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inventory age

former_member587064
Discoverer
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785

Dear Team, please teach me how to achieve inventory age,

I Referenced this discussion Https://archive.sap.com/discussions/message/15572621#15572621

My question is when the material is from A01 stock Transfer to A02 stock, the inventory age is recalculated, but it has actually been placed for a long time.

How can I get the real inventory age from A02 stock?

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Sposato_Antonio
Participant

Dear Ming,

the "Inventory Ageing Report" gives you the visibility about ageing of the materials in stock for a particular material type. It is based on an assumption that the materials which came in first are consumed first i.e. inventory net off will happen based on FIFO (First In, First Out) approach. Please check with the customer whether they are using FIFO logic or not . If they are not using FIFO logic then the age displayed will be wrong.

Also SAP reported the following limitations in this report:
1. Stock Transfer Scenario: When a stock transfer happens, an inbound confirmation will be created at receiving site. Since our report is based on confirmations, age of transferred stock in new site will be calculated, based on new confirmation. It does not take into consideration, age of inventory in source site.

2. Physical Inventory Adjustment: In case of annual or periodic inventory count, if inventory records don’t match with actual count, inventory adjustment is done. The point here is regarding what age to assign to delta inventory.

3. In case of excess actual inventory than in records, increased inventory will be considered to belong to latest period i.e. it will be considered as part of latest confirmation.
In case of lesser actual inventory than in records, missing inventory would be considered to belong to earliest period, i.e. it will be considered as part of earliest confirmation.

Scrap Scenario: Any stock scrap would result in reduction of inventory and this would have to be adjusted in the Inventory count.

The attached screenshot explains the logic of the "Inventory Ageing Report".

Hope this clarifies you a bit more.

My best regards,inv-ageing-rep.png


Antonio

former_member587064
Discoverer
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Thanks a lot Antonio. I already understand it.