MM

MM: Inventory Management & MRP

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Section 1 of 6

Goods Movements: The Heart of Inventory Management

Every time stock moves in SAP — received, issued, transferred, scrapped — a goods movement is posted. Understanding goods movements is the foundation of inventory management.

The MIGO transaction

MIGO is the universal goods movement transaction in SAP. It replaced older T-codes (MB01, MB1A, MB1B, MB1C) and handles almost all movement types in one place.

MIGO screen structure:

  • Action (top left): Goods Receipt, Goods Issue, Transfer Posting, Return Delivery, etc.
  • Reference document (top right): Against Purchase Order, Against Order, Without Reference, etc.
  • Header data: document date, posting date, text
  • Item list: material, quantity, plant, storage location, movement type

Movement types — the key codes

Movement types drive the account determination — they tell SAP which G/L accounts to post to and what happens to stock. The most important:

Movement TypeDescription
101Goods receipt against purchase order
102Reversal of GR against PO
201Goods issue to cost centre
202Return from cost centre
261Goods issue to production order
301Transfer posting plant to plant (one step)
311Transfer storage location to storage location (one step)
551Scrapping (loss)
561Initial stock entry
601Goods issue for delivery (auto from VL02N)

Stock types

Stock is not all the same in SAP. Multiple stock types exist within a plant/storage location:

Stock TypeDescription
UnrestrictedAvailable for use — the normal stock type
Quality inspectionGoods received, pending QM inspection
BlockedNot available — defective, held for investigation
RestrictedBatch-managed stock with restricted use
In transitStock transferred between plants, not yet received
ConsignmentBelongs to vendor, stored at your site

A transfer posting (movement type 322, 344, etc.) moves stock between stock types without creating a new goods document — useful when QM releases stock from inspection.