SAP-MM-RealTime Problems & Solutions - Part1

Problem is that after goods receipt and AFTER invoice verification, reversal of goods
receipt is being done. Client wants this more controlled as the GRIR account is being
affected. So no reversals to be done after Invoice verification. How to approach
this?
Make this setting: SPRO > Materials Management > Inventory Management and Physical
Inventory > Goods Receipt > For GR-Based IV, Reversal of GR Despite Invoice
Here remove the tick against Mvt 102 & 122.
Now the system will not allow to return the Good at any case. *-- B.Anand daivaraja
I have created a new vendor. Later I found that there were some mistakes and that
I want that the system should not allow me to make any PO or post any entries to
this vendor. How to deactivate this vendor?
You can block a vendor at the following levels:
All company code
Single company code
All Purchase org
Single Purchase org
Where to Get the Goods Movement Type List?
Step 1) Run spro command/TC
Step 2) Then move to "SAP Reference IMG" screen
Step 3) Then navigate following path:
IMG --> Materials Management --> Inventory Management and Physical Inventory -->
Movement Types --> Copy, Change Movement types
Here with "Copy, Change Movement types" option a help tutorial is available (rectangular
blue colour icon). In that go to "Further information" section where you can find a big list
of movement types with some brief explanation.
Where the schedule margin key is customized?
You define the order float in the scheduling margin key, The scheduling margin key is
copied from the material master. The float before production or float after production
and the release period are defined in the scheduling margin key
For Customizing for Shop Floor Control, by choosing Operations --> Scheduling --> Define
Scheduling Margin Key .
The scheduling margin key is assigned to the material ( MRP area in the material master)
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and is transferred when the production order is created. These values can be changed in
the production order.
What is the function of OBYC?
Function of the OBYC stand for Configure Automatic Postings. In this step, you enter the
system settings for Inventory Management and Invoice Verification transactions for
automatic postings to G/L accounts.
Postings are made to G/L accounts automatically in the case of Invoice Verification and
Inventory Management
transactions relevant to Financial and Cost Accounting.
For example, Posting lines are created in the Stock account and Consumption account.
Tell me what is *make to order*?
Make-to-order production is a process in which a product is individually manufactured for
a particular customer. In contrast to mass production for an unspecified market where a
material is manufactured many times, in make-to-order production a material is created
only once though the same or a similar production process might be repeated at a later
time.
In global trade, you often need to process several different kinds of transactions at the
same time. The Trading Execution Workbench (TEW) provides a central cockpit where
traders can process trading contracts and their subcomponents, such as purchase orders
and sales orders and follow-on documents. In addition, TEW automates a large part of the
data entry, making processing quicker, easier, and more error-free.
How to delete a material completely?
Try MMDE transaction but be careful this will remove all material from Client.
What is the use of Tables in MM. i.e. How the tables get created?
Through SE11 you can create a new Table. In MM if you create a Material Master MARA,
MARM, MARC,MARD, MBEW & MVKE will updated. In Vendor Master LFA1, LFB1 & LFM1
will be updated. The same applies to EKKO,EKPO for P.O, MSEG & MKPF for MIGO & RBKP
for MIRO.
If in any error, only the message no. ! or the table no. is shown , then how to
resolve the error using message no. or table no.?
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Contact ABAP or BASIS person to resolve this.

How to create new transaction codes?
In transaction code SE93 you can create, Change & Display a Transaction Code.
1. What are the types of special stocks available?

Subcontracting, consignement, pipeline, project, sales order, RTP, stock transfer
,third party.
2. What are the types of inforecords?
Standard, consignment,subcontracting & pipeline.
3. What is meant by consignment stock?
The stock supplied by the vendor is in the companies premises with the company
having no liability for the same. The liability for the company will only be affected
when the goods are issued from the consignment stock for use.
4. What are the steps involved in consignment cycle?
Create consignment info record with proper tax code, create Po with item category
K, maintain output condition record for KONS, process GR, no invoice verification
done, but settlement is done through MRKO transaction.
5. Tell me about the subcontracting cycle.
The Po is created with item category L , the goods is transferred to subcontractor
by 541 movemet. for this movement note no accounting docs take place. When GR is
done automatically, 543 movemnt takes place which take care of the consumption of
components from stock.
6. How are the byproducts taken care of in subcontracting?
You can add these by products in the BOM for the header matl.
7. What is meant by scales?
Can scales be used in standard purchase order? You can fix a price in the info
record for a say qty from 1-100 price RS150 & if the order qty is 101- 500- the
prices is 140 . Scales cannot be used directly in PO but can be pulled into the PO
from various master data like info record, quota arrangement.
8. What is the difference between a contract and a scheduling agreement?
With regard to Outline Agreement:
1. You can create the centrally contract (cross-plant) where you can maintain
different pricing conditions for each and every plant
2. You have to create the Release Order with reference to Outline Agreement.
3. No detailed delivery schedule can be made in the Release Order.
4. No Release documentation is created.
5. Only time-dependent conditions can be created.
6. Some Item Category 'M' and 'W' can be used.
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With regard to Scheduling Agreement:

1. The Plant Location must be entered in the Scheduling Agreement.
2. We do not have to create any other purchasing document except for delivery
schedule line via Transaction ME38 or MRP running (with the appropriate setting of
Source List).
3. Delivery Schedule line items are created subject to your specific requirement.
4. Can create both Scheduling Agreement with and without Release Documentation
(subject to the Document Type LP or LPA) with the selection of either FRC or JIT
delivery schedule.
5. Either time-dependent or time-independent conditions can be created subject to
the customizing in the Document Type of the Scheduling Agreement.
6. Item Category 'M' and 'W' can not be used.
9. How does the system calculate taxes?
10. How does the system calculate nondeductible taxes?
11. What is meant by batches? How can the batches be searched?
A batch is a subdivision of your stock of a material having the same
characteristics.
For instance:
- food production uses batches to indicate the day of production.
- paint production uses batches based on production date and the used ingredients.
It is very hard to reproduce the same color in exactly the same way at two
different moments.
- ore may be divided in batches based on their mineral content.
You can search batches using the standard search facility (match code, key F4)
based on the naming convention of the batches or, if you use batch classification,
based on the characteristics of the batches.
12. How is a shelf-life item managed in SAP? What is the full cycle?
13. What are the settings required for quota arrangement?
To set up a quota arrangement for the procurement of a material, proceed as
follows:
Master data -> Quota arrangement -> Maintain, enter the material and plant
number, press ENTER to display the overview screen for the quota arrangement
periods, Enter a validity period for quota arrangement, Enter date until which the
quota arrangement is valid. The start date is calculated by the system. Press
ENTER .
Select the quota arrangement and choose Goto -> Item overview to display the item
overview screen of the quota arrangement. Enter a quota arrangement item for
each source of supply you want to include in the quota arrangement.
You must enter the following data.
- Procurement type
- Special procurement type, Enter k in the S column, for example, if a consignment
arrangement for the material exists with the vendor.
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- Vendor number
- Procurement plant (supplying plant):
- Quota column, enter the quota assigned to each item.
Press ENTER .
The percentage distribution of the quotas is calculated and displayed automatically
by the system.
Save the quota arrangement. The system assigns a number to the quota
arrangement item automatically
14. What is meant by MRP Type and lot sizing?
15. Can it be configured in such a way that the external requisitions can also be
taken into account while MRP runs in consumption-based planning if VB is selected
as MRP type?
16. How are free items managed in a PO? yu need to tick the tem as free in the PO.
The price will be zero for such PO's.
17. What are the differences between release procedure with classification and
release procedure without classification? When are they used?
Release procedure with classification means the Purchase requsition can be
released both at item level & at the header level. Release procedure with out
classification can also be used for PR which is used for item level release only. all
other external documents cannot be relesed with classification. The two
procedures are mutually exclusive (that is to say, you must decide in favor of one of
them only - you cannot use both).
18. Is it possible to have a release procedure without classification for a PO?
No
19. What is the maximum number of levels available in SAP?
Did not get this question pls clarify.
20. Is it possible to have scales in a quotation?
No
21. What is GR blocked stock? When it can be used?
Whenever you are not sure about the quality of the product received, you can put in
GR blocked stock.
22. How are the variations in subcontracting taken care of in SAP?
23. How to give specifications for developments?
We normally prepare a business requirement document in which we specify what is
required. what field & tables have to be referred for the required development.
24. How to create PR or PO by MRP?
The PR is created according to the safety stock mentioned for the material or can
be triggered from a requirement . For creating a PO, you need to have the
scheduling agreement in place .After the MRP is run the schedule lines are
generated which are nothing but the PO.
I have created a new vendor. Later I found that there were some mistakes and that
I want that the system should not allow me to make any PO or post any entries to
5|Page
this vendor. How to deactivate this vendor?

You can block a vendor at the following levels:
All company code
Single company code
All Purchase org
Single Purchase org
Where to Get the Goods Movement Type List?
Step 1) Run spro command/TC
Step 2) Then move to "SAP Reference IMG" screen
Step 3) Then navigate following path:
IMG --> Materials Management --> Inventory Management and Physical Inventory -> Movement Types --> Copy, Change Movement types
Here with "Copy, Change Movement types" option a help tutorial is available
(rectangular blue colour icon). In that go to "Further information" section where
you can find a big list of movement types with some brief explanation.
Where the schedule margin key is customized?
You define the order float in the scheduling margin key, The scheduling margin key
is copied from the material master. The float before production or float after
production and the release period are defined in the scheduling margin key
For Customizing for Shop Floor Control, by choosing Operations --> Scheduling -->
Define Scheduling Margin Key .
The scheduling margin key is assigned to the material ( MRP area in the material
master) and is transferred when the production order is created. These values can
be changed in the production order.
What is the function of OBYC?
Function of the OBYC stand for Configure Automatic Postings. In this step, you
enter the system settings for Inventory Management and Invoice Verification
transactions for automatic postings to G/L accounts.
Postings are made to G/L accounts automatically in the case of Invoice Verification
and Inventory Management
transactions relevant to Financial and Cost Accounting.
For example, Posting lines are created in the Stock account and Consumption
account.
Tell me what is *make to order*?
Make-to-order production is a process in which a product is individually
manufactured for a particular customer. In contrast to mass production for an
unspecified market where a material is manufactured many times, in make-to-order
production a material is created only once though the same or a similar production
process might be repeated at a later time.
In global trade, you often need to process several different kinds of transactions
at the same time. The Trading Execution Workbench (TEW) provides a central
cockpit where traders can process trading contracts and their subcomponents, such
6|Page
as purchase orders and sales orders and follow-on documents. In addition, TEW
automates a large part of the data entry, making processing quicker, easier, and
more error-free.
How to delete a material completely?
Try MMDE transaction but be careful this will remove all material from Client.
What is the use of Tables in MM. i.e. How the tables get created?
Through SE11 you can create a new Table. In MM if you create a Material Master
MARA, MARM, MARC,MARD, MBEW & MVKE will updated. In Vendor Master LFA1,
LFB1 & LFM1 will be updated. The same applies to EKKO,EKPO for P.O, MSEG &
MKPF for MIGO & RBKP for MIRO.
If in any error, only the message no. ! or the table no. is shown , then how to resolve
the error using message no. or table no.?
Contact ABAP or BASIS person to resolve this.
How to create new transaction codes?
In transaction code SE93 you can create, Change & Display a Transaction Code.
2. What is meant by consignment stock?
3. A form of business in which a vendor (external supplier) maintains a stock of
materials at a customer (purchaser) site.
The vendor retains ownership of the materials until they are withdrawn from the
consignment stores.
Payment for consignment stock is required only when the material is withdrawn for
use. For this reason, the vendor is informed of withdrawals of consignment stock on
a regular basis.
What are the steps involved in consignment cycle?

4. Consignment is a type of procurement process. In this process, the vendor makes
material available, which you then manage as consignment stock. A liability only
arises when material is withdrawn from consignment stock, not when the stock is
placed in the consignment stores.
1. Material Master record and Vendor should be there.
2. Info record with procurement type consignment should be there.
3. You have to activate the consignment price via info record in SPRO -> Materials
Management -> General settings for materials management --> Activate
Consignment Prices via Info Records
5. 4. Here you have to remember that, while placing PO, the price will be zero and the
price will be picked from inforecord.
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5. Vendor will supply the goods as per the PO and our company will receive the
goods. After receiving the goods the same will be lying in your company premises,
but not belongs to your inventory. It can be used only after posting to inventory or
consuming directly. But will pay for the goods as & when we are consuming/posted
to inventory to the company.
6. The payment will be made thru MRKO settlements. We can also set for automatic
payments thru batch jobs.
What is a reference purchase organization? When can it be used?

Pur Org:
The purchasing organization is an organizational unit which procures articles and
negotiates general purchase price conditions with vendors. It is responsible for all
purchasing transactions in the company.
Ref Pur Org:
In Customizing it is possible to assign reference purchasing organizations to a
purchasing organization. This allows the purchasing organization access to the
conditions and contracts of these reference purchasing organizations. The
purchasing organization can make use of up to two reference purchasing
organizations when the sequence in which it accesses conditions is determined.
Std Pur Org:
This standard (default) purchasing organization is used When the source of supply
is determined for the purposes of a stock transfer or consignment, the default
purchasing organization is used automatically. Further purchasing organizations can
be assigned to the site in addition to the default. A site cannot order if it has not
been assigned to a purchasing organization.
6.
7. What are the steps in automatic account assignment configuration?
8. Define Valuation Classes. (OMSK)
SPRO -> Material Management -> Valuation & Account assignment -> Account
Determination -> Account Determination without wizard -> Define Valuation
Classes.
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Define Valuation Control. (OMWM)

Determination -> Account Determination without wizard -> Define Valuation
Control.
9. Define Account Grouping for Movement Types (OMWN)
Determination -> Account Determination without wizard -> Define Account Grouping
for Movement Types.
10. Group Together Valuation Areas (OMWD)
Determination -> Account Determination without wizard -> Group Together
Valuation Areas
Configure Automatic Postings (OMWB) or OBYC

Determination -> Account Determination without wizard -> Configure Automatic
Postings
What is meant by access sequence? When it is used?

11. An access sequence is a search strategy with the aid of which the SAP System
searches for valid condition records of a certain condition type.
For example, you can stipulate for a price that the SAP System first searches for a
price for a specific plant, and then for a generally applicable price.
For condition types for which you wish to maintain conditions with their own validity
period, you must assign an access sequence. With this, you define which fields the
SAP System checks in searching for a valid condition record.
Example:
An access sequence has been assigned to condition type PB00 so that prices can be
maintained in purchasing info records and contracts.
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12.
No access sequence has been assigned to condition type RC00 because it does not
have a validity period of its own. In the standard system, it is always maintained
simultaneously with the price and is valid for the period of the price.
How does the PO pick up the pricing schema?

13. The calculation schema picks up using vendor schema (if you assign calculation
schema only to vendor schema then it will pick the same calculation schema for the
vendors assigned to particular vendor schema even though the Pur. Org is
different, the condition is the vendor record must be exist in all Pur. Org) or
purchasing org schema (if you assign calculation schema only to purchasing schema
then the PO will pick up same calculation schema for different vendors), or both at
time (if you wants separate pricing for domestic and foreign vendor under one Pur.
Org maintain two vendor schemas different for two vendors and assign it to
purchasing org schema).
14.
What are the types of special stocks available?
15. Special stocks and special procurement types are divided into the following areas:
- Consignment
- Subcontracting
- Stock transfer using stock transport order
- Third-party processing
- Returnable transport packaging
- Pipeline handling
- Sales order stock
- Project stock
creens in Material Master
Various Material Master Screen:
MM01 - Create,
MM02 - Change
MM03 - Display
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MM06 - Flag for deletion.

MM04 - Display the changes done to the material master.
MMAM - Change the Material Type. for e.g. from FERT to HALB
Configure the Material Master Screen MM01 / MM02 / MM03
OMSR - Assign the field to the field group

OMS9 - Maintain the data screen field
Unit of Measure
In the material master, there is a Units of measure button for users to store in the
different conversion rate. This sample program (ZUNT) extract the data from the unit of
measure conversion table.
In the Material Master the moving average price are affected by:
Goods Receipt for Purchase Orders

Transfer from Plant to Plant
Invoice Receipt
Settlement
Price Change
Common configuration changes
Define new material group (OMSF)

Define new valuation class (OMSK) and automatic posting (OBYC)
Define new material account assignment group (transaction OVK5) and
Customer/Material/Account keys (transaction VKOA)
Here, I will clearly explained how to create COMPANY and COMPANY CODE.
Just follow below as it is.
For e.g.
COMPANY RELIANCE -9001
COMPANY CODE -8001
RELIANCE MOBILE
COMPANY CODE -8002
RELIANCE INSURANCE
PLANT 1
PLANT 2
PLANT 1
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PLANT 2
COMPANY CODE -8001
RELIANCE MOBILE
COMPANY CODE -8002
RELIANCE INSURANCE
PLANT 1
PLANT 2
PLANT 1
PLANT 2
COMPANY CODE -8001
RELIANCE MOBILE
COMPANY CODE -8002
RELIANCE INSURANCE
PLANT 1
PLANT 2
PLANT 1
PLANT 2
Path to create COMPANY:
SPRO IMG <Enterprise structure > <Financial accounting> < Define Company> (select
company 1000 and select copy as give your own company name reliance for
example)
Company - 9002
Company Name - Reliance
Enter required field now your own company Reliance is ready.<SAVE>
Path to create COMPANY CODE:
SPRO IMG <Enterprise structure > < Edit copy, Delete, Check Company Code> <Edit
company code data> <select company code 1000 copy as> and enter your own
company name Reliance mobile (like a number of company code you can assign to
your own company)
Company code - 8001
Company Name - Reliance Mobile,
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Enter all required fields.

Again same way create one more company code for "Reliance Insurance"
<save>
Now we see How to assign Company code (Reliance mobile) to our Company
(Reliance)
SPRO IMG < Enterprise Structure > < Assignment > <Financial Accounting> < Assign
Company code to Company> <select your own company code reliance mobile and enter
your F4 fine your company reliance > <SAVE>
How to configure the system for automatic conversion of Purchase Requisition
to Purchase Order?
Ensure automatic purchase order field in Material Master (purchasing view) and
Vendor Master is ticked,Maintain the source list for respective materials and
vendor. Also maintain correct data at the MRP views. On the MRP run system will
generate purchase requisitions for the following materials. Using T-code ME59
conversion of purchase requisition to Purchase orders is possible.
What are the configuration for automatic creation and selection of storage
locations in Inventory Management?
Auto creation of storage location in inventory management can be created with
respect to the movement type and plant.Using t-code OBM2/OBM3.
For automatic storage location selection, storage location data can be specified in
procurement storage location field of MRP view in Material master and Issue
storage location field in Bill Of Material.
How to maintain automatic determination of G/L accounts during
GR/GI/Transfer posting?
Automatic account determination of GL account can be maintained using T-code
OBYC by specifying GL code for specific valuation class within the posting key(TEKEY) maintained for respective movement types.
What is the difference between selection parameter WE101 and WE103?
To optimize internal processes, you regularly create list displays to inform yourself
about the status of your purchase orders, info records, and other documents in the
system.
You are checking the purchase orders issued over the past 24 months. you are
primarily interested in POs against which no goods receipts have been entered.
Choose the scope of list BEST_ALV, so that the list of selected purchase orders is
displayed with ALV Grid Control.
Choose Logistics --> Materials Management --> Purchasing --> Purchase Order -->
List Displays --> For Vendor (ME2L).
Selection parameter : WE101 (open goods receipt)
WE103 means then that SAP considers the GR blocked stock as well as already
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received quantity while with WE101 the GR blocked stock is not considered as
received.
What is the diffrence between XD01, XK01 & MK01? Knowing that all the
above tx codes are used to create vendor.
There are 3 t-codes by which you can create vendor:
XK01 is for centrally creating vendor where all data are included.
MK01 is for purchasing vendor.
FK01 is for accounting vendor or vendor with accounting details.
PRICE DETERMINATION PROCESS or PRICING PROCEDURE
CONDITIONS OR PRICING PROCEDURE or PRICE DETERMINATION PROCESS

We deal with the Pricing Procedure for vendors.
PB00 Gross Price (info record, contract, scheduled Agreement)
PBXX Gross Price (PO)
FRA1 Freight
RA00 Discount on net
RA01 Discount on Gross
ZA00 Surcharge on net
SKT0 Surcharge / discount
ZPB0 Rebates
MWVS Input Tax
MWAS Output Tax
BASB Base Amount
RM0000 Calculation Schema or Pricing Procedure
(PB00 & PBXX)
RM0002 Calculation Schema or Pricing Procedure
(PB00)
PB00 --> AB00
Copy the Standard one and create new one (ours)
RM0000 contains all the condition types
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Pricing Procedure (PP)

We define the pricing procedure to define condition supplement for the material price.
The condition supplement specifies the discount, surcharge, freight etc that we want a
system every time to access material price condition records.
The total value of the material is calculated or based on all addition and subtraction i.e.
discounts, surcharge, tax freight etc
Condition Table
It is a table, which defines the structure of condition record key.
Condition Record
It is a data record used to store conditions or condition supplements, i.e. condition like,
discount, freight, and surcharge, Tax etc.
Condition Type
It is used for different functions. In Pricing the condition types leads you to differentiate
different types of discounts, in output determination, batch determination, difference
between two output types, such as delivery note or orderconfirmation, between different
strategy types
Access Sequence
It specifies the order in which system searches or access the condition records from
condition table
Difference between PB00 & PBXX

1. Condition maintained in PB00 is time dependent whereas PBXX is time independent.
2. Condition type PB00 used for IR, RFQ, Contract, Schedule Agreement
Condition type PBXX used for PO.
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Calculation Schema
The main function of calculation schema is to provide framework of steps for the
price determination process to specify the discounts, surcharge, freight rebate etc.
It also determines the sequence of conditions that are to be followed and in which
sequence.
Schema Group Vendor

The main function of it is to identify or to pick the right process and conditions for a
particular vendor.
Schema Group Purchasing Organization

Key that determines which calculation schema (pricing procedure) is to be used in
purchasing documents assigned to the relevant purchasing organization.
Schema Group
It allows to group together the purchasing organizations, which uses the same calculation
schema.
Steps: 1. Create Access sequence

2. Create condition types
3. Create pricing procedure or calculation schema
4. Link pricing procedure & access sequence to condition type
5. Create schema group for vendor
6. Create schema group for purchase organization
7. Assign schema group vendor-to-vendor master record in purchasing data view
8. Assign schema group purchase organization to our purchase organization
9. In inforecord purchase organization data enter condition types and pricing or calculation
procedure
CUSTOMIZE SETTINGS: SPRO --> IMG-->MM-->PUR-->Conditions -->Define price determination Process

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1. Define access sequence

2. Define Condition type
3. Define cal. Schema
4. Define schema group
o Schema group vendor
o Schema group purchasing group
5. Assignment of schema group to PUR org
6. Define schema determination determine cal schema for standard PO.
ITEM CATEGORY (I)

In terms of MM PUR: -An identifier indicating the characteristics of an item.
The item category determines whether the following are mandatory or permitted for an
item:
Material Number, Account assignment, Inventory Management in the SAP system, Goods
Receipt & Invoice Receipt
In terms Advertising Management (IS-M-AM):
Characteristics that defines sales relevant features of document items including planning,
pricing, production, billing etc
Item category plans a vital role in MM. It is a key, which determines how the procurement
of the material & services is to be controlled for the particular item.
Depending upon the item categories the scenario of purchasing documents varies /
changes.
Document types of item category: 1. Standard

2. L Sub contracting
3. K Consignment
4. B Limit
5. U Stock Transfer
6. D Services
7. T Text
8. S Third Party
Account Assignment Category (A): -
It determines which A/C Assignment data is necessary or required for the particular item
Different Types: 1. 1 - Third Party
2. P - Projects
3. K Cost Center
4. A - Asset
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5. C - Sales order
6. U - Unknown etc.
Physical Inventory and Inventory Management
Physical inventory Process: 1. Create Physical inventory document
T Code MI01 Create single inventory document
T Code MI31 Create multiple physical inventory documents
I. Enter the desired fields i.e. material, material type, site, storage location, and Maximum
number items / Documents 100, etc Press Enter
II. Click on Process Session
III. Select the line items and click on the process
IV. System displays a dialog box, select Background and click on
process. Inventory document is created
2. Print Inventory Document and handed over to responsible person say Manager
3. Enter Physical Inventory count
T Code MI04
i. Enter the physical inventory document number Fiscal year, count date Press enter
ii. Enter the Material Quantity and click on post
4. Listing of difference
T Code MI20
Enter the physical inventory document number and execute, system displays a screen,
wherein we will be able to view the differences
5. Post the differences
T Code MI07 & Mov Type 701 & 702
Enter the physical inventory document number, year, posting date, enter the difference
and post
INVENTORY MANAGEMENT
Maintaining stock by value or by quantity is called inventory. The
total inventory management deals with the goods movement of the material.
Goods movement: It is a process in which transaction resulting change in stocks. It is further sub-divided
into three categories
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1. Goods Receipt (GR)

2. Goods Issue (GI)
3. Transfer Posting (TP)
Goods Receipt (GR): - It is a goods movement in which receipt of goods is posted for
vendor or for production. A GR posted in the system will leads to increase in stock. No
Concept of Price or value
Goods Issue (GI): - It is goods movement in which material withdrawal is posted for
consumption or for customer. A GI posted in system will leads to decrease in stock.
Stock Transfer (ST): - It is method of removal of material from one location and
transferring it to another location. This process is performed between two plants and
two storage locations.
Transfer Posting (TP): - It is a general term of stock transfer that changes the stock
type or stock categories. The difference between transfer posting and stock transfer is: TP is logical stock transfer and ST is a physical stock transfer.
Movement Type: - It is a three-digit code, which plays a role of important control
function in inventory management. It acts as a central role in automatic account
determination. It determines which stock account or consumption account is updated
in financial accounting.
Reservation: - It stores requisition created from particular cost center to particular
department for issuing the material reservation posted in the system. It leads to decrease
in stock.
Stock Types: - The different stock types are
1. Unrestricted use stock
2. Quality inspection stock
3. Blocked stock
4. Warehouse stock
Transaction code: 1. To Create GR - MIGO
2. To Create GI - MB1A
3. For Transfer Posting - MB1B
4. To display Material/GR document MB03
19 | P a g e
5. To create reservations - MB21, MB22, MB23

6. To See Stock Overview - MMBE
7. To enter Other GR - MB1C
When GR is posted in the system
1. Material document is created - MB03
2. Accounting Document is generated - MB03
3. MMR updated - MM02, MM03
4. PO history updated - ME23N
Movement Types
Movement Types under GR - 101, 331,333,335,501,503,505,551,553,555,

561,351 (For all Mov Types there is a reversal e.g. 101 has 102. Note: No reversal for 121)
Movement Types under GI - 201, 331,333,335,551,553,555

Transfer Posting: It is performed in three ways
1. TP B/W Plant to Plant
2. TP B/W Storage Location to Storage Location
3. TP B/W Stock to Stock
Movement Types under TP B/W Plant to Plant
301 - 1 step
303 & 305 - 2 step
Movement Type under TP B/W Storage location to Storage Location
311 - 1 step
313 & 315 - 2 step
Movement Type under TP B/W stock to stock
321, 323, 325, 343,349
To Cancel the GR Movement type 102
Return delivery to vendor movement type 122 & T Code MIGO
Transfer Posting Stock to Stock
From Blocked stock to Quality Inspection

T Code MB1B & Movement Type 349
From Blocked stock to Unrestricted Stock

20 | P a g e
From Quality Inspection to Unrestricted Stock

Transfer Posting from Plant to Plant
For One Step: Movement Type 301
For Two Steps: Movement Type 303 & 305
After posting stock will display in Stock in Transit (Plant)
To receive material by receiving Plant Movement Type 305
Transfer Posting B/W Storage Location to Storage Location
Under One Plant B/W two Storage Locations Movement Type 311
Back to Parent storage Location Movement Type 313 (It Show stock in transfer) use
Movement type 315 at Parent storagelocation
To create Goods Issue (GI) T Code MB1A & Movement Type 201
To Create Reservations T Code MB21, MB22 & MB23
Creation of GI w.r.t Reservations
T Code MB1A & Movement Type 201
Click on Reservation, Enter Reservation Number Click on Adopt + Details
GR w.r.t Reservations: T Code MIGO & Select as Reservation instead of GR
GR without PO Movement type 501 & T Code MB1C, Select others instead of Purchase
order, Enter Material, Quantity, Plant, Storage Location Press Enter
Partner Option will be visible (Vendor) Save it
Invoice: - Invoice is a document, which is issued to a buyer (Company) from the supplier
(vendor) for the payment. The following information is maintained in invoice
Invoice date, Posting date, Invoice ref number, tax amount, amount, tax code, terms of
payments, vendor address, bankingaccounting information etc
When invoice document is posted in the system
Invoice document created
Accounting document is generated (MIR4)
PO history updated (ME23N)
FI document created (FB03)
21 | P a g e
SPECIAL STOCKS & SPECIAL PROCUREMENT TYPES

Special Stocks are those stocks which are not belongs to our company code. These are not
placed in our storage locations & no physical inventory is performed and treated as special
stocks for the reason of ownership.
Different types are of Special Stocks are as follows

1. Subcontracting
2. Consignment
3. Pipeline
4. Stock transfer
5. Third party
6. Returnable transport packaging
7. Sales order stock
8. Project stock
SUBCONTRACTING:
In subcontracting process we create subcontracting PO to supply or issue subcomponents

to vendor in order to get final product. The price maintained in subcontracting PO is a
service charge paid to vendor.
Steps to perform subcontracting:

1. Create subcontracting inforecord (Optional)
2. Create subcontracting PO with item category L,
There are to ways to supply subcomponents to vendor
Manually maintain the subcomponents in the subcontracting PO though
explode BOM
Through BOM (Bill of material) T Code CS01, CS02 & CS03
22 | P a g e
3. Create Transfer Posting with Movement Type 541 to issue the subcomponents to the
vendor
4. Goods Reciept
5. Invoice Reciept
Path: ME21N ---> Enter Item Category L -->, Material (End Product), PO Quantity,
Delivery Date, Net Price, Plant --> Click on Item Details --> Tab Material Data ->Components, select Explode BOM --> Click on Components button --> Enter the
subcomponents --> Go back & Save.
Create Transfer Posting with movement type 541 & T Code MB1B
GR: MIGO
IR: MIRO
CONSIGNMENT: - (No Concept of Invoice)
In consignment process we will not create Purchasing document for the vendor, vendor
himself send the material to our plant, though the material is available to our plant, the
responsibility & ownership of the material is of vendor. Aliability only arises when the
material withdrawal (Consumption) is posted in the system from consignment stock.
Steps:
1. Create Consignment info record (mandatory)
2. Create Consignment purchase order with item category K & maintain Info record
number
3. Create GR Movement type 101K
4. Create GI Movement Type 201K
5. Consignment settlement T Code MRKO
23 | P a g e
Path : -->ME11 --> In info record --> Purchasing Org Data 1 views of info record enter the
tax code and save it
--> Create Consignment Purchase Order ME21N (Price option is grayed out with price zero)
--> Create GR with movement type 101K
--> Create Goods Issue (GI) T Code MB1A & Movement Type 201K Enter Cost center
vendor
--> Consignment Settlement T Code MRKO Click Activate Consignment Activate Settle
Execute
--> Display the Document Number i.e. Invoice receipt T Code FB03
PIPELINE PROCESS: (No Concept of Invoice)
In pipeline handling your company does not need to order or store the material concerned.
It is ready available to you as and when required via pipeline (e.g. oil or water), or some
other type of cable (e.g. electricity). Consumption of the material is settled with the
vendor on a regular basis.
Steps:
1. Create a Material master record with material type PIPE
2. Create Pipeline info record
3. Create GI with movement type 201P
4. Pipeline settlement T Code MRKO
RETURNABLE TRANSPORT PACKAGING (RTP):
24 | P a g e
When company orders goods from a vendor, the goods are delivered with returnable
transport packaging (pallets, containers) that belongs to the vendor and is stored on our
premises until you return it to the vendor.
Steps:
1. Create Material master record with material type LEIH
2. Create PO
3. Create GR by maintaining RTP material by selecting the option transport equipments
with movement type 501M.
4. IR
STOCK TRANSFER:
In stock transfer processing, goods are procured and supplied within a company. One plant
orders the goods internally to another plant (receiving plant/issuing plant). The goods are
procured with a special type of purchase order the stock transport order.
Steps:
1. Create a Material master in both supplying and receiving plant
2. Create stock transport order (STO) with item category U
3. Create transfer posting with movement type 351 & T Code MB1B (Go to MMBE stock
overview, the stock will decrease in supplying plant and it will not update stock of receiving
plant, it will be under stock in transit)
4. Create GR stock will update in receiving plant
This scenario is under one company code between two plants.
Organization Structure
Organization Structure
25 | P a g e
26 | P a g e
Note: - {1 Sales Org + 1 Distribution Channel + 1 Division = Sales Area}

Client: It is a logical unit or independent unit, which is used for to organize a specific
organization data.
IMPLEMENTATION PROCESS
First we have to prepare documentation about the client business (like turnover, vendors,
customers, payments, materials, production, marketing etc.)
The implementer company made two teams (1.) Steering team. (2.) Steering community
Steering team (SAP functional consultants) prepares a detailed documentation about the
client with the help of core team (client company team) & this study is known as Feasibility
Study. After that the steering team handed over this documentation to Steering
community (Project manager, Sr. software engineer, and other higher authorities).
Steering community prepares the BBP (Business Blue Print). BBP Prepares in MS-Word
ASAP: - Accelerated System Application Product in Data Processing.
Business Process: - ASAP Methodology
1. Project Preparation
2. BBP (Business Blue Print)
3. Realization
4. Final Preparation
5. Go live & Support
Project Preparation: 27 | P a g e
It consists of identifying team members & development strategy as how to go.

AS IS (Existing Process followed, requirements)
TO BE (Requirement analysis and best process recommended)
Difference between (AS IS) & (TO - BE) is called GAP Analysis.
Business Blue Print (BPP): It is a legal documentation between client & the company (implementer / service provider).
We have to understand the current business process of client & analyzing the business &
prepare documentation. It is a detailed documentation for the client.
Realization: This Phase is used to Implement or migrate the entire business of client from Non-SAP
environment to SAP environment
Final Preparation: This phase is used for testing & end user training. After successfully completion of this
phase client is ready to run business in SAP R/3.
Go live & Support: In this phase we deliver the project end date & end user training at client site.
General Terms (Basics)
Client setup is done by BASIS (Business Administration System Integrated Software)
It is a logical unit or independent unit, which is used to organize a specific organization
data
Company, Company Code & Controlling Area are created by SAP FI/CO consultant
Sales Part is done by SAP SD consultant
{1 Sales Org + 1 Distribution Channel + 1 Division = Sales Area}
Rest is done by SAP MM consultant (Plant, Storage location, Pur Org., Ref Pur Org)
28 | P a g e
IDES: - Internet Demonstration Evaluated System. (Complete SAP System used for
educational purpose)
IMG: - Implementation guide (Customizing purpose)
Maximum number of screen or sessions can be opened is 6.
Transaction Code: - /N (T.Code) Closes the current session & opens the new session.
Transaction Code: - /O (T.Code) Minimizes the current screen & opens new session.
Difference between SAP 4.7 & ECC 5.0, ECC 6.0
ECC 5.0 & ECC 6.0 has its own database SAP DB, MAX DB
Path of SPRO
SAP EASY ACCESS --> TOOLS --> CUSTOMIZING --> IMG --> SPRO
Material Master Related Important Terms (Part 1)
Material Group
Key that you use to group together several materials or services with the same attributes,
and to assign them to a particular material group.
Use: You can use material groups to:

Restrict the scope of analyses
Search specifically for material master records via search helps
Purchasing Group
Key for a buyer or a group of buyers, who is/are responsible for certain purchasing
activities
Use
Internally, the purchasing group is responsible for the procurement of a material or a
class of materials.
Externally, it is the medium through which contacts with the vendor are maintained.
Purchasing Value Key
Key defining the reminder days and tolerance limits valid, as well as the
29 | P a g e
shipping instructions and order acknowledgment requirement of the material for

Purchasing.
Procedure: If you have chosen a purchasing value key, the system enters the values
defined in Customizing (for Purchasing) in the fields.
Batch Batches (LO-BM)
A subset of the total quantity of a material in stock, managed separately from other
subsets of the same material.
Example: Different production lots (such as paints, dyes, wallpapers, and pharmaceutical
products), delivery lots, quality grades of a material.
Batch management requirement indicator, Specifies whether the material is managed in
batches.
Use:
This indicator can be set in the material master record manually or, if batches are
valuated individually, it is set automatically for the plants concerned, in which case it
cannot be changed.
The indicator cannot be changed if stocks exist in either the current period or in the
previous period. The reason for checking the previous period is because stocks can be
posted to this period when goods movements are entered.
Material Master Related Important Terms (Part 1)
Material Group
Key that you use to group together several materials or services with the same attributes,
and to assign them to a particular material group.
Use: You can use material groups to:

Restrict the scope of analyses
Search specifically for material master records via search helps
Purchasing Group
Key for a buyer or a group of buyers, who is/are responsible for certain purchasing
activities
Use
Internally, the purchasing group is responsible for the procurement of a material or a
class of materials.
30 | P a g e
Externally, it is the medium through which contacts with the vendor are maintained.
Purchasing Value Key
Key defining the reminder days and tolerance limits valid, as well as the
shipping instructions and order acknowledgment requirement of the material for
Purchasing.
Procedure: If you have chosen a purchasing value key, the system enters the values
defined in Customizing (for Purchasing) in the fields.
Batch Batches (LO-BM)
A subset of the total quantity of a material in stock, managed separately from other
subsets of the same material.
Example: Different production lots (such as paints, dyes, wallpapers,

and pharmaceutical products), delivery lots, quality grades of a material.
Batch management requirement indicator, Specifies whether the material is managed in
batches.
Use:
This indicator can be set in the material master record manually or, if batches are
valuated individually, it is set automatically for the plants concerned, in which case it
cannot be changed.
The indicator cannot be changed if stocks exist in either the current period or in the
previous period. The reason for checking the previous period is because stocks can be
posted to this period when goods movements are entered.
SAP IMPLEMENTATION PROCESS / End to End Inplementation of SAP
First we have to prepare documentation about the client business (like turnover,
vendors, customers, payments, materials, production, marketing etc.)
The implementer company made two teams (1.) Steering team. (2.) Steering
community
Steering team (SAP functional consultants) prepares a detailed
documentation about the client with the help of core team (client company team)
& this study is known as Feasibility Study. After that the steering team handed
over this documentation to Steering community (Project manager, Sr. software
engineer, and other higher authorities).
31 | P a g e
Steering community prepares the BBP (Business Blue Print). BBP

Prepares in MS-Word
ASAP: - Accelerated System Application Product in Data Processing.
Business Process: - ASAP Methodology
1. Project Preparation
2. BBP (Business Blue Print)
3. Realization
4. Final Preparation
5. Go live & Support
Project Preparation: It consists of identifying team members & development strategy as
how to go.
AS IS (Existing Process followed, requirements)
TO BE (Requirement analysis and best process recommended)
Difference between (AS IS) & (TO - BE) is called GAP Analysis.
Business Blue Print (BPP): It is a legal documentation between client & the company
(implementer / service provider). We have to understand the current business
process of client & analyzing the business & prepare documentation. It is a
detailed documentation for the client.
Realization: This Phase is used to Implement or migrate the entire business of
client from Non-SAP environment to SAP environment
Final Preparation: This phase is used for testing & end user training. After successfully
completion of this phase client is ready to run business in SAP R/3.
Go live & Support: 32 | P a g e
In this phase we deliver the project end date & end user training at
client site.
label Subcontracting. Show all posts
SPECIAL STOCKS & SPECIAL PROCUREMENT TYPES
Special Stocks are those stocks which are not belongs to our company code. These are not
placed in our storage locations & no physical inventory is performed and treated as special
stocks for the reason of ownership.
Different types are of Special Stocks are as follows

1. Subcontracting
2. Consignment
3. Pipeline
4. Stock transfer
5. Third party
6. Returnable transport packaging
7. Sales order stock
8. Project stock
SUBCONTRACTING:
In subcontracting process we create subcontracting PO to supply or issue subcomponents

to vendor in order to get final product. The price maintained in subcontracting PO is a
service charge paid to vendor.
Steps to perform subcontracting:

1. Create subcontracting inforecord (Optional)
2. Create subcontracting PO with item category L,
There are to ways to supply subcomponents to vendor
33 | P a g e
Manually maintain the subcomponents in the subcontracting PO though

explode BOM
Through BOM (Bill of material) T Code CS01, CS02 & CS03
3. Create Transfer Posting with Movement Type 541 to issue the subcomponents to the
vendor
4. Goods Reciept
5. Invoice Reciept
Path: ME21N ---> Enter Item Category L -->, Material (End Product), PO Quantity,
Delivery Date, Net Price, Plant --> Click on Item Details --> Tab Material Data ->Components, select Explode BOM --> Click on Components button --> Enter the
subcomponents --> Go back & Save.
Create Transfer Posting with movement type 541 & T Code MB1B
GR: MIGO
IR: MIRO
CONSIGNMENT: - (No Concept of Invoice)
In consignment process we will not create Purchasing document for the vendor, vendor
himself send the material to our plant, though the material is available to our plant, the
responsibility & ownership of the material is of vendor. Aliability only arises when the
material withdrawal (Consumption) is posted in the system from consignment stock.
Steps:
1. Create Consignment info record (mandatory)
2. Create Consignment purchase order with item category K & maintain Info record
number
34 | P a g e
3. Create GR Movement type 101K

4. Create GI Movement Type 201K
5. Consignment settlement T Code MRKO
Path : -->ME11 --> In info record --> Purchasing Org Data 1 views of info record enter the
tax code and save it
--> Create Consignment Purchase Order ME21N (Price option is grayed out with price zero)
--> Create GR with movement type 101K
--> Create Goods Issue (GI) T Code MB1A & Movement Type 201K Enter Cost center
vendor
--> Consignment Settlement T Code MRKO Click Activate Consignment Activate Settle
Execute
--> Display the Document Number i.e. Invoice receipt T Code FB03
PIPELINE PROCESS: (No Concept of Invoice)
In pipeline handling your company does not need to order or store the material concerned.
It is ready available to you as and when required via pipeline (e.g. oil or water), or some
other type of cable (e.g. electricity). Consumption of the material is settled with the
vendor on a regular basis.
Steps:
1. Create a Material master record with material type PIPE
2. Create Pipeline info record
3. Create GI with movement type 201P
4. Pipeline settlement T Code MRKO
RETURNABLE TRANSPORT PACKAGING (RTP):

35 | P a g e
When company orders goods from a vendor, the goods are delivered with returnable
transport packaging (pallets, containers) that belongs to the vendor and is stored on our
premises until you return it to the vendor.
Steps:
1. Create Material master record with material type LEIH
2. Create PO
3. Create GR by maintaining RTP material by selecting the option transport equipments
with movement type 501M.
4. IR
STOCK TRANSFER:
In stock transfer processing, goods are procured and supplied within a company. One plant
orders the goods internally to another plant (receiving plant/issuing plant). The goods are
procured with a special type of purchase order the stock transport order.
Steps:
1. Create a Material master in both supplying and receiving plant
2. Create stock transport order (STO) with item category U
3. Create transfer posting with movement type 351 & T Code MB1B (Go to MMBE stock
overview, the stock will decrease in supplying plant and it will not update stock of receiving
plant, it will be under stock in transit)
4. Create GR stock will update in receiving plant
This scenario is under one company code between two plants.
36 | P a g e
SAP Inventory Management Movement Type 1

Below you will find a short description of the standard movement types. The reversal
movement type is the movement type + 1 (reversal of 101 = 102).
101 Goods receipt for purchase order or order
If the purchase order or order has not been assigned to an account, a stock type
(unrestricted-use stock, stock in quality inspection, blocked stock) can be entered during
goods receipt.
If the purchase order or order has been assigned to an account, the goods receipt is not
posted to the warehouse, but to consumption.
In the case of non-valuated materials, the goods receipt is posted to the warehouse,
although the purchase order has not been assigned to an account.
Possible special stock indicators:
K Goods receipt for purchase order to consignment stock

O Goods receipt for purchase order to stock of material provided to vendor
E GR for purchase order or order to sales order stock
Q GR for purchase order or order to project stock.
Goods receipt for subcontract order: at goods receipt, the consumption of the components
is posted at the same time (see movement type 543)
Goods receipt for stock transport order: at goods receipt the transported quantity is
posted in the receiving plant from stock in transit into unrestricted-use stock (stock in
quality inspection or blocked stock).
103 Goods receipt for purchase order into GR blocked stock
You cannot receive goods into goods receipt blocked stock for stock transport orders.
K, O, E, Q
105 Release from GR blocked stock for purchase order
Movement type 105 has the same effects as 101.
K, O, E, Q
107 Goods receipt to valuated GR blocked stock
37 | P a g e
This goods movement corresponds to a valuated movement type 103.

None
109 Goods receipt from valuated GR blocked stock
This goods movement corresponds to a non-valuated movement type 105.
None
121 Subsequent adjustment for subcontracting
This movement type cannot be entered manually.
With a subsequent adjustment for a subcontract order it is possible to correct the
consumption of components. In this case, the material produced by the supplier is credited
with the excess consumption / under-consumption. For this reason, if there is a
subsequent adjustment, an item is generated for the produced material using movement
movement type 121.
Movement type 121 does not have a reversal movement type.
O, E, Q
122 Return delivery to supplier or to production
Using movement type 122, you can distinguish real return deliveries for a purchase order
or order from cancellations (102).
In the standard version, you must enter a reason for the return delivery if you are using
movement type 122. This enables you to carry out evaluations for return deliveries.
The effects of movement type 122 correspond to a cancellation of movement type 101.
K, O, E, Q
123 Reversal of return delivery
If you returned a goods receipt using movement type 122, you can reverse the return
delivery using movement type 123. This movement type has the same effects as movement
type 101.
K, O, E, Q
124 Return delivery to vendor from GR blocked stock
38 | P a g e
Using movement type 124, you can return a goods receipt to GR blocked stock ( 103).
Movement type 124 has the same effects as movement type 104.
K, O, E, Q
125 Return delivery from GR blocked stock - reversal
If you returned a goods receipt to GR blocked stock using movement type 124, you can
reverse the return delivery using movement type 125.
K, O, E, Q
131 Goods receipt for run schedule header
This movement type cannot be entered manually. It is generated automatically at
notification of goods receipt for a run schedule header .
E, Q
141 Goods receipt for subsequent adjustment for active ingredient
This movement type cannot be entered manually. It is generated automatically upon
subsequent adjustment for a proportion/product unit . Subsequent adjustment is
necessary if the system finds that there has been excess consumption or underconsumption after a goods receipt posting.
K, O, E, Q
161 Return for purchase order
If a purchase order item is marked as a returns item, the returns to vendor are posted
using movement type 161 when the goods receipt for purchase order ( 101) is posted.
K, O, E, Q
201 Goods issue for a cost center
The goods can only be withdrawn from unrestricted-use stock.
K: Goods withdrawal from consignment stock
39 | P a g e
P: Goods withdrawal from the pipeline
If you have withdrawals from consignment stock and from pipeline, payables to suppliers
ensue.
221 Goods issue for a project
K, Q
231 Goods issue for a customer order (without Shipping)
You use this movement type if you want to process the delivery without Shipping.
E, K, Q
241 Goods issue for an asset
K
251 Goods issue for sales (without customer order)
Use this movement type if you have not entered a customer order in SD. In the standard
system, the movement is assigned to a cost center.
K
261 Goods issue for an order
This refers to all withdrawals for orders (for example,
DS:GLOS.3526C388AFAB52B9E10000009B38F974>production orders, maintenance
orders ), with the exception of customer orders.
E, K, P, Q, W
The goods issue can be posted manually in Inventory Management or automatically when an
order is confirmed or via a delivery in Shipping.
281 Goods issue for a network
40 | P a g e

The goods issue can also be posted via a delivery in Shipping.
E, K, P, Q
291 Goods issue for any arbitrary account assignment
With this movement type, all account assignment fields are ready for input. You can assign
the movement to any arbitrary account assignment object.
E, K, P, Q
AP Inventory Management Movement Type 2
301 Transfer posting plant to plant in one step
The quantity is transferred from unrestricted-use stock in the issuing plant to
unrestricted-use stock in the receiving plant.
E, O, Q, V, W
303 Transfer posting plant to plant in two steps - removal from storage
The quantity is transferred from unrestricted-use stock of the issuing plant to stock in
transfer in the receiving plant.
For technical reasons, you cannot carry out transfer postings from plant to plant in two
steps for split valuation materials.
Removal from storage can be posted with movement type 603 via Shipping.
None
305 Transfer posting plant to plant in two steps - placement in storage
The quantity is posted from stock in transfer to unrestricted-use stock in the receiving
plant. The movement is not valuated.
You can use movement type 605 in Shipping to post the goods receipt with reference to
the delivery.
None
41 | P a g e
309 Transfer posting material to material

The quantity is posted from unrestricted-use stock of the issuing material into
unrestricted-use stock in the receiving material.
Prerequisite: both materials have the same stockkeeping unit.
E, O, Q, V, W
311 Transfer posting storage location to storage location in one step
The quantity is transferred from unrestricted-use stock of the issuing storage location to
unrestricted use in the receiving storage location.
E, K, M, Q
See also 321, 343, 349, and 455 for other stock types
313 Stock transfer storage location to storage location in two steps - removal from
storage
The quantity is transferred from unrestricted-use stock of the issuing storage location to
stock in transfer in the receiving storage location.
None
315 Transfer posting storage location to storage location in two steps - placement in
storage
In the receiving storage location, the quantity is transferred from the stock in transfer to
the unrestricted-use stock.
None
317 Putting together a structured material from its constituent components (Retail)
A material split up into its components using movement type 319 can be put together again
using movement type 317.
The effects of movement type 317 correspond to a reversal of movement type 319.
None
319 Splitting up structured material into components (Retail)
42 | P a g e
You can enter the splitting up of a structured material manually using movement type 319.
You can configure Customizing so that a structured material (for example, a set, prepack,
or display is automatically split up into its components at the time of goods receipt. The
system posts the split using movement type 319. In this process, the BOM header material
is posted and each of the component stocks are increased. You can also use this function if
you use the Warehouse Management System (LE-WM).
None
Example:
A box of the structured material S contains 3 pieces of the component K1 and 4 pieces of
the component K2. The following material document items result after the material is split
up upon goods receipt:
Qty Unit Material Movement type
1 box S 101 +
1 box S 319 4 piece K1 319 +
5 piece K2 319 +
321 Transfer posting stock in quality inspection - unrestricted-use stock
The quantity is transferred from stock in quality inspection into unrestricted-use stock.
Here you can post the quantity to another storage location.
You cannot use this movement type for QM-managed materials since transfer posting for
these materials takes place via the usage decision.
E, K, O, Q, V, W
323 Transfer posting storage location to storage location - stock in quality inspection
The quantity is transferred from stock in quality inspection in the issuing storage location
into stock in quality inspection in the receiving storage location.
E, K, Q
325 Transfer posting storage location to storage location - blocked stock
The quantity is transferred from blocked stock in the issuing storage location into blocked
stock in the receiving storage location.
E, K, Q
331 Withdrawal of sample from stock in quality inspection
43 | P a g e
The sample is destructive, that is, the withdrawal has the same effects as scrapping.
E, K, Q, V, W
333 Withdrawal of sample from unrestricted-use stock
E, K, Q, V, W
335 Withdrawal of sample from blocked stock
E, K, Q
340 Revaluation of batch
Using this movement type, you can change a batch's valuation type. The system
automatically calls up this movement type when you want to revaluate a batch by choosing
Logistics -> Central Functions -> Batch Management -> Batch -> Change (transaction code
MSC2N). There is no reversal movement type.
E, Q
341 Change in status of a batch (available to unavailable)
This goods movement is automatically created when there is a change in the status of a
batch and it is also used to transfer the unrestricted-use stock into restricted-use stock.
E, K, M, O, Q, V, W
343 Transfer posting blocked stock - unrestricted-use stock
The quantity is transferred from blocked stock to unrestricted-use stock. You can also
post the quantity to another storage location.
E, K, Q
349 Transfer posting from blocked stock to stock in quality inspection
The quantity is transferred from blocked stock to stock in quality inspection. Here you can
transfer the quantity to another storage location.
44 | P a g e

E, K, Q
351 Goods issue for a stock transport order (without Shipping)
The quantity is transferred from unrestricted-use stock in the issuing plant to stock in
transit in the receiving plant.
Movement type 351 is only used if the goods issue is posted without a delivery in Shipping.
A goods issue for a stock transport order with delivery in Shipping is posted using
movement types 641, 643, 645, or 647 .
The transfer posting is also possible for materials with split valuation.
The goods issue for a stock transport order takes place using movement type 101.
E, Q
For special stock indicators E and Q and for purchase orders assigned to an account,
ensure that the quantity is not posted to the stock in transit in the receiving plant.
411 Transfer posting of special stocks E, K, and Q to company's own stock
The quantity is transferred from unrestricted-use special stock E ( sales order stock),
unrestricted-use stock K ( consignment stock) and unrestricted-use special stock Q (
project stock) to unrestricted-use storage location stock. The corresponding special stock
indicator is required for this movement.
If you do not use the special stock indicator, the system uses this movement type and
movement type 311.
For sales order stock, you can change the material number for this movement if you
manage the material in your company's own stock under a different material number (for
example, for configurable materials).
Consignment stock is transferred to valuated stock, thus resulting in a vendor liability.
413 Transfer posting to sales order stock
You can use this movement type to carry out a transfer posting from your own
unrestricted-use stock, other sales order stock, consignment stock, and project stock to a
sales order stock.
E, K, Q
415 Transfer posting to project stock
You can use this movement type to carry out a transfer posting from your own
unrestricted-use stock, consignment stock, and other project stock to a project stock.
45 | P a g e

E, K, Q
441 Transfer posting non-tied to tied empties
Part of the stock of an "empties" material assigned to a full product is managed in the
stock type "tied empties".
Empties stock not assigned to a full product forms part of the stock type "unrestricteduse".
Using movement type 441, you can make a transfer posting for an empties material from
the stock type "unrestricted-use" to the stock type "tied empties". Movement type 442
reverses this transaction.
Example:
The full product "beer" has a stock of 15 cases. Part of the empties components "bottle"
and "case" is tied empties stock.
Material unrestricted-use tied empties
Beer 15
Bottle 240 360
case 10 15
451 Returns from customer (without Shipping)
Using movement type 451, you post customer returns without a returns delivery in
Shipping into blocked stock returns.
None
See also: 453, 651, 653
453 Transfer posting blocked stock returns to unrestricted-use stock
The quantity is transferred from blocked stock returns to unrestricted-use stock and
thereby transferred to valuated stock.
With this movement you can transfer the quantity to another storage location at the same
time.
None
455 Transfer posting storage location to storage location - blocked stock returns
The quantity is transferred from blocked stock returns of the issuing storage location to
blocked stock returns of the receiving storage location.
46 | P a g e

None
457 Transfer posting blocked stock returns to quality inspection stock
The quantity is transferred from blocked stock returns to quality inspection stock and
thereby transferred to valuated stock.
time.
None
459 Transfer posting blocked stock returns to blocked stock
The quantity is transferred from blocked stock returns to blocked stock and thereby
transferred to valuated stock.
time.
None
AP Inventory Management Movement Type 3
501 Goods receipt without purchase order - unrestricted-use stock
This movement type is used for deliveries from vendors that are not based on a purchase
order. Invoice verification is not possible for these goods receipts.
For a goods receipt for purchase order ( 101), the receipt of returnable transport
packaging can be entered using movement type 501 and special stock indicator M.
E, K, M, Q
503 Goods receipt without purchase order - stock in quality inspection
E, K, Q
505 Goods receipt without purchase order - blocked stock
47 | P a g e
E, K, Q
511 Free-of-charge delivery from vendor
The quantity is posted to unrestricted-use stock. If there is a material with moving
average price, the moving average price is reduced accordingly.
None
521 Goods receipt without order - unrestricted-use stock
This movement type is used for deliveries from production that are not based on an order.
E, Q
523 Goods receipt without order - stock in quality inspection
E, Q
525 Goods receipt without order - blocked stock
E, Q
531 Goods receipt from by-product from the order
The goods receipt of a by-product usually refers to an order, but it can be entered
without a reference.
If a component is entered with a negative quantity in the order, a reservation item is
created with 531 (instead of 261). The receipt of a by-product can be entered when the
component for the order is withdrawn from stock or it can be entered as an 'other goods
receipt'.
E, Q
See also: 545 and 581
541 Transfer posting unrestricted-use stock - stock of material provided to vendor
48 | P a g e
With this movement type you provide the subcontractor with the components required for
subcontract orders. The quantity is posted into unrestricted-use stock of material
provided to vendor.
If there is a goods receipt for a subcontract order ( 101) consumption of components is
posted from this stock.
The transfer posting can be posted via a delivery in Shipping.
None
543 Consumption from stock of material provided to vendor
This movement cannot be entered manually.
The consumption of components for a subcontract order is posted using goods receipt for
purchase order ( 101). It can be corrected by means of a subsequent adjustment.
For special stock indicators E and Q, you must ensure that the quantity is not posted to
the stock of material provided to vendor, but to the unrestricted-use sales order or
project stock.
E, O, Q
545 Goods receipt from by-product from subcontracting
If a component is entered with a negative quantity for the subcontract order, the receipt
of the by-product is posted to stock provided to vendor during goods receipt for purchase
order or during the subsequent adjustment.
For special stock indicators E and Q, you must ensure that the quantity is not posted to
the stock of material provided to vendor, but to the unrestricted-use sales order or
project stock.
E, O, Q
551 Scrapping from unrestricted-use stock
E, K, O, Q, V, W
553 Scrapping from stock in quality inspection
E, K, O, Q, V, W
555 Scrapping from blocked stock
49 | P a g e

E, K, Q
557 Issue from stock in transit (adjustment posting)
Only use this movement type (also the reversal movement type) under the following
circumstances:
Using movement type 557, you can correct purchase-order-independent stock in transit if
- a good receipt cannot be posted to a purchase order without stock in transit, even
though there is still stock in transit according to the purchase order history
- stock in transit still exists, even though there are no open stock transfer orders for the
particular material
This movement type may ONLY be used in the cases mentioned above after careful
analysis, to correct stock in transit that has rounding errors.
This movement type may not be copied.
Note!
Before using this movement type, note the following:
- 392205 Analysis stock in transit / Correction if split valuation
E, Q
561 Initial entry of stock - unrestricted-use stock
During initial entry of stock balances, when the ERP system is active, you enter the
physical warehouse stock figures or the book inventory from your old system into the R/3
Materials Management component. This data entry usually takes place by means of batch
input .
E, K, M, O, Q, V, W
563 Initial entry of stock - quality inspection
input .
E, K, O, Q, V, W
565 Initial entry of stock - blocked stock
50 | P a g e
input .
E, K, Q
571 Goods receipt for assembly order to unrestricted-use
This movement cannot be entered in Inventory Management. It can only be entered in
repetitive manufacturing using the Goods receipt for sales order function.
E, Q
573 Goods receipt for assembly order to quality inspection
E, Q
575 Goods receipt for assembly order to blocked stock
E, Q
581 Goods receipt of a by-product from the network
The goods receipt of a by-product usually refers to a network, but can be entered without
reference.
If a component is entered with a negative quantity in the network, a reservation is created
with 581 (instead of 281). The receipt of a by-product can be entered during the
withdrawal for the network or as an 'other goods receipt'.
E, Q
601 Goods issue for delivery (Shipping)
In Shipping, this movement type is created automatically with the Goods issue for delivery
function.
The quantity is taken from unrestricted-use stock.
51 | P a g e

E, K, Q
603 Goods issue for stock transport order (Shipping) with additional item
If you issue goods for a stock transport order in Shipping using movement type 641, you
can use this movement type to assign an extra item to the order.
The ordered material is transferred to the stock in transit of the receiving plant. The
material for the additional item is transferred from unrestricted-use stock in the issuing
plant to stock in transfer in the receiving plant.
You can also use this movement type without referencing a purchase order.
None
See also: 303, 641
605 Goods receipt for a stock transport order (Shipping) with additional item
You can use this movement type to transfer into unrestricted-use stock the material you
posted into stock in transfer in the receiving plant using movement type 603. You post the
goods movement with reference to the purchase order (if available) or the delivery.
None
See also: 305 and 641
617 Putting together structured material (Retail) in consignment stock
The effects of movement type 617 correspond to those of movement type 317.
However, you can only use movement type 617 together with the special stock indicator K
and only if you have activated the business function Retail (EA-RET).
K
619 Splitting up structured material into components (Retail) in consignment stock.
The effects of movement type 619 correspond to those of movement type 319.
However, you can only use movement type 619 together with special stock indicator K and
only if you have activated the business eunction Retail (EA-RET).
K
621 Transfer posting unrestricted-use - returnable packaging (Shipping)
The quantity is transferred from unrestricted-use stock to the returnable packaging
stock at customer.
52 | P a g e

SAP-MM-RealTime Problems & Solutions - Part1

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SAP-MM-RealTime Problems & Solutions - Part1

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Problem is that after goods receipt and AFTER invoice verification, reversal of goods

Now Started Sharing Knowledge through this plat-form..

Contact ABAP or BASIS person to resolve this.

1. What are the types of special stocks available?

With regard to Scheduling Agreement:

this vendor. How to deactivate this vendor?

What are the steps involved in consignment cycle?

What is a reference purchase organization? When can it be used?

Define Valuation Control. (OMWM)

Configure Automatic Postings (OMWB) or OBYC

What is meant by access sequence? When it is used?

How does the PO pick up the pricing schema?

MM06 - Flag for deletion.

Configure the Material Master Screen MM01 / MM02 / MM03

OMSR - Assign the field to the field group

Goods Receipt for Purchase Orders

Common configuration changes

Define new material group (OMSF)

Enter all required fields.

PRICE DETERMINATION PROCESS or PRICING PROCEDURE

CONDITIONS OR PRICING PROCEDURE or PRICE DETERMINATION PROCESS

Pricing Procedure (PP)

Difference between PB00 & PBXX

Schema Group Vendor

Schema Group Purchasing Organization

Steps: 1. Create Access sequence

CUSTOMIZE SETTINGS: SPRO --> IMG-->MM-->PUR-->Conditions -->Define price determination Process

1. Define access sequence

ITEM CATEGORY (I)

In terms Advertising Management (IS-M-AM):

Document types of item category: 1. Standard

Account Assignment Category (A): -

1. Goods Receipt (GR)

5. To create reservations - MB21, MB22, MB23

Movement Types under GR - 101, 331,333,335,501,503,505,551,553,555,

Movement Types under GI - 201, 331,333,335,551,553,555

From Blocked stock to Quality Inspection

From Blocked stock to Unrestricted Stock

T Code MB1B & Movement Type 343

From Quality Inspection to Unrestricted Stock

SPECIAL STOCKS & SPECIAL PROCUREMENT TYPES

Different types are of Special Stocks are as follows

In subcontracting process we create subcontracting PO to supply or issue subcomponents

Steps to perform subcontracting:

CONSIGNMENT: - (No Concept of Invoice)

PIPELINE PROCESS: (No Concept of Invoice)

RETURNABLE TRANSPORT PACKAGING (RTP):

Note: - {1 Sales Org + 1 Distribution Channel + 1 Division = Sales Area}

It consists of identifying team members & development strategy as how to go.

Use: You can use material groups to:

shipping instructions and order acknowledgment requirement of the material for

Use: You can use material groups to:

Example: Different production lots (such as paints, dyes, wallpapers,

Steering community prepares the BBP (Business Blue Print). BBP

Different types are of Special Stocks are as follows

In subcontracting process we create subcontracting PO to supply or issue subcomponents

Steps to perform subcontracting:

Manually maintain the subcomponents in the subcontracting PO though

CONSIGNMENT: - (No Concept of Invoice)

3. Create GR Movement type 101K

PIPELINE PROCESS: (No Concept of Invoice)

RETURNABLE TRANSPORT PACKAGING (RTP):

SAP Inventory Management Movement Type 1