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 Inventory Management and Physical Inventory (MM-IM)


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


Managing Stocks by Quantity

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

  • Are in quality inspection.

If a further subdivision by lots is required for a material, one batch per lot is possible. These batches are then managed individually in the stock.

Special Stocks

Inventory Management can manage various types of a company’s own special stocks and externally owned special stocks separately from standard stock.

For more information on special stocks, refer to Managing Special Stocks .

Managing Stocks By Value

The stocks are managed not only on a quantity basis but also by value. The system automatically updates the following data each time there is a goods movement:

  • Quantity and value for Inventory Management

  • Account assignment for cost accounting

  • G/L accounts for financial accounting via automatic account assignment

The valuation area is the organizational level at which a material's stock value is managed. The valuation area can be plant level or company code level.

In Inventory Management, work is basically done at plant and storage location levels. When you enter a goods movement, you only have to enter the plant and the storage location of the goods. The system derives the company code from the plant via the valuation area.

For more information on managing material stocks by value, refer to MM Material Valuation .

Planning, Entry, and Documentation of all Goods Movements

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.