SAP MM Study Notes
S4510 · Inventory Management and Physical Inventory in SAP S/4HANA · Unit 5

Unit 5: Goods Issues (GIs)

Goods issues reduce stock – for consumption, sampling, scrapping or delivery. This unit explains the consumption movement types and their accounting effect, planned versus unplanned issues and backflushing, the stock determination strategy that proposes where to withdraw from, and the settings and valuation consequences of negative stock.

Lesson 1 · Posting Unplanned Goods Issues

After this lesson you can

  • Name the effects of a goods issue
  • Post consumption, sampling and scrapping without reference
  • Explain consumption updating

Key concepts

A goods issue is any movement that reduces stock: staging material for production, drawing a quality sample, scrapping, internal use (cost center, project, asset) or shipping to a customer. Returns to suppliers and transfers also reduce stock but are handled by the Return Delivery and Transfer Posting actions. As with all unplanned movements, the movement type determines the business transaction and which account assignment is required; together with the material (valuation class) and the account assignment it also determines the G/L accounts.

In the standard system, consumption withdrawals are only possible from unrestricted-use stock; sampling and scrapping can be posted from all three stock types.

Effects of a valuated goods issue

  • Material document and accounting document are created.
  • Stock quantity and stock value are reduced; the stock account (BSX) is credited at the current material master price, and an offsetting account (e.g. consumption via GBB-VBR) is debited.
  • If the movement type has consumption updating, consumption statistics increase: planned withdrawals update total consumption; unplanned withdrawals update total and unplanned consumption. Sampling and scrapping do not update consumption. Consumption is visible in the material master (plant level, Additional Data › Consumption).
  • The account assignment object (e.g. cost center) is debited in Controlling.

Common consumption movement types

Movement typePurposeRequired account assignment
201Consumption for cost centerCost center
221Consumption for projectWBS element
241Consumption for assetAsset
261Consumption for orderOrder
231Consumption for sales orderSales order

When several components of a bill of material are withdrawn together, MIGO can reference the BOM to propose all components and reduce manual entry.

Sampling

Usually only a small part of an inspection quantity is tested and the result drives the usage decision for the whole lot.

CasePostingEffect
Destructive test331 from QI stock, 333 from unrestricted, 335 from blockedQuantity and value reduced; stock account → QI expense account (GBB-VQP); no consumption update
Non-destructive testTransfer posting to a separate "laboratory" storage location (stock stays in QI)No effect on total quantity or value; release later directly from the lab storage location

With active QM inspection processing, issues from QI stock can only be done within QM, not in IM.

Scrapping

For damaged material or material past its shelf life: 551 (from unrestricted), 553 (from QI), 555 (from blocked). Value moves from the stock account to a scrapping account (GBB-VNG); a cost center is normally required.

System steps

  1. MIGO (Fiori: Post Goods Movement): Goods Issue + Other.
  2. Default movement type, e.g. 201, 221, 241, 551; different movement types can be used per item.
  3. Enter material, quantity, plant, storage location and the account assignment (cost center, WBS element, asset).
  4. Post; display consumption in MM03 and documents in MB51.

Configuration (IMG)

SPRO › Materials Management › Inventory Management and Physical Inventory › Movement Types › Copy, Change Movement Types (OMJJ) – updating control, consumption posting, field selection
Newer releases (2021–2025)

The classic MB transactions such as MB1A (goods issue) are not available in SAP S/4HANA; GIs are posted with MIGO or Fiori apps. Material documents are stored in MATDOC.

Exam focus
  • Consumption withdrawals only from unrestricted stock; sampling/scrapping from all stock types.
  • GI credits the stock account at the master price; creates material + accounting document.
  • Unplanned GI updates total and unplanned consumption; sampling/scrapping update none (setting of the movement type).
  • 331/333/335 sampling; 551/553/555 scrapping.

Lesson 2 · Posting a Goods Issue with Reference

After this lesson you can

  • Post a GI with reference to a reservation
  • Distinguish planned, unplanned GI and backflush for orders

Key concepts

If material was reserved, the GI should reference the reservation: items are copied and – just as important – the withdrawn quantity is written back to the reservation so that MRP sees the correct remaining requirement. Withdrawing the full quantity sets Final Issue automatically; after a partial withdrawal where the rest is not needed, set Final Issue manually so the requirement disappears from MRP. Only items with Movement Allowed can be referenced. The MIGO search can be restricted to open (not final-issued) or final-issued items. A GI with reference to a reservation updates planned consumption.

Withdrawals for production orders

TypeHowMovement type
Planned GIReference to the order's dependent reservation (Goods Issue + Order in MIGO)261 determined automatically
Unplanned GIOther GI without reference, order number as account assignment (extra parts)261
BackflushComponents are already at the production line; consumption is posted automatically at order confirmation (e.g. CO11N) when the actual quantity is known – no IM entry261 (posted by confirmation)

At final confirmation the remaining reserved but unneeded quantities can be flagged as final issue.

Process flow

Production order created→Dependent reservation→GI 261 with reference / backflush at confirmation→Final Issue→Order debited

System steps

  1. MIGO: Goods Issue + Reservation (or Order); enter or search the number (selection by material, plant, account assignment, open/final items).
  2. Copy items, adjust quantities, set Final Issue if needed, OK, post.
  3. Check the reservation in MB23 or MB25.
Exam focus
  • Partial withdrawals are allowed; full withdrawal sets Final Issue automatically.
  • GI with reference to a reservation = planned consumption.
  • Backflush: no manual IM posting; GI happens at confirmation.

Lesson 3 · Configuring Stock Determination

After this lesson you can

  • Explain how a stock determination strategy is found
  • Maintain strategy header and item tables
  • Call stock determination in MIGO

Key concepts

Stock determination proposes from which storage locations and stocks (own unrestricted stock, supplier consignment stock, valuation types) a requirement should be withdrawn, and in which order. It is a cross-application tool used in IM, SD/shipping and production; the strategy definitions are shared, but each application assigns its own rules. It can only be called for items without a storage location; in MIGO it can be called for a single item or for all items lacking a storage location.

A strategy is uniquely identified by three keys:

KeyAssigned to
Plant–
Stock determination groupMaterial master (plant-level data)
Stock determination ruleApplication / business transaction (in IM: the movement type)

So the same material can follow different strategies in different applications (different rules, e.g. IM1 vs PP2), and different materials can follow different strategies in the same transaction (different groups). No extra assignment of a strategy to a plant is needed because the plant is part of its key.

Strategy settings

TableSettings
Item table (maintain first)Which stocks (unrestricted own, consignment) and storage locations are included, and a priority (≥ 1; duplicates allowed) to order them. A single line with only a priority means "all stocks, no restriction". Valuation type column for split-valuated materials.
Header table – SortingSort criteria item table (priority), price and quantity, each ascending/descending, and their ranking.
Header – Quantity distributionQuantity proposal (exit) and maximum number of splits of a requirement (ignored when called from WM).
Header – Other settingsWM processing interaction; Stock determination online (dialog – useful for testing) vs. background; Pipeline withdrawal for remaining quantities (material type must allow pipeline, pipeline info record needed); flag to use user exit EXIT_SAPLMDBF_002 for the item table.

System steps

  1. Define stock determination group, rule and strategy (plant + group + rule) with header and item data.
  2. Assign the rule to the movement type for Inventory Management.
  3. Enter the stock determination group in the material master (MM02).
  4. Test: MIGO GI without storage location → call Stock Determination; the proposed split appears.

Configuration (IMG)

SPRO › Materials Management › Inventory Management and Physical Inventory › Stock Determination › Define Strategies for Stock Determination (OSPX) SPRO › Materials Management › Inventory Management and Physical Inventory › Stock Determination › Assign Stock Determination Rule in the Applications › Inventory Management
Exam focus
  • Group → material; rule → application/movement type; strategy = plant + group + rule.
  • Only for items without storage location.
  • Item table: stocks, storage locations, priority; header: sorting by priority/price/quantity, splits, online flag.

Lesson 4 · Allowing Negative Stock

After this lesson you can

  • Configure negative stock
  • Explain its valuation effect for moving-average-price materials
  • Find materials with negative stock

Key concepts

Negative stock arises when a GI is posted for more than the book stock. It can be useful when, for organizational reasons, issues are entered before the corresponding receipts although the goods are physically present. Negative stock always signals that a physical movement still has to be posted, and there must be no negative stock on the balance sheet key date or during physical inventory.

Allowed forValues
Stock typesUnrestricted-use, blocked (not quality inspection)
Special stocksK supplier consignment, O material provided to supplier, W customer consignment, E sales order stock, Q project stock, V returnable packaging with customer, M returnable transport packaging

Settings

  1. Customizing (OMJ1): allow negative stock per valuation area, per plant (including which special stocks) and per storage location.
  2. Material master: set the Negative stocks indicator in the plant storage data.

No movement type setting is needed and there is no restriction on price control.

Valuation effect

Standard-price materials: nothing special. Moving-average-price materials: the GR that clears the negative stock can post a price difference. Example: MAP 1 EUR, stock 10 pcs. GI of 16 pcs at 1 EUR → stock –6 pcs / –6 EUR. GR of 10 pcs at PO price 3 EUR: GR/IR (WRX) is credited 30 EUR; the stock account is debited 18 EUR (6 EUR to clear the negative value + 4 pcs × 3 EUR), giving 4 pcs / 12 EUR and a new MAP of 3 EUR; the remaining 12 EUR goes to the price difference account (PRD).

StepQuantityValueMAP
Start1010 EUR1
GI 16 pcs–6–6 EUR1
GR 10 pcs @ 3 EUR (WRX 30, BSX 18, PRD 12)412 EUR3

Analysis

Negative stock is shown in the material master (accounting, plant stock and storage location stock views) and in stock lists. Use MB52 (Warehouse Stock) with the checkbox Only display negative stocks, or MMBE.

Configuration (IMG)

SPRO › Materials Management › Inventory Management and Physical Inventory › Goods Issue/Transfer Postings › Allow Negative Stocks (OMJ1)
Exam focus
  • Three Customizing levels: valuation area, plant (+ special stocks), storage location – plus the material master indicator.
  • Not tied to price control or movement type.
  • Not allowed for quality inspection stock.
  • MAP materials: price difference at the clearing GR.

Unit summary & exam focus

T-codes in this unit

T-codePurpose
MIGOPost GIs with/without reference, call stock determination
MB1AClassic goods issue (not available in S/4HANA)
MB51Material document list
MM02 / MM03Change / display material (stock determination group, negative stock flag, consumption)
MB23 / MB25Display reservation / reservation list
CO11NProduction order confirmation (backflush)
OMJJMovement types
OSPXStock determination strategies
OMJ1Allow negative stocks
MB52Warehouse stock (only negative stocks option)
MMBEStock overview

Self-check questions

  1. Are sampling and scrapping updated as consumption?
    AnswerNo – consumption updating is a movement type setting and is not active for sampling and scrapping movement types in the standard.
  2. What does a valuated GI do to the stock account?
    AnswerIt credits the stock account (value reduction) at the material master price and debits an offsetting account such as consumption.
  3. You withdraw only part of a reserved quantity and need no more. What should you do?
    AnswerSet the Final Issue indicator manually during the GI (or later in the reservation) so MRP no longer sees the remaining requirement.
  4. Which three keys identify a stock determination strategy, and where are group and rule assigned?
    AnswerPlant, stock determination group (assigned to the material) and stock determination rule (assigned to the application / movement type).
  5. At which levels must negative stock be allowed?
    AnswerValuation area, plant (with special stocks) and storage location in OMJ1, plus the indicator in the material master.
  6. Why can a GR post to a price difference account for a MAP material with negative stock?
    AnswerThe negative quantity was valuated at the old MAP; the GR clears it at that value and values only the remaining quantity at the PO price, so the difference between PO value and stock debit goes to PRD.