Stock is managed by value as well as by quantity. How that value is set, and which accounts a movement posts to, is where MM meets FI.
Two valuation methods
| Aspect | Standard price (S) | Moving average (V) |
|---|---|---|
| Valuation | Always a fixed standard | Recalculated on each receipt |
| Difference from purchase price | Posted to price difference | Absorbed into the stock value |
| Stability of unit value | Stable | Moves |
| Variance analysis | Possible; the gap is explicit | Difficult; it disappears into stock |
| Suited to | Manufactured items under standard costing | Purchased items with volatile prices |
Existing stock: 100 @ 1,000 = 100,000
Receipt: 50 @ 1,300 = 65,000
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Total: 150 = 165,000
New moving average = 165,000 / 150 = 1,100Movement types
A movement type is a three-digit code describing how stock moved. It is the most frequently encountered code in MM, and it drives the accounting.
| Type | Meaning | Effect |
|---|---|---|
| 101 | Goods receipt against a purchase order | Increase |
| 102 | Reversal of 101 | Decrease |
| 122 | Return to vendor | Decrease |
| 201 | Issue to a cost centre | Decrease |
| 261 | Issue to a production order | Decrease |
| 301 | Plant-to-plant transfer, one step | Moves between plants |
| 311 | Transfer between storage locations | Moves within a plant |
| 501 | Receipt without a purchase order | Increase |
| 601 | Goods issue for a delivery | Decrease |
| 701 / 702 | Physical inventory difference | Increase / decrease |
Account determination (OBYC)
Which G/L accounts a movement posts to is configured in OBYC and derived from a combination of factors.
- Movement type: what kind of movement it is
- Transaction key derived from it: BSX for inventory, WRX for GR/IR, PRD for price differences, GBB for offsetting entries
- Valuation class from the material master accounting view
- Account modifier, which subdivides keys such as GBB further
| Key | Meaning |
|---|---|
| BSX | Inventory account |
| WRX | GR/IR clearing |
| PRD | Price difference |
| GBB | Offsetting entry โ consumption, inventory differences |
| BSV | Offsetting entry for stock transfers |
| UMB | Revaluation difference |
The Material Ledger
The Material Ledger supports valuing stock in several currencies and running actual costing. It is active by default in S/4HANA.
With actual costing, the period runs on standard prices and is revalued at period end from actual purchase and production costs, combining the stability of standard with the accuracy of actual.