Inventory Management Processes

Inventory
mangement

Contents:
! Goods Movements
! Physical Inventory
! Revalue Inventory

 SAP AG 1999

© SAP AG IRT370 4-1

 Inventory Management Processes: Objectives

Inventory
mangement

At the conclusion of this unit, you will be able to:

! Customize Goods movements for SAP Retail
Store
! Customize Physical Inventory for SAP Retail
Store
! Perform a stock revaluation using SAP Retail

 SAP AG 1999

© SAP AG IRT370 4-2

 Course Overview

Unit 1 Introduction

Unit 2 Internet Transaction Server

Unit 3 Purchasing Processes

Unit 4 Inventory Management Processes

Unit 5 Sales Processes

Unit 6 Recording Time

Unit 7 Information

Unit 8 Accessing Master Data

Unit 9 Conclusion

 SAP AG 1999

© SAP AG IRT370 4-3

 Inventory Management: Business Scenario

! Smart Speciality Stores use SAP Retail Store to

maintain their inventory. The stores frequently
transfer inventory among themselves and record
other removals from floor stock.
! Headquarters maintains the inventory for all
stores and so requires periodic physical inventory
counts and subsequent revaluation.

 SAP AG 1999

© SAP AG IRT370 4-4

 Goods Movements: Topic Objectives

Inventory
mangement

At the conclusion of this topic, you will be able to:

! Customize Stock Transfer processes for SAP Retail

Store
! Customize Other Goods Movements for SAP Retail
Store
! Process stock transfers in SAP Retail Store
! Process other goods movements in SAP Retail Store

 SAP AG 1999

© SAP AG IRT370 4-5

 Stock Transfer: Overview

Stock
Stock Transfer
Transfer

Head office
Store Store 1 Inv. Store 2 Inv.
xxx xxx

Regular
Regular Promotion
Promotion
Stock
Stock Stock
Stock

Other
Other Store
Store
or
or DC
DC

 SAP AG 1999

" Stock transfer movement types can be virtual as well as physical. For example, if a store wants to
isolate its promotional stock from its regular stock, it can be easily handled via goods movements.
" Transfers between stores can also be recorded simply.
" The accounting is handled behind the scenes, with no user intervention, in both cases.

© SAP AG IRT370 4-6

 Other goods Movement: Overview

Other
Other Goods
Goods Movement
Movement

Head office
Reg. stock Other acct.
Store xxx xxx

Regular
Regular Manager’s
Manager’s Regular
Regular
Stock
Stock Office
Office Stock
Stock

Regular
Regular
Stock
Stock

 SAP AG 1999

" As shown, other goods movement can easily be defined. Whether it it moving inventory from the
floor for use by the store or to the trash bin because it is spoiled
" The reporting of these transactions is simplified through customizing and the accounting is handled
with no user intervention.

© SAP AG IRT370 4-7

 Goods Movement: Customizing (1/2)

IDES
IDESSmart
SmartRetailer
RetailerInc.
Inc .
Inc.
C Basic Settings for GM/Stock Transfer
u
s Key
Key
t Customizing schema 0002
o
m
i General
General default
default
z
e ID article no. ARTN

Check shelf life expir.date

 SAP AG 1999

" The first step to other Goods movement processing is to define the basic settings and identify the
scheme.
$ General default:
- Article number ID: Which type of article number your other goods movements use to identify
articles is also defaulted on the SRS entry screen and used by SAP Retail.
- Check shelf life expiration date: On goods movement check expiration date for perishable
articles before recording a movement. If the check is active, issue a warning or an error if the
remaining shelf life is less than required, as set in the article master.

© SAP AG IRT370 4-8

 Goods Movement: Customizing (2/2)

IDES
IDESSmart
SmartRetailer
RetailerInc.
Inc .
Inc.
C Grouping of business transactions...
u
s Key
Key
t Customizing schema 0002
o
m
i Select Box Business
Select Box Business transaction
transaction Movement
Movement type
type
z
e 0001 Stock transfer to another site 301
0002 Stock transfer sloc to sloc 311
....

 SAP AG 1999

" There are two additional types of Goods movements, stock transfers and other goods movement.
Both are customized similarly. First, you identify a schema and set the basic settings. Then, you
identify the types of movements your organization uses and link them to a selection box.
" In the next step, you link your selections to a schema and each type of movement to a movement
type. Then, you link the schema to your stores.
" The business transactions of the appropriate schema display in the SRS screen for entry of stock
transfers or other goods movements. The subsequent handling of the data is controlled by the
movement type code associated with each business transaction.
" The movement types are delivered with the system and linkage to general ledger accounts is defined
during MM customizing.

© SAP AG IRT370 4-9

 Physical Inventory: Topic Objectives

Inventory
mangement

At the conclusion of this topic, you will be able to:

! Customize Physical Inventory processes for

SAP Retail Store
! Use SAP Retail Store to perform a Physical
Inventory Count

 SAP AG 1999

© SAP AG IRT370 4-10

 Physical Inventory: Overview

Articles
Articles to
to Count
Count

Head office
PI Inventory
Count
Count xxx xxx
?

Store

Scan
Scan count
count
Manual
Manual
count
count

 SAP AG 1999

" An inventory count must be undertaken on some regular basis according to U.S. GAAP and other
country’s legal requirements.
" Physical inventory using SRS requires that headquarters create physical inventory documents. This
can be done manually for small article lists, or by a batch job in the background which is more
realistic for large numbers of articles.
" Once the documents are created, store staff can perform the count either manually with a visual
count or via a PDC, and the count entered in SAP Retail Store.

© SAP AG IRT370 4-11

 Physical Inventory: Customizing

IDES
IDESSmart
SmartRetailer
RetailerInc.
Inc .
Inc.
C Basic Settings for Physical Inventory
u
s Key
Key
t Customizing schema 0003
o
m
i Control
Control
z
e Difference reason entry
Use POS currency
Offer “Change count” separately
Period f. selecting phys. Inv. nos 12
Overview screen

 SAP AG 1999

" Physical inventory customizing prepares the internet display for data entry.
" If you require a reason to be entered when posting a difference, selecting the Difference reason entry
displays that field on the Edit differences screen. You can set up specific difference reasons in SAP
Retail to be used in this field.
" Use the store’s POS currency should be checked, unless you want the company code currency
displayed for the value of the inventory difference.
" Change count can be set to display on the initial Physical Inventory screen forcing the selection of
either entering the initial count or changing the count on the subsequent screen. Leaving this field
blank, provides the option Edit differences which allows both the count and changes to be entered on
the subsequent screen.
" The period for displaying PI documents can be set. The default is 24 months.
" There are several options for displaying the overview list of PI documents:
$ Always show
$ Zoom in/out - displays either the document number only, or the document number and status.
$ Hide/show - provides a selection on the screen to hide the overview or display the overview.
$ Switch screens - the overview displays until a document is selected. Then only the document data
is displayed.

© SAP AG IRT370 4-12

 Stock Entry: Topic Objectives

Inventory
mangement

At the conclusion of this topic, you will be able to:

! Use SAP Retail Store to perform an Inventory

Revaluation

 SAP AG 1999

© SAP AG IRT370 4-13

 Stock Entry

Headquarters New sales price for value-only articles

POS-Outbound or Report “automatic sales price revaluation”

create documents with status “to count”

Sales value change

documents

Store
Request count list Post counted articles

Print count list

 SAP AG 1999

" For those retailers that maintain their inventory using the Retail Method of Accounting, SAP
provides Value-only inventory revaluation.

" When the retail price of a material managed on a value-only basis changes, you can revalue that
inventory at retail using SAP Retail Store. You must enter the quantity of the material to be revalued.
" For a particular date, you can create a list of materials whose retail price changes on that date. Before
you can do this, however,you must create the relevant retail revaluation documents with the status A
("to be counted") using program RWVKU001 or via the POS outbound interface.
" The listed articles are counted and the results are entered in SAP Retail Store. The articles are then
automatically revalued in the SAP Retail system on the basis of that count.

© SAP AG IRT370 4-14

 Inventory Management Processes: Unit Summary

You are now able to:

! Customize Goods movements for SAP Retail Store

! Customize Physical Inventory for SAP Retail Store

! Perform a stock revaluation using SAP Retail

 SAP AG 1999

© SAP AG IRT370 4-15

 Exercises

Unit: Inventory Management

Topic: Other Goods Movements

At the conclusion of this exercise, you will be able to:

• Customize Goods Movements for Stock Transfer and Other
movements
• Post goods movements in SAP Retail Store

Smart Specialty Stores use SAP Retail Store to maintain their inventory.
The stores frequently transfer inventory among themselves and record
other removals from floor stock.

4-1 Begin your customizing of SAP Retail Store Goods Movements by identifying
which basic settings for both Stock Transport and other Goods movement.
4-1-1 What is the difference between the two schemas?

4-1-2 What does this customizing screen control?

4-1-3 What happens if you do not assign a schema to your site?

4-1-4 Assign Schema 0001 to your site TS##.

4-2 Before you customize you want to check your G/L accounts or Cost center
assignments to these movement types, you should check in the standard materials
management component for how these movement types are already assigned. You
know the following information:

Data Type G/L Account

Inventory 310050
Scrap 400001
Trading goods 410050
consumption

4-2-1 How would you confirm that this information is correct before using these
accounts

4-3 Now you can configure your stock transport goods movement types.
© SAP AG IRT370 4-16
 4-3-1 Which keys are defined in the grouping of business transactions?

4-3-2 Check which business transactions are configured.

4-3-3 Which schema is the default? What movement type describes the default?

4-3-4 Must you add a G/L Account for these transactions?

4-4 Assign schema 0002 to your site TS##.

4-4-1 Will you be able to perform a site-to-site transfer with this schema as a
default?

4-5 Now perform the customizing for other goods movements.

4-5-1 Do not assign any schema to your site. What effect will this have on your
store when you access Other Goods Movements on SRS?

4-6 Sign on to your client using the URL:

http://igdpr.wdf.sap-ag.de:1080/sap/its/homepages/sapstore.htm Record the
movement of 3 pieces of R100016 from your store to the store of the person on
your right. TS## to TS##.
4-6-1 Check the accounting document for this transfer. What path do you take to
check the accounting document?
Use direct access to SAP Retail rather than SRS.

4-6-2 Did the system make the debit and credit to the correct accounts? What were
they?

© SAP AG IRT370 4-17

 4-7 Now, return to the Retail Store and record taking one unit of R100016 from stock
and report it to headquarters as spoiled. It was damaged beyond repair in shipping
and your normal method of dealing with such damage is to scrap the item.
4-7-1 How do you select the movement type on the Retail Store for other goods
movements?

4-7-2 Check the accounting document for this transfer. What path do you take to
check this accounting document?

© SAP AG IRT370 4-18

 Exercises

Unit: Inventory Management

Topic: Physical Inventory

At the conclusion of this exercise, you will be able to:

• Customize the screen display for Physical Inventory
• Create a Physical Inventory Count request from SAP Retail
• Enter the Physical Inventory Count using Retail Store

You are required by headquarters to do a physical inventory on selected

merchandise monthly. You will customize the SRS profile and then test if
the online version meets your needs.

5-1 Before you can prepare a physical inventory in the store, you must customize the
SRS profile you wish to use. What path will you take to prepare this profile?

5-1-1 Copy schema 0001 and create your own schema ##02.
5-1-2 What entry must you make to keep your PI documents for only 1 year?

5-1-3 Create the possibility of zoom in/out. What entry will you use?

5-1-4 Assign your schema to your site TS##.

5-2 The inventory manager in headquarters decided that your store must count the
inventory of electronic tuners.
5-2-1 How does the IM person prepare a physical inventory document for your
store?

5-2-2 Create that document for R100016.

© SAP AG IRT370 4-19

 5-3 In the store you count the inventory and you have 12 in stock. You take what path
to enter the count. Please enter and Post the count.

5-3-1 How would you check to ensure that your count and the SAP Retail
inventory count were the same? Are they?

5-3-2 Is your physical inventory document fully posted?

5-3-3 If your count differs from inventory, adjust the count to be + or – 1 and
press Post Difference.

OPTIONAL:

5-4 Revise your schema so that you require a reason for the PI difference and change
the Overview screen to 3 or 4 and repeat the physical inventory process.

© SAP AG IRT370 4-20

 Solutions

Unit: Inventory Management

Topic: Other Goods Movements

4-1 The basic settings for stock transfers and other goods movements.
Tools → AcceleratedSAP → Customizing → Edit Project → SAP Reference IMG
Logistics – General → SAP Retail Store → Goods Movement→ Basic Settings for
Goods Movements/Stock Transfers → Define Customizing Schemas with Basic
Settings
4-1-1 There are two schemas one to request the article number and the second to
request the EAN/UPC.
4-1-2 This schema controls the selection of the Material identification on the SRS
screen.
4-1-3 If you do not assign a schema to your site, the system uses the schema
designated, Standard.
4-1-4 The path to assign the schema is:
Tools → AcceleratedSAP → Customizing → Edit Project → SAP
Reference IMG
Logistics – General → SAP Retail Store → Goods Movement→ Basic
Settings for Goods Movements/Stock Transfers → Assign Customizing
Schemas to Sites
Select New Entries and enter your store TS## and the Customizing schema
in the appropriate fields.

4-2 To determine what the G/L account for inventory is:

4-2-1 Use the path:
Tools → AcceleratedSAP → Customizing → Edit Project → SAP
Reference IMG
Logistics – General → Materials Management → Valuation and Account
Assignment → Account Determination → Account Determination without
Wizard → Configure Automatic Posting
Press cancel on the selection screen and then press Account assignment
This brings you to the Materials Management posting group (RMK). Select
Inventory posting (BSX). We are using chart of accounts CAUS and
valuation grouping code USRE. Almost all of the merchandise we sell
belong to material type HAWA, Trading goods, which belongs to valuation
class 3100. So you can see that the inventory G/L account is 310050.
You could also press G/L Accounts enter the company code R300 and your
store TS## to bring up a complete list of accounts.

4-3 Now to configure the stock transport goods movement types

© SAP AG IRT370 4-21
 4-3-1 To determine which keys are defined, use the path:
Tools → AcceleratedSAP → Customizing → Edit Project → SAP
Reference IMG
Logistics – General → SAP Retail Store → Goods Movement → Grouping
of business transactions for stock transfers
The first selection, Definition of Business Transactions for Select Box,
itemizes the keys, as shown below. below in the grouping of business
transactions.

4-3-2→ If you look at the General Business Transactions, you will note:
Customizing schema, 0001-- Goods Movement 01
Select Description Movement G/L Acct.
box type
0001 Stock 301
default Transfer to
another site
0002 Stock 311
Transfer
sloc to sloc
0003 Transfer 319
posting one
step
4-3-3 Key (select box) 0001, site to site transfer, is the default
4-3-4 No, you do not for movement type 301, it is defined in the standard goods
movements and those G/L accounts will default.

4-4 Assign schema 0002 to your site TS##.

4-4-1 Yes, you will be able to select site to site, storage location to storage
location is only the default selection.

4-5 Perform the customizing for other goods movements. You will see that the
customizing is quite similar to that for Stock Transfers.
The path is:
Tools → AcceleratedSAP → Customizing → Edit Project → SAP Reference IMG
Logistics – General → SAP Retail Store → Goods Movement → Grouping of
business transactions for other Goods movements
The first selection is:
Definition of Business Transactions for Select Box. Here each of the other goods
movement types are itemized for the selection box.
The second selection, General Business Transactions, shows the movement type
associated with Schema 0001

Select Descriptio Moveme G/L Acct. Cost GM_co

box n nt type Center

© SAP AG IRT370 4-22

 0001 Article 551 03
spoiled
0002 Not 551 03
identifiable
0003 Incomplete 501 05
defau
lt
0004 Theft 551 03
0005 Removal 201 03
for own
consumptio
n
0006 Removal 201 03
for staff
canteen
0007 Removal 331 03
for goods
testing
0008 Rmvl for 221 03
production
0009 Free of 511 05
charge
deliv. from
vendor

4-5-1 If you do not assign a schema to your site, schema 0001 will be used by
default.

4-6 Sign on to the client using the web. The URL is: http://igdpr.wdf.sap-
ag.de:1080/sap/its/homepages/sapstore.htm Select your client and sign-on using
your user number IRT370-##. Use the password you created at the beginning of
class. Select your store, TS## and logon.
Under Inventory Management, select Goods Movement. Select Shift and then select
edit items.

Field Name Values

Bus. trans Stock Transfer to another Site
Rec. site TS##
Article R100016
GR quantity 3
Press Post.
4-6-1 Check the document and the accounting for the document use the path:
Logistics → Retailing →Merchandise logistics → Inventory management
→ Article document → Display
© SAP AG IRT370 4-23
 Enter your article document and today’s year.
4-6-2 You can see that the debit and credit were made to the same G/L account
310050, the inventory account. However, assigned to the two different
stores.

4-7 Sign on to the client using the web. The URL is: http://igdpr.wdf.sap-
ag.de:1080/sap/its/homepages/sapstore.htm Select your client and sign-on using
your user number IRT370-##. Use the password you created at the beginning of
class. Select your store, TS## and logon.

Under Inventory Management, select Goods Movement. Select Other movement and
then select Edit items.

Field Name Values

Bus. trans Article spoiled
Article R100016
GR quantity 1
4-7-1 Press the selection arrow on Bus. Trans and select Article spoiled.
4-7-2 Check the document and the accounting for the document use the path:
Logistics → Retailing →Merchandise logistics → Inventory management
→ Article document → Display
Enter your article document and today’s year.
You can see that there was a credit account 310050, the inventory account
and a debit to account 400001, the scrap account.

© SAP AG IRT370 4-24

 Solutions

Unit: Inventory Management

Topic: Physical Inventory

5-1 The path to the SAP Retail Store physical inventory profile is:
Tools → AcceleratedSAP → Customizing → Edit Project → SAP Reference IMG
Logistics – General → SAP Retail Store → Physical Inventory→ Basic Settings
for Physical Inventory
Select Define Customizing Schemas with Physical Inventory Basic Data.
5-1-1 Select schema 0001, press the copy icon and enter your number ##02.
5-1-2 Change the Period f. selecting phys.inv.nos to 12 to maintain the document
numbers for only 1 year.
5-1-3 Enter 2 in the Overview screen field.
5-1-4 To assign the schema to your site:
Tools → AcceleratedSAP → Customizing → Edit Project → SAP
Reference IMG
Logistics – General → SAP Retail Store → Physical Inventory→ Basic
Settings for Physical Inventory
Select Assign Customizing Schemas to Sites. Enter your site number and
you schema number ##02.

5-2 Run a physical inventory

5-2-1 Take the following path:
Logistics → Retailing → Merchandise logistics → Physical Inventory →
Physical inventory document → Create
Enter R100016 in the article field and press Save.

© SAP AG IRT370 4-25

 5-3 Sign on to the client using the web. The URL is: http://igdpr.wdf.sap-
ag.de:1080/sap/its/homepages/sapstore.htm Select your client and sign-on using
your user number IRT370-##. Use the password you created at the beginning of
class. Select your store, TS## and logon.

Under Inventory Management, select Physical Inventory

Select Enter count. Enter 12 in the open quantity count.
5-3-1 On the main Physical Inventory screen, select Edit differences to view any
difference.
5-3-2 It should not be posted, or only partially posted if there are differences.
5-3-2 Just change the number in the count quantity and press Post Differences.

© SAP AG IRT370 4-26