Inventory Management in SAP (SAP MM-MI ) deals with goods. Actually the process of Procurement starts with collecting the business requirement for goods and goes to getting the goods from Vendors in SAP MM.
Once received; Goods have to be place on premise of the company in order to be accessible for consumption or reselling.
Here Inventory Management helps dealing with Goods Placement and management of SAP Stocks.
Table of Contents
SAP Inventory Management and Physical Inventory (MM-IM) ‘s component deals with the following tasks:
Source: Inventory Management
A goods receipt in the Warehouse Management system (WMS) is the physical inbound movement of goods or materials into the warehouse.
It is a goods movement that is used to post goods received from external vendors or from in-plant production.
Source: Goods receipt – SAP Help Portal
Goods Issue is basically movement of materail within the plant for consumption/manufacturing or outside the plant as delivery to Customer.
Speaking in Inventory terminology, Deplition(reduction in) of stock level as material is getting consumed.
source: good issue and good reciept | SCN
Read detail on Movement Types in SAP here:
The main topics for Inventory Management in SAP MM are:
When it comes to inventory management in SAP, you will hear these important objects:
Movement Type identifies the kind of stock posting. The Posting in SAP Stock can be due to an order and the Movement type is posted against a goods receipt or a goods issue.
The Path in SAP Menu for Movement Type is
Logistics > Materials Management > Inventory Management > Goods Movement > Goods Movement (MIGO)
Or you can directly launch the famous SAP MM Tcode: MIGO
For more information on Good Movement ininventory management sap, check alos
Goods Receipt is issues when goods are received from vendors and the quantity & quality are validated.
Consequently Good Receipt in SAP MM will increase the Warehouse stock for received goods.
Goods Receipt, depending of Movement Type, will post stock in Inventory Management in SAP MM.
The only two actions of Goods Receipt are: creating Goods Receipts or cancelling an existing Goods Receipts.
Goods Receipts can be issues against one of multiple documents such as:
Inventory Management will retrieve the relevant of the document in case If Goods Receipt is created based on a document.
Therefore these Data (plant, materials, quantity) will be fetched from the document.
Notice that it is MIGO tcode, ?also the SAP MM MIGO transaction is the main SAP Tcode in Inventory in SAP MM.
Reservation allows blocking a certain amount of Stocks in advance for a period of time in advance as a result it ensures the availability of a SAP Material for the future expected requirement.
For example, a SAP MM reservation can be made for an order (Movement Type will be 261).
In SAP MM Inventory Management, the reserved quantity can be displayed on SAP Tcode MMBE
The SAP tcode Reservation is
The Path in SAP menu for Reservation is
Logistics > Materials Management > Inventory Management > Reservation > Create
Goods Issue is the opposite of Goods Receipt.
SAP MM Goods Issue will decrease in case the Warehouse’s tock in Inventory Management.
Every time Goods Issue is created when the SAP stocks is moved out of inventory.
Goods Issue, In opposite to Goods Receipt, can be issue against SAP Document ( order ? )
In order to create a Goods Issue, navigate to
Logistics > Materials Management > Inventory Management > Goods Movement > Goods Movement
Or just launch the MIGO Tcode.
Through my experience dealing with Inventory Management, I find these 3 ebooks very usefull:
This document explains about what all major concepts are involved in SAP Material Management (MM) Inventory Management. This presentation helps you to understand following Concepts
This document is in the form of PPT. You may use this document for your self study and client demo.
This readymade presentation helps you to make your client understand the potential of SAP MM Inventory Management.
This documents set provides complete implementation and support solution for SAP MM material Management.
This document will help you for during implementation and as well as during support project.
If you are looking for complete working knowledge in the area of SAP material management, this is perfect document for you.
All the SAP MM consultant and who wanted to become SAP MM consultant will be getting benefit out of these documents.
This document explains about what all concepts are involved in SAP MM Material Management. This document is in the form of PPT.
You may use this document for your self study and client demo. This ready made presentation helps you to make your client understand the potential of SAP MM Material Management functionality.
This is a base level of document. If you are new to SAP MM Material Management or you are working in other sap module (like SD, HR, FI, PP, etc). You will find this document very useful.
This will make you understand SAP MM Material Management very clearly and very quickly.
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