SAP Inventory Management.pdf

SAP INVENTORY

MANAGEMENT

5500

0827

SAP INVENTORY MANAGEMENT

CompuGenius, Inc.

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CompuGenius Logistic Management & Consulting Group

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CompuGenius Logistic Management &Consulting Group

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Compu- Genius Inc. Document Number: GD-2002-MM 4.6

10575 Katy Freeway Created by: Gyanesh Dadhich

Suit#250 Dated: Sep, 2002

Houston-Tx-77024 gd@compu-genius.com

Compu Genius , Inc.

(Part of Logistic Courses)

mySAP Logistic 4.6d

Copyrighted by:

CompuGenius Logistic Management & Consulting Group

10575, Katy Freeway Houston TX 77024 Ph: 713-787-6687

SAP Inventory Management

Compu- Genius Inc. Document Number: GD-2002-MM 4.6

10575 Katy Freeway Created by: Gyanesh Dadhich

Suit#250 Dated: Sep, 2002

Houston-Tx-77024 gd@compu-genius.com

Inventory Management

Purpose:

This component deals with the following tasks:

• Management of material stocks on a quantity and value basis

• Planning, Entry, and Documentation of all Goods Movements

• Carrying out the Physical Inventory

All transactions that bring about a change in stock are entered in real time, as are the

stock updates resulting from these changes. You can obtain an overview of the current

stock situation of any given material at any time. This, for example, applies to stocks

that:

• Are located in the warehouse

• Have already been ordered, but have not yet been received

• Are located in the warehouse, but have already been reserved for

production or a customer

Integration of Inventory Management in the Logistic System:

Inventory Management is part of the Materials Management module and is fully

integrated throughout the Logistics system:

Compu- Genius Inc. Document Number: GD-2002-MM 4.6

10575 Katy Freeway Created by: Gyanesh Dadhich

Suit#250 Dated: Sep, 2002

Houston-Tx-77024 gd@compu-genius.com

Material is procured from external or internal sources on the basis of the requirements

determined by Material Requirements Planning. The delivery is entered in Inventory

Management as a goods receipt. The material is stored (and managed under Inventory

Management) until it is delivered to customers (Sales & Distribution), or is used for

internal purposes (for example, for production).

During all transactions, Inventory Management accesses both master data (such as material

master data) and transaction data (such as purchasing documents) shared by all Logistics

components

Goods Movement:

Goods Movement can be define as: Transaction resulting in a change in stock.

Goods movements include both "external" movements (goods receipts from external

procurement, goods issues for sales orders) and "internal" movements (goods receipts

from production, withdrawals of material for internal purposes, stock transfers, and

transfer postings).

For each goods movement a document is created which is used by the system to update

quantities and values and serves as proof of goods movements.

You can print goods receipt/issue slips to facilitate physical movements and monitor the

individual stocks in the warehouse.

Structure of Goods Movement:

• Goods receipt:

A goods receipt (GR) is a goods movement with which the receipt of goods from

a vendor or from production is posted. A goods receipt leads to an increase in

warehouse stock.

• Goods issue:

A goods issue (GI) is a goods movement with which a material withdrawal or

material issue, a material consumption, or a shipment of goods to a customer is

posted. A goods issue leads to a reduction in warehouse stock.

• Stock transfer:

A stock transfer is the removal of material from one storage location and its

transfer to another storage location. Stock transfers can occur either within the

same plant or between two plants.

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