1 1 Module Objectives Upon completing this module, you will be able to: - PowerPoint Presentation

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Module Objectives

Upon completing this module, you will be able to:Understand the process of Stock transfer & transfer posting.Understand the differences of Stock transfer and Transfer Posting processDifferences between one step & two step processUnderstand the different types of stock transfer processes.

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Introduction of Stock transfer/ transfer posting processOverview of stock transfer/ Transfer Posting processesDemoAgenda

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Introduction to Stock transfer/ transfer posting processVarious types of stock types: There are three types of stock in Inventory Management. Each of these stock types indicates whether the material concerned can currently be used.Unrestricted-use stockQuality inspection stockBlocked stockWhen Batch Management is active, a further stock type is supported: restricted-use stock3

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Introduction to Stock transfer/ transfer posting processA transfer posting usually refers to a change in a material’s stock (for example, release from quality inspection, accepting consignment material). In a transfer posting, the material can remain in its original storage bin or be transferred.Stock transfers can occur either within one plant or between two plants or company codes.Stock transfers and transfer postings are used to represent organizational-relevant transfers within the company (for example, decentralized storage).4

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Difference between a stock transfer and a transfer postingStock TransferTransfer postingIt signifies Physical movement of goods form one place to other.It signifies transfer of goods from one stock type to otherInvolves physical movement of goods from one location to otherNo physical movement

of goodsIt involves stock quantity and value updateIt involves stock quantity updateExample : Movement of material from one plant to other or one company to otherExample : Transfer of material form unrestricted stock to quality or from quality to block stock etc.5

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Introduction of Stock transfer/ transfer posting processOverview of stock transfer/ Transfer Posting processesDemoAgenda

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Overview of Stock transfer/ transfer posting processesLevels for Stock Transfers: In a company, goods movements do not only occur in the form of goods receipts and goods issues. Depending on the organization of the company (for example, decentralized storage) and its sales policy, internal stock transfers might also be necessary.Stock transfers can occur at three different levels:· Stock transfer from company code to company code· Stock transfer from plant to plant· Stock transfer from storage location to storage location (in the plant)

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Overview of Stock transfer/ transfer posting processesStock Transfer from Company Code to Company CodeA stock transfer from company code to company code corresponds to a stock transfer from plant to plant, with both plants belonging to different company codes.Stock Transfer from Plant to PlantA stock transfer from plant to plant not only leads to a change in stock quantity in both plants; if both plants are assigned to different valuation areas, an accounting document is also created.This type of stock transfer can only be carried out from unrestricted-use stock of the issuing plant to unrestricted-use stock of the receiving plant.Stock transfers from plant to plant are relevant for Material Planning, since Materials Planning operates at plant level.

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Overview of Stock transfer/ transfer posting processesStock Transfer from Storage Location to Storage Location (in the Plant)A stock transfer from storage location to storage location in the same plant simply causes an update of the stock quantities in both storage locations.The stock value remains unchanged, and the event is not relevant for accounting.A stock transfer from storage location to storage location is possible for all stock types.

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Overview of Stock transfer/ transfer posting processesStock Transfer ProceduresThere are three different procedures for carrying out a stock transfer:· Stock transfer via stock transfer posting using the one-step procedure· Stock transfer via stock transfer posting using the two-step procedure· Stock transfer using a stock transport order

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Overview of Stock transfer/ transfer posting processesOne-Step Procedure Versus Two-Step ProcedureBoth stock transfers and transfer postings consist of a ‘Goods Issue’ from an issuing point and a ‘Goods Receipt’ at a receiving point. You can post a stock transfer from storage location to storage location or from plant to plant either in one step or in two steps.The advantage of the one-step procedure is that you enter a single transaction in the system.The two-step procedure, on the other hand, allows you to monitor the stocks in transit. After the goods issue is posted at the issuing point, the stock appears ‘In stock transfer’ at the receiving point and is managed as such in the system.

The two-step procedure is also required if users have authorizations only for their own plants.

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Overview of Stock transfer/ transfer posting processesMaterial Documents for Stock TransfersOne-Step ProcedureDuring a one-step stock transfer, the system creates two material document items for every item you enter:· An item for the removal from storage at the issuing point· An item for placement into storage at the receiving point

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Overview of Stock transfer/ transfer posting processesTwo-Step ProcedureDuring a two-step stock transfer, the system creates two material documents:Upon the removal from storage at the issuing point, the system creates a material document. For every item you enter, two material document items are created, namely: An item for the removal from storage at the issuing point An item for the placement into stock in transfer at the receiving pointUpon placement into storage at the receiving point, the system again creates a material document.

For every item you enter, only one material document item is created, because

the quantity is only transferred from stock in transfer into unrestricted-use stock at the receiving point.

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Overview of Stock transfer/ transfer posting processesStock Transfer Procedure Without a Stock Transport OrderIn the stock transfer procedures described below, only Inventory Management (MM-IM) is involved.The following table explains the characteristics of stock transfer procedures without a stock transport order:

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Stock Transfers From Storage Location to Storage Location UseA stock transfer from storage location to storage location takes place within a plant. It is usually posted without value, since the transferred material is managed in the same plant and therefore has the same valuation data as before. If the material is subject to split valuation, and the valuation type of the material changes due to the stock transfer, the system also creates an accounting document during the stock transfer.ActivitiesYou can enter this stock transfer using either the one-step procedure or the two-step procedure, whereby you can only plan the one-step procedure with a reservation.

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Stock Transfer From Plant to Plant A stock transfer from plant to plant generally takes place within a company code. It can, however, also take place between two company codes, if the plants are assigned to different valuation areas, which belong to different company codes.Unlike a stock transfer from storage location to storage location, a stock transfer from plant to plant affects both accounting and Materials Planning, as follows:AccountingAccounting is affected if both plants are assigned to different valuation areas. This means that a stock transfer leads not only to a quantity update but also to a value update (stock value, G/L accounts). Thus, parallel to the material document for stock transfer, an accounting document is created.Materials PlanningMaterials Planning is affected because a change of plant stock is taken into account by Materials Planning.

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Stock Transfer From Plant to Plant You can enter this stock transfer using either the one-step procedure or the two-step procedure, whereby only the one-step procedure can be planned with a reservation.You can only post a plant-to-plant stock transfer in one step if you have the relevant authorization in both plants.For split-valuated materials, a plant-to-plant stock transfer in two steps is not possible for technical reasons. In this case, you have to enter the stock transfer using either the one-step procedure or a stock transfer order.

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Stock Transfer from Company Code to Company Code You post a stock transfer from company code to company code the same way as you post a Stock Transfer from Plant to Plant, except that both plants belong to different company codes. You can enter this stock transfer using the one-step or the two-step procedure. During the stock transfer, two accounting documents are created in addition to the material document:An accounting document for the removal from storage at the issuing company codeAn accounting document for the placement into storage at the receiving company code.

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Stock Transfer from Company Code to Company Code The stock posting is offset against a company code clearing account. To display the value of the cross-company-code stock in transit with a report, choose Environment → Stock → Stock in transit Cc. Stock transfers from company code to company code can be carried out using stock transport orders.

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Transfer Postings From Material to Material If a material changes over time in such a way that it no longer corresponds to the features defined in the material master record, but to the features of a different material number, you have to carry out a transfer posting from material to material. This is often the case in the chemical and pharmaceuticals industry, for example.Such a transfer posting is always carried out in one step and without advance planning. The posting can only be carried out from the unrestricted-use stock of the issuing material into the unrestricted-use stock of the receiving material.

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Transfer Postings From Material to Material Pre-requisites:A material master record must already exist for the receiving material.Both materials must be kept in the same base unit of measure. The basis for all conversions on posting is always the base unit of measure.Procedure1. Choose Goods Movement → Transfer Posting.2. Enter the data on the initial screen:a. Enter the header data.b. Select the movement type Transfer Posting → Material to Material.

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Transfer Postings From Material to Material 3. Maintain the data on the collective entry screen:Enter the number of the receiving material. Enter a plant and a storage location only if you simultaneously want to post the stock to another plant or storage location. If the receiving material is handled in batches, the system prompts you to enter a batch.b. Enter the items. For each item, you can still change the plant and the issuing storage location.4. Check the data on the overview screen and post the document.

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Transfer Postings From Material to Material ResultA transfer posting from material to material results in the transferred quantity being managed under another material number.The transferred quantity is deducted from unrestricted-use stock of the issuing material and posted into unrestricted-use stock of the receiving material.For every item you enter, two material document items are created:An item for the issuing materialAn item for the receiving materialParallel to the material document, an accounting document is created. The issuing material master record determines the value of the transfer posting.

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Entering a Transfer Posting From Stock to Stock ProcedureSelect Goods movement  Transfer posting. Enter the data on the initial screen:1. Enter the header data.2. Select the movement type Transfer posting  Stock to stock or Reverse tfr. posting  Stock to stock plus the required stock types.Maintain the data on the collective entry screen:1. Only enter a receiving storage location if the material should be stored in another storage location.

2. Enter the items.Check the data on the overview screen and post the document.

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Entering a Transfer Posting From Stock to Stock Below are some of the commonly used movement types for Stock transfer/ transfer postingsMovement TypeDescription301Transfer posting plant to plant in one step

303Transfer posting plant to plant in two steps - removal from storage

305Transfer posting plant to plant in two steps - placement in storage309Transfer posting material to material

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Transfer posting stock in quality inspection - unrestricted-use stock

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Transfer posting storage location to storage location - stock in QI

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Transfer posting storage location to storage location - blocked stock

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Transfer posting of special stocks E, K, and Q to company's own stock

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Transfer posting to project stock

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Introduction of Stock transfer/ transfer posting processOverview of stock transfer/ Transfer Posting processesDemoAgenda

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Demo1_Transfer Posting Process

Objective

To get to know the status of the Material

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Demo1_Transfer Posting Process

Objective

To get to know Quantity of Material in Quality Inspection and to transfer to Unrestricted use.

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Demo1_Transfer Posting Process

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Transfer all the stock from Quality to Unrestricted use

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Demo1_Transfer Posting Process

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Goods Issue With reference To Reservation

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Demo1_Transfer Posting Process

Objective

Goods Issue With reference To Reservation

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32Demo2_ Stock Transfer Plant to Plant -1 Step

Objective

Check for stock balance of Material, “Fluconazole” in Plant 1000

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33Demo2_ Stock Transfer Plant to Plant -1 Step

Objective

Check for stock balance of Material, “Fluconazole” in Plant 1000

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34Demo1_ Stock Transfer Plant to Plant -1 Step

Objective

To transfer 20 Qty of Material, “Fluconazole” from Plant 1000 to Plant 1100

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35Demo2_ Stock Transfer Plant to Plant -1 Step

Objective

To transfer 20 Qty of Material, “Fluconazole” from Plant 1000 to Plant 1100

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36Demo2_ Stock Transfer Plant to Plant -1 Step

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To check whether 20 quantity of Fluconazole is received in Plant 1100 after the stock transfer.

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37Demo2_ Stock Transfer Plant to Plant -1 Step

Objective

To check whether 20 quantity of Fluconazole is received in Plant 1100 after the stock transfer.

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Quiz/Check pointQuestions/Discussions :What are effects of stock transfer?What is the difference between one step & two step stock transfer process?What is the relevance of material to material stock transfer.

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Questions and CommentsWhat questions or comments do you have?

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Exercise Exercise 17: Goods receipt, goods issue, transfer posting. (60 min.)40