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Inventory Management in SAP - SAP Implementation

INVENTORY MANAGEMENT in SAP Overview: Inventory Management The inventory management blueprint deals with managing material st... thumbnail 1 summary

INVENTORY MANAGEMENT in SAP


Overview: Inventory Management


The inventory management blueprint deals with managing material stocks on a quantity and value basis, planning, entry, and documentation of all goods movements and carrying out the physical inventory.

The inventory management process includes the following:

·         Goods Receipt against Purchase Order
·         Goods Receipt without Purchase Order (Sales return received and SO recorded in legacy system)
·         Goods receipt from production
·         Reservation and Planned Goods Issue (Production Orders, Cost Centres, Sales Orders)
·         Unplanned Goods Issue
·         Material on Loan
·         Sales Return
·         Rejection and Return Delivery
·         Store-to-Store Transfer (i.e. Issuance of PS to CSD, Toll Client, Outbound WH to In-bound WH)
·         Destruction/Scrapping
·         Physical Inventory/ Cycle Count
·         Subcontracting
·         Second deliveries and additional requirement
·         Handling of Non-Confirming materials (please refer rejection)
·         Redressing / Conversion
·         Miscellaneous Issuance
·         Return from production
·         Issuance to Production

As a result of material movements, material and accounting documents are created. A material document is proof of the movement and as a source of information for any applications that follow. Further if the movement is relevant for Financial Accounting (that is, if it leads to an update of the G/L accounts), an accounting document is created simultaneously with the material document.

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