Inventory Management with SAP S/4HANA

Book Information

• Publisher: SAP PRESS
• Authors: Bernd Roedel, Johannes Esser
• Year: 2025
• Edition: 2
• Pages: 477
• Language: English

Description

Are you ready to manage inventory in SAP S/4HANA? Get the instructions you need in this comprehensive guide. Start by configuring inventory-specific and cross-functional settings to suit your business needs. Then use SAP Fiori apps to plan and adjust your inventory, execute core inventory and production processes, and analyze your results. Optimize your workflow with machine learning capabilities, explore real-world scenarios, and more with this hands-on resource!

• Configure and run inventory management in SAP S/4HANA
• Plan, execute, and optimize goods receipt, stock transfers, and more
• Analyze your inventory, from KPI monitoring to custom queries

Key Highlights

• Inventory optimization
• Inventory planning
• Goods receipt
• Stock identification and transfer
• Physical inventory
• Production execution
• Inventory analysis
• Configuration
• Best practices
• Real-world scenarios

You'll learn about

• Configuration:
  Set up inventory management in your SAP S/4HANA system. Follow click-by-click instructions to configure inventory settings in procurement, logistics execution, production planning, stock transport, and more.
• Planning, Execution, and Analysis:
  Master the inventory optimization cycle. Design planning strategies, perform goods receipt, and execute key processes such as stock transfer posting, physical inventory, and production. Use analytics tools to assess important KPIs.
• Your Inventory Landscape:
  See how to handle inventory management in on-premise, cloud, and hybrid landscapes. Work with the latest cloud solutions, from SAP Business Technology Platform to SAP IBP to SAP Datasphere.

Table of Contents

• Preface
• Who This Book Is For
• How This Book Is Organized
• Acknowledgments
• Conclusion

• 1 Introduction to SAP S/4HANA and SAP Fiori
• 1.1 SAP HANA Database
• 1.1.1 Basics
• 1.1.2 In-Memory Database Limitations and Mitigation Strategies
• 1.1.3 Database Benefits and Features
• 1.2 A New Data Model
• 1.2.1 Material Documents (Table MATDOC)
• 1.2.2 Precompacting and Purging Data (Tables MATDOC and MATDOC_EXTRACT)
• 1.2.3 Accounting Documents (Table ACDOCA)
• 1.3 Functional Changes
• 1.3.1 Simplification List
• 1.3.2 Industry Solution Retrofitting
• 1.3.3 Clean Core
• 1.4 SAP Fiori
• 1.4.1 A New User Paradigm
• 1.4.2 SAP Fiori Applications
• 1.4.3 SAP Fiori Launchpad
• 1.5 Summary

• 2 Inventory Management Basics
• 2.1 Inventory as a Staple of the Supply Chain
• 2.2 End User Role Templates
• 2.3 Key Considerations
• 2.3.1 Service Levels, Inventory Costs, and Operational Profit
• 2.3.2 Lot Sizes, Replenishment Times, and Safety Stocks
• 2.3.3 Local versus Global Inventory Management
• 2.3.4 New Technologies
• 2.4 Inventory Optimization in SAP S/4HANA
• 2.4.1 Optimization Schema
• 2.4.2 Plan and Adjust
• 2.4.3 Execute
• 2.4.4 Analyze
• 2.5 Summary

• 3 Configuring Inventory Management
• 3.1 Implementation Guide Configuration
• 3.1.1 Implementation Guide Overview
• 3.1.2 Organizational Units
• 3.1.3 Inventory Management
• 3.1.4 Procurement
• 3.1.5 Logistics Execution
• 3.1.6 Production Planning
• 3.1.7 Stock Transport
• 3.2 Cross-Topics
• 3.2.1 Batches
• 3.2.2 Serial Numbers
• 3.2.3 Handling Units
• 3.2.4 Split Valuation
• 3.3 Generic Cross-Functions
• 3.3.1 Date Functions
• 3.3.2 Responsibility Management
• 3.3.3 Situation Handling
• 3.3.4 Barcode Scanning
• 3.3.5 Extensibility
• 3.4 Servers
• 3.4.1 Frontend
• 3.4.2 Backend
• 3.5 Basic Interfaces
• 3.6 SAP Fiori
• 3.6.1 SAP Fiori Entities
• 3.6.2 Roles and Users
• 3.6.3 SAP Fiori Apps Reference Library
• 3.7 Summary

• 4 Planning and Adjusting Inventory
• 4.1 Planning Strategies
• 4.1.1 Production Planning
• 4.1.2 Discrete versus Process Manufacturing
• 4.1.3 Demand-Driven versus Plan-Driven Planning
• 4.2 Production Master Data Overview
• 4.3 MRP Overview
• 4.3.1 Generic Capabilities
• 4.3.2 Planning Process
• 4.3.3 MRP Live
• 4.3.4 DDMRP
• 4.4 Kanban Overview
• 4.5 Capacity Planning and Production Master Data
• 4.5.1 Manage Work Center Capacity
• 4.5.2 Display BOM, Display Multilevel BOM Explosion, and Find BOM for Components
• 4.5.3 Display Routing/Display Master Recipe
• 4.6 Make to Order and Make to Stock
• 4.7 MRP Live
• 4.7.1 Monitor Requirements and Material Coverage
• 4.7.2 Manage Planned Orders
• 4.7.3 Convert Planned Orders
• 4.7.4 Schedule MRP Runs
• 4.7.5 Display MRP Key Figures
• 4.7.6 Display MRP Master Data Issues
• 4.7.7 Monitor External Requirements
• 4.7.8 Monitor Internal Requirements
• 4.7.9 Detect Unnecessary Supply Elements
• 4.8 DDMRP
• 4.8.1 Configuration Process
• 4.8.2 Buffer Profile Maintenance
• 4.8.3 Product Classification: Mass Maintenance of Products
• 4.8.4 Buffer Adjustment
• 4.8.5 Product Classification: Schedule Product Classification
• 4.8.6 Buffer Positioning
• 4.8.7 Schedule Lead Time Classification of Products
• 4.8.8 Schedule Buffer Proposal Calculation
• 4.8.9 Manage Buffer Levels
• 4.8.10 Planners Overview
• 4.8.11 Replenishment Planning
• 4.8.12 Replenishment Execution
• 4.9 Kanban
• 4.9.1 Manage Control Cycle
• 4.9.2 Summarized JIT Call Scheduler
• 4.9.3 Kanban Calculation
• 4.10 What’s Ahead for Inventory Planning and Adjustment?
• 4.10.1 Prerequisites
• 4.10.2 Schedule Predictive MRP Simulation Creation
• 4.10.3 Process Predictive MRP Simulations
• 4.11 Summary

• 5 Goods Receipt
• 5.1 Purchase Order
• 5.1.1 Purchase Orders for Inventory
• 5.1.2 Stock-Related Procurement
• 5.2 Inbound Delivery
• 5.3 Production Order
• 5.4 Goods Receipt without Reference
• 5.5 Post Subsequent Adjustment
• 5.6 Process Variants
• 5.6.1 Batch-Managed Materials
• 5.6.2 Serial Numbers
• 5.6.3 Goods Receipt Blocked Stock
• 5.6.4 Mandatory Quality Inspection
• 5.6.5 Decentralized Warehouse Management
• 5.6.6 Direct Posting with Embedded EWM
• 5.6.7 Return Delivery
• 5.6.8 Single- or Multi-Account Assignment
• 5.6.9 Split Valuation
• 5.7 Real World Scenarios and Best Practices
• 5.7.1 Implementing Simple Warehouse Management with Storage Bins
• 5.7.2 Simplifying Inbound Quality Control with Goods Receipt-Blocked Stock
• 5.7.3 Scanning Barcodes to Speed Up Goods Receipt
• 5.8 What’s Ahead for Goods Receipt?
• 5.9 Summary

• 6 Core Inventory Management
• 6.1 Monitoring Core Inventory Documents
• 6.1.1 Material Document Components
• 6.1.2 Use Enterprise Search to Identify Inventory Documents
• 6.1.3 Material Documents Overview
• 6.1.4 Analyze the Document Flow via the Material Document Object Page
• 6.2 Stock Identification
• 6.2.1 Stock – Single Material
• 6.2.2 Stock – Multiple Materials
• 6.2.3 Analyze Stock in Date Range
• 6.2.4 Display Stock Overview
• 6.3 Stock Transfer
• 6.3.1 Stock Transfer – In-Plant
• 6.3.2 Transfer Stock – Cross-Plant
• 6.3.3 Post Goods Movement
• 6.3.4 Working with Stock Transport Orders
• 6.3.5 Advanced Intercompany Stock Transport
• 6.4 Initial Entry and Scrapping
• 6.4.1 Manage Stock
• 6.4.2 Post Goods Movement
• 6.5 Reversals
• 6.5.1 Reversals within the Material Document Object Page
• 6.5.2 Partial Material Document Reversal
• 6.6 Physical Inventory
• 6.6.1 Physical Inventory Phases
• 6.6.2 Create Physical Inventory Documents
• 6.6.3 Manage Physical Inventory Count
• 6.6.4 Process Physical Inventory Count Results
• 6.6.5 Manage Physical Inventory Item List
• 6.7 Cross-Topics
• 6.7.1 Batches
• 6.7.2 Serial Numbers
• 6.7.3 Handling Units
• 6.8 Real-World Scenarios and Best Practices
• 6.8.1 Scanning Barcodes to Speed Up Inventory Management
• 6.8.2 Managing Product Lifecycle State with Split Valuation
• 6.8.3 Converting Materials into Different Materials
• 6.8.4 Fine-Tuning Inventory with Custom Movement Types
• 6.9 What’s Ahead for Core Inventory?
• 6.10 Summary

• 7 Production Execution
• 7.1 Working with Reservations
• 7.1.1 Automatic Creation of Reservations
• 7.1.2 Manual Reservation Management
• 7.1.3 Manage Reservation Items
• 7.2 Scheduling and Manufacturing Execution
• 7.2.1 Capacity Scheduling Table
• 7.2.2 Capacity Scheduling Board
• 7.2.3 Stock Requirements List
• 7.2.4 Display Planned Orders, Production Orders, and Process Orders
• 7.2.5 Manage Change Requests
• 7.2.6 Check Material Coverage
• 7.2.7 Monitor Production Orders and Process Orders
• 7.2.8 Manage Production Orders
• 7.2.9 Confirm Production Operations
• 7.2.10 Create Goods Receipt for Production Order
• 7.3 Production Performance Monitoring
• 7.3.1 Material Scrap
• 7.3.2 Operation Scrap
• 7.3.3 Scrap Reason
• 7.3.4 Excess Component Consumption
• 7.3.5 Monitor Production Execution Duration
• 7.4 Working with Kanban
• 7.4.1 Display Kanban (Demand View)
• 7.4.2 Display Kanban (Supply View)
• 7.4.3 Due Replenishment Elements
• 7.4.4 Correct Kanban
• 7.4.5 Unlock Kanban Container
• 7.4.6 Set Kanban Container Status
• 7.5 What’s Ahead for Production Execution?
• 7.6 Summary

• 8 Inventory Analysis
• 8.1 Inventory Analytics in SAP S/4HANA
• 8.1.1 Advances in Analytics
• 8.1.2 Choosing the Right Analytics Tool
• 8.2 Posted Stock Change Analysis
• 8.2.1 Stock Single Material and Stock Multiple Materials
• 8.2.2 Analyze Stock in Date Range
• 8.2.3 Schedule Export of Inventory Analytics and Display Inventory Analytics Jobs
• 8.2.4 Goods Movement Analysis
• 8.2.5 Physical Inventory Document Analysis
• 8.3 KPI Monitoring and Analysis
• 8.3.1 Overview Pages
• 8.3.2 Inventory Turnover Analysis
• 8.3.3 Inventory (Multiple) KPI Analysis
• 8.3.4 Material Valuation
• 8.4 Process Analysis Tools
• 8.4.1 Dead Stock Analysis
• 8.4.2 Slow or Non-Moving Materials
• 8.4.3 Overdue Stock in Transit
• 8.4.4 Overdue Goods Receipt Blocked Stock
• 8.5 Custom Queries
• 8.6 Real-World Scenarios and Best Practices
• 8.6.1 Analyzing Your Serialized Stock
• 8.6.2 Controlling Inventory
• 8.6.3 Monitoring Shelf Life
• 8.7 What’s Ahead for Analytics?
• 8.8 Summary

• 9 Inventory Management in SAP Business Suite
• 9.1 Extensibility
• 9.1.1 SAP S/4HANA Extensibility
• 9.1.2 SAP Business Technology Platform
• 9.1.3 SAP Business Accelerator Hub
• 9.2 SAP S/4HANA Cloud
• 9.2.1 Solution Scope
• 9.2.2 Implementation Methodology
• 9.2.3 Configuration and Fine-Tuning
• 9.2.4 Update Cycle
• 9.3 Hybrid Deployment
• 9.3.1 SAP S/4HANA and SAP S/4HANA Cloud
• 9.3.2 Decentralized Warehouse Management with SAP S/4HANA
• 9.3.3 SAP Extended Warehouse Management for SAP S/4HANA Cloud Public Edition
• 9.4 Cloud Solutions
• 9.4.1 SAP Integrated Business Planning
• 9.4.2 SAP Digital Manufacturing
• 9.4.3 SAP Business Network for Procurement
• 9.4.4 SAP Business Data Cloud and SAP Analytics Cloud
• 9.5 Summary

• The Authors

• Index

Disclaimer

SAP, other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. Our Company is not affiliated to SAP SE or any of its affiliated companies including but not limited to: Sybase, Business Objects, Hybris, Ariba and SuccessFactors. All other names, brands, logos, etc. are registered trade or service marks of their respective owners.