INVENTORY

MANAGEMENT IN SAP
BI

Concepts and definitions

Goods Receipt (GR): - It is a goods movement in which receipt of goods is posted for vendor
or for production. A GR posted in the system will lead to increase in stock. No Concept of Price
or value.
Goods Issue (GI): - It is goods movement in which material withdrawal is posted for
consumption . A GI posted in system will leads to decrease in stock.
Stock Transfer (ST): - It is method of removal of material from one location and transferring it
to another location. This process is performed between two plants and two storage locations.
Transfer Posting (TP): - It is a general term of stock transfer that changes the stock type or
stock categories. The difference is: TP is logical stock transfer and ST is a physical stock transfer.
Movement Type: - It is a three-digit code, which plays a role of important control function in
inventory management. It determines which stock account or consumption account is updated
in financial accounting.
Reservation: - It stores requisition created from particular cost center to particular department
for issuing the material reservation posted in the system.
Stock Types: - The different stock types are
1. Unrestricted use stock
2. Quality inspection stock
3. Blocked stock
4. Warehouse stock

Inventory Terminology

Number of items left in inventory The number of items that are left outstanding per week,
per month, per year.
Dates of fabrication The dates each item has been produced and introduced into
inventory.
FIFO, LIFO The Companys inventory policy can be either First in First Out or Last in
First Out, depending on the type of inventory.
Average inventory count each year The time and average count of inventory each year
according to the physical count realized periodically.
Sales Figures How each product sells based on the type of product, line, and how often
they sell.
Chain of production How much material is in raw materials, work in progress, and
finished goods.
Inventory Obsolescence The average time it takes inventory to become obsolete,
depending on the type of product.
Cost of Goods Manufactured Total costs of producing a product, including material costs,
labor costs, and factory overhead.
Inventory Turnover The days it takes to sell each line of products in inventory.
Inventory Lines The product lines the company has based on sales and outstanding
inventory.
Stolen or damaged items How often and the percentage of items in inventory are
damaged or stolen.

Configuration Settings on ECC

System:

Table TBE11 : Maintain Entry NDI with text New Dimension Integration and activate the
flag.

Table TPS01 : Entry should be as below (Note 315880)

PROCS 01010001
INTERFACE - SAMPLE_PROCESS_01010001
TEXT1 NDI Exits Active
Table TPS31 : Entry should be as below (Note 315880)
PROCS 01010001
APPLK - NDI
FUNCT NDI_SET_EXISTS_ACTIVE

Tcode MCB_
In most cases you need to set the industry sector as standard.

Tcode BF11
Set the indicator to active for the Business warehouse application entry. This entry needs to
be transported to the production system.

Standard Datasources and Tables :

2LIS_03_BX - MCHA, MARA, T001, T001W, CALCULATED FROM MBEW, EBEW, QBEW.
2LIS_03_BF - MSEG, MBEW, MKPF.
2LIS_03_UM - BKPF, MBEW, QBEW, EBEW, BSEG.
Set Up Tables:

2LIS_03_BX MCNB, 2LIS_03_BF OLI1BW,

2LIS_03_UM OLIZBW.

Standard Reports : Stock Overview Report.

Demand Supply Match Report.
Valuated Stock Report.
Inventory Aging Report.
Inventory Turnover Report.
Stock in Transit Report.
Scrap Report.
Blocked Stock Report.
Days' Supply Report.
Receipt and Issue Consignment Stock

Data Flow in
SAP BI:
2LIS_03_BX :
Stock Initialization for
Inventory Management.

2LIS_03_BF :
Goods Movements From
Inventory Management.

2LIS_03_UM :
Revaluations.

Marker and No Marker Update

Marker Update is used to reduce the time of fetching the non-cumulative key figures
while reporting.
It helps to easily get the values of previous stock quantities while reporting.
The marker is a point in time which marks an opening stock balance.
Data up to the marker is compressed.
When marker is set to update the value of current stock quantity is stored in the marker.
After that, when loading the historical movements (stock movements made previous to
the time of implementing the cube) check marker update so that the marker should not
be updated.

The No Marker Update concept arises if the target InfoCube contains a non-cumulative
key figure. In Material Movements InfoCube 0IC_C03 stock quantity is a non-cumulative
key figure.
After every successful delta load, check marker update so that the changes in the stock
quantity should be updated in the marker value.
The marker will be updated to those records which are compressed. The marker will not
be updated to those uncompressed requests. Hence for every delta load request, the
request should be compressed.

Inventory Cube Compression

INITIAlIZATION
2LIS_03_BX with Marker Update (No Tick)
2LIS_03_BF with No Marker Update (Tick)
2LIS_03_UM with No Marker Update (Tick)

FULL (Historic)
2LIS_03_BF with No Marker Update (Tick)
2LIS_03_UM with No Marker Update (Tick)

DELTA
2LIS_03_BF with Marker Update (No Tick)
2LIS_03_UM with Marker Update (No Tick)

Non Cumulative Key Figures

Non-cumulative values are those key figures that are measured in relation to a period of
time; that is to say they cannot be meaningfully cumulated over time. Non-cumulative
values are summarized over time using so-called exception aggregation.

The values are only calculated during query runtime and not stored at all in the fact
tables. Thats why you cant find this key figure in the transaction LISTCUBE.

Stock values are calculated by using Current Stock values backward using the
movements.

Only those Stock Values get calculated which are coming under Validity Period.

Non-cumulative key figures are used in areas in which non-cumulatives do not regularly
change completely, for example with warehouse stock

Total Stock (0TOTALSTCK) = Initial Stock + Inflow (0RECTOTSTCK)

- Outflow (0ISSTOTSTCK).

Validity Table

A validity table is maintained when creating the InfoCube. This table specifies the time
interval for which the noncumulatives are valid for a specific characteristic combination.

By default, the validity table only has the time dimension checked . The time reference
characteristic is the time characteristic from which all other time characteristics can be
derived.

Time intervals can be extended by maintaining the validity table (transaction RSDV).

By including additional characteristics in the validity table, the validity intervals are kept
to a very detailed level. Fine granular objects like material should never be used in the
validity table due to performance reasons.

For each combination of characteristic values for the validity-determining

characteristics, the validity period is, by default, the interval between initialization (or the
first change in non-cumulative) and the last posted non-cumulative change for this
combination. That is, the validity period is created from the posting data from when the
data was loaded.

KEY POINTS

SAP-BI/BW DataSources/Extractors will extract the Inventory Management data from

ECC by using Process Keys/ BW: Transaction keys.

Data staging with DSO for BX extractor is not allowed. Data should directly load from
extractor to Cube only once.DSO is possible for BF, UM.

To check the data consistency of a Non cumulative cube the standard program
SAP_REFPOINT_COMPLETE can be used.

To check the compression status of the cube the table RSDCUBE can be referred.
Before the compression of BX request, the REFUPDATE field should be blank and after the
compression the value should become X.

The technical infoobject 0RECORDTP (in the package dimension) was introduced only
for Non Cumulative.

0RECORDTP = 0 indicates the non-cumulative changes and 0RECORDTP = 1

indicates the value of the marker that is stored as a non-cumulative change (= end noncumulative.)

THANK YOU