inventory management v1.0

Global Business Services

Client Confidential

MM-03 Inventory Management & Physical Inventory

MM Training

August 2007

SUMITOMO CHEMICAL ASIA PTE LTD


Client ConfidentialMM-03 Inventory Management and Physical Inventory Training

Agenda

Inventory Management Concept Overview

SCA Processes Logistics Exception Process Other Stock Transfer

Physical Inventory Concept Overview

SCA process for Physical Inventory

Inventory Management Reporting

2

MM

SAPSAPECC 6ECC 6


Client Confidential3

At the end of this course, you will be able to understand the various components of Inventory Management


Client Confidential

MM Training

August 2007

Inventory Management Concept Overview




Cust Return

Inventory Inventory

TransferPosting

GoodsIssue

GoodsIssue

Consumption Disposal Sales Order

GoodsReceipt

Delivery

Goods Movements

Purch Ord

*Text in red – Not in SCA process


Client Confidential

PostGoods Receipt

MaterialDocumentMaterial

DocumentAccountingDocument

AccountingDocument

GoodsReceipt

Slip

GoodsReceipt

Slip

MM/WM

TransferOrder

MM/WM

TransferOrder

Effects of a Goods Receipt Posting

AcctgMaterial

Out of scope

Out of scope

Out of scope


Client ConfidentialMM-03 Inventory Management and Physical Inventory Training7

Under and Over delivery

Purchase order quantity 100

Underdelivery tolerance 10% Overdelivery tolerance 20%

70 80 90 100 110 120 130 140

Underdeliverywarning

Overdeliveryerror message

No messagewithin the

tolerance range and PO will be automatically marked as delivery

completed


Client Confidential

Inventory ManagementInventory Management

GoodsIssue

FromWarehouse

From VendorConsignment

MaterialDocument------ --------- ---- -- ---------- ------

BOM

------ --------- ---- -- ---------- ------

Reservation------ --------- ---- -- ---------- ------

ProductionOrder

------ --------- ---- -- ---------- ------

To ConsumptionCost CentreAssetProjectSales Order

Scrap

Sampling

Goods Issue

*Text in red – Not in SCA process


Client Confidential

Stock quantityConsumption statistics...

Stock quantityConsumption statistics...

Point of Consumption:•Cost Centre•Sales Order…

Point of Consumption:•Cost Centre•Sales Order…

G/L accounts:•Stock account•COGS•Expense account

G/L accounts:•Stock account•COGS•Expense account

AccountingDocument

MaterialDocument

MaterialMaterial

----- ------ ------------ - ----- --

------- ------- ---------

MateriaL

Posting ofPosting ofGoods IssueGoods Issue

Effects of a Goods Issue

------ --------- ---- -- ---------- ------

------ --------- ---- -- ---------- ------

Acctg

Material


Client Confidential

SCA

Company Code

SCE

Company Code

PlantPlant10001000PlantPlant10001000

PlantPlant80008000PlantPlant80008000

Stor. Loc.Stor. Loc.11011101




Stock Transfers (physical)



VendorVendorConsignmentConsignment

VendorVendorConsignmentConsignment

Transfer Postings (logical)

MasterMaster

----- ------ ------------ - ----- --

------- ------- ---------

ProductH00011

MasterMaster

----- ------ ------------ - ----- --

------- ------- ---------

ProductH00010

UnrestrictedUnrestrictedUseUse

UnrestrictedUnrestrictedUseUseBlockedBlockedBlockedBlocked

Stock Transfer & Transfer Posting

X

Acctg

X

Acctg

XOut of scope

Out of scope


Client Confidential

Material Document Number Ranges

The Material Document number ranges are automatically reset every year.

The first 2 digits of the Material Document are aligned with the Accounting Document number, if there is any accounting posting.

11


Client Confidential

Unit of Measures

12


Client Confidential

Movement Types (for SCA)

13

Stock Movement Mvt Type Reversal Description

Goods Receipt 101 102 Goods Receipt from PO

651 652 Returns for Direct Shipment (to non-valuated stock)

657 658 Returns for Hub Sales (to valuated blocked stock)

Stock Transfer 301 302 Plant to Plant transfer (one-step)

311 312 Storage to Storage location transfer (one-step)

Transfer Posting 309 310 Material to Material transfer

343 344 Transfer from Blocked Stock to Unrestricted-use

453 454 Transfer from Non-valuated Return to Unrestricted-use

459 460 Transfer from Non-valuated Return to Blocked stock

Goods Issue 601 602 Goods Issue to Sales Order (normal sales)

901 902 Goods Issues to Sales Order (sample)

551 552 Goods Issue to scrap from Unrestricted-use stock

555 556 Goods Issue to scrap from blocked stock

Physical Inventory 701 702 GR/GI (gain/loss) during stock take to /from UR stock


Client Confidential

Stock Types

14

InventoryInventory

Qty: Qty:

Qty:Qty:

Unrestricted-Use Stock

Stock inQuality Inspect.

BlockedStock

Stock inTransfer

ValuatedStock

Non-ValuatedStock

Customer ReturnBlocked Stock

GR BlockedStock

Qty: Qty: Qty: Qty:

Qty: Qty:

Qty: Qty:

Out of scopeOut of

scopeOut of scope


Client Confidential

MM Training

August 2007

SCA – Logistics ExceptionProcess



Client Confidential

Logistics Exception Process

16

Ver.

3.2

Positions / Job Roles

SCALast Modified Prepared By

14/8/07 IBMIM-04 Logistics Exception

SCM Section /

Monomer Sales Section (SCM)

Logistics Exception

LI11PolymerLogistics

Exception trigger(ITF-12 & ITF-15)

IM-04.01Transfer Posting

*from Blocked to Unrestricted-use stock

and vice versa)

IM-04.02Goods Issue to Scrap

*different GL acct for different write-off

reasons

IM-04.03Polymer

Material to Material Transfer

*change of material number

Yes Yes Yes

Block/Unblock stock?

Disposal / Write-off?

PolymerDowngrade?No No

PolymerException report

from Interface pgm

IM-04.04Transfer Posting

*from non-valuated to Valuated Blocked or

Unrestricted-use stock

Yes

Direct ShipmtReturns?

No

Stock available for disposal?

Stock available for downgrade?

Yes Yes Yes

Stock available for blocking?

No

No


Client Confidential

Availability Overview / Stock Reqmt List

17

July 2007

X

MaterialMaterial

----- ------ ------------ - ----- --

------- ------- ---------

SALESORDER

Open PO

UR stock on-hand

Planned mvt : Tfr to Blocked Stock

Include in ATP

Exclude from ATP

Open PO

Open PO


Client Confidential18

4,499

4,499

TCode: CO09

4,499 + 500 + 16,000


Client Confidential

Customer Returns (Stock and Movement Types)

19


Client Confidential

List RETURN Batches at Month-end

20

Enter Batch = RETURN

Enter Mat Type = ZPMR

Select•Display Batch Stocks•Non zero stock lines

Select•Non-Hierarchical Representation

TCode: MB52


Client Confidential

Disposal / Write-off

21

X

TCode: MIGO

Customized Table: ZLMM_RC_GL

GL Account Determination

RC Loss Reason Account

1 Off-spec 77000030

2 Repackaging 77000040

3 Receiving 77000020

4 Mis-handling 77000050

Customized Table: ZLMM_SLOC_CC

Cost Center Determination

SLoc Description Cost Center

1001 SG-Buroh 10001001

1101 SG-PSA 10001101

1801 SG-MNR 10001801

1802 SG-MNR 10001802

2001 BEL-PMR 10002001

2101 ITA-PMR 10002101

2201 SPA-PMR 10002201

3001 TUR-PMR 10003001

7001 JPN-PMR 10007001

8101 SHA-PMR 10008101

8801 ZJG-MNR 10008801

8802 ZJG-MNR 10008802


Client Confidential

Display Material Documents by Mvt Reasons

22

TCode: MBGR


Client Confidential

Downgrade

23

“Prime” Product “Off-Prime” Product

material

----- ------ ------------ - ----- --

------- ------- ---------

Material

H00010BG0025

material

----- ------ ------------ - ----- --

------- ------- ---------

Material

H00011BG0025

1. “Issuing” material must be in unrestricted-use stock2. Batch number of the “receiving” material will be defaulted to the same batch number3. Receiving material will have the same material valuation price as the issuing material



Q&A / System Demonstration / Exercise – Logistics Exception


Client Confidential

MM Training

August 2007

SCA – Other Stock TransferProcess



Client Confidential

Other Stock Transfer Process

26



Q&A / System Demonstration / Exercise – Other Transfers


Client Confidential

MM Training

August 2007

Inventory Management – Physical Inventory Concept



Client Confidential

Physical Inventory (PI)

29

Material


Client Confidential

Stock Types for Physical Inventory

30

Each Physical Inventory (PI) document is created for one storage location

Different stock types within a storage location can be posted in a PI doc

Each PI line item is for a material/batch/stock type combination

Unrestricted UseUnrestricted Use

Quality InspectionQuality Inspection

11

2222

Blocked StockBlocked Stock

33

Out of scope


Client Confidential

MM Training

August 2007

SCA – Physical Inventory Process



Client Confidential

Physical Inventory Process

32

Ver.

1.1

Positions / Job Roles

SCALast Modified Prepared By

26/6/07 IBMIM-06-01 Physical Inventory

SCM Section

Physical Inventory

LI10Polymer

Transfer physical count qty for all counted items

(ITF-14)

IM-06-01.01Polymer

Enter Physical Count and Post

Differences

Monomer Sales Section (SCM)

MonomerPhysical Stock

Take

Independent party (3PL)

IM-06-01.02Monomer

Enter Physical Count

IM-06-01.03Monomer

List Differences

IM-06-01.04Monomer

Post Differences

IM-06-01.05Monomer

Investigate and file claim if applicable

Yes

No

MonomerMgmt approve?

List of Inventory

Differences



Physical StockTake

Create PI doc andEnter Count

List ofDifferences

PostDifferences

Arrange forRecount

Change Count

MaterialDocument

The SAP Physical Inventory (PI) Process (before LES)

AccountgDocument



Q&A / System Demonstration / Exercise – Physical Inventory


Client Confidential

MM Training

August 2007

Inventory Management : Reporting



Client Confidential

Inventory Management Reports

36



Column cont. Lgth

Costs 1

Costing version 2

... 3

... 4

... 5

Displayed fields Supply of fields

Column cont. Pos Lgth SUM

Material 1 12

Mat. description 2 39

Plant 3 4

Costing version 4 7

Costs 5 8

Save as a display variant

ABAP List Viewer : Display Variants



Q&A / System Demonstration / Exercise – IM Reporting

inventory management v1.0

Documents

global business

physical inventory

disposal write

stock transfer

valuated blocked

physical inventory

goods issue

sales order