Materials Management

The purchase order can be used for a variety of procurement purposes. Materials can be procured externally for direct consumption or for stock. It is also possible to procure services externally. Furthermore, the special procurement types “subcontracting”; “third party” (involving triangular business deals and direct-to-customer shipments) and “consignment” are possible.

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As the name suggests, Open Purchase Order Quantity is the total quantity yet to be received on a purchase order in SAP MM. Thus, if a PO purchase order was made for 100 numbers of a particular material. Let us suppose, there were two goods receipt for this purchase order say of 20 numbers and 45 numbers. Now the open purchase order quantity for this order would be 35 (100-20-45). Open purchase order quantity is nothing but the difference between the quantity ordered and quantity delivered till date.

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End-users can get confused about the difference between;

MD04 – Stock/requirement List and
MD05 – MRP List.

MD05 will show only the situation as it was since the last MRP run. This transaction is suitable for reviewing the MRP run. Without taking into account new stock issues or receipts MD05 is ideal for evaluating your MRP parameters. Look at the stock date, this is the date of the last MRP run.

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Main Business Scenario

Your enterprise has to carry out a physical inventory of its warehouse stocks at least once per fiscal year to balance its inventory. Various procedures can be implemented for this.

In a periodic inventory, all the enterprise’s stocks are physically counted on the balance sheet key date. Every material has to be counted. During counting, the entire warehouse must be blocked for material movements.

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