SAP MM Module: Inventory Management

SAP MM Module: Inventory Management

Overview of Inventory Management

• Inventory Management is a key component of the SAP MM module, responsible for managing and tracking inventory levels, stock movements, and valuation.
• It provides real-time visibility into inventory levels, enabling better decision-making and optimization of inventory levels.

Key Concepts

• Inventory types: SAP MM distinguishes between different types of inventory, including:
  • Unrestricted-use stock
  • Restricted-use stock
  • Blocked stock
  • Quality inspection stock
• Stock rooms: Organizational units that manage inventory, including storage locations and bins.
• Storage locations: Physical locations where inventory is stored.
• Bins: Specific storage locations within a storage location.

Inventory Management Processes

• Goods receipt: The process of receiving and recording inventory into the system.
• Goods issue: The process of issuing inventory from the system.
• Stock transfer: The process of transferring inventory between storage locations or stock rooms.
• Inventory counting: The process of counting and reconciling inventory levels.

Inventory Valuation

• Valuation methods: SAP MM supports multiple valuation methods, including:
  • Moving average price
  • Standard price
  • Last purchase price
• Inventory valuation types: SAP MM distinguishes between different valuation types, including:
  • Material valuation
  • Batch valuation
  • Serial number valuation

Reporting and Analytics

• Inventory reports: SAP MM provides various reports for inventory management, including:
  • Inventory levels report
  • Inventory valuation report
  • Inventory movement report
• Analytics: SAP MM integrates with SAP Business Warehouse and SAP HANA to provide advanced analytics and reporting capabilities.

SAP MM Module: Inventory Management

Overview of Inventory Management

• Inventory Management is a key component of SAP MM, responsible for managing and tracking inventory levels, stock movements, and valuation.
• Provides real-time visibility into inventory levels, enabling better decision-making and optimization of inventory levels.

Key Concepts

• Inventory types:
  • Unrestricted-use stock: freely available for use
  • Restricted-use stock: has limited availability
  • Blocked stock: not available for use
  • Quality inspection stock: held for quality inspection
• Stock rooms: organizational units that manage inventory, including storage locations and bins.
• Storage locations: physical locations where inventory is stored.
• Bins: specific storage locations within a storage location.

Inventory Management Processes

• Goods receipt: process of receiving and recording inventory into the system.
• Goods issue: process of issuing inventory from the system.
• Stock transfer: process of transferring inventory between storage locations or stock rooms.
• Inventory counting: process of counting and reconciling inventory levels.

Inventory Valuation

• Valuation methods:
  • Moving average price: calculates the average price of inventory
  • Standard price: uses a fixed price for inventory valuation
  • Last purchase price: uses the price of the last purchase
• Inventory valuation types:
  • Material valuation: values inventory at the material level
  • Batch valuation: values inventory at the batch level
  • Serial number valuation: values inventory at the serial number level

Reporting and Analytics

• Inventory reports:
  • Inventory levels report: shows current inventory levels
  • Inventory valuation report: shows the value of inventory
  • Inventory movement report: shows inventory movement and stock changes
• Analytics: integrates with SAP Business Warehouse and SAP HANA to provide advanced analytics and reporting capabilities.

Learn about inventory management in SAP MM module, including tracking inventory levels, stock movements, and valuation. Understand key concepts like inventory types and more.