pieces of T-RND## per box T-ZU2##.

Create an inbound delivery for purchase order 415109-##. Enter the type of packaging.

Menu path: Create a delivery for a purchase order

(C) SAP AG LO510 22

Logistics Materials Management Purchasing Purchase Order Inbound Delivery Create

To pack the 100 pieces of material T-RND##, choose [Pack] in the inbound delivery. Enter the box T-ZU2## as the packaging material. In the line for material T-RND##, enter the partial quantity 10.

Then select the packaging material and the material and choose [New HU for partial quantity of material].

Save the inbound delivery.

Number of inbound delivery ______________________________________

4-3 The delivery arrives for the 100 pieces of material T-RND##. Enter the goods receipt for the inbound delivery.

The easiest way to enter the goods receipt is by changing the inbound delivery from part 4-2.

Choose [Place in storage] and enter the delivery quantity of 100 pieces. Then choose [Post goods receipt].

To check that the goods receipt has been posted, display the document flow for the inbound delivery and the material document that has been created.


4-4 To monitor the handling units, call up the handling unit monitor by choosing Logistics Central Functions Handling Unit Management.

Display a list of all handling units for your user Lo510-##.

4-5 Cost center T-L## now needs 20 pieces of material T-RND##. Issue the material from the storage location that uses handing units HUMM, plant 1000.

Remember that you have put 10 pieces of the material in one handling unit (HU).

You can post the goods issue from Handling Unit Management.

HU Management Goods Movements of HUs Post Goods Movements – General (with HU)


(C) SAP AG LO510 23

5.15Special Inventory Management Features Solutions





Valuation category

Valuation class

Price control

Price Total qty

Total value


H 3000 V 2.00 100 200


H 3000 V 2.00 100 200


H 3000 S 2.60 0 0

1-2 Logistics Materials Management Purchasing Purchase Order Display Choose [Other purchase order], enter the purchase order number, and choose [Other document].

The valuation type is contained in the [Delivery] tab of the item details.

Valuation type: Foreign

1-3 Inventory Management Goods Movement Goods Receipt For Purchase Order Goods Receipt for Purchase Order (MIGO) Then choose ‘goods receipt’ for purchase order

Detail tab title: material

(C) SAP AG LO510 24



Quantity

Plant 1000 300

Foreign 200

Domestic 100

1-5 Inventory Management Goods Movement Goods Issue (MIGO), then 'Goods issue – Other'

Movement type: 201

1-6 Inventory Management Goods Movement Goods Issue (MIGO), then 'Display – Material document';In the [Document info] tab of the header data, choose [FI documents].

Value for the postings: 26.00



Price control

Price Total qty

Total value


V 2.39 290 694

Domestic V 2.00 100 200

Foreign S 2.60 190 494

(C) SAP AG LO510 25

Solutions



2-1 Logistics Materials Management Material Master Material Create (special) Raw material

2-2 You create the accounting views for each valuation type by going back to the ‘Create Material’ screen and re-entering the same material number. You enter the plant and the respective valuation type in the ‘Organizational Levels’ dialog box.

2-3 Logistics Materials Management Purchasing Purchase order Create Vendor/supplying plant known

(C) SAP AG LO510 26

Solutions


Topic: Material Type UNBW

3-1 Logistics Materials Management Material Master Material Display Display Current

The material type is contained in the title bar or in the information about the material ([i] icon on every view of the material master record).

Material type: Non valuated (UNBW)


Account assignment category

Item 10 Empty (no account assignment)

Item 20 K (assigned to cost center)

Item 30 K (assigned to cost center)


(Stock Overview)

T-RNB## T-ZU1##

Unrestricted-use stock 0 0



3-5 Keep the transaction used in part 3-4 open. Choose the transaction ‘Display – Material document’; [Document info] header tab; [FI documents] pushbutton

The system updates the stock account 300000 raw materials 1 for the order item that does not have an account assignment.

It updates the consumption account 400000 for raw materials for the two items that have an account assignment.

The system posts all offsetting entries to the GR/IR clearing account.

(C) SAP AG LO510 27


or from the material document, choose the item detail tab [Where], [Stock] icon.

(Stock Overview)

T-RNB## T-ZU1##

Unrestricted-use stock 200 200


3-7 Inventory Management Goods Movement Goods Issue (MIGO), ‘Goods issue - other’

Movement type: 201

3-8 Keep the transaction used in part 3-7 open. Choose the transaction ‘Display – Material document’; [Document info] header tab; [FI documents] pushbutton

There is no accounting document for this transaction, because the consumption account was posted at goods receipt.


Menu path for consumption statistics:

From the stock overview: Position the cursor on the plant line. Then choose Extras Display material. Choose [Additional data].

(Stock Overview and Consumption)

T-ZU1##

Unrestricted-use stock 150


Consumption 50

(C) SAP AG LO510 28

Special Inventory Management Features Solutions


Topic: Handling Units


Choose [Other purchase order], enter the purchase order number, and choose [Other document].

4-1-1 The material is being procured for plant 1000, storage location HUMM (storage location subject to handling unit management without WM).

4-1-2 The confirmation control key is entered in the [Confirmations] tab on the item detail screen. The control key ANLI is specified for this item.

4-2 Logistics Materials Management Purchasing Purchase Order Inbound Delivery Create

Enter the purchase order number and choose ENTER.

To pack the materials, choose [Pack]. Enter the packing material and the partial quantity that is to be packed in each box. The partial quantity is specified in the line for the material that is to be packed.

Then select the packaging material and the material and choose [New HU for partial quantity of material].

Save the inbound delivery.

4-3 Logistics Materials Management Purchasing Purchase Order Inbound Delivery Change ( ENTER)

Enter the quantity delivered and post the goods receipt by choosing [Post goods receipt].

Once you have posted the goods receipt, ‘Change inbound delivery’ appears on the initial screen. From there, you can display the document flow for your inbound delivery by choosing [Document flow].

Select the material document in the list and choose [Display document].

4-4 Logistics Central Functions Handling Unit Management Handling Unit Monitor

To select via your user Lo510-## all handling units that you have created, choose [User].

(C) SAP AG LO510 29

4-5 Logistics Central Functions Handling Unit Management Goods Movements of HUs Post Goods Movements – General (with HU)

Choose 'Consumption for cost center from storage', enter the cost center and one of your handling units. Repeat the procedure for a second handling unit.

To post the goods movement, choose [Post goods movement].

(C) SAP AG LO510 30

6

SAP AG 1999

Pipeline Processing

General Information on Pipeline Handling

Creating Pipeline Material

Creating a Pipeline Purchasing Info Record

Posting Goods Issues for a Pipeline

Settlement of Pipeline Liabilities

Contents:

(C) SAP AG LO510 1

6.2

SAP AG 1999

Define the characteristics of material type PIPE

Outline the process of a pipeline material


Pipeline Processing: Unit Objectives

(C) SAP AG LO510 2

6.3

SAP AG 1999

Goods Receipts





Consignment

Course Overview Diagram: Pipeline Processing

(C) SAP AG LO510 3

6.4

SAP AG 1999

For a particular material you need cold water for the production process, which you withdraw from a pipeline on the shopfloor. The water consumption is settled regularly with the water works.

Pipeline Processing: Business Scenario

(C) SAP AG LO510 4

6.5

SAP AG 1999

Material type PIPEMaterial type PIPE

For example, gas, water, power

No inventory management, no physical inventory

Available in any quantity

No purchasing, no MRP

Can be used as component in production order(retrograde withdrawal)Costs are updated in production order

Pipeline Material: Material Type PIPE

Pipeline material is material that flows directly into the production process from a pipe (for example, oil) or another kind of conduit (for example, electricity).

Pipeline handling is mandatory for the material type PIPE; that is, goods withdrawals for these materials can only be posted from the pipeline.

(C) SAP AG LO510 5

6.6

SAP AG 1999

Pipeline movements mandatory

Pipeline movements allowed

- Inventory management- Pipeline movement- Other movements

Other material typesOther material types

Pipeline Material: Other Material Types

For each material type, you can specify whether pipeline movements are mandatory or allowed. If pipeline movements are allowed instead of mandatory, you can keep the material in stock, and can

post both pipeline movements and other movements. You can withdraw material of this type from your company’s own stock, from consignment stocks, or

from the pipeline.

(C) SAP AG LO510 6

6.7

SAP AG 1999

Invoice

Pipelineliabilities

settlement

Pipeline materialas componentsin prod. order

Retrogradewithdrawal

Material masterPIPE

Pipeline info

recordMaintain

source list

Post goods issue from pipeline

Pipeline Material: Process Flow

Source iist

Material M1Plant 0001

Material from the pipeline is always available, and can be taken from the pipeline in any quantity at any time. You can enter a pipeline withdrawal with reference to a purchase order or a cost center.

A pipeline withdrawal has the following effects in the R/3 System: It results in a liability to the vendor, similar to the situation with a consignment, where settlement

takes place periodically. The payables account can be different from that for a consignment vendor. Consumption statistics are kept. Pipeline withdrawals have no effect on existing warehouse stock nor on the availability of materials.

(C) SAP AG LO510 7

6.8

SAP AG 1999

Vendor

06.30.97

05.01.97

Time

GI

GI

GI

Price ofpipeline material

01.01.- 05.31120.00 UNI

06.01.- 12.31125.00 UNI

Invoiceconsumptionofpipelinematerial05.01. - 06.30

Liabilities

Liabilities

Liabilities

MAT1MAT1PIPE1PIPE1

PipelinePipelinematerialmaterial MaterialMaterial

Settlement of Pipeline Consumption

You can now settle pipeline liabilities online as well as on a batch basis. When processing online, you can define on the initial screen whether the withdrawals are to be settled or

whether the withdrawals to be settled are just to be listed. You can inform the vendor periodically about the consumption of pipeline material. The list is restricted

to consumption that has not yet been settled. You enter the invoice for pipeline liabilities without reference to a purchase order. Debits are posted to

the “Liabilities from consignment stores” G/L account, to which the credits were posted upon consumption of the pipeline material.

If pipeline liabilities are posted to the same account as consignment liabilities, you have to settle the pipeline and consignment liabilities together.

If pipeline and consignment liabilities are posted to different accounts, you settle these separately. You have the same options for settling pipeline liabilities that you have for settling consignment

liabilities.

(C) SAP AG LO510 8

6.9

SAP AG 1999

Pipeline Processing: Unit Summary


Outline the process of a pipeline material


(C) SAP AG LO510 9

6.10Pipeline Processing Exercises

Unit: Pipeline Processing

Topic: Pipeline Material

Optional exercise*



Outline the process of a pipeline material in Inventory Management

In your company, you have pipeline materials. These are materials that flow directly into the production process. Pipeline materials are treated differently because there is no inventory to manage. You keep track of the issues from the pipeline and settle your liabilities with the vendor monthly.


1-1 Display material T-ZP1##, and write down the material type assigned to this material.

Material type __________________________________________________

1-2 Display the pipeline info record for material T-ZP1## and write down the agreed price. Vendor T-K10C## supplies this material for purchasing organization 1000 IDES Deutschland and plant 1000.

Make sure you select Pipeline on the first screen of the info record. The price can be found on the Purch. Org. data 1 screen.

What is the net price? ______________________________________

(C) SAP AG LO510 10

1-3 Enter a goods issue for 20 liters of pipeline material T-ZP1## to cost center T-L##.

Movement type _______________________________________________

Special stock indicator ____________________________________


1-4 Display the material document and accounting document. Which G/L accounts are updated?

____________________________________________________________

____________________________________________________________

1-5 You want to settle the liabilities incurred from the pipeline withdrawal.

1-5-1 Before you start the settlement program, display a list of the liabilities for material T-ZP1##.


______________________________________________________

______________________________________________________

What is the amount of the liability?

______________________________________________________

1-5-2 Now settle the liabilities incurred for the pipeline material T-ZP1## and the vendor T-K10C##.

On the initial screen, choose Pipeline and Settlement.

Invoice document _______________________________________

1-5 -3 Display the accounting view for the automatically created invoice. Which G/L accounts are updated?

(C) SAP AG LO510 11

6.11Pipeline Processing Solutions

Unit: Pipeline Processing

Topic: Pipeline Material


Material type: PIPE

1-2 Logistics Materials Management Purchasing Master Data Info Record Display

Net price: 1.45

1-3 Logistics Materials Management Inventory Management Goods Movement Goods Issue (MIGO), then choose ‘Goods issue - other’

Movement type: 201

Special stock indicator: P

1-4 Keep the transaction from part 1-3 open. Instead of choosing ‘Goods issue – other’, choose ‘Display – material document’. In the header data, you can find the [Accounting docs] pushbutton in the document information.

The system updates the liabilities from consignment stores account and the consumption of raw materials 1 account.

1-5

1-5-1 Logistics Materials Management Logistics Invoice Verification Automatic Settlement Consignment and Pipeline Settlement

or

... Inventory Management Environment Consignment Consgnmt from Vendor Liability

The liability is 29.00 UNI.

(C) SAP AG LO510 12

1-5-2 Return from the list to the selection screen.Enter the vendor and the material, and choose settle in the processing screen area.

1-5-3 From the results list in part 1-5-2, you can go directly to the accounting document. To do this, click the accounting document number.

The following accounts are posted:Vendor account, liabilities from consignment stores account, and incoming tax account.

(C) SAP AG LO510 13

7

SAP AG 1999

Price Data for Consignment Material

Procurement of Consignment Material

Consignment Stock Movements

Settlement of Consignment Liabilities

Contents:

Consignment

(C) SAP AG LO510 1

7.2

SAP AG 1999

Post goods receipts into consignment stock

Display consignment stock

Post goods issues from consignment stock

Transfer consignment stock

Transfer consignment stock to another stock type

Settle consignment material and/or transfer consignment stock to your company’s own stock


Consignment: Unit Objectives

(C) SAP AG LO510 2

7.3

SAP AG 1999

Goods Receipts




Pipeline Processing


Course Overview Diagram: Consignment

(C) SAP AG LO510 3

7.4

SAP AG 1999

You have an arrangement with two different vendors to supply consignment material to your company. The consignment material is considered available to MRP, however, it is not valued because it is still owned by the vendor. You take ownership of the material when you issue to a cost center or transfer it into your own stock. You settle your consignment liabilities with the vendor monthly.

Consignment: Business Scenario

(C) SAP AG LO510 4

7.5

SAP AG 1999

InvoiceInvoiceverificationverification

InventoryInventorymanagementmanagementPurchasingPurchasing

Stock

A

B B C

B

Invoice

Settle-ment

Purch.order

K Mat1 Price0

?=

Master dataMaster data

Material/vendor:

Price = 11.00

Consignmentinfo record with

price

Consignmentitem

GR GI

AvailableNon-valuated

Consignmentstores

Purch.

Vendor Consignment Goods

The vendor provides goods that are stored in consignment stores. The vendor remains owner of the material until you withdraw materials from the consignment stores.

The vendor is informed of material withdrawals on a regular basis. The quantity withdrawn is invoiced at certain time intervals.

(C) SAP AG LO510 5

7.6

SAP AG 1999

Vendor MillerMaterial Gas

• Prices in foreign currency

• Periodic prices

• Prices in any unit of

measurement

• Discounts

• Price quantity scales

. . .

Consignment Info Records

Info recordCategory: consignment

IMG:Activate

consignmentprices via

info records

Consignmentprice segment

ConditionsPrice 1.50 UNI

The consignment price for procuring a consignment material from a vendor is stored in a consignment info record.

In Release 4.0, consignment info records are supported parallel to the old consignment price segments. In later releases, consignment price segments are no longer supported. and so you have to convert them to info records. You can convert them in Customizing at any time while using Release 4.0. After you convert consignment price segments, you can no longer maintain them.

You can manage consignment prices in foreign currencies with consignment info records. The purchase order currency of the vendor is used for consignment withdrawals.

Consignment prices can be defined periodically. You can specify the consignment price in any unit of measure. The conversion factor is defined in the

info record. You can also use conditions in Purchasing, as well as the definition of discounts and price quantity

scales.

(C) SAP AG LO510 6

7.7

SAP AG 1999

Plant 0001

SLoc

ConsignmentConsignmentvendor Millervendor Miller

ConsignmentConsignmentvendor Smithvendor Smith

Price: 10.00 Price: 9.50

L001 L002

Miller:

Quantity 100

Smith:

Quantity 50

Miller:

Quantity 100

Smith:

Quantity 50

MAT1MAT1

MaterialMaterial

Consignment Stock

A vendor's consignment price for a material is valid plant-wide. Consignment stocks of a material from one vendor are managed at storage location level. Your own stocks and consignment stocks of the same material in the same storage location are managed

separately, under one material number. You can take inventory of a vendor's consignment material.

(C) SAP AG LO510 7

7.8

SAP AG 1999

No price

No conditions

No IR

GR required

Purch.requisition

Contract

K

Purch. ord.

K

K

K

K

Consignment Items in Purchasing

A consignment item is a request to the vendor to deliver material to the consignment stores. A separate item category is assigned to a consignment item in Purchasing. For consignment items, you must select a material for consignment that has a material type that includes

inventory management. You cannot specify a purchase price or conditions for consignment items. When posting an invoice receipt for consignment material, you do not make reference to the purchase

item. Using a special procurement key (MRP data for a material), you can select a material in a plant for

consignment procurement. You can specify consignment processing as a special procurement type for a quota arrangement item.

(C) SAP AG LO510 8

7.9

SAP AG 1999

MAT1MAT1

MaterialMaterial

==

++

Purch. ord.

K

or or or or

VendorVendor

Blocked BlockedQuality

inspection

ValuatedValuated stockstock

Stock available for MRPStock available for MRP

Qualityinspection

Unrestricted-use

Unrestricted-use

Goods Receipt to Consignment Stock

You can enter goods receipts into your consignment stock with or without reference to a purchase order. The vendor’s consignment price for a material must be determined before you post the goods receipt. A goods receipt to consignment stock does not change the valuated stock quantity, since the material still

belongs to the vendor.

(C) SAP AG LO510 9

7.10

SAP AG 1999

Stor. loc.0001

Stor. loc.0002

Miller's consignment stocks Smith's consignment stocks

MAT1MAT1Blocked Quality

insp.

Qualityinsp.

Blocked

Unrestricted-use

Unrestricted-use

Unrestricted-use

Blocked Qualityinsp.

Unrestricted-use

MaterialMaterial

Transfer Posting to Consignment Stock

Consignment stocks can be managed in the stock types “unrestricted-use stock”, “quality inspection stock”, and “blocked stock”.

Transfer postings are not relevant for valuation.

(C) SAP AG LO510 10

7.11

SAP AG 1999

Stor. loc.0001

Stor. loc.0002

GI

Miller's consignment stocks Your own stocks

Qualityinsp.



Unrestricted-use

Unrestricted-use

Unrestricted-use

MAT1MAT1

Production

Liabilities toconsignment vendor

Consignmentprice

Material MAT1Vendor Miller

BlockedMaterialMaterial

Goods Issue from Consignment Stock

You can post goods issues only from the unrestricted-use consignment stock. When transferring goods from the consignment stock into your own stock, you can specify a receiving

storage location. This also results in a stock transfer. A goods issue from consignment stock results in a liability to the consignment vendor.

(C) SAP AG LO510 11

7.12

SAP AG 1999

MaterialMaterial

AA

MAT1MAT1MAT1MAT1

MaterialMaterial

ConsignmentConsignmentstock forstock for

MillerMillerVendor

June 30, 99

May 01, 99

Time

GR

GI

GI

GI

Consignmentprice:

Jan. 01- May 31120.00 UNI

June 01 - Dec.31125.00 UNI

InvoiceConsumptionfromconsignmentstockMay 01 - Jun.30

Liabilities

Liabilities

Liabilities

Settlement of Consignment Liabilities

You can settle consignment withdrawals online as well as on a batch basis. When processing online, you can define on the initial screen whether the withdrawals are to be settled or

whether the withdrawals to be settled are just to be listed. You can inform the vendor periodically about issues from its consignment stocks. The list is restricted to

goods issues that have not yet been settled. You enter the invoice for consignment liabilities without reference to a purchase order. Debits are posted

to the Liabilities from consignment stores G/L account, to which the credits were posted upon goods issues from the consignment store.

(C) SAP AG LO510 12

7.13

SAP AG 1999

Consignment: Unit Summary


Display consignment stock


Transfer consignment stock

Transfer consignment stock to another stock type

Settle consignment material and/or transfer consignment stock to your company’s own stock


(C) SAP AG LO510 13

7.14Consignment Exercises

Unit: Consignment

Topic: Consignment Material


Maintain an info record for a consignment price

Display a purchase order for a consignment material with item category K


Post stock transfers and transfer postings within consignment stock


Settle consignment liabilities

You have an agreement with two different vendors to supply consignment material to your company. The consignment material is considered available for MRP purposes. However, it is not valued because it is still owned by the vendor. You take ownership of the material when you issue to a cost center or transfer it into your own stock. You settle your consignment liabilites with the vendor monthly.

Use the SAP menu for these activities.

1-1 Determine the consignment stock for material T-RNC## in plant 1000.

To display the stock, choose Inventory Management Environment Consignment. Display the prices and values also.

To which vendor does the consignment stock belong, and what consignment price has been negotiated?

____________________________________________________________

(C) SAP AG LO510 14

1-2 Write down the stock situation in the table below for your consignment material T-RNC## in plant 1000.

(Stock Overview)



Unrestricted-use(own)

Unrestricted-use consignment

Quality inspection consignment

Blocked consignment

1-3 Display the Accounting 1 view on the material master for material T-RNC## in plant 1000 and write down the following information.

1-3-1 What is the total stock quantity? __________________________

1-3-2 What is the total value of this unrestricted-use stock?

______________________________________________________

1-4 Cost center T-L## requires 50 pieces of material T-RNC## in three weeks. Create a withdrawal reservation for plant 1000. You do not know from which storage location the material will be taken, so you leave it blank.


1-5 Display the stock/requirements list for T-RNC##. How does the reservation affect the available quantity during the next two months? ____________________________________________________________

(C) SAP AG LO510 15

1-6 Display consignment purchase order 415108-##.

1-6-1 Which vendor is listed on the purchase order?

______________________________________________________

1-6-2 What is the item category?

______________________________________________________

1-6-3 What is the purchase order price?

______________________________________________________

1-7 The consignment material T-RNC## is supplied by vendor T-K10B##. Display the consignment info record to see the consignment price that has been negotiated with the vendor for purchasing organization 1000 and plant 1000.

You find the price on the Purch. Org. data 1 screen.

Price _______________________________________________________

1-8 Vendor T-K10B## delivers the consignment material on purchase order 415108-## to plant 1000. The packaging is damaged, so you post a receipt of 10 pieces to blocked stock in storage location 0001 and send the remaining 90 pieces to quality inspection in storage location 0001. Post this goods receipt using one material document.

To distribute the total delivered quantity among blocked stock and quality inspection stock, choose [Distribute quantity].

What special stock indicator does the system automatically determine? Why does it determine this indicator?______________________________________________________

Material document number ___________________________________

1-9 Display the material document for the goods receipt. Is there an accounting document for the goods receipt?

____________________________________________________________

(C) SAP AG LO510 16

1-10 Display the Accounting 1 view on the material master for material T-RNC## in plant 1000. Answer the following questions and compare to your results in part 1-3.

1-10-1 Has the total stock quantity changed?

______________________________________________________

1-10-2 Has the total value of this unrestricted stock changed?

______________________________________________________

1-10-3 Why?_______________________________________________

______________________________________________________

1-11 Display the stock overview for material T-RNC## in plant 1000 for all storage locations and write down the stock situation.

(Stock Overview)






Blocked consignment

1-12 The 90 pieces of material T-RNC## from vendor T-K10B## passed the quality inspection. Carry out the transfer from quality inspection consignment stock to unrestricted-use consignment stock. The storage location is the same.

Which movement type and which special stock indicator do you use?

____________________________________________________________


(C) SAP AG LO510 17

1-13 Display the stock overview for material T-RNC## for all storage locations in plant 1000 and write down the following information.

(Stock Overview)






Blocked consignment

1-14 Issue 50 pieces of material T-RNC## from consignment stock in storage location 0001 (vendor T-K10B##) with reference to the reservation for cost center T-L## from part 1-4.

Which movement type and which special stock indicator do you use? ____________________________________________________________

You can enter the vendor in the [Partner] tab on the item detail screen.


1-15 Display the material document.

1-15-1 Is there an accounting document for this goods movement?

______________________________________________________

1-15-2 Which G/L accounts are updated?

______________________________________________________

______________________________________________________

______________________________________________________

(C) SAP AG LO510 18

1-16 You have agreed with vendor T-K10B## to regularly transfer unrestricted-use consignment stocks to your own stock at the end of the quarter. First, check the stock overview for material T-RNC## to see the quantity of unrestricted-use consignment stock remaining for vendor T-K10B##.

(Stock Overview)

Vendor T-K10B## Storage location 0001



1-17 Transfer this remaining quantity of unrestricted-use consignment material T-RNC## into unrestricted-use stock within the same storage location. Update the current stock situation in the table.

Movement type _______________________________________________


(Stock Overview)

Vendor T-K10B## Stor. loc. 0001 Stor. loc. 0002


1-18 What movements of consignment stock have taken place during the last two months for material T-RNC##? How can you display this information?

____________________________________________________________

1-19 What liabilities from vendor consignment have accrued during the last two months for vendor T-K10B##?

Total value __________________________________________________

1-20 Settle your consignment liabilities with vendor T-K10B## by running the settlement program.

Invoice document number ____________________

(C) SAP AG LO510 19

7.15Consignment Solutions

Unit: Consignment

Topic: Consignment Material

1-1 Inventory Management Environment Consignment Vendor Consignment Stock

Vendor T-K10C##

Price 16.00


(Stock Overview)




110 0


15 0


0 0

Blocked consignment 0 0

1-3 From the stock overview: Position the cursor on the plant line and choose Extras Display Material

orLogistics Materials Management Material Master Material Display Display Current

1-3-1 Total stock: 110 pcs

1-3-2 Total value: 1.595 UNI

1-4 Inventory Management Reservation Create. Then choose Movement Type Consumption For Cost Center

1-5 Inventory Management Environment Stock Stock/Requirements List

The reservation reduces the available quantity.

(C) SAP AG LO510 20


1-6-1 Vendor: T-K10B##

1-6-2 Item category: K

1-6-3 Order price: 0.00

1-7 Logistics Materials Management Purchasing Master Data Info Record Display You find the price on the Purch. Org. data 1 screen.

Price: 13.00

1-8 Inventory Management Goods Movement Goods Receipt For Purchase Order Goods Receipt for Purchase Order (MIGO) Then choose ‘goods receipt’ for purchase order

As the item category K (consignment) is specified in the order item, the system automatically determines the special stock ‘consignment’ (indicator K) when goods are received for a purchase order.

1-9 Keep the transaction from part 1-8 open. Instead of choosing ‘Goods receipt for purchase order’, choose ‘Display – material document’. The [Accounting docs] pushbutton is contained in the [Document info] tab in the header details.

As the vendor consignment stock does not yet belong to your stocks, it is not valuated at goods receipt. Therefore, there is no accounting document.

1-10 Logistics Materials Management Material Master Material Display Display Current

1-10-1 No

1-10-2 No

1-10-3 Because the consignment stock is still owned by the vendor and therefore is not valuated by the system.

(C) SAP AG LO510 21


(Stock Overview)




110 0


15 0


90 0


1-12 Inventory Management Goods Movement Transfer Posting. Then choose Movement Type Transfer Posting Vendor Consignment QI to Unrestricted.

Movement type: 321 Special stock indicator: K


(Stock Overview)




110 0


105 0


0 0


1-14 Inventory Management Goods Movement Goods Issue (MIGO) 'Goods issue' for reservation

Enter the reservation number. Also enter the special stock indicator K and vendor T-K10B##, [Partner] tab.

1-15 From the Enter Goods Issue view, switch to the Display Material Document view.

1-15-1 The system has created an accounting document for this goods issue.

1-15-2 Liabilities from consignment stores and consumption of raw materials 1.

(C) SAP AG LO510 22


(Stock Overview)



Unrestricted-use consignment 40 0

1-17 Inventory Management Goods Movement Transfer Posting. Then choose Movement Type Transfer Posting Vendor Consignment Consignment to own.

Movement type: 411 Special stock: K

(Stock Overview)



Unrestricted-use consignment 0 0

1-18 Inventory Management Environment List Displays Material Documents for Material

1-19 Inventory Management Environment Consignment Consgnmt from Vendor Liability

On the initial screen, enter the vendor, material, and a posting date in the past two months as selection criteria. Select only ‘Consignment’ and choose ‘Display’ from the Processing menu.

You can total the liabilities by adding the amounts of the individual liabilities. Select the ‘Amount’ column and click [ Total].

Total value: 1170.00

1-20 Inventory Management Environment Consignment Consgnmt from Vendor Liability

Choose the same selection criteria as those used in part 1-19. On the initial screen, choose only Consignment and choose Settle from the processing menu.

(C) SAP AG LO510 23

8

SAP AG 1999

Conclusion







00100100010001 00020002

AB BCB ??

(C) SAP AG LO510 1

8.2

SAP AG 1999

Course Objectives


Perform goods receipts, goods issues, and stock transfers

Process stock reservations

Identify special Inventory Management features, such as split value and non-valuated stock functionality

Explain consignment and pipeline stock

(C) SAP AG LO510 2

8.3

SAP AG 1999

Recommended Follow-up Courses

LO511 Physical Inventory *

LO525 Consumption-Based Planning

LO550 Cross-Functional Customizing in MM

LO925 Cross-Application Business Processes in SD and MM

LO930 LIS Reporting

CA535 Material Valuation *

* Courses LO511 and CA535 are offered for the Release 4.0 level.

(C) SAP AG LO510 3

8.4

SAP AG 1999

Recommended Follow-up Activities

Go through the exercises using IDES data or your own data

Read online documentation

Read IMG documentation

Read release notes

(C) SAP AG LO510 4

Inventory Management

Documents

Transcript of Inventory Management