Posted by: ahmedashfaque | August 28, 2014

What is SAP – inventory management insights


In the last post, we had seen how inventory management postings related to goods movements are posted in SAP. To day we will discuss business benefits of inventory management in SAP.

For any organization, accurate accounting is important whether it is financial accounts or physical accounts. Often companies find it difficult to account for inventory transactions because

  • Relevant transaction is not available in the information system at all
  • Relevant transactions are available but relevant information is missing and thus the transaction can not be carried out
  • Relevant information is inaccurate and thus transaction information is faulty

Most inventory management systems face these challenges. Their architecture is found to be faulty in some way and thus the above mentioned problems persist. Even in implemented SAP systems these problems have been found. It is because of faulty implementation.

In SAP, these are elaborate functions to deal with all kinds of inventory transactions. Even the movement types can be customized to take care of business needs which are not fulfilled by the existing movement types provided in the SAP systems. Similarly goods movement transactions can be customized to deal with customer specific needs.

After implementation some problems can be found regarding faulty data going in the SAP system. To prevent garbage going in the system, tight role based security should be implemented. At the plant level many control mechanisms are provided in a standard SAP system. These control systems should be customized carefully as per customer needs.

 

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