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Usage in Inventory Management

Former Member
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Hi All,

Can anyone explain in detail with an example about Usage in Inventory Management?

SAP Library explain that There are two different types of usage in Inventory Management: unplanned and planned usage. The planned usage is updated when material is taken from the warehouse as a result of a reservation. Unplanned usage is updated when material is taken without a reservation being on hand.

Disbursements,are defined as shipments, transfers out, issues, consumption, etc. Disbursements should not include adjustments or other transactions unrelated to the purpose of the inventory and do not include movement of inventory between remote warehouses and the plant.

Are these two concept equivalence ?

Thank you very much!

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Answers (2)

Answers (2)

Former Member
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Hi

This is a good question.

Inventory management in the sense procuring the Material managing all the raw materials etc... is called Inventory management.

you have to learn some deep points about inventory management. Uploading all the materials and movement types of material from various warehouses. Taking orders from various customers and shipping those materials to those customers and finally calculating Balance on hand in warehouses. Calculating return materials etc...

Those are some of the knowledge about inventory management. if you need any information based on your requirement we can discuss.

Thank you!

Regards

Ramana

former_member197616
Active Contributor
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Hi,

Your question can be understand like this.

Usage is for material usage.If a reservation is created means the material is intended for a perticular usage say for a project or for a cost center etc.If a reservation has been created for against a project means, the perticular material quantity can only be issued to the project against the perticular reservation unless the reservation is marked for movement allowed indicator or last issue indicator.This is about planned issue.

If the material is issued to a cost center without reference to a reservation is unplanned issue or a unplanned consumption.This involves with actual consumption of the material by our own people.

This is all about usage.

Disbursements according to ur definition provided ,involves issue of materials not for own purpose.

and finally these two concepts are not equal.

Regards,

Raghu.