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254 CHAPTER 7 Inventory and Warehouse Management Processes

remaining steps in the production process, such as completion and variance
calculation, can be executed.

WAREHOUSE MANAGEMENT IN STOCK TRANSFERS
In addition to the scenarios we have already discussed, WM activities are also ini-
tiated by stock transfers and transfer postings. We addressed these topics earlier
in this chapter in the context of inventory management. Figure 7-32 illustrates
fi ve scenarios under which stock transfers involving warehouse movements
can occur. The fi rst four scenarios involve movement between two storage loca-
tions. Recall that IM processes are responsible for managing inventory at the
storage location level. Consequently, these four scenarios will require a stock
transfer that is initiated in IM. When these goods movements involve warehouse-
managed storage locations, the transfer requirements are automatically gener-
ated by the ERP system. The fi fth scenario involves movement between two
bins in the same warehouse and thus does not involve any IM activity. In the
following section we consider each of these scenarios in greater detail.

Figure 7-32: WM scenarios for stock transfers

The fi rst scenario involves a stock transfer from a plant where the storage
location is warehouse managed (storage location B associated with warehouse 1)
to a plant where it is not (storage location A). In this case, a goods issue at the
sending plant triggers WM process steps, as explained earlier in the chapter. At
the receiving plant, a simple goods receipt is recorded in IM.
The second scenario depicts the opposite movement; namely, a stock trans-
fer from a plant where the storage location is not warehouse managed (storage
location A) to a plant where it is (storage location B associated with warehouse 1).
In this case, a goods issue (IM) records the shipment of materials at the sending
location. At the receiving location, a goods receipt triggers WM process steps.

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