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what is the purpose of post inital inventory?

abhilashvb
Explorer
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what is the purpose of post inital inventory or intial post inventory?

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Answers (2)

Answers (2)

sanilbhandari
Product and Topic Expert
Product and Topic Expert

Hi abhilashvb

You must carry out an initial entry of stock balances when implmenting the SAP System in order to transfer physical warehouse stocks or stock inventories from an existing system into the new SAP System as book inventories. There is no physical inventory movement which takes place as a result of this transaction, when posted using movement type 561. The below accounting entries are generated:

Stock A/c Dr

To Initial Balance Upload A/c Cr

When the complete upload of all trial balance items is completed, the initial balance upload a/c(s) should have zero balance or should total upto zero, when you are using multiple initial balance account.

There after, when you run the trial balance report, you should see the debit and credit side total balances in trial balance the same as your legacy system as of cutoff or take over dates.

Thanks & Regards

Sanil Bhandari

Oscar_DC
Active Contributor
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The answer above is correct. You use it for an initial inventory posting after an SAP implementation. However, you can keep using. For example , we recently added some plants to our ECC 6.0 environment, I had to use that movement type to get the correct inventory quantities.