Inventory management process

Inventory and warehouse management process
The inventory and warehouse management process are concerned with the storage movement of material within an organization.
4 goods movement types
Goods Receipt
Goods issue
Stock Transfer
Transfer Posting
Which accounts are affected by the inventory management process
General Ledger
What is the key organizational level associated with IMP
Storage Location
What is the most important master data associated with IMP
Material Master
Plant/Data storage material master view
What is good receipt
The movement of material into inventory (increase)
Can occur during the production process
And it can result in the creation of material and financial accounting documents for both production and IM-WM process
What is Goods Issue
Results in the decrease of inventory
In the fulfillment process it indicates the shipment of finished goods or trading goods to a customer against a sales order

In the production process it reflects the issuing of raw materials or semi finished goods to a production order`

Explain Transfer postings
Used to change the status or type of material in stock
can be used in other situations that do not necessarily involve the physical movement of materials
What are the four common stock status
Unrestricted use
In quality inspection
Block
In Transit
Explain Stock Transfer
Used to physically move materials within the enterprise from one organizational level or location to another
What are the 3 options available for moving materials
One Step procedure
Two step procedure
stock transport order
What is a one step procedure
materials can be in any stock status (supplying location) to any stock status in (receiving location)
What is a two step procedure
Only when materials are in unrestricted use at the supplying location
Explain Stock Transport order
One plant purchases the materials and another plant sell them
The warehouse management
client
company code
plant
storage location
warehouse
What is the warehouse hierarchical
Storage type
Storage section/Picking area
Storage bin
Explain storage type
Is a division of the warehouse based on the characteristics of the space, material, or activity

Example: shelf, pallet, receiving, shipping

Explain storage section
Groups bins with similar characteristics
Ex: Fasting moving, Slow moving, heavy, light, small
Explain storage bins
Smallest unit, quants, vary in size, grouped based on similar picking strategies
specific employees are authorized to pick from specific bin
What is the picking area
Is the division of the storage based on removing or picking materials
What are the key master data in warehouse management
Material Master and storage bins
What are the triggers of the WHMP
procurement, fulfillment, production, and inventory management
Explain Transfer order
Authorizes warehouse employees to physically move materials from source bin to destination bins (internal warehouse transfer)

Can be created directly from transfer requirement or posting change notices

What are the Transfer order steps
Triggers (transfer requirement, Internal WH transfer need, delivery document)
Data (organizational, master, user inputs)
Tasks (create transfer order)
Outcomes (Transfer order update transfer requirement)
What is the WH management process
Triggers (Procurement, fulfillment, production, inventory management)
Plan Movement (Transfer requirement, Delivery Document)
Execute Movement (Transfer order)
Move Material
Confirm Movement
Which one of the following is NOT an example of using transfer postings?
Changing the material status from consignment to warehouse stock

Changing the material number of a material

Correct Response
Changing the material’s storage location

Changing the status of materials in stock

Which of the following represents the hierarchy of a warehouse?
Warehouse, storage type, storage section, storage bin
Shelf storage, pallet storage, and rack storage are examples of
Storage types
Fast-moving, slow-moving, heavy, light, large, and small are examples of
Storage section
A stock transfer involves physically moving materials.
True
Storage bins are the smallest unit of space in a warehouse
True