From the course: Learning SAP MM (Materials Management)

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SAP inventory management overview

SAP inventory management overview - SAP ERP Tutorial

From the course: Learning SAP MM (Materials Management)

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SAP inventory management overview

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- [Instructor] Effective inventory management keeps costs as low as possible, while ensuring customer needs are met on time. Let's look at the inventory management process in SAP. One of the key functions of inventory management in SAP is material stock management. Our stock can be measured in two different ways. First, material stock can be measured by quantity. Anytime there's a transaction in the system that affects the quantity of stock, the levels are updated. This includes any stock that is located in the warehouse, any stock that's been ordered but has not been delivered yet, or any stock that is being inspected. SAP's functionality allows for insights into a material stock level at any time. The other way that material stock is measured is on a value basis. Again, anytime there's a transaction that affects inventory, the stock value is updated. Account assignments in cost accounting are updated as the stock…

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