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Merchandise Logistics 
In SAP Retail, Merchandise Logistics forms the link between Purchasing and Sales.
Merchandise Logistics covers the following areas:
You can use merchandise distribution to control the flow of goods from the vendor to the recipient (store or customer), if the recipient of the article is known at the time of procurement. You use an allocation table (“push” process) or a collective purchase order (“pull” process) to control distribution planning. You can place the goods in storage in the distribution center, or move them through the distribution center using cross-docking or flow-through.
Merchandise that has been delivered is identified and the goods receipt posted.
Transactions involving stock changes and the resulting updates are entered in the system in real time, enabling physical stock levels to be mirrored exactly in Inventory Management.
By carrying out a physical inventory, you can determine the exact quantity of an article in stock at a given period in time. SAP Retail supports a number of physical inventory methods.
The Valuation component manages your inventory at cost and retail prices. SAP Retail carries out most valuation transactions automatically. Valuation links Merchandise Logistics and Financials, as it accesses and updates the G/L accounts of Financial Accounting.
See also: