Goods Receipt with Inbound Delivery in WM

Dear Friends,

I came with a video about GR process with Inbound Delivery in SAP Warehouse Management. I hope it will be useful for your learning. Watch the video and give your valuable comments.

Best Regards,

Ganesh Padala

Give few points about Negative Stocks in SAP Inventory Management

Answer:  Negative Stocks allowed can be activated at Valuation Area and  Storage Location level. This is useful when business wants to use the Physical stock although the Goods Receipt in the system is not yet happened due to any other reasons. Business can issue the stock in the system to Production or Cost Center etc.

System will update negative stock in the system and we can see in stock overview. It will be updated once the Goods Receipt is done.

Negative stocks in valuation area allowed

Specifies that negative stock balances are allowed in the valuation area.


Negative stock balances can only result if they are allowed at the following levels:

  • Valuation area level
  • Storage location level
  • Material level (plant data in the material master record)

Negative stock levels are already allowed for special stocks if negative stocks have been activated in the valuation area and for the special stock in question in the plant. You do not have to activate them in each material master record.

You can have negative balances in stocks of the types Unrestricted and Blocked

Negative balances are possible in the following special stocks:

  • Vendor consignment (K)
  • Stock of material provided to vendor (O)
  • Consignment stock at customer (W)
  • Sales order stock (E)
  • Project stock (Q)
  • Returnable packaging stock at customer (V)
  • Returnable transport packaging (M)

Configuration : Negative Stocks allowed activation for Valuation Area and Storage Location




Negative Stocks allowed at Material : 




SAP MM Goods Issue for Sampling

Hello friends,

Sampling is an important process in any industry. Samples will be sent from the company to R&D, labs and also within departments. SAP provided the process of Goods issue for Sampling. I have explained the process in this video. I hope it will be helpful for you.

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Difference between STO and Transfer Posting

Stock Transport Order: 

•Separate document type is available in Standard SAP. Stock Transfer Order is created with ME21N.

•Delivery Costs and any other charges can be given in PO Conditions. Separate Pricing procedure for STO is also available in SAP

•Delivery and Billing can be done through STO

•This process is generally preferred when client has plants in different cities or states and when client requires to monitor any other details like texts related , conditions related etc

Transfer Posting:

•This process is done through MIGO

•Conditions can’t be maintained

•This is a transaction where only goods can be transferred so facilities which can be monitored in PO can’t be done

•This process is generally preferred when plants are in same city or client doesn’t want to monitor freight etc. details



How can you keep Reason for Movement type as mandatory for MB1A, MB1B and MB1C Transaction codes?


• Screen Layouts can be managed for Enjoy transaction MIGO for each movement type.
• In case of MB1A, MB1B such t codes also respective screen layout change options are available in SAP
• But Reason for Movement etc type fields which are visible at initial screens of MB1A, MB1B etc are managed below
SPRO-IMG–> Materials Management–> Inventory Management and Physical Inventory–>Field Selection for Goods Movements Initial/Header Screens

Reason for movement screen

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SAP Warehouse Management Organization Structure

Hello Friends,

I am providing my first document from SAP WM. In this document, creation of organization structure is provided with screen shots. I hope it will be useful for you.

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Warehouse Management Organization Structure:

  1. Warehouse Number: Warehouse Number is defined in Enterprise structure. Generally, it is created by copying the standard. This is an alphanumeric code with 3-character length and the description has 25 characters length. It will be assigned to Plant and Storage Location in assignment. It can be assigned to several combinations of Storage Location and Plant.

SPRO->Enterprise Structure->Definition-> Logistics Execution ->Define, copy, delete, check warehouse number

Double click on below highlighted text to proceed with next step

Then click on Copy icon and provide input details as shown below. Generally, from warehouse number is given as standard warehouse number 001 or as per the requirement. And to warehouse number field will be filled with the warehouse number which has to be created

Find the warehouse number below

Assignment of Warehouse number to Plant/Storage location combination:

SPRO->Enterprise Structure->Assignment-> Logistics Execution->Assign warehouse number to plant/storage location

Note: One warehouse number can be assigned to the combination of multiple plants and storage locations. But multiple warehouse numbers can’t be used for the same Plant

Click on new entries and assign Plant, Storage Location and Warehouse number


2. Storage Type: Number of areas can be defined within the warehouse. The defined areas of Storage in SAP are called Storage Types. The layout of the warehouse is divided into Storage Types, and these defined areas related directly to the requirements of the materials to the stored in the warehouse.

Ex: Fast moving materials, Rack Storage, Bulk Pallet Storage, Slow moving materials, Special Storage

 Below path is used to define Storage Type

SPRO-> Logistics Execution-> Warehouse Management-> Master Data->Define Storage Type

Ware house number is copied from the standard warehouse number, so all standard storage types will be copied and available for the new warehouse number as shown below

New storage type also can be created as per the requirement. Find below screen for new storage type

3. Storage Section: The Storage type can be divided into several areas which are called Storage sections. Storage section contains the storage bins where the material is stored. Many storage types only have one storage section because there is no requirement to break Storage type into further distinct areas. At least one storage section should be there for a storage type

Example: Pallet goods, Bulk goods, fast moving Items, Slow moving items etc.

 Below path is used to define Storage section.

SPRO-> Logistics Execution->Warehouse Management-> Master Data->Define Storage Section

I hope this document will be helpful to understand about the organization structure of Warehouse Management




Inventory Management Transaction Codes with Explanation

Hello Friends,

I got this document when I was searching for something related to Inventory Management. I hope this will be really helpful to all SAP MM functional consultants. Download and give your feedback.

SAP Inventory Management Transaction codes with explanations



Delivery cost on Non Inventory account in SAP Inventory Management by Ganesh Padala

Hello Friends,

I am uploading one more useful document from SAP MM Inventory Management. Generally delivery costs such as freight charges or any other transportation charges and also few specific insurance charges will be paid to vendor and those will be loaded on material cost. But, these type of costs shouldn’t be loaded on material cost for specific requirements from the customer. This document will be definitely helpful to map this requirement.

Delivery cost on Non inventory