In SAP ECC, Production Planning (PP) is a core module that manages the manufacturing process efficiently. One of the fundamental aspects of PP is Goods Movement, which refers to the physical and logistical flow of materials related to production. Goods movements ensure that raw materials, semi-finished, and finished products are correctly issued, transferred, or received in alignment with production activities.
Goods movement in PP covers all inventory transactions linked with production orders and planning. It involves:
These movements impact inventory levels, production order status, and cost accounting.
Goods movements in PP are identified by movement types, three-digit codes that define the nature of the transaction. Some common movement types used in PP include:
| Movement Type | Description |
|---|---|
| 101 | Goods receipt against Production Order (finished goods receipt) |
| 261 | Goods issue for order (raw material consumption) |
| 261 (with variant) | Goods issue for order component |
| 301 | Transfer posting from storage location to storage location |
| 551 | Scrapping of goods in production |
| 102 | Reversal of goods receipt |
This movement deducts raw materials from inventory as they are consumed for production. When a production order is released and materials are withdrawn, the system posts a goods issue against the order, reducing stock in the warehouse and updating the order status.
When production is completed, finished goods are posted into inventory via a goods receipt transaction. This increases finished goods stock and closes the production order for the respective quantity.
Transfer postings handle the movement of goods within the plant, such as moving materials from one storage location to another. This is common when materials need to be staged closer to the production line.
In production, sometimes materials or components are scrapped due to defects or process inefficiencies. This movement reduces stock and updates the production order with the scrapped quantity.
Goods Movement in Production Planning is vital for ensuring materials flow smoothly through the manufacturing process in SAP ECC. Proper handling of goods movements guarantees inventory integrity, accurate costing, and timely production execution. Understanding movement types and their effects within PP allows SAP consultants and users to manage production operations effectively, ensuring business continuity and operational excellence.