UNIT 5 Goods Issues (GIs)

Lesson 1
Posting Unplanned GIs 133

Lesson 2
Posting a GI with Reference 141

Lesson 3
Configuring Stock Determination 145

Lesson 4
Allowing Negative Stock 151

UNIT OBJECTIVES

● Post unplanned GIs

● Post GIs with references
● Configure and test stock determination in inventory management
● Allow negative stock in inventory management

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 Unit 5
Lesson 1
Posting Unplanned GIs

LESSON OVERVIEW
This lesson shows you how to enter goods issues (GIs) without reference to another
document. It also covers the internal staging of materials, such as for a cost center or a
project.

Business Example
Your company carries out various transactions that require the entry of a GI without a
reference. For example, you might have to scrap materials that have become unusable or take
random samples of materials for quality control purposes. For this reason, you require the
following knowledge:
● How to enter GIs without reference to another document
● How to use a bill of material (BOM) as a template for a GI
● An understanding of the differences between a withdrawal for a random sample or
scrapping and a withdrawal for a cost center

LESSON OBJECTIVES
After completing this lesson, you will be able to:
● Post unplanned GIs

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Unit 5: Goods Issues (GIs)

GIs Without Reference

Figure 61: Goods Issue Without Reference

A GI is a goods movement that leads to a reduction in stock.

The following types of GIs are possible:

● Withdrawal of material for a production order
● Withdrawal of material for random sampling purposes
● Scrapping of material
● Internal staging of material for other purposes
● Shipping of goods to a customer

The movement type selected determines the transaction you enter. The movement type also
determines the additional account assignment data that you need to specify. To post a GI to a
cost center, for example, you use movement type 201. You then need to enter a cost center as
the account assignment object.

Hint:
You also post GIs involving stock-reducing transactions when you return ordered
goods to vendors or when the system transfers stock. You post these issues
under the special return delivery and transfer posting operations, respectively.

Withdrawals for consumption (for example, for a production order, a sales order, or a cost
center) can be posted only out of unrestricted-use stock. A withdrawal for random sampling

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 Lesson: Posting Unplanned GIs

or scrapping can be booked out of unrestricted-use stock, quality inspection, and blocked
stocks.

Important Effects of a GI

The most important system effects of a GI are as follows:

● The system generates a material document and an accounting document.
● The system indicates the reduced stock of the material.
● The system books the amount of the material withdrawn from the stock account and posts
it to some type of offsetting account, which depends on the relevant transaction, for
example, a consumption account. The material master record provides the posted value at
the time of posting.
● If consumption updating has been configured for the movement type, consumption for this
material is increased by the quantity withdrawn. A distinction is made between planned
and unplanned withdrawals. If the withdrawal is planned, total consumption is updated. If
the withdrawal is unplanned, total and unplanned consumption are updated.
Consumption is not updated for withdrawals for scrapping and random sampling.

Hint:
You can display the consumption of a material in the material master record
at plant level. To do so, choose the Consumption tab page in the Additional
Details screen area.

● If appropriate, the system debits the specified account assignment, for example, the cost
center.

If you cannot reference another document such as a production order or reservation when
entering the GI, you must enter another GI without a reference and enter all the necessary
data manually. Such cases are referred to as unplanned GIs.
If you want to withdraw several materials that display as components on a BOM, you can
reference the BOM when entering the GI, thereby reducing the effort required for manual
entry.

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Unit 5: Goods Issues (GIs)

Sampling

Figure 62: Destructive Sampling

Random samples are usually taken as part of quality control measures. Frequently, only a
small quantity of the material subjected to quality inspection (QI) is actually checked or
tested. The result of this check then forms the basis of the usage decision for the entire
quantity.
To ensure that the quantity to be checked is removed from stock, you post a sample. At the
time of quality inspection, you must decide whether the check or test causes the destruction
of the material, that is, whether it is possible to use the material subsequently. If the check or
test is destructive, you enter a withdrawal for sampling. As a result of this posting, the
quantity and value of the material is reduced. The system posts the value from a stock
account to a quality-inspection expense account. A withdrawal for sampling does not result in
a consumption update.
You can enter a sample in the same way as a GI without a reference.

In the SAP ERP application, the following movement types are defined for a withdrawal
for sampling:
● 331
Withdrawal for sampling from stock in quality inspection
● 333
Withdrawal for sampling from unrestricted-use stock
● 335
Withdrawal for sampling from blocked stock

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 Lesson: Posting Unplanned GIs

Nondestructive Sampling

Figure 63: Nondestructive Sampling

If you can still use the material after the check, you need to define the laboratory or checking
or testing point as a separate storage location. Then you transfer the material to be checked
to the newly defined storage location. The relevant quantity of the material is then still part of
stock in quality inspection but is kept at a different storage location from the rest of the
material, allowing you to keep track of exactly what quantities of materials are currently
undergoing quality tests.
This transfer posting has no effect on the total quantity or value of the material. After a
successful check or test, the material can be released directly from the checking or testing
point storage location.

Caution:
If inspection processing is active for a material, you perform the quality
inspection of the material in the quality management (QM) system. Note that
issues from stock in the quality inspection can be made only in inspection
processing, and not in Inventory Management.

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Unit 5: Goods Issues (GIs)

Scrapping

Figure 64: Scrapping

You enter a scrap posting if it is not possible to use a material any longer, for example,
because it has been damaged or because its minimum shelf life has been exceeded.
Scrapping is possible from each of the three stock types and is entered as a GI without a
reference.

In SAP ERP, the following movement types are defined for scrapping:
● 551
Withdrawal for scrapping from unrestricted-use stock
● 553
Withdrawal for scrapping from stock in quality inspection
● 555
Withdrawal for scrapping from blocked stock

Scrapping causes a reduction in the associated stock. The system moves the value of the
scrapped material from the stock account to a scrap account.

To Enter a GI Without Reference

1. On the SAP Easy Access screen, choose Logistics → Materials Management → Inventory
Management → Goods Movement → Goods Issue (MIGO).

2. Enter transaction Goods Issue and, as the reference, enter Other.

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 Lesson: Posting Unplanned GIs

3. Enter the required movement type in the Default Values for the Movement Type field, for
example, 201 (consumption for a cost center from a warehouse), 221 (consumption for a
project from a warehouse), or 241 (consumption for an asset from a warehouse).

Hint:
If you want to enter items with different movement types, you can change the
default value for the movement type before entering further items. You can
also change the movement type in the item itself.

4. Enter the material number, quantity, storage location, and plant for the items to be
entered. Enter the material number in the Mat. Short Text column. You must also enter the
account assignment data that is dependent on the movement type (such as the cost
center, work breakdown structure (WBS element), or asset).

Hint:
There are extended entry options for the material, plant, and storage location
data. For example, if you cannot remember the exact material number, enter
part of the material short text (short description) and choose Continue. The
system displays all the materials containing the short text in a dialog box.

5. Post the document.

concept_4_1508236436330.dita

LESSON SUMMARY
You should now be able to:
● Post unplanned GIs

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 Unit 5
Lesson 2
Posting a GI with Reference

LESSON OVERVIEW
This lesson shows you how to enter a goods issue (GI) with reference to a reservation or
production order.

Business Example
You have reserved several materials for a cost center. You now want to issue some of the
reserved items and enter the created GI with reference to the relevant reservation. The
remaining reserved quantity is no longer needed. To make this quantity freely available again,
you want to select the Final Issue checkbox when entering the GI. To perform these tasks, you
require the following knowledge:
● How to enter a GI with reference to a reservation or a production order
● An understanding of the difference between planned and unplanned GIs

LESSON OBJECTIVES
After completing this lesson, you will be able to:
● Post GIs with references

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Unit 5: Goods Issues (GIs)

GI with Reference to a Reservation

Figure 65: GI Against a Reservation

After you secure the timely provision of a material through a reservation, you need to enter
the GI at the appropriate time with reference to the reservation. By referencing the
reservation, you simplify the entry of the goods movement because the system can adopt the
data of the individual items from the reservation. After you enter the GI, you can perform a
check to ensure that the materials and quantities that were reserved are actually withdrawn.
The reference to the reservation is also necessary to update the quantities withdrawn in the
reservation, thus providing material requirements planning (MRP) with the correct values. If
you reserve the entire reserved quantity for an item, the Final Issue checkbox is selected
automatically in the reservation item. If you withdraw only a partial quantity and do not
require the remaining quantity, you must select the Final Issue checkbox manually at the time
of the entry of the GI, so that the requirement is completely cancelled in MRP.

Caution:
A withdrawal with reference to a reservation item is possible only if the
Movement Allowed checkbox is selected for the item.

If you do not know the reservation number, you can find the reservation using the search
function. For the selection values, you can, for example, enter the material, plant, and account
assignment. You can also stipulate that you only want to see open reservations (non final-
issue reservations) or final-issue (cancelable) reservations in the list of search hits. If you
want to adopt a final-issue item, you get the following message: Document contains no
selectable items. To reference this reservation in a later GI, choose Settings → Default Values,
then choose Suggest All Items.

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 Lesson: Posting a GI with Reference

Caution:
It is not possible to reverse a goods movement with reference to a reservation
using transaction MIGO. For information on entering a reversal with reference to
a reservation, see the SAP Library under SAP ERP Central
Component → Logistics → Materials Management (MM) → Inventory
Management (MM-IM) → Inventory Management and Physical
Inventory → Goods Issue → Reversing a Planned Goods Issue.

GI with Reference to an Order

Figure 66: GI with Reference to an Order

If you create a production order in the SAP ERP application, the system automatically
reserves the required quantities of the components. However, you may need additional parts.
For this reason, there are a number of different GI postings for withdrawals of components for
an order.

The various GI postings for withdrawals of components for an order are as follows:
● Planned GI
You enter this GI with reference to the dependent reservation for the order. The system
automatically determines 261 (consumption for order from warehouse) as the relevant
movement type.
● Unplanned GI

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Unit 5: Goods Issues (GIs)

You enter this GI without reference to a reservation as another GI. You choose movement
type 261 (consumption for order from warehouse). You must specify the order number as
the account assignment.
● Backflush
With this type of withdrawal, the components are already at the place of production. They
are physically consumed in the course of the production process; however, their
consumption is not reported until the quantity consumed is known, that is, when
completion of the order is confirmed. You do not need to enter a goods movement in
inventory management for these components.

When completion of the order is confirmed, you can flag all quantities reserved for the order
but not needed as the final issue is effected.

LESSON SUMMARY
You should now be able to:
● Post GIs with references

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 Unit 5
Lesson 3
Configuring Stock Determination

LESSON OVERVIEW
This lesson introduces stock determination in inventory management. Stock determination
supports you during goods movements and for transfer postings when determining existing
stocks.

Business Example
In your company, some materials are managed in several storage locations. As a rule, you
must first reduce the stock of these goods in the material warehouse. You can use stock
determination to define this as a withdrawal rule, making the goods issue (GI) simpler. For this
reason, you require the following knowledge:
● How to configure the settings required for stock determination
● How to post a GI using stock determination

LESSON OBJECTIVES
After completing this lesson, you will be able to:
● Configure and test stock determination in inventory management

Principles of Stock Determination

With stock determination, you can use strategies based on the specified Customizing settings
for material withdrawal of GIs and stock transfers. Based on the created material demand, the
SAP ERP application determines the sequence of the storage locations and stocks from which
the desired material is to be withdrawn.

You can use the stock determination function in the following application components in
SAP ERP:
● Inventory management (MM – IM)
● Warehouse Management (LE – WM)
● Production Orders (PP – SFC)
● Repetitive manufacturing (PP – REM)
● Kanban (PP – KAB)
● Batch management (LO – BM)
● Sales (SD)

This lesson introduces stock determination as used in the inventory management component
of SAP. The settings listed in this lesson are valid for the other applications; however, the rule
assignments for stock determination are different in the individual applications. For more
information, go to Customizing for Stock Determination under Assign Stock Determination
Rules in the applications.

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Unit 5: Goods Issues (GIs)

Settings for Stock Determination

Figure 67: Setting Stock Determination – Procedure

To use stock determination, define the following settings:

1. In Customizing for Inventory Management, create a cross-application strategy for stock
determination to reduce stocks. Each strategy is uniquely defined at plant level using a
stock determination group and a stock determination rule.
Go to Customizing for Materials Management → Inventory Management and Physical
Inventory → Stock Determination → Define Strategies for Stock Determination (OSPX).

2. In Customizing for the corresponding application, assign a stock determination rule to the
business transaction.
The assignment to the movement type takes place in inventory management.
Go to Customizing for Materials Management → Inventory Management and Physical
Inventory → Stock Determination → Assign Stock Determination Rule in the Applications
→ Inventory Management (BFMM).

3. In the material master record, assign a stock determination group to the material involved.

Defining Stock Determination Strategy

The strategy that is determined depends on the plant, the material (stock determination
group), and the application (stock determination rule).

Table 1: Stock Determination Strategy

For stock determination strategy, use the following data:
Material Application 1 (Stock Determi- Application 2 (Stock Determi-
nation Rule IM1) nation Rule PP2)
Material A (Stock determina- Strategy (0001/IM1) Strategy (0001/PP2)
tion group 0001)

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 Lesson: Configuring Stock Determination

Material Application 1 (Stock Determi- Application 2 (Stock Determi-

nation Rule IM1) nation Rule PP2)
Material B (Stock determina- Strategy (0002/IM1) Strategy (0002/PP2)
tion group 0002)

The system can determine different stock determination strategies for the same material in
different applications as various stock determination rules are assigned to the applications.
You can also determine different strategies for the same business operation for various
materials by assigning different stock determination groups to the materials.

Calling Stock Determination

Figure 68: Calling Stock Determination

The figure shows the most important values for stock determination from the perspective of
an application using the example of another GI.
You can use the stock determination function only for items that do not specify a storage
location. In transaction MIGO, you can start stock determination for individual items or for all
items that do not specify a storage location.

Hint:
To call the stock determination function in the classic stock determination
transactions (MB**), enter * in the Storage Location field.

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Unit 5: Goods Issues (GIs)

Customizing Settings for Stock Determination Strategies

Figure 69: Stock Determination Item Table

If you choose Stock Determination → Define Strategies for Stock Determination in

Customizing for Inventory Management and Physical Inventory, the left screen area displays a
dialog structure with the individual steps for processing.

The Customizing settings for stock determination strategies are defined as follows:
1. You define the stock determination group and the stock determination rule (key and text).

Hint:
The stock determination group is defined according to the plant.

2. The system defines the stock determination strategy for the combination of the plant,
stock determination rule, and stock determination group. The stock determination header
table is used for this.

3. You fine tune the settings in the detail view of the header table and in the relevant item
table.

The steps to update the item table are as follows:

1. Maintain the item table.

2. Enter the stocks (unrestricted stock or consignment stock) and storage locations from
which stocks will be withdrawn. With the priority key figure, the stocks can be sorted in
ascending or descending order and, therefore, placed in the desired sequence. (In other
words, the system determines the order of locations from which to withdraw the stocks.)
The key figure must always be larger than or equal to one (1). There may be several items
with the same priority key figure.

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 Lesson: Configuring Stock Determination

3. If you want to access the stock for every storage location, make an entry in the item table
without specifying the storage location number; mention only the priority key figure.

4. If the valuation type is to be considered for separately valuated material, maintain the
corresponding values in the Valuation type column.

5. Save the item table data.

6. Return to the detailed view of the header table.

7. Under Sorting, you can see the sorting criteria, including the item table, price, and
quantity.

For sorting, you need to determine the following values:

● The sort criteria that play a role in the strategy
● The sequence in which the selected sort criteria are to be considered (whether they must
be sorted in ascending or descending order)

Stock Determination Header Table

Figure 70: Stock Determination Header Table

The Proposed Quantity field allows you to use an exit to determine the quantity distribution. In
the Number of splits field, you can specify the maximum number of partial quantities into
which a demand quantity can be distributed. The proposed quantity and number of splits are
not taken into account if stock determination is called from the Warehouse Management
(WM) application.

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Unit 5: Goods Issues (GIs)

Under Other settings, you can see the following checkboxes and fields:
● Warehouse Management (WM) processing
You can determine the interaction between stock determination and warehouse
management.
The variants are as follows:
- WM has priority: Storage type search – stock removal strategy in storage type – stock
determination
- WM storage type search has priority: Storage type search – stock determination –
stock removal strategy in storage type
- Stock determination has priority: Stock determination – storage type search – stock
removal strategy in storage type
● Stock determination online
You can determine whether the stock determination takes place in the background or
online. The online function is particularly useful during the test phase of stock
determination.
● Pipeline withdrawal
You can define that replenishment of the remaining quantities with a pipeline withdrawal is
allowed if there are missing quantities. This is possible only for materials for which pipeline
withdrawal by way of the material type is allowed and where a pipeline info record exists.
● User exit for item table
You must maintain this checkbox if you want to use the user exit EXIT_SAPLMDBF_002 for
the item table.

Hint:
If you also want to consider sales order stocks and project stocks in stock
determination, do not enter a value in the item table for the Special Stock
checkbox. If you then enter GR consumption for a sales order from the sales
order stock or consumption for project from the project stock, the system
accesses the relevant sales order or project stock.

LESSON SUMMARY
You should now be able to:
● Configure and test stock determination in inventory management

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 Unit 5
Lesson 4
Allowing Negative Stock

LESSON OVERVIEW
This lesson describes the settings you need to work with negative stock in the SAP ERP
application. It also explains the postings during the clearing of negative stock for material with
a moving average price (MAP).

Business Example
For some materials, it may not be possible to immediately enter a received delivery as a
goods receipt (GR) in the system. To post a goods issue (GI) anyway, you want to allow
negative stock for these materials. For this reason, you require the following knowledge:
● An understanding of the required settings for the use of negative stock

LESSON OBJECTIVES
After completing this lesson, you will be able to:
● Allow negative stock in inventory management

Negative Stock

Figure 71: Negative Stock – Example

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Unit 5: Goods Issues (GIs)

A negative stock occurs when you post a GI with a quantity that is larger than the booked
quantity. Negative stock balances may be required if, for organizational reasons, you enter
GIs before the corresponding GRs and the material is already physically located in the
warehouse. Negative stocks always indicate that physical movements have to be entered in
the system at a later stage.
For example, according to the book inventory, storage location 0001 of plant 1000 contains
100 pieces of a material. However, an additional 900 pieces have been added to the
warehouse. The physical stock is 1000 pieces. This GR has not yet been entered in the
system.
Next 300 pieces of the material are urgently required for production and are withdrawn from
the warehouse. The system immediately creates this GI. Therefore, you have a negative book
inventory of 200 pieces, despite a physical stock of 700 pieces.
You post the goods receipt of 900 pieces later. The booked inventory and physical stock
match again.
To work with negative stock in SAP ERP, you must specifically allow negative stock in
Customizing for the affected material.

Negative stock is possible for unrestricted use, blocked stock, and the following special
stock types:
● Vendor consignment (K)
● Stock of material provided to vendor (O)
● Consignment stock with customer (W)
● Sales order stock (E)
● Project stock (Q)
● Returnable packaging with customer (V)
● Returnable transport packaging (M)

Caution:
If you work with negative stock balances, ensure that you do not have negative
stocks on the balance sheet key date or when you carry out a physical inventory.

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 Lesson: Allowing Negative Stock

Necessary Settings for Negative Stock

Figure 72: Negative Stock – Settings

In Customizing for Inventory Management and Physical Inventory, you can find the settings
for negative stock under Goods Issue / Transfer Postings → Allow Negative Stocks (OMJ1).
Negative stocks are allowed at the valuation area, plant, and storage location levels. At plant
level, you can set the special stocks for which the system allows negative stock.
You must also change the plant data for all materials that allow negative stocks. The checkbox
for negative stocks is with the storage data in the material master record.

Hint:
If the first movement of a material is an outward movement, you can activate the
automatic creation of storage location data for GIs for both the plants and
movement types in Customizing for Inventory Management.

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Unit 5: Goods Issues (GIs)

Financial Postings for Goods Movements with Negative Stock

Figure 73: Negative Stock – Postings

For materials that are valuated with the standard price, there are no special features to note
for negative stocks. For materials that are valuated with the moving average price, a price
difference account can be posted when goods are received.

The figure shows the following example:

1. You have a material with a moving average price of EUR 1 per piece and a stock of 10
pieces.

2. The system then posts a GI of 16 pieces. Each piece is valuated at EUR 1 (moving average
price). The stock value is, therefore, reduced by EUR 16; the offsetting entry takes place
on a consumption account. The stock and value of stock are therefore both -6.

3. You create the GR for a purchase order (PO) of 10 pieces of the material; the PO price is
EUR 3 for each piece.
You post an amount of EUR 18 to the stock account. This amount consists of EUR 6 to
balance the negative stock of EUR -6 and EUR 12 for the physically available 4 pieces that
are valuated with the PO price of EUR 3. This means the new moving average price is EUR
3 for each piece.
The offsetting entry of the entire PO value of EUR 30 (10 * 3) takes place on the goods
receipt/invoice receipt (GR/IR) account. The system posts the difference of EUR 12 to a
price difference account.

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 Lesson: Allowing Negative Stock

Analyses for Negative Stock

If you have a negative stock of a material, the system shows it in the material master record in
the accounting view, the plant stock view, and the storage location stock view. The negative
stock also displays in the stock lists.
To determine which materials have negative stocks, use the Warehouse Stock for Material
report. On the SAP Easy Access screen, choose Logistics → Materials
Management → Inventory Management → Environment → Stock → Warehouse Stock (MB52).
For example, you can execute the selection for several materials or for a storage location that
allows negative stocks. For the system to display only the materials with negative stocks,
select the Only display negative stocks checkbox on the selection screen.

LESSON SUMMARY
You should now be able to:
● Allow negative stock in inventory management

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