Stock, inventory

[Former Member]

Hi

Can someone please explain the difference stock and inventory and how it affects each other?

Thank you.

[Former Member · Accepted solution]

Hi,

Stock : Materials Management term for part of a company's current assets.

It refers to the quantities of raw materials, operating supplies, semifinished products, finished products, and trading goods or merchandise on hand in a company's storage facilities.

Also known as "inventory".

An exact list of all objects in stock at a specific time, resulting from a physical inventory

Prase

[Former Member]

Stock/Inventory

Both are same from accounting point of view however while reporting in Balance sheet generally inventory comprises of materials, stores and spares awaiting for use where as Finished Goods and work in process are reported separately

[former_member581212]

Hi Nivi,

Both the terminologies are same in one sense....

The inventory is managed and plays the big role in the sap...

Use

Inventory Management is part of the Materials Management module and is fully integrated in the entire logistics system:

Material is procured from external or internal sources on the basis of the requirements determined by Material Requirements Planning. The delivery is entered in Inventory Management as a goods receipt. The material is stored (and managed under Inventory Management) until it is delivered to customers (Sales & Distribution), or is used for internal purposes (for example, for production).

During all transactions, Inventory Management accesses both master data (such as material master data) and transaction data (such as purchasing documents) shared by all Logistics components.

Features

Integration in Materials Management

As a component of Materials Management, Inventory Management is directly linked with Material Requirements Planning, Purchasing, and Invoice Verification.

Inventory Management provides information for MRP, which takes into account not only physical stocks but also planned movements (requirements, receipts).

When a material is ordered from a vendor, Inventory Management posts the delivery as a goods receipt with reference to the purchase order. The vendor invoice is processed later by Invoice Verification. Here, the quantities and values from the purchase order and the goods receipt document are checked to ensure that they match those in the invoice.

Regards,

Priyanka.P

AWARD IF HELPFULL

[former_member335885]

HI,

Inventory / Stock- Inventory / Stock is a list for goods and materials, or those goods and materials themselves, held available in stock by a business. Inventory are held in order to manage and hide from the customer the fact that manufacture/supply delay is longer than delivery delay, and also to ease the effect of imperfections in the manufacturing process that lower production efficiencies if production capacity stands idle for lack of materials.

Both the words / terminology are the same.

Thanks & Regards,

Kiran

[pankaj_singh9]

Hi,

Both terminologies are same.