SOP: MOVEMENT TYPE

Movement Type 101: GRN Receipt

1. Movement type 101 is recorded when goods are received at CFA warehouse/3P Unit either
through railways or through road.
2. At the time of receiving the stock at depot CFA/3P Unit needs to do GRN for the goods received,
else the goods will be shown as goods in transit.
3. Once the GRN is done it will be shown at CFA/3P Unit under unrestricted location in SAP.
However, in case of any shortage, damage or other quality issues, the quantity associated with
the same issues would be transferred to appropriate location in SAP and the remaining stock
which is satisfactory will move to unrestricted location.
4. T Code – MIGO would be used to record the movement type 101. MIGO is used for recording
the incoming goods. GL account will get automatically updated by the value of goods received.
5. Once the goods receipt is posted, purchase order record will be automatically created. The
record will contain data essential details regarding delivered quantity, material document
number, date at which goods are received.
6. The responsibility of ensuring that the movement type is recorded would be of the CFAs/3P
Unit.

Effectiveness Criteria

 Ensuring the movement type 101 is recorded as and when the stock is received.
 The appropriate quantity which is acceptable for production without any issues moves to
unrestricted location.
 The effectiveness of accounting could be measured whether the right quantity of stock received
is recorded, matching the goods received with the purchase order.
 The goods that do not meet the standards in terms of quality or damage issue needs to be
transferred to DM location and the supplier needs to be communicated about the issues.
Verifying such quantity is not recorded in unrestricted location.

Movement Type 102: GRN reversal

1. The Movement type is recorded to ensure the accounting of GRN reversal. GRN would be done
when the goods are received at CFA warehouse/3P Unit but there might be some problems on
account of wrong stock quantity entered, material not received but recorded. In such cases GRN
reversal needs to be recorded to ensure proper accounting.
2. T Code MIGO would be used to ensure proper accounting by recording the movement type 102
for GRN reversal.
3. Movement type for GRN reversal is the responsibility of CFA/3P Unit.
Movement Type 201: Stock Out for consumption/ Process Loss

1. Movement type 201 is recorded in case when quantity of stocks in the system reduces.
2. The quantity of stock will reduce because the goods might be issued to a plant for consumption
against which the production will take place or for sales. The reduce quantity will get updated in
the GL.
3. Also, if process loss is within the defined tolerance limit eg. 1%, then in such case recovery is not
possible and the stock would be written off using this movement type.
4. Since we are using same movement type for both consumption and process loss, a description
can be used to have a better visibility and segregation.
5. The posting entry for this is made through MB1A. MB1A is used for goods issue which leads to
stock reduction. Post SAP HANA MIGO will be used.
6. By using MB1A, the material will no longer be reflected in stock. The batch against which
material is used will get reduced and will be reflected in receiving plant with the specified batch
code.
7. Currently, the responsibility to ensure the movement type and proper accounting is of PSO
Finance team.
8. In future, this movement type would be recorded by PSO team and PSO Finance will review it
monthly.

Movement Type 202- Excess Stock

1. The above-mentioned movement type is recorded when excess material is received from other
plants or short dispatch is made or in case where the yield of material was more than standard.
2. T Code MB1A is used to record the movement type.
3. The responsibility to ensure the movement type and proper accounting would be the
responsibility of PSO Finance team.

Movement Type 309- SKU to SKU conversion

1. This movement type is recorded when a given stock needs to be converted to different required
SKU. For Ex: Tata Salt of (50kg*1) needs to be converted to Tata Salt SKU of (25*1).
2. The movement type would be used to record liquidation code conversion. This will arise in case
when stock is aged 50% and more. In such case code to code transfer is recorded.
3. This movement type is recorded through MB1B/MIGO T Code. This transaction is used for
recording movement of material from one plant location to another or for movement from one
storage location to another within plant.
4. Through this movement type material gets transferred from one material code to another.
5. The responsibility of ensuring this movement type is with PSO team, access of this movement
type should not be provided to CFAs and in case it is provided to CFAs it should be reviewed by
PSO team.
6. Finance Control on this – This should be reviewed monthly and non-adherence will be reported.
 Movement Type 311- Change of Batch/ location.

1. The movement type is used when the storage location of material needs to be changed. The
need for change of location may arise in case when the material needs to be used for packaging.
In such a case it would be transferred to PC location.
2. The quantity that needs to be transferred and the batch from which transfer is made needs to
be entered with the new storage location.
3. T Code MB1B is used for recording this movement type. MB1B is used for recording movement
of material from within the same plant or for movement from one storage location to another
within plant.
4. The responsibility for recording this movement type would be of PSO team.

Movement Type 321- Record Usage Decision

1. The movement type 321 is recorded once the inspections of the materials is completed. After
the inspection is completed business decides how to use the available material.
2. The inspected material can be handled in following ways:
 Unrestricted: The inspected material which meets the prescribed standards and is
available for various usage(which use). This can be a partial amount of the total.
 Blocked: In some of the cases, the material received at the warehouse might not meet
the company requirements. Such stock gets recorded in blocked location.
 Return Delivery: The quantity which needs to be returned to the vendors.
 Sales Order: The quantity of material which can be invoiced for sales to customers.
3. T Code -QA11, is used to record usage decision. QA11 is for individual lot., whereas QA32 is
mass transaction.
4. The responsibility of ensuring this movement type is with POCS team

Movement Type 343- Movement from Block to unrestricted.

1. The movement type is recorded when there is a case of sales returns. Once the goods are
transferred to PC01 location using movement type 459, it remains at blocked location and
cannot be used. Thus, movement type 343 is used to move the stock from block to unrestricted
for further activities.
2. Once the goods are recorded in blocked location, the reason behind the same is analyzed. If
quality, damage is the reason for the sales returns, the goods are kept in blocked location. But in
case, the goods returned can be used after adequate approval, they are moved to unrestricted
location.
3. T Code MB1B is used for recording this movement type. Stock in blocked location cannot be
consumed unless transferred to unrestricted location.
4. The responsibility of the above process being appropriately recorded would be of PSO and PSO
Finance.

Movement Type 344 – Reversal of 343

1. The movement type is recorded when the wrong entry of sales returns has been recorded. In
such a case, quantity has been incorrectly recorded in blocked location.
2. T Code MB1B is used for recording movement type.
3. The responsibility of the above process being appropriately recorded would be of PSO and PSO
Finance.

Movement Type 459 – Restricted to PC01

1. The movement type is recorded in case of sales returns. Once the goods are received the Sales
Finance team will create sales return order against the invoice and GRN would be taken.
2. After sales returns, it is transferred to return under restricted location. To transfer stock from
restricted to unrestricted location, movement type 459 is used. Even when stock is moved to
PC01 it cannot be used for further activities.
3. T Code MB1B is used to record the movement type. MB1B T Code is used for transfer posting
where physical movement of stock is not involved.
4. Responsibility of appropriate recording of this movement type will be of PSO and PSO Finance.

Movement Type 541- PC01 to Special Stock

1. This movement type is recorded in case of Sub-contracting activity. A sub-contracting activity is

carried out in case of packaging, where CFA is provided bulk salt and packing material which
would be reflected in CFA vendor code. After completion of the packaging activity it reflects
back in company stock.
2. Special Stocks are those stocks which are managed separately because they are stored at
particular location or do not belong to the company.
3. The movement type is recorded through MB1B condition which is used in case of entry for
transfer posting and stock transfers.
4. The responsibility for recording the movement type would be of CFA and PSO.

Movement type 542 – Special Stock to PC01

1. The movement type is recorded to ensure timely recording as for any process loss arising at time
of packaging activity which needs to be written off. For such write off to take place the stock
should be at PC01 location.
2. This movement type is recorded through T code- MB1B.
3. The responsibility of recording would be of CFA, PSO. PSO Finance is responsible for writing off
the process loss.

Movement Type 543- Consumption in Production Entry

1. The movement type 543 in SAP is recorded at the time of production to reflect the quantity of
material being used. Production PO is created which defines resources used to manufacture the
material.
2. T Code MIGO is used for recording the movement type.
3. The responsibility of recording the movement type would be of PSO Team.
Movement Type 551- Stock Out

1. The movement type is recorded in case of any Scrapping due to write off, scrapping due to
shortage and abnormal loss.
2. Abnormal loss which exceeds the tolerance limit of 0.3% and is recoverable will be recorded
through this movement type. In such a case, debit note would be raised and then the stock
would be removed from the system. The stock removed should have the debit note number in
stock removal document.
3. The movement type would also be used to record scrapping due to write off against which there
would not be any recoverable value. Also, used in case of scrapping due to shortage in which
debit note would be raised for recovery and the stock would be written off from the system.
4. Since we are using same movement type for scrapping due to write off , scrapping due to
shortage and abnormal loss, a description can be used to have a better visibility and segregation.
5. T Code MB1A is used for recording this movement type. MB1A is used for goods issue which
leads to stock reduction.
6. The movement type 551 is used for scrapping the material against the required batch.
7. The responsibility for recording this movement type is of PSO Finance team as Finance team is
responsible for writing off the stock after the approval.

Movement Type 601- Invoicing

1. The movement type is recorded when the goods are billed to customers for sale.
2. T-Code VL01N is used for recording this movement type. Through this code, the stock reduces
once the goods are issued.
3. By applying VL01N serial number status is updated. The goods issue posting is automatically
recorded in the document flow. The proof of delivery is generated.
4. CFA would be responsible for recording this movement type.

Movement Type 602 – Return Delivery of Sales Returns

1. The movement type is recorded in case when the invoiced goods are returned, i.e. sales returns.
2. Sales returns might be due to quality standards not met; wrong SKU sent etc.
3. T code VL01N is used for recording this movement type.
4. CFA to be held responsible for appropriate recording of this movement type.

Movement Type 641- Stock Transfer Order (STO)

1. The movement type is recorded after the packaging activity is completed and goods are sent for
delivery to the other plants to meet their requirements.
2. T code VL02N is used to record the movement type. This condition is used in case of sales
transaction or outbound delivery (STO).
3. The responsibility of the movement will be of CFA.

Movement Type 642- Stock Transfer Order(STO) Reversal

1. The movement type would be recorded in case of returns made by the receiving the plant which
might arise in case of excess stocks being transferred.
2. T Code VL09 is used to record the movement type. This condition is used for reversal/
cancellation of outbound delivery.
3. CFA is responsible for recording this movement.

Movement Type 122 – Return to Vendor for PM

1. The movement type would be recorded in case when the goods purchased (packaging material)
needs to be returned to the vendor due rejections on account of quality issues, damages etc.
2. T code MIGO to be used when returns need to be made to the vendor. In MIGO the returns
would be processed wrt the original MIGO document (101). In such a case, there is no need for
creating material return PO.
3. The responsibility of recording this movement type would be of PSO Team.

Movement Type 123 – Reversal for 122

1. The movement type would be recorded in case entry has recorded in movement type 122 by
mistake. Hence, 122 movement material document needs to be cancelled.
2. In MIGO, material document 122 is selected and cancellation is made. This will automatically
trigger movement type 123 and material would be back in the stock.
3. The responsibility of recording this movement type would be of PSO Team.

Movement Type 161: Returns against PO

1. Movement type 161 has similar effects as movement type 122. The difference is 161 is recorded
against PO. The material to be returned can be marked by entering items in PO.
2. This movement type would be used in case of scrapping for damages. The recovery for the
damage would be made from the vendor. In such a case, debit note would be raised and then
the stock would be removed from the system. The stock removed should have the debit note
number in stock removal document. (in foods, currently scrap for damages is recorded through
movement type 551)
3. T code to be used Me21n.
4. Return order items can be recorded in PO along with other items. The movement type allows to
order and return goods to a vendor with same PO.
5. The responsibility of recording this movement type would be of PSO Finance team.
6. This will not be used in CFAs for scraping etc.

Movement Type 701 – Physical Inventory Variance Adjustment

1. The movement type is used to record difference arising in physical inventory and the inventory
recorded in SAP. The shortage or excess would be settled by raising debit or credit note by PSO
Finance.
2. Going forward, the movement type can be used in case of Audit difference arising which can be
recovered from the CFAs. In such a case, debit note would be raised and then the stock would
 be removed from the system. The stock removed should have the debit note number in stock
removal document. (At present, in foods audit difference is recorded through movement type
551)
3. T Code- MI20 is used to record above movement type.
4. The responsibility of recording this movement type would be of PSO Finance team. CFA raises
the request and posting is done by PSO Finance.