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.