Inventory Management with SAP Business One – Best Practices
Inventory Management with SAP Business One - Best Practices
Inventory management is such a broad subject that it is hard to cover it all, but Oren Tabib and Karina Milman do their best to cover everything you may need to know about Inventory Management in SAP Business One, and the Best Practices associated with them.
Read on below to get a succinct overview of the Training session, or watch it OnDemand Here.
Laying a quick foundation for what they will be covering, Oren and Karina explain the objectives and agenda.
Provide SAP Business One Users with Best Practices to leverage Inventory Functionality
Master Data – Items, warehouses, prices lists, UoM, etc.
Other Inventory Functions
Handheld Devices Options
Documentation and Q&A
The first things we want to cover are: What is Inventory Management? And why do we need it?
Oren starts with tackling the why, and lists 3 main reasons:
- Reduce the cost of inventory – maintaining inventory, staff, warehouse, software, etc.
- Reduce Inventory Levels – have confidence in what you have in the warehouse without needing to overbuy or undersell
- Increase Revenues – if you have the inventory when the clients request it, they are less likely to go to a competitor
Karina quickly moves on to discuss Master Data.
Item Master Data:
In SAP you can get to the Master Data page by going to: Inventory > Item Master Data
The Item Master Data screen holds all the information you have about an item in SAP.
You can see the names, settings, if it’s to be sold/purchased, and whether or not it can be managed by inventory or not.
Note: Once you update the item as an Inventory Item and do transactions with that item, you can not make any changes
Karina then explains each tab in the Item Master Data screen and shows some unique information that can be accessed through these tabs.
One such useful piece of information can be found on both the Purchasing Data and Sales Data tabs:
Don’t forget, you can also right-click while in the Item Master Data screen you have an option to see different actions, reports, and information related to the currently selected item.
In the Inventory Data tab you can access the different warehouses associated with your Inventory.
You can also manage warehouses by Bin Location, which allows you to have more detailed information of where the item can be found.
Next Karina covers how to manage the prices of items.
To get to the price lists, go to Inventory > Price Lists
You can update the factor both by the Entire Price List or by specific Item Groups by selecting Update By Selection
In this section, Oren goes over the different Valuation Methods: FIFO (First In First Out), Moving Average, Standard, and Serial/Batch.
Should you want to adjust an Item Cost, the best way is by using Inventory Revaluation.
This function can be reached by going to Inventory > Inventory Transactions > Inventory Revaluation
Oren also quickly touches on how to change an established Method in mass by using the Inventory Valuation Method tab.
Karina takes over as she discusses the different ways you can adjust your Inventory Transactions.
Karina also discusses the ability to do Inventory Counting to see how much of an item your system believes you have on-hand.
If you end up making any changes to your on-hand inventory, don’t forget to hit “Copy to Inventory Posting” or else your changes won’t be saved!
Jumping into Functions, Oren gives a quick overview of Planning and Forecasting.
If you would like more information on MRP (Material Requirements Planning), you can check out our previous blog on it HERE.
He also goes over Item Activity, at Business Partners > Activity > Linked Document > Document Type = Item
Alerts Management, at Administration > Alerts Management > Name =
Handheld Devices Add-On
Handheld Devices are an add-on you can use to help with various aspects of warehouse and inventory management ranging from simple to more robust solutions.
For Reporting, all related reports can be found under: Inventory > Inventory Reports
- Open Items List = Missing Items, etc.
- Last Prices Report
- Inactive Items
- Inventory Posting List (Check out the Expanded Options as well!)
- Inventory Status
- Inventory Audit Report
Inventory Management with SAP Business One Resources
Looking for more information? Below are a few links carefully selected by our experts that should give you everything you need to know about Inventory Management with SAP Business One. Feel free to browse our resources or check out our knowledgebase. If you have any questions about SAP Business One or want to know how you can run your business better with SAP B1, reach out to us by phone 855-202-5087 or email email@example.com.