Inventory Management: Basic Principles (SAP Library

Inventory Management: Basic Principles

Use

The following basic principles apply for the whole of Inventory Management:

The system creates a document for every goods movement, creating a complete audit trail for all transactions.

See MM - Inventory Management: The Document Concept

A goods movement is identified by a numeric key called the movement type.

See MM - Inventory Management: The Movement Type Concept

You use different stock types to divide the stock up for different use.

See: Inventory Management: Stock Types

The article type determines how inventory for an article is managed.

See: Inventory Management: Article Types

All inventory is managed in base units of measure. If you enter a quantity in a different unit of measure, the system converts it to base units of measure.

See MM - Inventory Management: Units of Measure

You can configure your system so that you can manage negative stocks.

See MM - Inventory Management Allowing Negative Stocks