Material to Material Transfer in SAP

This process describes to transfer the same material stock between material and plants. Material to material transfer is performed to maintain the stock of the material. This type of stock transfer can only be carried out in Inventory  Management. Neither Shipping  in  the issuing plant nor purchasing in the receiving plant is involved in the process.

This process  is  triggered whenever   there  is a need  for  a material   to be  transferred  to another material. Read more

Stock Transfer Between Plant Using STO with Delivery Order

This process used to transfer goods between plants using Stock transport order with Delivery order. Before doing this function the Material must be maintained in both supplying and receiving plants. And in sales organization data 1 screen the delivering plant must be maintained. This process has the following stages.

  1. Creation of stock transport order (STO) at receiving plant (T code – ME21N)
  2. Transfer posting of Material to Material (T Code MB1B)
  3. Creation of Replenishment order (Outbound delivery order) at Supplying plant with reference to the Stock transport order(STO) (T code – VL10B)
  4. Changing of the Replenishment order delivery .i.e. Goods issue at supplying plant (T code – VL02N)
  5. Goods Receipt at receiving plant (T Code MIGO)

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Materials Management (MM) Integration in Other Modules

  • Integration in Financial Accounting

Purchasing maintains data on the vendors that are defined in the system jointly with Finance. Information on each vendor is stored in a vendor master record that contains both accounting and procurement information. The vendor master record represents the creditor account in Finance.

  • Integration in Sales and Distribution

Within the framework of materials planning and control, a requirement that has arisen in the Sales area can be passed on to purchasing. In addition, when a requisition is created, it can be directly assigned to a sales order. As soon as you enter a sales order, you can initiate a dynamic availability check of on hand stock. Read more

Materials Management: User Training Manuals

Find below end user training manual for overall processes of the following topics

  • Generate Differences List
  • Goods Issuance of Bill Production Materials
  • GR for Materials Directly Charged on Projects
  • Goods Receipt for PO STO
  • GR for Initial Entry of Stock Balances
  • Stock Transport Order (PO STO)
  • Partial Acceptance & Setting of Delivery Completion Indicator
  • Material Reservation for Maintenance & Operation
  • Goods Receipt of Scrap Lots (In Batches)

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Transaction Keys in Materials Management

Also known as ‘process keys,’ the ‘Transaction Keys’ are pre-defined in the system to enable transaction postings in Inventory Management and Accounting (Invoice Verification). For each of the movement types in MM, there is a value string that stores these possible transactions.
The pre-defined transaction keys are:
  • BSX (used in Inventory Postings)
  • WRX (used in GR/IR Clearing Postings)
  • PRD (used to post Cost/Price differences)
  • UMB (used to post Revenue/Expenses from revaluation)
  • GBB (used in offsetting entries in Stock postings)

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Inventory Turnover: Concept And Use with Real Life Scenarios

Inventory Turnover is a prominent KPI in a lot of businesses. Kowboy, who runs SAP Mental Notes site, has posted a topic which you will get understanding the concept of Inventory turnover. Giving the formula, he also presents very clear real life scenarios for insight . You can read post from HERE

A Basic Overview of Stock Valuation Methods

There are three methods with which you can revaluate your stock for Balance Sheet purposes.Irrespective of the method you select, you will be able to valuate your stock either at the Company Code level or at the Valuation Area level:
1. LIFO (Last-In-First-Out): This method is based on the assumption that the materials received last were the ones issued/consumed first. The valuation is based on the initial receipt.
2. FIFO (First-In-First-Out): Here the assumption is that the materials received first are the ones consumed/issued first. So, the valuation is based on the most recent receipt. The FIFO method can also be used in conjunction with the lowest value method. By this you can determine whether the system should make a comparison between the FIFO determined price and the lowest value price. You can also determine whether the FIFO price should be updated in the material master record.
3. Lowest Value Method: Here, the stocks are valued at their original price or the current market price whichever is lower. This method is suitable when the inventory needs to be valued to take into account material obsolescence, physical deterioration, or changes in price levels.

For more details visit SAP Help pages