What are blocked stock in SAP

Learn about blocked stock in SAP and gain a comprehensive understanding of its concept, business circumstances, and SAP's underlying setup in this informative tutorial.

Among the various classifications of stock, blocked stock in SAP requires particular attention and understanding. This tutorial aims to familiarize you with the concept, the business circumstances, and the underlying setup provided by SAP.

Blocked stock refers to inventory in the system that is not released for use in other transactions, such as a Sales Order. This situation typically arises when there are questions about the quality of goods after undergoing a quality inspection.

While stock with poor quality can be outright rejected, a blocked stock situation is somewhat different. In the following section, we will explore examples to illustrate how this situation can occur.

Ever wondered why makes SAP so popular? Read in this informative guide. 

Explanation for stock category and business meaning - GoupSkill Me Blog

Explanation for stock category and business meaning – GoupSkill Me Blog

Business Situations in which you need to block stock within SAP

For instance, let’s consider a scenario where a company receives raw materials, specifically Iron Ore, from a vendor. Upon arrival at the company’s warehouse, the goods undergo various meticulous quality checks, including visual inspections, physical tests, and chemical analysis.

Most of these checks are successfully passed, demonstrating the high quality of the Iron Ore. However, during one specific test, it is discovered that the iron concentration does not meet the stringent quality standards set by the company.

In this case, the assigned quality inspector, armed with their expertise and attention to detail, makes the decision not to release the stock for the production of finished goods. Instead, they wisely choose to designate the stock as “blocked” within the SAP system, preventing its utilization in any subsequent processes.

Now, let’s consider another scenario within the same company. Apart from Iron Ore, the company also utilizes rubber sheets in its production process.

Last month, a substantial quantity of these sheets was received from a trusted vendor in excellent condition, passing all quality inspections with flying colors. Initially, these rubber sheets were deemed unrestricted for use, signifying their excellent quality and suitability for production. However, while carefully stored in the company warehouse, a portion of these rubber sheets incurred wear and damage due to unforeseen circumstances.

Consequently, the diligent quality inspector, with their keen eye for detail, has now reclassified this particular stock from its unrestricted status to a more cautious blocked status, ensuring that only the highest quality materials are utilized in the production process.

How to Convert stock from unrestricted use to blocked stock

Having understood the context and above business scenarios, let us take the first example, where the QM process leads to a stock being moved inward from a vendor into restricted stock on Goods Receipt.

  • Goods Receipt To Blocked Stock (Non Valuated) In this case, you would want to use either of the movement types 103 in transaction MIGO using purchase order number as the reference. The Goods Receipt will not create any accounting document posting. This is shown below.
GR Non valuated stock

GR Non valuated stock

  • Goods Receipt To Blocked Stock (Valuated) Very similar to the above case. However, in this case you will use movement type 107. Accounting Document will be created.
Valuated Blocked stock recieved from Vendor

Valuated Blocked stock recieved from Vendor

  • Converting Un-restricted Stock to blocked stock – This is also handled by posting goods movement.
Transfer un-restricted stock to blocked

Transfer un-restricted stock to blocked

Important movement types related to blocking of stock

Below is the comprehensive list of all movement types that move stock into and out of blocked status.

SnoMovement TypePurpose
1103GR into blocked Stock
2104Rev. GR to blocked
3105GR from blocked Stock
4106Rev.GR from blocked
5124GR Return blocked Stock
6125GR return blocked Stock rev
7325TF blocked in plant
8326TR blocked in plant
9335GI to sample blocked
10336RE to sampling blocked Status
11343TF blocked to Unrestricted Stock
12344TR blocked to Unrestricted Stock

How is blocked Stock different from In Transit and Restricted Stock

Distinguishing between In Transit, Restricted Stock, and Blocked Stock can be quite perplexing, especially for those new to inventory management. Allow me to provide a more detailed explanation to clear any lingering doubts.

  • In Transit stock is primarily associated with Stock Transfer Orders, which involve the movement of goods between plants or warehouses. During this process, the physical transfer of goods may take some time, and thus the stock is considered “in transit.” It has been issued from the source location but has not yet been received at the destination. This temporary state allows for proper tracking and monitoring of goods during transportation.
  • On the other hand, Restricted Stock refers to inventory with limited usability. Depending on the specific configuration of your system, it may be used for certain transactions, such as Sales Orders, while being restricted from others. Therefore, restricted stock is only available for select functionalities, ensuring that it is utilized appropriately within the defined parameters.
  • Now, let’s talk about Blocked Stock. This category of inventory cannot be utilized for any purpose within the SAP system until it is either made un-restricted or restricted. To convert Blocked Stock into un-restricted stock, you may employ the MIGO transaction with the movement type 343. This process allows you to unlock the stock for general use or, conversely, apply restrictions as necessary based on your specific requirements.

It is essential to note that if you have implemented batch management, you have the ability to mark a portion of the stock as blocked. However, it’s important to remember that once marked as blocked, you can only transition it to fully restricted status, limiting its usage even further.

I hope these additional details have provided you with a more comprehensive understanding of the concepts of In Transit, Restricted Stock, and Blocked Stock.

Frequently Asked Questions

Blocked stock cannot be used at all, restricted stock can be used in allowed transaction as per SPRO configuration in the system (for example order).

If you are using batch management, you can mark a part of it as un-restricted stock and part as blocked. However, you will need to mark entire batch as restricted if you need to do so.

If you are doing a goods receipt and want to move stock to blocked, then you can use 103 or 107 depending on whether you want to post accounting documents or not.

If you want to move un-restricted stock to blocked, then use movement type as 344.

You can use movement type 343 to achieve this.

You can use transaction MMBE to see both blocked stock as well as restricted stock.

MMBE to see restricted and blocked stock

MMBE to see restricted and blocked stock

Conclusion and Practice

Hope you are now pro in understanding the concept of Blocked stock in SAP. While this tutorial provides an overview of the concept and its business implications, it is important to practise with some hands on exercises.

  • Create a purchase order within SAP.
  • While doing the GR, post it to blocked stock first without valuation.
  • Cancel the above GR and post the GR with valuation.
  • Convert some un-restricted stock to blocked status and then revert it back.
  • Change the status of a batch to restricted status.

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We are a highly motivated and dynamic couple, united by a common purpose: to make a positive impact on our community by sharing the power of knowledge. Throughout our own personal and professional journeys, we were fortunate to have the guidance and support of exceptional mentors who played a pivotal role in shaping us into the individuals we are today.

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Shailendu

Shailendu started his career as SAP Consultant. He is currently following his entrepreneurial dream. In his company APPSeCONNECT has helped 1,200+ companies seamlessly integrate applications their digital core. He has features on Customer Think, Salesforce Ben, Strategy Driven and other leadership forums. He is an avid Soccer fan and follows the Spanish league (La Liga) and MLS.

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One Comment

  1. Payal Mishra August 7, 2023 at 12:06 am - Reply

    Nice explanation of blocked stock. Great job.

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