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Friday 5 July 2019

Inventory Management with Movement types and Stock types- SAP MM

Inventory management with Movement types and Stock types:

For Videos Explanation, please go to YouTube and Subscribe -  Studyuuu  SAPMM

Inventory management deals with movement of goods and requirement (What is the need of movement of goods), we will be moving the goods inter company, warehouse to production, Production to sales, vendor to plant, return to vendor, movement to scrap. So everywhere we are moving the goods from one location to other location as per the nosiness requirements.
So, we need to monitor the movement of goods, we cannot monitor 24/7 with all the stocks in the warehouse and maintain the business LOB, we need to maintain the inventory management in the organization.

Coming to the responsibility of every individual in inventory is mentioned below.
Stakeholders: needs to post the movement type, whenever they are shifting or receiving goods from other source with correct movement type and quantity.

Buyers: Buyers are responsible for ordering the stock to plant, whenever the requirement is need and need to resolve the Goods receipt issues, when stakeholders are posting in the SAP.

We have 4 types of inventory Management; we will deal and learn all these 4 types of inventory management.

1.     Goods receipt
2.     Goods Issue
3.     Transfer Posting
4.     Physical Inventory

Goods receipt:

Goods receipt means receiving any material from vendor through any source to plant as an new quantity then we are considering as on Goods receipt and posting in MIGO as 101 Posting.

Goods Issue:

Goods issue deals with issuing goods to other department, like production and scrapping and cost center, as per the requirement we will make a goods issue.

Goods issue against cost center:

T-Code: MB1A- Movement type 201

Transfer Posting:

Transfer posting deals with transferring the goods from one place to other for the business requirements.

Eg: Quality to Blocked stock
Un-restricted to Quality Inspection

Physical Inventory: It deals with physical inventory in the plant and physical inventory mentioned in the SAP system, and there checking and it should be equal as per the business requirements.

Few Basics of Inventory Management as mentioned below:

MMBE- Stock Overview report:

Here we can find the stock present in that department and by this we can transfer the posting as needed.
Few of the fields that you can see in this screen are:

Quality Inspection


Un-restricted is a type of stock where there are no restrictions to use by any department, we can transfer the goods as per our requirements from Unrestricted stock.

Quality Inspection:

Before using any stock in production, the requirement is to inspect the stock we received by the quality department.

We can directly Post the goods to quality inspection or we can move from Unrestricted to Quality department.

Few materials its mandatory to move directly to quality inspection department when they receive goods to plant.


Blocked stock is a type of stock, where when we receive the goods and found some damages in the stock and we require to vendor to inspect and take back those goods in a procurement manner, such stock will be keeping in blocked stock.


This is a type of stock, where material is in placed with vendor to receive to plant and we can maintain the goods receipt after receiving goods.

 In order stocks teach how much quantity is coming to plant and requirements of space in warehouse


Reserved stocks are type of stocks, where we can keep this stock for department use and no other department will touch those goods if they are reserved.

For few materials which are in demand, we normally keep in reserved stock.


This is the type of stock, where material will be in the plant premises, but total authority will be taken care by vendor and stakeholders needs to report the quantity usage on monthly basis.

We can check all this stock in MMBE- And as per that we can function Transfer posting, Goods issue.

            Enter-Material, Plant-

Few of the errors we receive while posting goods receipt Monthly.

*Posting only possible in periods 2016/06(Sample) in company code 1000(Sample)

This explains posting period is not maintained, it means every month we need to close the previous posting periods and automatically new posting period will be open and posting will be possible for previous month also, through one field setting.

Check the period which was maintained as per that time in MMRV

If the current posting period is not maintained, then go to MMPV and maintain the dates as per monthly.

Once you enter that month, the system will accept the posting period.

*Number range WE and number assignment for material document.

When you post the goods receipt, automatically one material document will be created backend and that is the reference for posting goods receipt.

Material document is the reference number for all other postings.

 To maintain the number range, follow the path

            Materials management
                        Inventory management and physical inventory
                                                Number assignment
                                                            Define number assign for Material and phy Inventory
                                                                        Maintain new group

*FI Posting period error

As we have posting period in GR, we have posting period in FIL also which will be taken care by FI Consultants

OB52 is the transaction to maintain the posting period.

*FBN1 number ranges does not exist.

FBN1-maintain the number range.

Movement types:

Movement describes the type of movement and it’s a 3-digit numeric number.
It determines the automatic account determination and it controls the field settings as per the movement type.

Few movement types with explanation:

Goods receipt with respect to PO

101- Its helps in posting the goods receipt with respect to PO and we can mention the quantity we received for that PO and item ok and Post the goods receipt.

Here if we need to cancel any movement type, we entered is 1+

102-cancellation of goods receipt wrt material document

Now we can cancel the GR entered and it automatically takes 0 when you cancel.

Normally, if you had posted the wrong quantity then we will make cancellation for that document and repost the GR with correct quantity.

122-return delivery wrt PO

We can maintain the return document if you had returned that material to vendor

First post the GR with full quantity you received and process again with movement type 102.

123-cancelltion of return delivery, we can cancel the return delivery posted in the material document.

****we cannot change any movement type or posting once entered, we need to cancel and repost with correct quantity and movement type****

Stock types:

here we have different types of stocks

Quality inspection

We can maintain type of stock to be posted directly, when the PO is created only.

PO level- we can define in delivery tab

Material master- in purchasing view

GR-stock type
Transfer posting

Let’s discuss some movement types for transfer posting

322- Unrestricted to Quality
321-Quality to unrestricted
350-Quality to blocked
349-blocked to quality
344-unrestricted to blocked
343-blocked to unrestricted

We can do the above transactions through MB1B/MIGO

Other Goods Postings

We have some postings without PO
Sample goods- we can have sample goods without PO and with PO, if there is a PO then we can post through MIGO, if no PO
Then MB1C-Movement types are
501- Sample goods posting
511- Free goods postings

Initial entry of goods


We have something where we must enter the goods initially like when you are moving from other tool to SAP, we need to maintain the material inventory manually.

561- Initial entry to unrestricted stock
563-Intitial entry to quality
565-Initial entry to blocked
562-Cancel the initial entry to unrestricted stock
564-cancel the initial entry to quality stock
566-cancel the initial entry to blocked stock

Goods Issue


Here we need to issue the goods to certain departments

Goods issue against cost center-201 movement type

We can issue the goods against cost centers

Goods issue against production order-261 movement type

We can issue goods to the production order

Goods issue against scrapping- mentioned below

We can directly move the material to scrapping if the material is damaged.

551-scrapping against unrestricted stock
553-scrapping against quality inspection stock
555- scrapping against blocked stock
552- cancellation of scrap posted in unrestricted stock
554- cancellation of scrap posted in quality stock
556- cancellation of scrap posted in blocked stock


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