Inventory Posting Configuration

Introduction

Effective inventory management is crucial for smooth business operations, and SAP provides powerful tools for tracking material movements through Inventory Posting Configuration. This guide will break down various movement types, their purposes, and how to configure automatic postings, ensuring accurate goods receipt, goods issue, transfer posting, and reversals. 

1. Goods Receipts for Purchase Order/Production Order

SAP allows users to post goods receipts using different movement types, depending on the transaction. You can customize the screen layout by movement type using Transaction OMCJ. 

Key Movement Types for Goods Receipt:

  • 101 – Receipt for Purchase Order/Production Order
  • 122 – Return Delivery to Vendor
  • 511 – Receipt of Delivery Without Charge (Free of Charge)
These transactions help track inventory inflow, ensuring proper valuation and stock updates. 

2. Goods Issue

Goods issue refers to the movement of materials out of inventory, often for consumption or production. You can configure the screen layout by movement type using Transaction OMBW. 

Key Movement Types for Goods Issue:

  • 201 – Consumption for Cost Center
  • 261 – Consumption for Production Order (Backflushing in SAP)

Understanding Backflushing in SAP (261 Movement Type)

Backflushing is an automatic posting method where materials are deducted from stock during production confirmation. 

Formula for Material Backflushed:

Material Backflushed = (Production Order Quantity + Scrap) / BOM Base Quantity * Component Quantity 
  • Usually performed at the first operation in a production process.
  • Subsequent operations track only activity costs.
  • Routing Configuration (Transaction CA02):
    • Click on CompAlloc.
    • Look for column B and Oper – a checkmark under column B indicates backflushing is enabled for that operation.

3. Transfer Posting

Transfer posting allows businesses to move materials within or between plants and storage locations.

Key Movement Types for Transfer Posting:

  • 301 – Transfer from One Plant to Another (Single Step)
  • 309 – Transfer Posting from Material to Material (Material Conversion)
  • 311 – Transfer from One Storage Location to Another (Single Step)
These transactions ensure that inventory movements are accurately reflected in SAP, preventing stock discrepancies.

4. MIGO – Cancellation (Reversing Material Documents)

When errors occur in goods movement, SAP allows users to reverse/cancel material postings using MIGO. 

Cancellation Movement Type Logic:

  • 101 → 102 (Goods Receipt Cancellation)
  • 261 → 262 (Goods Issue Cancellation)
Each cancellation transaction reverses the material document, ensuring proper stock adjustments and financial accuracy.

5. Automatic Postings (Transaction OMWB)

Automatic postings in SAP help determine General Ledger (G/L) account updates for inventory transactions. 

Steps to Configure Automatic Postings:

  1. Open Transaction OMWB.
  2. Click Account Assignment.
  3. Double-click on the Transaction Description.
  4. Identify which Valuation Class is linked to G/L Accounts.
Note: The Valuation Class in the Material Master (Accounting View) controls the automatic account determination for material transactions.

6. Defining New Movement Types (Transaction OMJJ)

SAP provides the flexibility to create and modify movement types to fit business needs using Transaction OMJJ. 

Key Features of OMJJ:

  • Maintain Movement Type Control: Define functionalities such as auto-printing material documents upon saving.
  • Edit Short Text: Customize movement type descriptions.
  • Allowed Transactions: Control which movement types can be used for specific transactions.

Conclusion

Understanding Inventory Posting Configuration in SAP ensures efficient tracking of material movements, accurate stock valuation, and seamless business operations. Whether you are handling goods receipts, issues, transfer postings, or reversals, mastering movement types and automatic postings will help you streamline inventory management.

For further optimization, ensure that your valuation class, G/L account mappings, and movement type configurations align with your business requirements.

FAQs

1. What is Inventory Posting Configuration in SAP?

Inventory Posting Configuration in SAP determines how material movements are recorded, classified, and updated in inventory and financial accounts using movement types.

2. What is the difference between movement type 101 and 261?

  • 101 is used for receiving goods from a Purchase Order or Production Order.
  • 261 is used for issuing materials to a production order (often automatically posted via backflushing).

3. How do I cancel a goods movement in SAP?

Use MIGO and select the appropriate cancellation movement type.
  • 101 → 102 (Goods Receipt Cancellation)
  • 261 → 262 (Goods Issue Cancellation)

4. What is the purpose of movement type 309?

Movement type 309 is used for Material-to-Material Transfer Posting, also known as Material Conversion, allowing users to change material codes while maintaining stock quantity.

5. How do I set up automatic postings in SAP?

Use Transaction OMWB, navigate to Account Assignment, and define G/L account mapping for different valuation classes.

6. Can I create a custom movement type in SAP?

Yes, using Transaction OMJJ, you can create and modify movement types by configuring allowed transactions, descriptions, and control settings.

By optimizing your inventory posting configuration, you can enhance stock accuracy, financial reporting, and operational efficiency in SAP. 

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