SAP Stock Types

This tutorial is about SAP stock types in the SAP MM module. Inventory management is a sub-module that deals with stock received from vendors and its movement to the correct storage area within the company. In this tutorial, we will explain the different types of stock managed in the syste

Stock in SAP is managed on a value and/or quantity basis. For instance, raw material is managed by both value and quantity. The updating method of raw material can be seen in the image below, which is maintained through customizing transaction code OMS2.
Figure 1 Raw Material Quantity/Value Management Configured
 
The configuration for updating non-valuated material is maintained through transaction code OMS2, where quantity is updated without considering value. For stock managed by quantity, value is recorded against an account assignment, such as a cost center.
Figure 2 Non-Valuated Material Quantity Management Configured
 
The movement of stocks is determined by specific movement types and management methods that are tailored to the type of stocks and goods being moved. Relevant movement types and management methods will be addressed as we explore SAP stock types in this article.
 

SAP Stock Types

There are three main SAP stock types, as well as several sub-types, which will be explained in the next sections.
  1. Valuated Stock
  2. Non-Valuated Stock
  3. Special Stock

Valuated Stock

The term "valuated stock" refers to stocks that are stored on premises and are assigned values in the company's accounts. There are three different types of valuated stock, and each type allows for the movement of materials using specific movement types. Below, we provide a definition for each sub-type of valuated stock.
  • Unrestricted stock refers to stock that is readily available for use on premises.
  • Quality inspection stock refers to delivered material that is kept for quality inspection purposes. This stock is not considered unrestricted and cannot be easily utilized.
  • Blocked Stock: In the SAP system, if a material is deemed to have poor quality or irregularities are found during production, it is placed in blocked stock and cannot be used further.
 

Valuated Stock Movement Types

Transfers can be made between SAP stock types using specific movement types to move goods from one status to another.
Movement Type
Movement
321
Quality Stock to Unrestricted Stock
343
Blocked Stock to Unrestricted Stock
349
Blocked Stock to Quality Stock
322
Unrestricted Stock to Quality Stock (Reversal of 321)
344
Unrestricted Stock to Blocked Stock (Reversal of 343)
350
Quality Stock to Blocked Stock (Reversal of 349)

 

To demonstrate the use of valuated stock movement types, let's perform a goods movement for a material 2847. First, we will examine the stock overview for the material using transaction code MMBE. It can be observed that there are 2000 units of the material in unrestricted use in storage location 0002.
Figure 3 Valuated Stock Overview
 
To process a goods movement of 300 pieces of the material from unrestricted use to quality inspection stock, use transaction code MIGO and select movement type 322.
Figure 4 Process Valuated Goods Movement
 
There have been changes in the stock levels in the stock overview. Execute transaction code MMBE again to see that 300 units have been deducted from unrestricted use and are now categorized as quality inspection stock.
Figure 5 Valuated Stock Overview
 

Non-Valuated Stock

When non-valuated stocks are procured, there is no accounting entry. These SAP stock types are not owned by the company, even if they are physically present. For instance, if goods are received in a damaged condition, they will be returned and not included in inventory. In this scenario, the goods are placed in blocked stock without any accounting entry. This is an example of a non-valuated stock type, as the company does not yet own them.
To understand the process of goods receipt into blocked stock, we will analyse the status of a material, INT-P101, that has been requested from the vendor through a purchase order. First, we will examine the stock overview for the material using transaction code MMBE. It is noted that there are 200 units of the material on order.
Figure 6 Non-Valuated Stock Overview
 
To place the received material into blocked stock due to visible damage upon arrival, a goods movement with movement type 103 is required. Process a goods movement of 200 pieces of the material to receive the goods into blocked stock as outlined below.
Figure 7 Process Non-Valuated Goods Movement
 
After the issue has been resolved by the vendor and the material is prepared for use, transfer the material to the company's stock using valuated stock movement type 105.
 

Special Stock

SAP special stock types have a different procurement method compared to the standard procure to pay process. The various special stock types will be listed below.
  • Subcontracting is a procurement method in which a company outsources its work and sends raw material for specific manufacturing processes, receiving the finished material back from the vendor.
  • In the consignment process, the vendor provides goods and stores them in the company's storage area. The ownership of the goods remains with the vendor, and the company becomes the owner only when it takes the goods from the consignment stores for its own use. The company pays the vendor only when it uses the goods stored in its storage area as required.
Figure 8 Vendor Consignment Stock Overview
 
  • The stock transport order (STO) process involves transferring plant stocks within the same company code between supplying and receiving plants.
  • Third party processing involves a customer placing an order with a company, which then sends the order for processing by a third party vendor. The third party vendor delivers the goods directly, but the invoicing is handled through the intermediary company.
  • Returnable transport packaging is a procurement process where goods can be exchanged between vendors and customers. This process involves using pallets and containers as packaging. Returnable transport packaging is considered a special stock owned by the vendor. When received by a company, it is not included in the customer's valuated stock.
  • Pipeline handling is the management of materials like water, oil, or electricity through a pipeline. This process does not involve storing the ordered material. When there is a demand, the material is ordered and received using movement type 201P. The settlement with the vendor is then handled through transaction code MRKO.

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