Inventory Management PDF

Training Manual
SAP MM
TechVantage IT Solutions Pvt Ltd
INVENTORY MANAGEMENT
1. Goods Receipt
Create/ Change/ Display Goods Receipt
Purpose:
A Goods receipt is a Document created with respect to movement type, plant and with reference to PO.
Prerequisites:
Purchase Order is required to create Goods Receipt.
Menu Path:
SAP Menu > Logistics > Materials management > Inventory Management > Goods Movement > Goods Movement
(MIGO)
Transaction Code:
MIGO
In MIGO select Goods receipt with reference to Purchase order
There are two screens:

1. Header data
2. Detailed data
Update the following Required, Optional, and Conditional fields, as needed in Header Data:
Field
R/O/C
Description / Action
Document date
The document date is the date on which the original document

was issued
Posting Date
Date which is used when entering the document in Financial

Accounting or Controlling
Movement type
Type of movement ( Stores & Spares 101 )
Delivery note
Enter partys Delivery Challan no. and Date
Bill of lading
Enter the LR number and the Date
Header Text
Enter text if any related to whole document
2016 Mahesh Ghodke all rights reserved
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Training Manual
SAP MM
Update the following Required, Optional, and Conditional fields, as needed in Detailed Data:
Field
R/O/C
Qty in unit of entry
Received Quantity
Plant
Will populate from PO
Goods Recipient
Recipient for whom the material is destined.
Unloading point
The point at which the material is to be unloaded.
Text
Freight condition i.e. To Pay / Paid
Put the tick (Left Bottom) in the check box Item ok
and Click Save
to save the Goods receipt
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Training Manual
2.
SAP MM
Goods Issue
Create/ Change / Display Goods Issue
Purpose:
A reduction in warehouse stock due to a withdrawal of stock or the delivery of goods to departments and
employees and contractors
Prerequisites:
Goods issue With Reference Material document, others, Reservation, order, purchase order
Menu Path:
Logistics > Materials management > Inventory Management > Goods Movement > Goods Issue (MIGO)
Transaction Code:
MIGO
Select - Goods Issue with reference to Purchase order, Reservation, Material Document, Others, Order.
Select movement like 201, 301,501,911
Header Data:
Update the following Required, Optional, and Conditional fields, as needed in Header Data:
Field
R/O/C
Document Date
Posting Date
Doc. Header Text
Description/Action
The document date is the date on which the original
document was issued.
Date which is used when entering the document in
Financial Accounting or Controlling.
The document header text contains explanations or
notes that apply to the document as a whole.
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SAP MM
Detailed data:
Update the following Required, Optional, and Conditional fields, as needed in Detailed Data
Field
Material no
R/O/C
R
Plant
R
Storage Location
Description/Action
Select from Drop down which material has to issue(In case it is
against others )
User has to enter the plant
Will default from Material Master if one is maintained or can enter a
description for material without a material master
Number of the storage location at which the material is stored
Cost center
It will populate form Reservation if issued against reservation else

Select from drop down
Vendor
Enter vendor code / Emp vendor code or Select from dropdown(If

material is being issued to contractor on
accountable/loan/chargeable basis)
Reason for Movement
Select from drop down
Goods Recipient
Enter Code of the Dept / Name
Unloading point
Enter Physical Unloading locations existing in Plant
Text
Enter the text
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Training Manual
SAP MM
Put the tick (Left Bottom) in the check box Item ok
and Click Save
to save the Goods Issue.
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Training Manual
3.
SAP MM
Physical Inventory
Create/ Change/ Display Physical Inventory Document Work
Purpose:
This document describes the process of creating physical inventory document.
Prerequisites:
Plant
Storage Location
Cycle counting marked in MM
Menu Path:
Logistics > Materials management > Physical Inventory > Phy.Inv. Document > Create
Transaction Code: MI01- Create, MI02- Change, MI03- Display
Update the following Required, Optional or Conditional fields, as needed:

Field
R/O/C
Action / Description
Document Date.
Enter the physical inventory document date.
Planned count date
Planned count date and forms together with the

document number the key with which a physical
inventory document can be accessed.
Plant
Enter plant name
Storage location
Enter the Storage location
Press Enter or Click on
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SAP MM
Enter material codes & save
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Training Manual
SAP MM
Enter Physical Inventory Count

Purpose:
This procedure outlines the steps involved in entering the physical inventory count with reference to a
physical inventory document
Prerequisites:
PI (Physical Inventory) Document No.
Menu Path:
Logistics > Material Management > Physical Inventory > Inventory Count > Enter >
Transaction Code:
MI04
Update the following Required, Optional, and Conditional fields, as needed:

Field
R/O/C
Phys. Inventory doc.
The number that uniquely identifies the physical inventory

document.
Fiscal year
Defines the period for which the company is to create its

inventory and balance sheet.
This date is picked up from the count date.
Count date
Date that the physical inventory count is taken.
Variance in %
Percentage variance that must be met in order for the

system to generate an error message.
Enter a variance tolerance percentage if desired.
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SAP MM
Press Enter or click

Field
R/O/C
Description/Action
Plant
Plant where inventory count took place. Display only.
Stor. Loc.
Storage location of inventory Display only.
Material
Material number Display only.
Material description
Material description Display only.
STy
Stock type Display only.
Quantity
Stock quantity. Enter the physical inventory count.
UnE (Unit of Measure)
Enter UOM / UnE in which the count was taken.
ZC (Zero Count)
If the inventory is zero, check this box.

If you do not enter this indicator in the event of a zero count,
the item will be treated as uncounted.
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Training Manual
Press ENTER or click on
SAP MM
or save
the document
Next Screen will be displayed as below
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SAP MM
Post Inventory Differences

Purpose:
A physical inventory document has been created and you wish to enter a count and post the differences
simultaneously.
Prerequisites:
PI Document
Menu Path:
Logistics > Material Management > Physical Inventory > Difference > Count/difference
Transaction Code:
MI07
Update the following Required, Optional, and Conditional fields, as needed

Field
R/O/C
Description/Action
Phys. Inventory doc.
The number that uniquely identifies the physical inventory document.

Enter the physical inventory document. Conduct search if unknown.
Fiscal year
Defines the period for which the company is to create its inventory and
balance sheet. Enter the applicable fiscal year.
Posting Date
Date which is used when entering the document in Financial Accounting

or Controlling.
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Training Manual
Enter reason and Post / save
SAP MM
the document
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SAP MM
Logistics invoice verification (bill pass)

Create/Change/ Display Logistics Invoice Verification
Purpose:
Logistics Invoice verification is the process of checking and posting the vendor's invoice along with the Purchase
order in system for onward processing for vendor payment.
Pre requisites:
Purchase Order
Menu Path:
Logistics > Logistics Invoice Verification > Document Entry > Enter Invoice
Transaction Code: MIRO
On Initial Screen - Select the Company Code and Enter
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Field
R/O/C
Description/Action
Transaction
We can select an Invoice/Credit memo/Subsequent

adjustment
Invoice date
Date of invoice from vendor's invoice.
Reference
We have to post reference number is given in the invoice
Baseline date
Date from which the Payment terms are calculable. Can

overwrite.
PO Reference
We have to give the subject PO number.
Goods/Service Items
Select the relevant item to PO
PO - Delivery note
Select the option for posting of payment.
Calculate tax
Click the calculate key and the tax amount automatically

appear.
Amount
The Invoice amount is to be posted.
Business Place
Text place for Business place. Eg. Chennai
Section Code
Text place for section code.
Simulate
By simulating the GR/IR account details of credit & debit

appears.
Messages
Check for any messages like Payment blocks to vendor.
Save
Save the document.
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Training Manual
After entered all the details click on Simulate
Check all the data and click on post
SAP MM
will take you to next screen
Message will displayed as Document no. Created.
Page 15

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Training Manual

TechVantage IT Solutions Pvt Ltd

In MIGO select Goods receipt with reference to Purchase order

There are two screens:

The document date is the date on which the original document

Date which is used when entering the document in Financial

Type of movement ( Stores & Spares 101 )

Enter partys Delivery Challan no. and Date

Enter the LR number and the Date

Enter text if any related to whole document

2016 Mahesh Ghodke all rights reserved

TechVantage IT Solutions Pvt Ltd

Qty in unit of entry

Will populate from PO

Recipient for whom the material is destined.

The point at which the material is to be unloaded.

Freight condition i.e. To Pay / Paid

Put the tick (Left Bottom) in the check box Item ok

2016 Mahesh Ghodke all rights reserved

and Click Save

to save the Goods receipt

TechVantage IT Solutions Pvt Ltd

Doc. Header Text

2016 Mahesh Ghodke all rights reserved

TechVantage IT Solutions Pvt Ltd

It will populate form Reservation if issued against reservation else

Enter vendor code / Emp vendor code or Select from dropdown(If

Reason for Movement

Select from drop down

Enter Code of the Dept / Name

Enter Physical Unloading locations existing in Plant

Enter the text

2016 Mahesh Ghodke all rights reserved

Put the tick (Left Bottom) in the check box Item ok

2016 Mahesh Ghodke all rights reserved

TechVantage IT Solutions Pvt Ltd

and Click Save

to save the Goods Issue.

TechVantage IT Solutions Pvt Ltd

Transaction Code: MI01- Create, MI02- Change, MI03- Display

Update the following Required, Optional or Conditional fields, as needed:

Enter the physical inventory document date.

Planned count date

Planned count date and forms together with the

Enter plant name

Enter the Storage location

Press Enter or Click on

2016 Mahesh Ghodke all rights reserved

TechVantage IT Solutions Pvt Ltd

Enter material codes & save

2016 Mahesh Ghodke all rights reserved

TechVantage IT Solutions Pvt Ltd

Enter Physical Inventory Count

Update the following Required, Optional, and Conditional fields, as needed:

Phys. Inventory doc.

The number that uniquely identifies the physical inventory

Defines the period for which the company is to create its

Date that the physical inventory count is taken.

Percentage variance that must be met in order for the

2016 Mahesh Ghodke all rights reserved

TechVantage IT Solutions Pvt Ltd

Press Enter or click