Posted by: ahmedashfaque | August 26, 2014

What is SAP – goods movements in inventory management 1


In the last post we have seen what is MRP and how it is done in SAP. In today’s post we will see how stocks can be transferred from one place to another using SAP.

In any manufacturing, warehousing or retailing industry, you need to moved goods from one place to another for various reasons. The reasons could be:

  • Material is shipped by the vendor and is received by the customer.
  • Material is taken from inventory/warehouse to shop floor for production
  • Material is taken from inventory/warehouse for plant maintenance work
  • Material is taken from inventory/warehouse for project work
  • Material is taken from inventory/warehouse for sales order
  • Material is taken from production shop floor to a warehouse.
  • Material is taken from inventory/warehouse for scrapping
  • Material is taken from inventory/warehouse for sampling
  • Material is taken from inventory/warehouse for sending to another inventory/warehouse
  • Material is taken from inventory/warehouse for sending to another plant in same company code
  • Material is taken from inventory/warehouse for sending to another plant in different company code
  • Material is taken from inventory/warehouse for return to vendor
  • Material is taken into inventory/warehouse from customer as a return
  • Material is taken from inventory/warehouse for subcontract order

This list goes on and on. You can easily see that goods movement happens at all levels and at all places in any organization. Each goods movement is different from the other in some way. You need to find out how the goods movement affects the financial accounts as well. So how these goods movements are handled in SAP?

In SAP, goods movements are categorized into following:

  • Goods receipts into stocks
  • Goods receipts for consumption
  • Goods receipts reversal
  • Goods receipts cancellation
  • Goods receipts against reservation
  • Goods issue from stock to stock in the same plant
  • Goods issue from one plant to another in same company code
  • Goods issue for consumption/production order
  • Goods issue against a reservation
  • Goods issue against BOM
  • Goods issue for sampling
  • Goods issue for scrapping

There are many more types of goods movements defined in SAP. In my next post we will discuss more about goods movements in SAP.

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Responses

  1. […] my last post, i discussed about goods movement in SAP. We will continue to discuss it further in this […]


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