Inventory
Inventory Management in MM tracks stock quantities and values across plants and storage locations, recording every goods movement (receipts, issues, transfers) so the business always knows what stock it has and what it is worth.
Inventory management sits at the centre of logistics: procurement receipts, production consumption/output, and sales issues all move stock here, and value changes post to FI.
- It records goods movements, receipts (into stock), issues (out of stock, e.
- Movement types: classify each movement (101 GR, 261 issue to order, 311 transfer, etc.).
- Stock types: unrestricted, quality inspection, blocked.
- Watch out: Wrong movement type, incorrect stock/value.
What inventory management does
It records goods movements, receipts (into stock), issues (out of stock, e.g. to production or sales), and transfers (between locations), keeping stock quantities and valuation current in real time. Every movement uses a movement type and, where value changes, posts to finance.
Key concepts
- Movement types: classify each movement (101 GR, 261 issue to order, 311 transfer, etc.).
- Stock types: unrestricted, quality inspection, blocked.
- Valuation: standard vs moving average price.
- Physical inventory: counting and reconciling stock.
Integration
Inventory management sits at the centre of logistics: procurement receipts, production consumption/output, and sales issues all move stock here, and value changes post to FI. Accurate inventory (right quantities, right valuation) is essential for both operations and financial correctness.
Common pitfalls
- Wrong movement type, incorrect stock/value.
- Valuation method confusion (standard vs moving average).
- Physical inventory not reconciled, stock drift.