SAP Stock Types

Welcome to our tutorial on SAP stock types. Within the SAP MM module, inventory management is a sub-module which involves the handling of stock received from the vendor and the subsequent movement of stock to the correct storage area within the company. In this tutorial, as part of our free SAP MM training, we will break down all of the different types of stock that are managed within the system and give you an idea on how each is processed. Stock might also be referred to as materials or goods throughout this article.

Before we introduce all the SAP stock types, we should explain that stock is managed on a value and/or quantity basis. For example, raw material is managed both by value and quantity. The below image shows the updating method of raw material as maintained via customizing transaction code OMS2:

Meanwhile, non-valuated material is updated by quantity only. For quantity managed stock, value is registered against an account assignment, like a cost center. Below is the configuration for updating method of non-valuated material as maintained via transaction code OMS2:

It is also important to understand that the movement of stocks are handled using movement types specific to the type of stocks and the goods movement being performed. We will mention the relevant movement types and management methods as we discuss SAP stock types throughout this article.

SAP Stock Types

There are three overarching SAP stock types, and several additional sub-types. We will discuss these stock types in the following sections:

1. Valuated Stock
2. Non-Valuated Stock
3. Special Stock

Valuated Stock

Valuated stocks are those which are stored on premises and which post values in the company’s accounts. There are three types of valuated stock, amongst which materials can be moved using particular movement types. We define each sub-type of valuated stock below.

• Unrestricted Stock: Unrestricted stock refers to stock which can be used readily and which is always available for use on premises.
• Quality Inspection Stock: Quality inspection stock is delivered material that is retained for quality inspection. It is not regarded as unrestricted and cannot be readily used.
• Blocked Stock: If a material is rejected due to bad quality then it is moved to blocked stock in SAP. This can also happen during production when some irregularities are found with the stock and thus blocked for further use.

Valuated Stock Movement Types

As mentioned, transfers can be made from one SAP stock type to another using specific movement types. For valuated stock, the below movement types are used to move goods from one status to another:

To illustrate the use of valuated stock movement types, let’s process a goods movement for a hypothetical material ERS1. First, we will have a look at the stock overview for the material via transaction code MMBE. We can see 100 units of the material are in unrestricted use, as highlighted below:

Next let’s process a goods movement of 20 pieces of the material from unrestricted use to quality inspection stock. We process the goods movement via transaction code MIGO, using movement type 322 as illustrated below:

Now, note how the stock levels have changed in the stock overview. Execute transaction code MMBE again to see that 20 units have been deducted from unrestricted use and are now categorized as quality inspection stock, as shown below:

Non-Valuated Stock

With the procurement of non-valuated stocks, no accounting entry takes place. These SAP stock types are not yet owned by the company even though they may be on the premises. For example, if a vendor sends goods that are visibly damaged at the time of receiving, they will be returned to the vendor and should not be processed into inventory. In this case the goods are received into blocked stock with no accounting entry. This is an example of a non-valuated stock type, as the ownership is still not with the company.

To illustrate the use of goods receipt into blocked stock, let’s examine the status of hypothetical material ZA-R123 which has been requested from the vendor through a purchase order. First, we will have a look at the stock overview for the material via transaction code MMBE. We can see 100 units of the material are on order, as highlighted below:

Suppose the material is visibly damaged upon arrival. To bring the received material to blocked stock, a goods movement using movement type 103 is used. Process a goods movement of 100 pieces of the material to receive the goods into blocked stock as shown below:

Once the vendor has rectified the issue and the material is ready for use, move the material into company stock using valuated stock movement type 105.

Special Stock

SAP special stock types differ in their procurement method compared to standard the procure to pay process. We will enumerate the different special stock types below:

• Subcontracting: Subcontracting is a special procurement method wherein the company decides to outsource its work to a vendor. In this process, a company sends raw material to the vendor for specific manufacturing processes and receives the finished material back.
• Consignment: In the consignment process, the vendor provides goods and keeps them in a company’s storage area. The owner of the goods is still the vendor and the company is the owner only when it withdraws the goods from the consignment stores for its own use. The company pays the vendor only when it consumes the goods kept in the company’s storage area as needed.
• Stock Transport Order: The stock transport order (STO) process refers to the special stock process where plant stocks are transferred within the same company code amongst supplying and receiving plants.
• Third Party Processing: With third party processing, a customer places an order with a company which is sent to a third party vendor for processing. The third party vendor delivers the goods directly to the end customer, but passes invoicing through the intermediary company.
• Returnable Transport Packaging: Returnable transport packaging (RTP) is a special procurement process in which goods can be interchanged repeatedly between vendors and customers. It may be done with a packaging medium like pallets and containers. Returnable transport packaging is managed as a special stock belonging to the vendor. It is received by a company with movement type 501M which does not included the material in the customer’s valuated stock.
• Pipeline Handling: If a company procures materials like water, oil or electricity through a pipeline, it is managed through pipeline handling. In this special stock process, there is no requirement to store the material which is ordered. Whenever there is a demand, the material is ordered and goods are received using movement type 201P. Subsequently, settlement with the vendor is handled through transaction code MRKO.

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