Welcome to SAP IM Tutorials. The objective of these tutorials is to provide an in-depth understanding of SAP IM. In addition to free SAP IM Tutorials, we will cover common interview questions, issues, and how to’s of SAP IM.
Inventory management software is a computer-based system for tracking inventory levels, orders, sales, and deliveries. It can also be used in the manufacturing industry to create a work order, bill of materials, and other production-related documents.
The Investment Management
(IM) component provides functions to support the planning,
investment, and financing processes for:
Capital investments, such as the acquisition of fixed assets as the result of of-house production or purchase
Investments in research and development
Projects that fall primarily under overhead, such as continuing education of employees or establishing new markets.
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The term investment, therefore, is not limited only to investments you capitalize for bookkeeping or tax purposes. An investment in this context can be any measure that initially causes costs, and that may only generate revenue or provide other benefits after a certain time period has elapsed (for example, plant maintenance projects).
The IM component contains functions for managing investments in the area of fixed assets. Financial assets are managed in the Treasury
component.
The integrated planning process allows you to roll up planned values from appropriation requests and measures on the investment program to which they are assigned. You carry out budgeting measures, on the other hand, from the top down within the investment program.
For information on implementing the IM component, refer to the Implementation Guide (IMG) for Investment Management. Choose SAP Customizing Implementation Guide
→ Investment Management
.
The investment program and the appropriation request are objects that originate in the IM component. In order to represent the measure, the IM component uses internal orders from Overhead Cost Controlling - Overhead Orders (CO-OM-OPA) and Plant Maintenance (PM), as well as work breakdown structure (WBS) elements from the Project System (PS).
The integration with Asset Accounting (FI-AA) enables you to easily capitalize on the costs of internal orders and WBS elements that require capitalization to a fixed asset. Costs that do not require capitalization can be settled to cost accounting.
You can post acquisitions to a measure in the Logistics components of the SAP System.
As a component of Materials Management, Inventory Management is directly linked with Material Requirements Planning, Purchasing, and Invoice Verification.
Inventory Management provides information for MRP, which takes into account not only physical stocks but also planned movements (requirements, receipts).
When a material is ordered from a vendor, Inventory Management posts the delivery as a goods receipt with reference to the purchase order. The vendor invoice is processed later by Invoice Verification. Here, the quantities and values from the purchase order and the goods receipt document are checked to ensure that they match those in the invoice.
Inventory Management is closely linked to the Production Planning module:
As soon as you enter a sales order, you can initiate a dynamic availability check of stocks on hand.
When the delivery is created, the quantity to be delivered is marked as "Scheduled for delivery". It is deducted from the total stock when the goods issue is posted.
It is also possible to create sales order stocks.
In the case of a goods movement, the system determines whether the material is subject to inspection operation. If so, a corresponding activity is initiated for the movement in the Quality Management system
Inventory Management is linked with Plant Maintenance as follows:
With the Inventory Controlling component, the Logistics Information System offers a tool for collecting, compressing and evaluating inventory management data.
The Inventory Management system can be extended by the Warehouse Management system (LE-WM) which manages storage bins in complex warehouse structures.
While Inventory Management manages the stocks by quantity and value, the Warehouse Management component reflects the special structure of a warehouse and monitors the allocation of the storage bins and any transfer transactions in the warehouse.
Use: To simplify your day-to-day work with the Inventory Management component, there is a range of functions and reports that provide extensive information on all materials with their stock data. This section provides an overview of the reporting function in Inventory Management. For more information, refer to the documentation on each function or the relevant report documentation.
List displays: This provides reports for documents posted in Inventory Management. Example: material documents for a material.
Stock: This provides information on a material’s stocks. Example: current stock/requirements list. The stock overview provides an overview of all stocks of material overall organizational levels.
Information: This allows you to display data (master data, transaction/movement data) from other applications. Example: displaying a purchase order.
Balances display: This provides reports on the GR/IR clearing account.
Consignment: You can use this to display all information on consignment stocks. Example: displaying vendor consignment stock.
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