You are on page 1of 0

1 1

SAP MM/ WM PRESENTATION


SAP MM/ WM PRESENTATION
VISIT US AT
www.sap-topjobs.com
www.sap-topjobs.com
2 2
MM
MM

Configuration
Configuration
Inventory Management
Inventory Management
Objective
Objective
To understand
To understand
Goods Movements & Movement types
Goods Movements & Movement types
Stock Determination
Stock Determination
Valuation and Account Assignment
Valuation and Account Assignment
Split Valuation
Split Valuation
Account Determination
Account Determination
Physical Inventory
Physical Inventory
www.sap-topjobs.com
3 3
Goods Movements &
Goods Movements &
Movement types
Movement types
www.sap-topjobs.com
4 4
Goods Movements
Goods Movements
Any material movement is addressed
Any material movement is addressed
through the term Goods Movement in
through the term Goods Movement in
SAP.
SAP.
Each material movement is associated
Each material movement is associated
and identified with movement type.
and identified with movement type.
Material document and/or Accounting
Material document and/or Accounting
document will be generated for each
document will be generated for each
material movement.
material movement.
www.sap-topjobs.com
5 5
Goods movement Contd..
Goods movement Contd..
Important classification of goods
Important classification of goods
movements are
movements are
Goods issue
Goods issue
Goods Receipt
Goods Receipt
Transfer posting
Transfer posting
Reservation
Reservation
www.sap-topjobs.com
6 6
Movement type
Movement type
Movement type determines the
Movement type determines the

Accounting entries i.e. GL account


Accounting entries i.e. GL account
to be posted
to be posted

Update the quantity


Update the quantity

Controls field display


Controls field display

Type of transaction
Type of transaction
www.sap-topjobs.com
7 7
Goods Issue
Goods Issue
When material is issued for
When material is issued for
consumption or sales, it is termed as
consumption or sales, it is termed as
goods issue.
goods issue.
Example:
Example:

Components issued for production


Components issued for production

Products issued against sales order


Products issued against sales order

Products issued against free


Products issued against free
replacement
replacement
www.sap-topjobs.com
8 8
Goods Issue (GI) movement type
Goods Issue (GI) movement type
Goods issue will reduce the inventory
Goods issue will reduce the inventory
from the storage location.
from the storage location.
Goods issue for different purpose is
Goods issue for different purpose is
identified by different movement type.
identified by different movement type.
Example:
Example:
-
-
261
261

indicates GI for production


indicates GI for production
601
601

indicates GI for sales order


indicates GI for sales order
www.sap-topjobs.com
9 9
Goods Receipt (GR) movement type
Goods Receipt (GR) movement type
When the material is received into the
When the material is received into the
storage location, it is termed as Goods
storage location, it is termed as Goods
Receipt.
Receipt.
GR will increase the inventory.
GR will increase the inventory.
Example:
Example:
-
-
101
101

indicates GR from vendor


indicates GR from vendor
561
561

indicates GR initial stock upload


indicates GR initial stock upload
www.sap-topjobs.com
10 10
Transfer posting
Transfer posting
When the material is transferred from
When the material is transferred from
one storage location or plant to
one storage location or plant to
another storage location or plant it is
another storage location or plant it is
known as transfer posting.
known as transfer posting.
Transfer posting will reduce the stock
Transfer posting will reduce the stock
from one location or plant and
from one location or plant and
increase the stock in another location
increase the stock in another location
or plant.
or plant.
www.sap-topjobs.com
11 11
Transfer posting movement type
Transfer posting movement type
Each transfer posting is identified by
Each transfer posting is identified by
the different movement type.
the different movement type.
Example:
Example:
311
311

indicate transfer from one


indicate transfer from one
storage location to another
storage location to another
301
301

indicate transfer from one plant


indicate transfer from one plant
to another plant
to another plant
www.sap-topjobs.com
12 12
Reservation
Reservation
It is a request to keep materials ready
It is a request to keep materials ready
to withdraw when it is required.
to withdraw when it is required.
Reservation contains
Reservation contains
Material number
Material number
Quantity
Quantity
When required
When required
From and To
From and To
www.sap-topjobs.com
13 13
Reservation & Movement type
Reservation & Movement type

Each reservation contains only one


Each reservation contains only one
movement type.
movement type.

It can be created automatically or


It can be created automatically or
manually
manually

Reservation has the document


Reservation has the document
number
number

MRP will consider the reservation for


MRP will consider the reservation for
net requirement calculation
net requirement calculation
www.sap-topjobs.com
Reservation
Created for
Components
(Automatically)
Goods Issue
For production
Order
Mvt.type 261
Production
Order
or
Process
Order
GI & GR flow
GI & GR flow
Goods Receipt
For production
Order
Mvt.type 101
Adjust reservations
Reduces inventory
Accounting entries
created
Increases stock
Accounting entries
created
www.sap-topjobs.com
15 15
STOCK DETERMINATION
STOCK DETERMINATION
www.sap-topjobs.com
16 16
Stock Determination
Stock Determination

It is a strategy to withdraw material for


It is a strategy to withdraw material for
GI and Stock transfer.
GI and Stock transfer.

Automatically determines the stock &


Automatically determines the stock &
storage location from where materials
storage location from where materials
are to be withdrawn.
are to be withdrawn.
www.sap-topjobs.com
17 17
Stock Determination Contd..
Stock Determination Contd..
Following stocks can be handled
Following stocks can be handled
through stock determination.
through stock determination.
Unrestricted use stock
Unrestricted use stock
Vendor consignment stock
Vendor consignment stock
Pipeline stock
Pipeline stock
Sales order stock
Sales order stock
Project stock
Project stock
www.sap-topjobs.com
18 18
Valuation and
Valuation and
Account Assignment
Account Assignment
www.sap-topjobs.com
19 19
Valuation and Account assignment
Valuation and Account assignment
It defines
It defines

How the material is to be


How the material is to be
valuated
valuated

the link between Materials


the link between Materials
management and Finance
management and Finance
www.sap-topjobs.com
20 20
Material Valuation
Material Valuation
Materials can be valuated at
Materials can be valuated at
Company code level
Company code level
or
or
Plant level
Plant level
Level at which the material valuation
Level at which the material valuation
is done is known as valuation area.
is done is known as valuation area.
www.sap-topjobs.com
21 21
Valuation at company code level
Valuation at company code level
Material price and price control are
Material price and price control are
common at company code level.
common at company code level.
It ensures material is valuated at same
It ensures material is valuated at same
price at all plants belong to that
price at all plants belong to that
company code.
company code.
www.sap-topjobs.com
Plant IND6
Stock 50 units
Company code level valuation
Company code level valuation
Material valuation in 9100 company:
Price = 6 Units/piece
Inventory value = 650*6 = 3900
Company code
9100
Company code
9200
Plant IND7
Stock 600 units
Plant 9201
Stock 200 units
Plant 9202
Stock 400 units
Material valuation in 9200 company:
Price = 3 Units/piece
Inventory value = 600*3 = 1800
www.sap-topjobs.com
23 23
Valuation at plant level
Valuation at plant level
Material price and price control are
Material price and price control are
unique at plant level.
unique at plant level.
Material can have a different price at
Material can have a different price at
each plant which are under the same
each plant which are under the same
company code.
company code.
www.sap-topjobs.com
Plant IND6
Stock 50 units
Plant level valuation
Plant level valuation
Material valuation
in IND6 plant:
Price = 6 Units/piece
Inventory value =
50*6 = 300
Company code
9100
Plant IND7
Stock 600 units
Material valuation
in IND7 plant:
Price = 4 Units/piece
Inventory value =
600*4 = 2400
www.sap-topjobs.com
25 25
Valuation Data
Valuation Data
-
-
Material Master
Material Master
Following are the essential material
Following are the essential material
master data for valuation
master data for valuation

Valuation class
Valuation class

to determine
to determine
the stock account for postings
the stock account for postings

Price control
Price control

moving average or
moving average or
standard price
standard price

Price unit
Price unit

indicates pricing unit.


indicates pricing unit.
www.sap-topjobs.com
26 26
Valuation Procedure
Valuation Procedure
Valuation of inventory will be
Valuation of inventory will be
performed
performed
For each valuation area
For each valuation area
According to the price control
According to the price control
(price control
(price control

S
S

-
-
standard or
standard or

V
V

Moving average)
Moving average)
www.sap-topjobs.com
27 27
Valuation Procedure
Valuation Procedure
Contd..
Contd..
Price
Price
Inventory valuation
Inventory valuation
control
control
If
If

S
S

Qty * standard price


Qty * standard price
If
If

V
V

Qty * moving average


Qty * moving average
price
price
www.sap-topjobs.com
28 28
Split Valuation
Split Valuation
www.sap-topjobs.com
29 29
Split Valuation
Split Valuation
Split valuation allows to use different
Split valuation allows to use different
valuation price for different stocks.
valuation price for different stocks.
Example:
Example:
A material can have one price when it
A material can have one price when it
is procured inland and different value
is procured inland and different value
when imported.
when imported.
www.sap-topjobs.com
30 30
Over view of split valuation
Over view of split valuation
A material may be subjected to
A material may be subjected to
different procurement type
different procurement type
different country of origin
different country of origin
different grade
different grade
A material can have different
A material can have different
valuation classes.
valuation classes.
www.sap-topjobs.com
31 31
Data flow in split valuation
Data flow in split valuation
Valuation
Category
Valuation
Types
With A/c cat.
Reference
(Val.class)
Activated at
Plant level
IMG
Master Data
In create mode
For the same
Material
Mention valuation
Type in the
org.data
Create
Material &
Assign
Val. Category
In A/c 1 view
& Save
Select right
Valuation class
In the A/c.1
View &
Save
www.sap-topjobs.com
32 32
Data flow split valuation cont..
Data flow split valuation cont..
During each Material transaction
During each Material transaction
select the right valuation type.
select the right valuation type.
System determines the right valuation
System determines the right valuation
class through valuation type.
class through valuation type.
One material can be posted to
One material can be posted to
different accounts using split
different accounts using split
valuation.
valuation.
www.sap-topjobs.com
Account Determination
Account Determination
www.sap-topjobs.com
Account Determination
Account Determination
Movement type and valuation class
Movement type and valuation class
together determines the FI accounting
together determines the FI accounting
entries through posting key.
entries through posting key.
Valuation group code defined for
Valuation group code defined for
valuation area
valuation area
Company code
Company code
Chart of accounts
Chart of accounts
Valuation group code is linked with posting
Valuation group code is linked with posting
key
key
www.sap-topjobs.com
Account category & Valuation class
Account category & Valuation class
Account category reference
Account category reference
Valuation classes are created and linked
Valuation classes are created and linked
with account category reference.
with account category reference.
Account category references are assigned
Account category references are assigned
to each material type.
to each material type.
Effect :
Effect :
-
-
When creating material, according to the
When creating material, according to the
material type, predefined valuation classes
material type, predefined valuation classes
will appear to select.
will appear to select.
www.sap-topjobs.com
36 36
Account determination & movement type
Account determination & movement type
Posting key attached with each
Posting key attached with each
movement type
movement type
Each posting key also attached with
Each posting key also attached with
valuation class and GL accounts
valuation class and GL accounts
Effect:
Effect:
-
-
Movement type automatically
Movement type automatically
determines the accounting entries
determines the accounting entries
www.sap-topjobs.com
37 37
Account determination & movement type
Account determination & movement type
Movement
Type
960 (GR)
Value String
WA01
Transaction Key
FR1 (freight
Clearing A/c.)
Transaction Key
WRX (GR/IR A/c.)
Transaction Key
BSC (Stock A/c.)
Dr.Stock 600005 Cr.GR/IR 600006
www.sap-topjobs.com
38 38
Transaction keys
Transaction keys
-
-
Example
Example
Following are the Goods receipt related
Following are the Goods receipt related
transaction keys for your ready reference.
transaction keys for your ready reference.
BSX
BSX

Inventory posting
Inventory posting
WRX
WRX

GR/IR Clearing Account


GR/IR Clearing Account
PRD
PRD

Cost/Price difference
Cost/Price difference
UMB
UMB

Revenue / Expense from


Revenue / Expense from
revaluation
revaluation
GBB
GBB
-
-
Offsetting entry to the stock posting
Offsetting entry to the stock posting
www.sap-topjobs.com
39 39
Physical Inventory
Physical Inventory
www.sap-topjobs.com
40 40
Physical Inventory
Physical Inventory
This is a process of physically counting the
This is a process of physically counting the
material at storage location level to keep the
material at storage location level to keep the
accurate stock of material.
accurate stock of material.
Four types of physical inventory are
Four types of physical inventory are
Periodic
Periodic
Continuous
Continuous
Cycle counting
Cycle counting
Sampling
Sampling
www.sap-topjobs.com
41 41
Physical Inventory stock type
Physical Inventory stock type
Following stocks are subjected to physical
Following stocks are subjected to physical
inventory
inventory
Unrestricted use stock
Unrestricted use stock
Quality stock
Quality stock
Blocked stock
Blocked stock
Physical inventory can be performed only
Physical inventory can be performed only
for the above stocks.
for the above stocks.
www.sap-topjobs.com
42 42
Physical Inventory steps
Physical Inventory steps
Steps involved in physical inventory are
Steps involved in physical inventory are
1.
1.
Physically count the stock
Physically count the stock
2.
2.
Set the block for the material
Set the block for the material

to avoid
to avoid
any
any
other posting during counting
other posting during counting
3.
3.
Create physical inventory document
Create physical inventory document
4.
4.
Post the count result
Post the count result
5.
5.
Post the difference in inventory
Post the difference in inventory
6.
6.
Posting documents generated by the
Posting documents generated by the
system in the background automatically
system in the background automatically
www.sap-topjobs.com
43 43
Physical Inventory tolerance
Physical Inventory tolerance
Tolerance limit to post the inventory
Tolerance limit to post the inventory
difference can be defined for each user
difference can be defined for each user
Two ways of defining the limits are:
Two ways of defining the limits are:
-
-
1.
1.
Maximum amount per inventory count
Maximum amount per inventory count
2.
2.
Maximum amount per document item
Maximum amount per document item
www.sap-topjobs.com
44 44
Summary
Summary
You must have understood
You must have understood
Goods Movements & Movement types
Goods Movements & Movement types
Stock Determination
Stock Determination
Valuation and Account Assignment
Valuation and Account Assignment
Split Valuation
Split Valuation
Account Determination
Account Determination
Physical Inventory
Physical Inventory
www.sap-topjobs.com

You might also like