ABSTRACT
In any organization that procures, processes, or sells goods, inventory management (IM) is used in some form or other. Goods need to be received, stored, and issued for various purposes. IM in Systems, Applications, and Products (SAP) starts either from material requirement planning order or from manually created purchase requisitions (PRs). In IM, uality management component of SAP works at two places: during the receipt of goods after purchase and before GI by way of material inspection. When GI is posted for finished goods from warehouse, SAP SD component handles the transactions, which include withdrawal, picking, packing, and shipping of goods. SAP has two types of reservations: automatic reservations and manual reservations. Split valuation of a material allows the user to keep different prices of a material at different storage locations. For example, a material can be procured externally as well as built in-house.
