How to Prevent Inventory Back Posting to a Previous Period in SAP

Why Prevent Inventory Back Posting?

Preventing inventory back posting ensures that stock values from a closed accounting period remain unchanged. This helps maintain accurate financial records, preventing discrepancies between Material Management (MM) and the General Ledger (GL). If back posting is allowed, it can alter stock balances from a previous month, leading to reporting inconsistencies. To avoid this, SAP provides settings to restrict such postings.

Steps to Prevent Inventory Back Posting in SAP

1. Restrict Back Posting Using Transaction MMRV

To prevent users from posting inventory movements to a previous period, follow these steps:
  • Access Transaction MMRV - Open the SAP GUI and enter transaction code MMRV.
  • Enable Back Posting Restriction - Select the option "Backposting not allowed generally."
  • Save Changes - Click Save to apply the restriction.
This setting ensures that inventory transactions can only be posted in the current and previous periods, avoiding unintended modifications to past stock values.

2. Carry Forward Stock Account During Year-End

At the end of the financial year, stock balances must be carried forward to the next year to ensure accurate reporting. Use the following process:
  • Execute Transaction F.16 - Open SAP GUI and enter transaction code F.16. This transaction carries forward General Ledger (GL) stock balances to the new financial year.
  • Ensure Stock Account and Material Values Match - If stock balances are not carried forward, discrepancies may arise between Material Management (MB5L) and the GL Stock Account.

3. Verify Stock Account Balances

To ensure data consistency, check the stock balances in the General Ledger:
  • Use Transaction FS10 (Display Balances) to verify the GL Stock Account.
  • Use Transaction MB5L (List of Stock Values) to confirm that stock values match between MM and FI (Financial Accounting).

Important Considerations

  • Only Two Open Periods in MM - In SAP Material Management (MM), only two posting periods can remain open at any given time. Ensure that users are aware of this restriction to prevent posting errors.
  • Year-End Process is Mandatory - If F.16 is not executed during year-end, the stock values in MB5L may not match the GL account, leading to financial inconsistencies.

Final Thoughts

Preventing inventory back posting is crucial for financial accuracy in SAP. By restricting back posting through MMRV, ensuring proper year-end carry forward using F.16, and verifying balances via FS10 and MB5L, organizations can maintain accurate stock records and prevent errors in financial reporting.

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