Inventory Management in SAP - SAP Implementation

Inventory Management in SAP - SAP Implementation

INVENTORY MANAGEMENT in SAP Overview: Inventory Management The inventory management blueprint deals with managing material stock... 3:11 AM

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.