- SAP Managed Tags:
Negative Stock Handling in SAP MM
Negative Stock:
Negative stocks are allowed when the goods issue needs to be done urgently. Just due to organizational reasons Goods Issues are entered before than the corresponding Goods receipts.
- Once the goods receipts have been posted, the book inventory balance must again correspond to the physical stock, that is, the book inventory balance may no longer be negative.
- Negative stocks are always a sign that physical movements must be entered in the system at a later stage.
In SAP we can handle Negative Stock Handling by using 2 Scenario:-
- Create PO with Activating negative stock in plant in material master Goods issue with movement type 201 and then GR by Movement type 101.
- Create PO with Activating negative stock in plant in material master Goods issue with movement type 201 and then Transfer posting from one storage location to Another with Movement type 311.
Scenario: 1
Scenario:2
Important Points to be Remember:
- You can also manage negative stock balances for materials with moving average price control and for special stocks, such as vendor consignment, material provided to vendor, sales order stock, and project stock.
- Negative stock balances are required if, for organizational reasons, goods issues are entered before the corresponding goods receipts, and the material is already physically located in the warehouse.
- Once you have posted the goods receipts, the book inventory balance should correspond with the physical stock again – in other words, it should no longer be negative. Negative stocks always indicate that physical movements have to be entered in the system at a later stage.
- If you work with negative stock balances, you have to ensure that you do not have negative stocks on the balance sheet key date or when you carry out a physical inventory.
Prerequisites for Negative Stock Handling:
In order to use negative stocks, you have to allow negative stock in customizing.
Only those materials for which negative stocks is activated in the material master, will be
allowed to have negative stocks.
- So that negative stocks are allowed, the 'Negative stocks' indicator should be marked into the material master data via MM01/MM02 transactions on General Plant Data 2 view at ‘General Plant Parameters’ screen.
- Customizing: transaction OMJ1 - Allowing Negative Stocks.
First level:
Valuation area: Choose for which valuation area you want to allow negative stocks and activate the flag a. Select the line of that valuation area and go to the plant level.
If we cannot maintain Plant in the Plant Parameters, the system does not show any Plant. So first check in the Plant Parameters while doing this step.
Plant Parameter:
Configuration: SPRO –> IMG –> Material Management –> Inventory Management and Physical Inventory –> Plant Parameters
We can maintain the Plant by clicking on the New Entries or by copying from the standard one. After maintaining the plant click on the Save button.
After Maintaining the Plant in the Plant Parameters, the system triggers the Plant.
Here I can activate the Negative Stock allow for RM01 Storage Location.
Creation of Material in MM01:
In the General Plant Data/Storage 2 view we can activate the negative stock allow for the material for the Plant.
Check the Stock Overview for the Material in MMBE before doing Goods Issue.
Right now, we don’t have any stock.
Goods Issue –> Other in MIGO
After Maintaining the required data click on the Post or Save button.
Material document 400000001 posted.
The Accounting Entries are:
- As we have no stock of this material in our system & we do goods issue without stock now the stock of material showing in Negative 50.
- When we do Goods Receipt for this material system will automatically adjust the negative stock.
Now we can create the Purchase order in ME21N.
PO - Material created under the number 2000055.
We have 200 Quantity of On-Order Stock after the Creation of PO. When we do Goods Receipt w.r.t Purchase Order the 150 Quantity of stock will update in the Unrestricted use.
Goods Receipt –> Purchase Order
Material document 1 posted.
The Accounting Entries are:
Now check the stock again in MMBE.
- Now the system will be showing positive stock of 150 Quantity.
- As we are doing Goods Receipt of 200 Quantity.
- System will adjust the negative stock after the Goods Receipt.
Scenario:2
- In this Scenario, we have two storage locations under the same Plant and have the stock in both Storage locations, but we need to consume more quantity than the stock available then we can activate the Negative Stock for the Storage location and in the Material Master.
- In the Next Step we can do Goods Issue w.r.t Others with Movement Type 201. Later we can transfer the stock from one Storage Location to Another Storage Location with Movement Type 311.
Process flow:
- Activate the Negative Handling in another Storage location and Activate the Negative stock tab in Material Master.
Here we have the stock in both Storage locations.
In the MMBE we have 50 Qty of stock in FG01 storage location but I need more 50 Qty to move for production or to deliver in that case we used Negative Stock Handling Scenario.
If you do Goods Issue w.r.t Others without activating the Negative Handling tab in the Material Master, the system throws an error like this:
Activate the Negative Stocks for Storage location in OMJ1 Transaction.
Next Activate the Negative stock in Material Master record and click on the Save.
Now do Goods Issue w.r.t Others
Material document 400000002 posted.
The Accounting Entries are:
If you check the stock in MMBE the stock is updated with the Negative Quantity.
In the very next step, we can transfer the stock from one storage location to another Storage location with the Movement Type 311.
Material document 400000003 posted.
No Documents Entries were generated.
Now check the stock in MMBE the 30 Qty of stock is updated in the FG01 Storage location and RM01 storage stock is reduced to 70 Qty.
