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SAP

Stock Counts and Goods Issue

Feb 2018

Welcome!

Introduction

• Attendance Sheet

• Washrooms

• Fire exits

• Refreshments

Expectations

• Ask questions

• One speaker at a time

• Respect others

• Turn off/silence phones

• Computers are for course

exercises

• Have fun!

Feb 2018

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Welcome!

Prerequisites

• SAP Navigation (online)

• Supply Chain Overview (online)

Feb 2018

P

The Parking Lot

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Course Objectives

After completing this course, you should be able to:

– Describe how the stock count and goods issue process fits

within inventory management

– Perform a unit stock count using a count sheet

– Transfer material between storage locations

– Charge material to a cost center

– Process a transfer to return storage location material

Feb 2018

New Terms & Concepts

Refer to the “Terms & Concepts” sheet

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Course Modules

Feb 2018

Module

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Inventory Management Overview

After completing this module, you should be able to:

– Describe how the stock count and goods issue process fits

within inventory management

Feb 2018

Inventory Management

• For each physical stock material stocked in a unit storage

area, certain information is maintained in SAP, including:

– A maximum quantity (MAX) to be stocked in storage

– A reorder point (ROP) that determines when the material

needs to be reordered

– An assigned bin location to store the material

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Maximum Quantity and Reorder Point

Feb 2018

MAX

ROP

Inventory Management Overview

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Inventory Management Overview

Feb 2018

Inventory Management: Goods Issue

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Review Questions

1. What inventory management information is maintained in

SAP for each stock material stocked in a storage area?

2. At what point does SAP generate an order to replenish

stock?

3. What information does SAP use to determine if stock

requires replenishment?

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Module

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Stock Count and Goods Issue

After completing this module, you should be able to:

– Perform a unit stock count using a count sheet

• Print a count sheet from SAP

• Record counted values on a count sheet

• Enter counted values into SAP

Feb 2018

Stock Count and Goods Issue

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Prepare for Count

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Determining When to Count

• Managers, in conjunction with Material Handling, determine

the timing and frequency of unit stock counts

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Counting Stock

What information do you need to perform a unit stock count of

your on-hand inventory?

Feb 2018

✓ Items that can be counted

✓ Material numbers

✓ Material locations

Storage Location (SLoc) Count Sheet

• The storage location (SLoc) count sheet:

– Is printed from SAP

– Contains information to assist with your count

– Lists stock items to count

– Is used to record and enter counted quantities into SAP

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Feb 2018

T-code: ZMM_GI Generate & Print a Count Sheet

• Refer to job aid:

− Process Goods Issue Posting

Activity 1: Demo

Perform Count

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Determining What to Count

• It is up to you as the counter to decide whether to include:

– All materials, or

– Only those that appear to be below their ROP

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Feb 2018

Perform Count Using Count Sheet

• Refer to sample count sheet

Activity 2: Exercise

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Enter Count Values

Feb 2018

Entering Count Values in SAP

• When using a count sheet, counted values must be:

– Clearly recorded on the count sheet

– Accurately entered into SAP

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Feb 2018

T-code: ZMM_GI Process Goods Issue Posting

Activity 3: Exercise

• Refer to job aid:

− Process Goods Issue Posting

Goods Issue Posting

• Generate and Print Ward Count Sheet

• Process Goods Issue Posting

Feb 2018

Complete the ZMM_GI SAP Watch/Try

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Review Questions

1. What information is included on the count sheet?

2. When do you perform your unit stock count?

Feb 2018

3. How do you determine what items to include in your unit stock count?

Replenish Stock

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Issue Material to the Cost Center

• After the count values are entered in SAP, the system:

– Compares the system quantity on-hand to the counted

quantity on-hand, and

– Expenses the difference between the system quantity on-

hand and the counted quantity on-hand to the SLoc’s cost

center

Feb 2018

Material Requirements Planning (MRP)

• For each SLoc, SAP’s Material Requirements Planning

(MRP) runs automatically according to a set schedule in

order to:

– Determine the stock that needs to be replenished

– Calculate the replenishment quantity

– Create a replenishment proposal to order the stock

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Stock Replenishment

• For each stock material that is below its ROP, MRP creates

a replenishment proposal for the difference between:

– The available stock, and

– The MAX quantity

Feb 2018

ROP = 6

Order Rounding

Feb 2018

MAX = 12

ROP = 6

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Replenishment Sources

• Material can be replenished from different sources

Feb 2018

VendorIIL (Intermediary

Inventory Location)Warehouse

Pharmacy Satellite

Replenishment Proposal Types

• The type of replenishment proposal created is based on the

material’s replenishment source

Feb 2018

REPLENISHMENT SOURCE REPLENISHMENT PROPOSAL

Vendor Requisition (external)

IIL / Pharmacy Satellite Requisition (internal)

Warehouse-Managed (WM)

Warehouse (e.g. HSC)Requisition (internal)

Inventory-Managed (IM)

Warehouse (e.g. Grace Hospital)Reservation

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MRP List

• SAP can display an MRP view for a specific material and

area based on the last MRP run, which includes:

• This allows you to see the status of orders created through

the MRP process

Feb 2018

✓ Quantity in storage

✓ Orders pending arrival

✓ Outstanding reservations for IM-managed warehouse

(e.g. Grace Hospital)

✓ Outstanding requisitions (external vendor)

✓ Outstanding requisitions (internal) for WM-managed

warehouse (e.g. HSC)

Feb 2018

T-code: MD05 Display MRP List

Activity 4: Demo

• Refer to job aid

− Display MRP List

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Non-Stock Replenishment

• For non-stock items, a requisitioner must use SAP to

create a:

– Requisition for externally procured items

– Requisition for non-stock items procured internally from a

WM-managed warehouse (e.g. HSC)

– Reservation for non-stock items procured internally from an

IM-managed warehouse (e.g. Grace Hospital)

Feb 2018

Routine Usage of Non-Stock

• A material that is considered non-stock for the SLoc may be

changed to a stock material if:

– It is routinely used, and

– A request to add the item to the SLoc inventory is completed

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Site Inventory Change Request form

• The Site Inventory Change Request form is used to

adjust SLoc stock requirements

– Add routinely used non-stock material to SLoc stock

– Increase or decrease the MAX or ROP for an item

• T-code ZMM_ROPC can be used to determine the

optimum MAX/ROP for SLoc materials

– Delete materials no longer required for the unit

– Change bin coding

Feb 2018

Material Reporting and Tracking

• You can display a report to check the status of orders for

materials that are replenished from an internal source

• Provides the ability to track and analyze orders from one

single screen to help troubleshoot common situations

Feb 2018

Complete the ZMM_MART Watch/Try

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Review Questions

1. Which materials does MRP replenish?

2. What does MRP do based on your counted stock values?

3. What change can be made for routinely used non-stock

items?

Feb 2018

Module

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Transfers

After completing this module, you should be able to:

– Transfer material between storage locations

– Charge material to a cost center

Feb 2018

Stock Transfers

• Two scenarios exist for storage location stock transfers

within a plant:

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SCENARIO 1 SCENARIO 2

Material is stocked in both the

issuing and receiving SLocs.

Material is stocked only in the

issuing SLoc and the receiving

unit does not stock it.

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Scenario 1: SLoc to SLoc Transfer

Scenario 1:

• Transferring material stocked at both the issuing and

receiving SLoc:

– Completed as a one-step transfer in SAP

Feb 2018

Receiving

SLoc

Issuing

SLoc

Feb 2018

T-code: MIGO (311) Process Transfer Posting

• Refer to job aid:

− Process SLoc to SLoc Material Transfer

Activity 5: Exercise

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SLoc to SLoc Transfer: Results

• Once the transfer is completed in SAP, the:

– Issuing SLoc stock is immediately decreased

– Receiving SLoc stock is immediately increased

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Receiving

SLoc

Issuing

SLoc

Scenario 2: Goods Issue for Cost Center

Scenario 2:

• Issuing material stocked at the issuing SLoc, but not the

receiving SLoc:

– Completed as a goods issue for cost center in SAP

– Suggestion for keeping track: Have a sheet on the SLoc wall

or check communication book to track transfers between

SLocs

Feb 2018

Receiving

SLoc

Issuing

SLoc

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Feb 2018

T-code: MIGO (201) Process Goods Issue

Activity 6: Exercise

• Refer to job aid:

− Process Goods Issue for Cost Center or Internal Order

Goods Issue for Cost Center: Results

• Once the goods issue is completed in SAP, the:

– Issuing SLoc stock is immediately decreased

– Receiving SLoc cost center is charged for the material(s)

Feb 2018

Receiving

SLoc

Issuing

SLoc

Cost Center

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Transfers and Unit Stock Counts

Note: All transfers occurring overnight need to be entered into

SAP prior to performing the next unit stock count!

• Any material transfers that are not processed in SAP before

the count remain in the issuing SLoc’s inventory

Feb 2018

Review Questions

1. What are the two SLoc stock transfer scenarios?

2. What happens after a transfer is completed in SAP

between two SLocs that keep a material?

3. In what situation must goods be issued to

the cost center for a receiving SLoc?

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Module

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Returns

After completing this module, you should be able to:

– Identify when a material stock status needs to be changed

– Process a transfer to return storage location material

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Returning Stock Material

• Stock materials may need to be returned from an SLoc for a

variety of reasons:

– Damage

– Wrong item ordered/Shipped

– Recall

– Patient has been discharged or transferred

– Material was part of a trial

• For materials in an SLoc inventory, there are a couple of

steps to follow before a return can be completed

Note: Expired materials will not be accepted for returns to the warehouse

Feb 2018

Stock Status

• There are a number of statuses that can be assigned to

stock materials

– In SAP, stock can be moved from one status to another by

performing a transfer posting transaction

• When dealing with a return, you need to be concerned with

two statuses: unrestricted use and blocked

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Returns and Blocked Stock Status

• Material that is being returned must be:

– Transferred into blocked status

– Transferred to the warehouse returns (WRTN) SLoc

• This removes the quantity from your inventory and:

– Places it on “hold” in the WRTN SLoc

– Prevents the quantity in blocked status from being expensed

when the next count is performed

Feb 2018

Correcting a Return Error

• If you transfer a quantity of SLoc material into the WRTN

SLoc and blocked stock status by mistake, it must be:

– Transferred back into unrestricted use status

– Transferred back to your SLoc

• This places the quantity back into your on-hand inventory

so that it can be expensed when the next count is

performed

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Feb 2018

T-code: MIGO (344) Process Transfer for Return

Activity 7: Exercise

• Refer to job aid:

− Process Transfer for SLoc Material Return

Return Completion

• After the material that is being returned has been

transferred into blocked status for the WRTN SLoc,

– Complete the Returns Shipping Bill form located on Insite

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Material Source

• The completed form must be emailed to the:

– Purchasing Dept. for returns to a vendor

– Warehouse for returns to the warehouse

• SAP can be used to determine if the material source is:

– A vendor, or

– The warehouse

Feb 2018

Feb 2018

T-code: MM03 Determine Order Type

Activity 8: Exercise

• Refer to job aid:

− Determine Order Type

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Course Summary

Having completed this course, you should be able to:

✓ Describe how the stock count and goods issue process fits

within inventory management

✓ Perform a unit stock count using a count sheet

✓ Transfer material between storage locations

✓ Charge material to a cost center

✓ Process a transfer to return storage location material

Feb 2018

On-the-job Support & Resources

Feb 2018

Insite (SAP)

SAP Help Menu: MIGOSAP Help Menu: ZMM_GI

New User Support Guide

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Please complete the online survey…

Feb 2018

https://www.surveymonkey.com/r/SAPILT

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