SAP MM Mock Interview 8 by Ganesh Padala

Dear All,

I hope all of you are safe from COVID-19 and doing good. In this video, few important Questions related to SAP MM are covered. I hope it will be helpful for all of you

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Thanks and 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 : 




Storage Bin in SAP WM

Hello Friends,

Storage Bin is the most important master data in SAP Warehouse Management. It is the smallest addressable unit in a warehouse. In this document, I have explained the definition of storage bin along with the use and other details. And also I have provided the manual for creation of Storage bin with screen shots. I hope it will be useful for you. Share this document link in social network to make it useful for many people

Storage Bin: 


The storage bin (sometimes referred to as a “slot”) is the smallest addressable unit in a warehouse. It identifies the exact location in the warehouse where goods can be stored.

A storage bin can be further sub-divided into bin sections. Several different materials (Quants) can be stored in one bin at the same time.


Defines the bin into which the material in this storage type is to be placed.

Maximum storage bin quantity

Largest quantity that can be stored in a storage bin of this storage type

This quantity is recorded in the base quantity unit.


This entry is used for checking storage bin capacity.

Minimum storage bin quantity

Minimum quantity which is stored in the bin location of this storage type. Quantity is recorded in the base quantity unit


The system can use this entry for a material replenishment in this bin location.

Rounding qty:

When using the quantity-dependent picking strategy (large/small quantities), the requested quantity is rounded down to this quantity when materials are picked from this storage type.

This quantity is managed in the base unit of measure.

Storage bin can be created manually one by one or multiple storage bins can be created automatically.

  1. Manual Storage Bin Creation:

Transaction Code- LS01N


Display Storage Bin: T Code –LS03N

2. Automatic Storage Bin Creation: This is a configuration step. System will ask for a Transport Request after saving this transaction. This can be done through LS10 transaction code or by using below configuration Path

SPRO->IMG-> Logistics Execution-> Warehouse Management->Master Data-> Storage Bins-> Define Storage Bin Structure

After click on Define Storage Bin Structure, system will show below screen. Select the required line contains Warehouse number, Storage type and section and template. Storage bin structure, start value and end value will be given as per the requirement.

Now select the line and click on display icon as shown below

Then click on Create bins which is under Environment as shown below

Below screen will be appeared.


Then click on Create Online. System will prompt a message as shown below. Then click on Yes to create bins


Below message will be observed at the bottom

After saving, transport request screen will be appeared. In few business cases, we get access to LT10 transaction in Production to complete the storage bin creation directly in Production as Storage Bin comes under master data. If you don’t use storage bin structure, you can create LSMW for LS01N Transaction to create Storage Bins in bulk. 


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