Understanding SAP movement types is crucial for anyone working with inventory management and materials management in SAP. These movement types determine how goods movements are posted and affect inventory quantities and values. In this comprehensive guide, we'll dive deep into movement types 349 and 350, explaining their purpose, usage, and impact on your SAP system. You will learn how these movement types are used in specific business scenarios, their configuration aspects, and the accounting implications associated with them. This knowledge equips you to accurately track and manage your inventory, ensuring efficient supply chain operations and accurate financial reporting.

Understanding SAP Movement Types

Before we zoom in on movement types 349 and 350, it's important to understand what SAP movement types are in general. In SAP, a movement type is a three-digit key that categorizes and controls the various goods movements that occur within a warehouse or plant. Each movement type is preconfigured with specific settings that dictate how the system behaves when a goods movement is posted. These settings include:

• Inventory Posting: Determines whether the movement increases or decreases stock levels.
• Account Determination: Specifies which general ledger (G/L) accounts are affected by the movement.
• Document Creation: Defines whether a material document and/or an accounting document are created.
• Quantity and Value Updates: Controls how quantities and values are updated in the material master record.

Movement types are the backbone of inventory management in SAP. They ensure that all goods movements are recorded accurately and consistently, providing a clear audit trail of all inventory transactions. Without a solid understanding of movement types, it can be challenging to troubleshoot inventory discrepancies and maintain accurate stock balances. SAP provides a wide range of standard movement types to cover most common business scenarios. However, it's also possible to create custom movement types to meet specific organizational needs. This involves configuring the various settings associated with the movement type, such as account determination, quantity updating, and document creation.

Understanding the implications of each setting is critical to ensure that the custom movement type behaves as expected and doesn't negatively impact inventory accuracy or financial reporting. The correct use of movement types is therefore very important in SAP. This also allows for detailed reporting and analysis of stock movements. For example, you can track the quantity of goods received, issued, or transferred over a specific period, providing insights into inventory turnover, stock levels, and material consumption patterns. This data can then be used to optimize inventory management practices, reduce waste, and improve supply chain efficiency. Additionally, movement types play a key role in supporting various business processes, such as goods receipt, goods issue, stock transfer, and physical inventory. By selecting the appropriate movement type, you can ensure that each process is executed correctly and that all relevant data is captured.

Diving into Movement Type 349: Transfer Posting to Another Plant (Stock in Transit)

Movement type 349 in SAP is specifically designed for transferring stock from one plant to another, with the crucial distinction that the stock is considered 'in transit.' When you use movement type 349, the stock is removed from the issuing plant's inventory immediately, but it's not yet added to the receiving plant's inventory. Instead, it's tracked as 'stock in transit,' providing visibility into the goods that are on their way between plants. This movement type is typically used when there's a time lag between the goods leaving the issuing plant and arriving at the receiving plant. For example, if the goods are being transported by truck or ship, it may take several days for them to reach their destination. During this time, the stock is considered 'in transit.' Movement type 349 ensures that the issuing plant's inventory is reduced immediately, reflecting the fact that the goods are no longer available at that location. However, it also prevents the receiving plant's inventory from being inflated until the goods actually arrive. By tracking the stock as 'in transit,' you can maintain an accurate picture of your overall inventory position and avoid potential stockouts or overstocking situations.

The key characteristic of movement type 349 is that it creates a special stock category known as 'stock in transit.' This stock is neither part of the issuing plant's available stock nor the receiving plant's available stock. It's essentially in a limbo state, waiting to be received at the destination plant. This 'stock in transit' quantity is visible in SAP's inventory reports, providing transparency into the goods that are currently moving between plants. This is particularly useful for businesses with complex supply chains or long lead times, as it allows them to track the location and status of their inventory at all times. Without this visibility, it would be difficult to manage inventory effectively and avoid potential disruptions.

Furthermore, movement type 349 is often used in conjunction with other movement types to complete the stock transfer process. Once the goods arrive at the receiving plant, movement type 350 (which we'll discuss in the next section) is used to post the goods receipt and add the stock to the receiving plant's inventory. This two-step process ensures that the stock transfer is accurately recorded and that both the issuing and receiving plants have an up-to-date view of their inventory positions. In addition to the standard stock transfer scenario, movement type 349 can also be used in other situations, such as when goods are being sent to a third-party warehouse or when goods are being returned to the vendor. In these cases, the 'stock in transit' functionality can be used to track the goods as they move between locations, providing visibility and control over the entire process. Overall, movement type 349 is a powerful tool for managing stock transfers in SAP, providing accurate inventory tracking and visibility into goods that are in transit between plants.

Practical Scenarios for Using Movement Type 349

Here are a few common scenarios where you'd use movement type 349:

• Inter-Company Stock Transfers: When transferring goods between two plants that belong to different company codes.
• Long-Distance Transfers: When the transportation time between plants is significant.
• Tracking Goods in Transit: When you need to monitor the movement of goods between plants for audit or control purposes.

Exploring Movement Type 350: Transfer Posting to Another Plant (Goods Receipt)

Movement type 350 is the counterpart to 349. It's used to receive the stock into the receiving plant after it has been transferred using movement type 349. Essentially, movement type 350 signifies the 'arrival' of the goods at the destination plant and their subsequent addition to the plant's available inventory. When you post a goods receipt using movement type 350, the 'stock in transit' quantity that was created by movement type 349 is reduced, and the stock is added to the receiving plant's unrestricted-use stock. This completes the stock transfer process and ensures that the receiving plant has an accurate view of its inventory position. Movement type 350 is a critical step in the stock transfer process, as it ensures that the goods are properly accounted for and that the receiving plant can use them for production or sales.

The key function of movement type 350 is to reconcile the 'stock in transit' with the actual physical receipt of the goods. It confirms that the goods have arrived at the destination plant and are now available for use. This reconciliation is important for maintaining accurate inventory records and preventing discrepancies between the physical stock and the system stock. Without movement type 350, the 'stock in transit' would remain indefinitely, leading to inaccurate inventory reporting and potential stockouts or overstocking situations. Furthermore, movement type 350 triggers several important accounting entries. When the goods receipt is posted, the system debits the receiving plant's inventory account and credits the 'stock in transit' account. This ensures that the financial records reflect the movement of goods between plants and that the overall inventory value is accurately stated. In addition to the standard stock transfer scenario, movement type 350 can also be used in other situations, such as when goods are being returned from a third-party warehouse or when goods are being received from a vendor after a return delivery. In these cases, movement type 350 ensures that the goods are properly added to the receiving plant's inventory and that the corresponding accounting entries are made.

When to Use Movement Type 350

You'll typically use movement type 350 in these situations:

• Completing a Stock Transfer: After using movement type 349 to transfer stock to another plant, use 350 to receive the stock.
• Goods Receipt After Transit: When goods have been in transit and you're ready to add them to the receiving plant's inventory.

Key Differences and Relationship Between 349 and 350

Movement types 349 and 350 are two sides of the same coin when it comes to stock transfers in SAP. They work together to ensure that the stock transfer process is accurately recorded and that both the issuing and receiving plants have an up-to-date view of their inventory positions. The primary difference between the two movement types lies in their direction and impact on inventory. Movement type 349 reduces the stock at the issuing plant and creates 'stock in transit,' while movement type 350 increases the stock at the receiving plant and reduces the 'stock in transit.' In other words, 349 is used to send the goods, and 350 is used to receive them. The relationship between the two movement types is crucial for maintaining inventory accuracy. Without both movement types, the stock transfer process would be incomplete, leading to discrepancies between the physical stock and the system stock. For example, if you only used movement type 349, the issuing plant's inventory would be reduced, but the receiving plant's inventory would not be increased, resulting in an overall underestimation of inventory. Conversely, if you only used movement type 350, the receiving plant's inventory would be increased, but the issuing plant's inventory would not be reduced, resulting in an overall overestimation of inventory.

To ensure that the stock transfer process is accurately recorded, it's important to use both movement types in the correct sequence. First, movement type 349 is used to transfer the stock from the issuing plant to the receiving plant. This creates 'stock in transit' and reduces the issuing plant's inventory. Then, once the goods arrive at the receiving plant, movement type 350 is used to receive the stock and add it to the receiving plant's inventory. This reduces the 'stock in transit' and completes the stock transfer process. By following this sequence, you can ensure that both the issuing and receiving plants have an accurate view of their inventory positions and that the overall inventory value is accurately stated. In addition to their impact on inventory, movement types 349 and 350 also have implications for accounting. When movement type 349 is used, the system creates an accounting document that debits the 'stock in transit' account and credits the issuing plant's inventory account. This reflects the fact that the goods are no longer available at the issuing plant and are now in transit. When movement type 350 is used, the system creates an accounting document that debits the receiving plant's inventory account and credits the 'stock in transit' account. This reflects the fact that the goods have arrived at the receiving plant and are now available for use. By creating these accounting documents, the system ensures that the financial records accurately reflect the movement of goods between plants and that the overall inventory value is accurately stated.

Configuration Aspects of Movement Types 349 and 350

While 349 and 350 are standard movement types, understanding their configuration is key for tailoring them to specific business needs. Here's a glimpse into the configuration aspects:

• Account Grouping: Determines which G/L accounts are affected during the goods movement. Ensure the correct accounts are assigned for inventory and 'stock in transit.'
• Quantity and Value Updating: Controls how quantities and values are updated in the material master record. Ensure that both quantity and value updates are enabled for accurate inventory tracking.
• Field Selection: Defines which fields are mandatory or optional during the goods movement posting. Configure the field selection to capture all relevant information for your business processes.

Accounting Implications

The use of movement types 349 and 350 has significant accounting implications. When movement type 349 is used, the stock is transferred from the issuing plant to a 'stock in transit' account. This means that the value of the stock is no longer reflected in the issuing plant's inventory but is instead held in a separate account. When movement type 350 is used, the stock is transferred from the 'stock in transit' account to the receiving plant's inventory. This means that the value of the stock is now reflected in the receiving plant's inventory. The accounting entries generated by these movement types ensure that the financial records accurately reflect the movement of stock between plants. It's important to understand these accounting implications to ensure that your financial statements are accurate and that your inventory is properly valued.

Best Practices for Using Movement Types 349 and 350

To ensure efficient and accurate inventory management, follow these best practices when using movement types 349 and 350:

• Use 349 for Inter-Plant Transfers: Always use movement type 349 when transferring stock between plants to accurately track 'stock in transit.'
• Use 350 for Goods Receipt: Always use movement type 350 when receiving stock at the receiving plant to complete the stock transfer process.
• Regular Reconciliation: Regularly reconcile 'stock in transit' quantities to ensure accuracy and identify any discrepancies.
• Proper Documentation: Maintain proper documentation for all stock transfers, including the reason for the transfer, the quantity transferred, and the date of the transfer.

By understanding and correctly using SAP movement types 349 and 350, you can ensure accurate inventory management, efficient stock transfers, and reliable financial reporting. Remember to always consider the specific business context and configure the movement types accordingly to meet your organization's needs. If you have any questions or need further assistance, consult with your SAP MM consultant or refer to SAP's official documentation.