Inventory Management Reservation In Sap MM

Reservation in SAP MM

What is the Reservation?

A Reservation is a request to the warehouse to keep materials ready for a goods issue at a later date (for future use) and for a certain purpose.

A Reservation for goods Issue can be requested by various departments by various account assignment objects (such as cost center, order, assets)

• It is used to plan an inward movement in advance.
• A Reservation ensures that material is available when it is needed
• It is also simplified and accelerates the goods issue process and prepares the task at the point of goods issue.
• Reservation can be taken into account by MRP so that a required material can be procured quickly if it is not available in the warehouse.
• A Reservation results in an entry in the requirement-planning file.
• Anyone reservation can have only one movement type and one account assignment

What information is on a reservation?

In a reservation information is stored that is relevant for goods issues and for MRP. For example

• What? (Which material?)
• How much (In which quantity?)
• When? (For which requirement date?)
• From where? (From which plant or warehouse?)
• To where? (To which recipient or customer?)

Structure of the Reservation

A Reservation document consists of a header and at least one item

The header contains general data about the reservation (creator, movement type, account assignment).

The Item describe individual planned movements (material, quantity, requirement date)

Note: You can create a reservation for exactly one purpose only. i.e. you can enter only one movement type and one account assignment object (like cost center)

Reservation level:

Reservations are made at the plant or storage location level.

For materials handled in batches, reservations can also be made at the batch level.

Manual/Automatic reservations:

Reservations can be created manually or automatically. SAP supports

• Manual (reservations entered directly by users)
• Automatic (these are generated by the system automatically)

There are two types of automatic reservations

• Reservations for orders, networks, WBS (Work Breakdown Structures) elements - Stock transfer reservations:
• When the stock falls the reorder point in a storage location, the system generates a stock transfer reservation in the plant

Note: You cannot change the reservations that were created automatically. If you need to change the reservation you would have to change the original production order.

Result Of Reservation

When a reservation is entered

• A reservation document, which serves as a proof of the request is created.
• In the material master record, total stock and un-restricted use stock of the material remains unchanged.
• Reserved stock is increased by the reserved quantity
• In MRP, the available stock is reduced by the reserved quantity. This is visible in the current stock/requirement list. The reservation causes an entry to be made in the requirements planning file.

Note: You cannot maintain automatic reservations directly. For example, it is not possible to change reservations for orders directly. You have to change the components in the order. The system then updates the reservation automatically.

Displaying the reserved stock: There are two functions available for displaying reserved stock Stock overview at the plant level

When you use this function, the system displays the total reserve stock of the material at the plant level. From the stock overview, you can select environment -> to display a list of the reservations for the material

Current stock/requirement list: When you use this function, the system lists all the open reservations for the material at the plant level along with the reserved quantities for each.

Settings for reservation:

You can change the field selection depending on the movement type.

You can define per plant whether the R/3 system is allowed to create a stock segment for reservations in a particular storage location automatically.