Defining a Goods Issue as a Consumption Posting

Objective

After completing this lesson, you will be able to configure inventory consumption groups to support differentiated material consumption strategies.

Relevancy of this Configuration Task

This configuration task is relevant for the following Supply Chain solution process:

Core Inventory Management (BMC)

The following link: https://me.sap.com/processnavigator/globalSearch/BMC takes you to SAP Signavio Process Navigator, where you get information about the scenario (process flow, test script, etc.).

Consumption Posting

Companies are interested in consumption statistics and analysis. Not every goods issue is a consumption posting: for example, scrapping is rarely considered a consumption posting, while a withdrawal to a cost center is.

Watch the video below where a customer asks how to identify consumption postings.

In the scenario above, your customer asks how to define and report goods issues as consumption postings. How would you react? Explore the following answers and the feedback that is provided:

Answer 1: You propose to develop a report.
Answer 2: You propose to maintain the consumption indicator in the movement type configuration.
Answer 3: You propose to create an Inventory Consumption Group filter option.

Note

In the following videos, you will see different reactions and answers from the consultant and receive feedback. Only one answer is correct. For the incorrect or partially incorrect answers, we explain what mistakes you should not make.

Answer 1: You propose to develop a report

In the previous video, we learned how important it is to have knowledge of configuration options so you don't miss opportunities to meet customer needs while staying within the standard.

Answer 2: You propose to maintain the consumption indicator in the movement type configuration

We learned in the previous video that there is a flag in the movement type configuration that indicates that the movement is a consumption posting, but this flag cannot be changed.

Answer 3: You propose to create an Inventory Consumption Group filter option.

In the previous video, we learned that the Inventory Consumption Group filter is the way to flexibly define and analyze which goods issues are considered consumption postings.

Conclusion

There is an indicator in the movement type configuration that specifies whether the movement type represents a consumption posting or not, but this field cannot be changed in SAP S/4HANA Cloud Public Edition. That's why configuring and using the Inventory Consumption Group is the way to flexibly define and analyze which goods issues are considered consumption postings.

Let's take a look at what exactly this Inventory Consumption Group is and what can be configured.

Standard Inventory Consumption Group

SAP provides a standard inventory consumption group.

This is a screenshot of the Inventory KPI Analysis application. We see the Inventory Consumption Group filter. It is preset with the default value STANDARD CONSUMPTION GROUP. This default value is the standard Inventory Consumption Group provided by SAP and includes all movement types configured as consumption postings.

Let's take the Inventory KPI Analysis as an example. We see the filter Inventory Consumption Group. This is preset with a default value. This default value is the standard inventory consumption group provided by SAP and that includes all movement types configured as consumption postings.

And what is a movement type configured as a consumption posting?

This is a movement type that has a consumption posting indicator in its detail settings. You can check this for each movement type in your configuration environment using the Copy of Movement Type configuration activity. However, this indicator cannot be changed.

The following figure shows the details settings of a movement type. The Consumption posting indicator is set.

The figure shows the details settings of movement type 201. The Consumption posting indicator is set.

Creation of a Custom Inventory Consumption Group

In addition to the standard inventory consumption group, to flexibly define which goods issues are considered as consumption postings in analytical applications, you can create inventory consumption groups in your configuration and assign movement types to them.

Run the following demo to learn how to create inventory consumption groups.

DemoStart Demo

Next lesson