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.
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
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
Converting Un-restricted Stock to blocked stock – This is also handled by posting goods movement.
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.
GR into blocked Stock
Rev. GR to blocked
GR from blocked Stock
Rev.GR from blocked
GR Return blocked Stock
GR return blocked Stock rev
TF blocked in plant
TR blocked in plant
GI to sample blocked
RE to sampling blocked Status
TF blocked to Unrestricted Stock
TR 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.
You can use transaction MMBE to see both blocked stock as well as restricted 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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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.
We started careers in software consulting after passing out from top MBA colleges in early 2000s. We were fortunate to get trained at Enterprise Solutions Academy at Infosys, Hyderabad by some highly experienced professionals.