Lesson 2 of 5
Sales order stock and valuation
9 min
Listen to this lesson
Sales order stock is stock that belongs to one sales order item. In inventory management it is a special stock with indicator E, and every movement into or out of it carries the sales order and item number. Nobody can deliver it to another customer or consume it for another order without an explicit transfer.
Seeing it
The stock overview (MMBE or the Fiori stock apps) shows special stocks separately from own stock, with sales order and item. The movement list shows goods receipt 101 and goods issue 601 with special stock E. If a delivery picks own stock instead of sales order stock, the item is not set up as MTO in the delivery, and the sales order stock remains untouched.
| Movement | Movement type | Stock effect |
|---|---|---|
| Receipt from the MTO production order | 101 with special stock E | Sales order stock for the item increases |
| Goods issue for the delivery | 601 with special stock E | Sales order stock decreases; cost of goods sold posted |
| Transfer to own stock | 411 with special stock E | Leftover sales order stock becomes anonymous stock |
| Transfer between sales order items | 413 | Stock moves from one item to another, for example after an order change |
Common movements of sales order stock.
Valuated or non-valuated
Sales order stock can be valuated or non-valuated. The setting comes from the requirements class behind the sales order item. The difference decides where costs live:
| Valuated sales order stock | Non-valuated sales order stock | |
|---|---|---|
| Goods receipt | Posts an inventory value, like own stock | Posts quantity only; no inventory value |
| Production order settles to | The material (variances to price difference) | The sales order item, which collects costs |
| Cost of sales | Posted at goods issue for the delivery | Comes from the costs collected on the sales order item |
| Period-end work | Standard production order settlement | Results analysis and settlement of the sales order item |
| Margin per order | Revenue and cost of goods sold on the item in margin analysis | Determined by sales order controlling |
With valuated stock, the receipt needs a valuation price. Configuration decides where it comes from, for example the material's standard price or a sales order cost estimate that costs the item's specific configuration. If no price can be found, the goods receipt fails, which is one of the classic MTO errors in the next lessons.
Leftover stock
Sometimes an order is reduced or cancelled after production. The alternators then sit in sales order stock for an item nobody will deliver. They must be moved, either to another sales order item (413) or to own stock (411 E), and with valuated stock that move can create a value difference. Leftover MTO stock is a real balance sheet risk: make it a monthly check.
What would you do?
Great Lakes Fleet Services reduces its order from 50 to 45 after all 50 have been received. What should happen to the extra 5 alternators?
- Sales order stock is special stock E tied to one sales order item.
- Receipts are 101 E, deliveries 601 E; 411 E and 413 move leftover stock.
- Valuated stock carries inventory value; non-valuated stock keeps costs on the sales order item.
- Valuated receipts need a valuation price; leftover stock is a monthly check.
Check your understanding · not graded
Lesson check
1. Which special stock indicator identifies sales order stock?
2. Which movement type transfers leftover sales order stock to own stock?
3. With non-valuated sales order stock, where do production costs end up?
4. Valuated sales order stock receipts fail with a pricing error. What is the likely cause?