Inventory Management-MM:

Simply explanation: Managing the stock of material on qty and value basis
is known as Inventory Management..
Whether Inventory is required or not for the material is controlled at material type
and valuation area (plant) level.
In OMS2, Configuration required for each material type qty and value updating at
valuation area level.
Case 1: If both Qty and Value update indicators are selected then PO can be raise
for stock purpose and at GR material can be placed in store on qty basis and this
Qty means stock value will be updated in inventory or stock G/L account.
Case 2 : If qty update selected and value update not selected for material type at
valuation area level, These material type related materials must procure for
consumption Purpose. Means you should select account assignment category in PR
and PO. At GR, received material is placed in store on qty basis but material value
will be booked in relevant consumption G/L account but not in stock or inventory g/l
account.
Inventory Management scenario's can be defined as 1) Goods Receipt 2) Goods
Issue 3) Stock Transfer 4)Transfer Posting
Characteristics of Goods Movements :
1) At least one material document will be generated and if goods movement is
relevant to FI then accounting document to be generate.
2) Stock and Stock Value and Consumption Value may increase or decrease based
on the goods movement.
3) If GR is entered against PO then PO history to be updated in Display PO.
4) Total value and Total stock, Moving average price to be updated (may be increase
or decrease) in Material Master.
5) If Quality Management views are maintained with required fields, then when you
completed the GR or GI, inspection lot to be generated when you run in QA32 ,
Based on Usage decision stock to be accepted or Rejected.
Sample process for Goods Receipt, Goods Issue, Stock Transfer, Transfer Posting.

Goods Receipts : 1) GR w.r.t Po for raw material

2) GR w.r.t Production order for finished Product.
3) GR With out for Production order
4) GR with out Purchase Order.

Goods Issue :

1) GI w.r.t Production order for raw material.

2) GI w.r.t sales order for finished product
3) GI to cost center or to plant maintenance.
4) GI to Scrap.

Stock Transfer : 1) Plant to plant stock transfer with in the company code.
2)From plant to plant across company code.
3)Store to Store stock transfer

Transfer Posting :1) Unrestricted <---------> QI <--------------> Blocked

Account Determination : (MM & FI Integration)

With this account determination Configuration settings system will
determine a suitable G/L account while posting GR (or) GI etc.