10/18/24, 12:32 PM

Inventory Management and Inventory

(MM-IM)
Generated on: 2024-10-18 12:32:32 GMT+0000

SAP S/4HANA | 2023 Latest

PUBLIC

Original content: https://help.sap.com/docs/SAP_S4HANA_ON-PREMISE/91b21005dded4984bcccf4a69ae1300c?locale=en-

US&state=PRODUCTION&version=2023.002

Warning

This document has been generated from the SAP Help Portal and is an incomplete version of the official SAP product
documentation. The information included in custom documentation may not reflect the arrangement of topics in the SAP Help
Portal, and may be missing important aspects and/or correlations to other topics. For this reason, it is not for productive use.

For more information, please visit the https://help.sap.com/docs/disclaimer.

This is custom documentation. For more information, please visit the SAP Help Portal 1
 10/18/24, 12:32 PM

Slow or Non-Moving Materials

App ID: F2137

Use

With this app, you can monitor and make time-dependent investigations of the slow or non-moving materials in your stock. Based
on these results you can react immediately with follow-on activities such as scrapping or stock transfers.

Non-moving materials represent a combination of locations and materials where the stock level is not zero and no consumption
postings were posted for a defined period of time. It is also possible to track slow-moving materials.

This app supports you in your daily work, for example, as an inventory manager, to achieve maximum inventory accuracy and
subsequently to optimize the inventory situation in your stock.

Key Features

Monitor Slow or Non-Moving Materials

Monitor slow-moving materials for which you are responsible.

Monitor how much capital is tied up by the slow-moving items, for example, by checking the total value in your chosen
display currency.

Monitor materials with low consumption based on the consumption to stock ratio with the Slow-Moving Indicator. The
Slow-Moving Indicator makes it possible to compare different materials with regards to (slow-moving) consumption.
Therefore, you can identify and compare critical materials based on your individual criteria.

Monitor materials without consumption (Slow-Moving Indicator = 0) based on an analysis for an individual time period. As
a result, the app displays a list of materials without consumption that fit your filter criteria.

Consider only your specific consumption-relevant goods movements using the Inventory Consumption Group filter.

The Inventory Consumption Group filter only considers those material documents as a consumption-relevant goods
movement where the related movement types are part of your specific inventory consumption group. You can make the
necessary settings using the corresponding SSC UI Define Inventory Consumption Groups. Here you can create groups
with movement types that you consider to be consumption. All material documents connected to the movement types that
are part of your specific inventory consumption group are then defined as consumption.

Define follow-up actions such as scrapping or stock transfers, or inform colleagues about the stock situation.

Save variants of the tile regarding materials for which you are responsible. For example, a tile for materials in a specific
plant where inventory value is close to zero for 90 days or longer.

 Note
The app calculates the stock values based on the stock quantity of the selected reporting date multiplied by the current
material price. This means that the app always calculates using the current material price, irrespective of the reporting date
you have selected. This calculation method for the stock value is common to all Fiori apps in Inventory Management.

 Note
Depending on your authorization settings, the app might only display zero in all the stock value columns in the results table.
This type of financial information is often only available to a specific group of users. If only zero is displayed, you can hide these

This is custom documentation. For more information, please visit the SAP Help Portal 2
 10/18/24, 12:32 PM
irrelevant value columns in the table display or get in contact with your administrator to clarify what you are authorized to
display.

Analysis support with charts on detail page

With the Slow or Non-Moving Materials detail page you can obtain more information on material / plant level for the
selected material. The Slow-Moving Indicator over Time graphic visualizes the evolution of the monthly slow-moving
indicator for the past 12 months.

For more information about analysis support for slow or non-moving materials, see Analysis Options on Detail Level.

Slow-Moving Indicator

Slow-Moving Indicator Calculation in the Selected Period

This indicator is defined as the total consumption quantity (QCons) for the analysis period divided by the product of stock
quantity (QStock) on the reference date and the period length in number of days (NODays). In addition, the indicator is
normalized for the year by multiplying by 365 days and 100 percent, because an analysis of slow-moving materials typically
considers periods of a few months. By taking time and percentage into account, the normalized result makes different analysis
periods comparable.

 Note
The Slow-Moving Indicator takes only those stocks into account that already existed at the beginning of the selected reference
period.

 Note
A slow-moving indicator = 100 means that 100 % of the current stock will be consumed within one year.

A slow-moving indicator = 1 means that 1 % of the current stock will be consumed within one year.

 Note
NODays is the number of days in the analysis period and determined from the Days with Low Consumption parameter + 1. 1
stands for the reference date, which is included in the period.

Predict Slow-Moving Indicator

Use predictive analytics models to monitor the development of the Slow-Moving Indicator over the selected time period. If
the predictive model is active, the system calculates a predicted future trend, based on your company’s historical data, on
how the slow-moving indicator will develop in the course of the next 3 month.

In addition, the app supports the following technical features and options:

This app includes SAP CoPilot. This digital assistant in the SAP S/4HANA system supports you with features like business
context awareness or quick actions to manage follow-on activities directly from the app.

Supported Device Types

Desktop

This is custom documentation. For more information, please visit the SAP Help Portal 3
 10/18/24, 12:32 PM
Tablet

Information for Key Users

The SAP Fiori apps reference library has details about the content necessary for giving users access to an app on the SAP Fiori
launchpad. To see this app’s Fiori content, go to the SAP Fiori apps reference library and search for the app. Then select the
product. On the Implementation Information tab, select the correct release. The details are in the Configuration section.

App entry in the Fiori apps reference library

See also

How to Monitor Slow or Non-Moving Materials

How to Monitor Slow-Moving Materials with the Predictive Analytics Model

Analysis Options on Detail Level

App Extensibility: Slow or Non-Moving Materials

Analysis Options on Detail Level

The Slow or Non-Moving Materials detail page has been enhanced, helping you to gain more insight into the future development
of a material in the product lifecycle.

Various charts can provide you with further information from different perspectives for a possible future development of your key
figures such as Slow-Moving Indicator (SMI) or Stock Quantity.

The following table offers some typical stock situations and gives advice on how to interpret the key figures and how to react in an
appropriate manner.

Key Figures: Interpretation and Recommendation

Stock Quantity Consumption SMI BOM Usage Interpretation and

Recommendation

increases decreases decreases low Key figures indicate a

potential slow-moving
material. Further
analysis and follow-up
actions are needed, for
example, stock transfers
to other plants, special
promotions, and so on.

This is custom documentation. For more information, please visit the SAP Help Portal 4
 10/18/24, 12:32 PM

Stock Quantity Consumption SMI BOM Usage Interpretation and

Recommendation

decreases increases increases high Key figures indicate a

potential fast-moving
material. Further
analysis is required to
define follow-up actions
to avoid possible
material shortage, for
example, request stock
transfers from other
plants, adapt buying
pattern or production.

increases (**) increases (*) decreases high Key figures indicate a

potential stock surplus.
We recommend that you
check key figures in a
shorter timeframe.

increases (*) increases (**) increases high Key figures indicate a

potential out-of-stock
situation. We
recommend that you
check key figures in a
shorter timeframe.

decreases (**) decreases (*) increases low We recommend that you

check the material stock
situation and the
potential position of the
material in its product
life cycle. The predictive
analytics model could
support you with further
decision taking.

decreases (*) decreases (**) decreases low We recommend that you

check if the material is
approaching the end of
the product life cycle and
then to define follow-up
activities, for example,
move material to spare
parts warehouse.

 Note
Legend

(*) = The assumed development is high; for example, high increases = increases (*)

(**) = The assumed development is very high; for example, very high decreases = decreases (**)

The information in the table is based on probable assumptions that can be different from the complex reality.

This is custom documentation. For more information, please visit the SAP Help Portal 5
 10/18/24, 12:32 PM
The SMI can develop in different ways in each direction. This development depends on the relationship between stock quantity
and consumption itself and the way in which it develops to each other.

Therefore, a specific recommendation can only be derived in a concrete, individual case.

Charts: Interpretation and Recommendation

Chart Interpretation and Recommendation

Slow-Moving Indicator over Time Displays the evolution of the monthly slow-moving indicator for the
past 12 months. This data can provide further insights into changes
to a material in the past with regards to the consumption to stock
ratio.

 Note
The chart Slow-Moving Indicator over Time might show
individual columns with a different Slow-Moving Indicator value
than in the header section. This happens when the Days with
Low Consumption parameter differs from the monthly view in
the chart.

You can optimize your monitoring if you use/activate the Predictive

Analytics Model to also get the forecast information for the
Predicted Slow-Moving Indicator.

Stock Situation and BOM Usage over Time Displays two key figures in one chart on a monthly basis:

The x axis shows the active BOM usage of the selected

materials.

For example, if a material is part of many BOMs, this could

indicate a high usage of a material, which should always be
in stock to avoid possible delivery bottlenecks.

The y axis shows the development of the stock over time

for the criteria consumption and quantity. These two values
are contributing factors to the slow or non-moving
indicator. In general, the Slow-Moving Indicator has a low
value when the consumption parameter decreases, and the
stock parameter increases at the same time.

The combined view of these two key figures (Stock Situation and
BOM Usage over Time) could indicate if the material is about to
become a slow-moving material.

 Note
The development of the key figures BOM usage, consumption,
and stock quantity can serve as indicators for the future
development of a material.

Active BOM Usage Overview of all valid bills of material (BOMs) for the reference date,
where the selected material is included.

Slow-Moving Indicator by Plants Displays the key figures Slow-Moving Indicator and Stock
Quantity for one material in all available plants - except the
selected plant - based on the parameters key date and days with
low consumption.

This is custom documentation. For more information, please visit the SAP Help Portal 6
 10/18/24, 12:32 PM

Chart Interpretation and Recommendation

The chart has been enhanced with two further key figures used for
orientation: Slow-Moving Indicator and Stock Quantity. Both are
based on the filter criteria you have set in the header.

Note that such a stock transfer has two opposite effects:

For the issuing plant the Slow-Moving Indicator will

increase due to the fact that the stock quantity decreases.

For the receiving plant the Slow-Moving Indicator will

decrease due to the fact that the stock quantity increases.

How to Monitor Slow or Non-Moving Materials

View information related to selected materials for respective slow or non-moving materials in your stock.

Context
This process enables you to track materials that stay too long in your stock, including the associated values. Materials that failed
your requirements for a good inventory turnover can be identified quickly.

Procedure
1. Open the Slow or Non-Moving Materials app.

The criteria Days w/o Consumption, Reference Date, and Display Currency are mandatory.

 Note
Keep in mind that selecting one or more of the filter criteria affects the results.

Note that the filter criteria take the individual values into account. Based on this, the app aggregates the filtered values
in a further step.

2. Choose the filter criteria.

3. Click on the rows of the results table to organize your findings, for example, sorted by the highest stock value.

The table ends with an aggregation row. The default aggregation is as follows:

Days without Consumption: The app displays the lowest value, that is, the last consumption.

Days without Posting: The app displays the lowest value, that is, the last posting.

Last Consumption: The app displays the latest date.

Last Posting: The app displays the latest date.

4. You can interpret your findings.

 Note
To interpret the correct meaning of Days without Consumption in the results table, you need to have a date for the last
consumption of a material so that you can set this in relation to a Reference Date. In general, the Days w/o
Consumption field displays the number of days between the Reference Date and the date of the Last Consumption.

This is custom documentation. For more information, please visit the SAP Help Portal 7
 10/18/24, 12:32 PM

Interpretation Options for Days without Consumption

Days w/o Consumption field Variant A Variant B

Definition There has been a consumption posting for a There has not been any consumption
specific stock prior to the Reference Date: posting for a specific stock prior to the
The Days w/o Consumption field displays Reference Date: The Days w/o
the number of days between the last Consumption field displays the number of
consumption (posting) prior to the days between the first posting for a specific
Reference Date for a specific stock and the stock and the Reference Date.
Reference Date.
In this case there must be a posting prior to
the reference date, otherwise the stock level
would be zero there, and therefore no data
would be selected.

Example Reference Date: 10/12/2018 Reference Date: 10/12/2018

Last Consumption: 06/14/2018 Last Consumption: (empty)

Last Posting: 09/14/2018 First Posting (06/14/2018) [not displayed

in app]
Days w/o Consumption: 120 (Days)
Last Posting: 09/20/2018
Days without Posting: 28 (Days)
Days w/o Consumption: 120 (Days)

Days without Posting: 22 (Days)

How to Monitor Slow-Moving Materials with the Predictive

Analytics Model
View information related to selected slow or non-moving materials in your stock with Predictive Analytics. This app is supported by
two predictive analytics models (consumption and stock determination)

 Note
You can enable this predictive functionality by using an active version of the two predefined predictive scenarios
MMSLO_CONSUMPTION_02 (Consumption Data for Slow or Non-Moving Materials) and MMSLO_STOCK_LEVEL_02 (Stock
Level Data for Slow or Non-Moving Materials). To do so, create a new version by training the model with different sets of data
using the Predictive Models app, then activate the newly created version.

If this predictive functionality has not been enabled, the app will not display a line chart.

For more information about how to use the predictive model in this app, see Optimized Predictive Analytics Settings.

 Note
If you are using the predictive functionality for the first time, you (in the role of an Analytics Specialist) have to choose the
predefined predictive scenarios that you want to use. Note that for this app you choose the two predefined predictive scenarios
Consumption Data for Slow or Non-Moving Materials AND Stock Level Data for Slow or Non-Moving Materials with the same
version number; in other words MMSLO_CONSUMPTION_01 and MMSLO_STOCK_LEVEL_01; OR MMSLO_CONSUMPTION_02
and MMSLO_STOCK_LEVEL_02. You cannot mix different version numbers.

When SAP provides new improved predictive scenarios, you can change to the latest version, but you have to choose the latest
scenario manually AND you have to train the new model from scratch again.

This is custom documentation. For more information, please visit the SAP Help Portal 8
 10/18/24, 12:32 PM

Context

This process enables you to monitor the development of the Slow-Moving Indicator over the selected time period. If the predictive
model is active, the system calculates a predicted future value, based on your company’s historical data on how the Slow-Moving
Indicator will develop in the course of the next 3 months (predefined, not modifiable). The app displays the predicted data as an
orange line.

Procedure
1. Open the Slow or Non-Moving Materials app.

The fields Days w/o Consumption, Reference Date, Inventory Consumption Group and Display Currency are mandatory.
Choose additionally the Slow-Moving Indicator with a value greater zero (>0) to specify the search only for real slow-
moving material.

 Note
Theoretically you can also use the prediction for non-moving materials, meaning Slow-Moving Indicator equals zero.
However, this does not really make sense from a business point of view.

If the Slow-Moving Indicator equals zero, the system only displays materials that have either no consumption or zero stock
quantity or both.

 Note
The app does not display materials which have zero stock at the point of time of the chosen reference date. However the
stock can of course equal zero, for example at the end of the chosen time period. In this case the Slow-Moving Indicator
is also zero.

 Note

Keep in mind that selecting one or more of the filter criteria affects the results. Note that the filter criteria take
the individual values into account. Based on this, the app aggregates the filtered values in a further step.

On the main screen the Slow-Moving Indicator considers all the filter criteria you choose, including the reference
date.

On the detail screen the Slow-Moving Indicator refers to the selected material based on the underlying material-
plant combination for the selected time period. This might lead to different results with the Slow-Moving
Indicator on the main screen.

2. Choose the filter criteria.

The app shows the relevant materials as chart and as result table.

3. Select one material line item in the result table you are interested in and click on Details.

The app navigates to the detail screen Slow or Non-Moving Materials Details by Plant/Material.

 Note
The navigation to the detailed page is only possible when material and plant are displayed on main screen.

In the header section you see the details for the selected material.

The Slow-Mowing Indicator over Time chart below displays the evolution of the slow-moving indicator for the past 12
months. This data can provide further insights into changes to a material in the past with regards to the consumption to
stock ratio.
This is custom documentation. For more information, please visit the SAP Help Portal 9
 10/18/24, 12:32 PM

 Note
The chart Slow-Moving Indicator over Time might show individual columns with a different Slow-Moving Indicator
value than in the header section. This happens when the header section uses a different reference period from the
period displayed in the chart.

In addition, the app shows a Predicted Slow-Mowing Indicator for the next 3 months with regards to the reference date.

This combination of historical and predicted data could help you to get a better understanding on how a material will
develop in the context of the product life cycle. Based on the predicted value you can choose appropriate actions.

This is custom documentation. For more information, please visit the SAP Help Portal 10