SAP ERP Financials and FICO Handbook

1.16 MM 89
1.16 MM
210. What is meant by materials requirements planning (MRP)?
MRP is used to procure material in time and/or produce material in time. This
process monitors incoming and outgoing stock within the Inventory Management
(IM) module. MRP considers existing stock, sales orders, purchase orders,
and production orders while creating material recommendations to fulfill the
company’s commitment to its customers.
211. What are special stocks in SAP MM?
In the SAP MM module, you are managing stocks as special stocks. The attributes
of special stocks are controlled through a special stock indicator. You are assigning
special stock characteristics to stock, while processing stock movement in the
SAP MM module. Broadly, there are two types of special stock from the IM point
of view:
■ A company’s own special stocks:
■ Stock of material provided to vendor
■ Consignment stock at customer
■ Returnable packaging stock at customer
■ Externally owned special stocks:
■ Vendor consignment
■ Returnable transport packaging
■ Sales order stock
■ Project stock
212. What is meant by consignment stock?
Consignment stocks are special stocks that are in your possession but ownership
lies with the vendor. In the case of consignment stock, physical material is at your
premises, while the vendor retains ownership of these materials. Your liabilities
arise when you are issuing consignment materials to production orders or consuming
them.