Understanding Movement Type 261 in SAP PP

In SAP Production Planning (PP), managing inventory movement is crucial. Movement types act as codes that define the reason and purpose behind material movements within your warehouse. Today, we’ll delve into movement type 261: Goods Issue for Order.

What is Movement Type 261?

Movement type 261 signifies the withdrawal of materials from your inventory for use in production or maintenance orders, excluding customer orders. This means you’re taking raw materials or components out of storage to fulfill the requirements of a specific production process.

How is it Used?

There are two main ways to utilize movement type 261:

1. Manual Goods Issue: You can directly post a goods issue with movement type 261 using transactions like MIGO (Inventory Management: Goods Movement) or MB1A (Material Document: Create). You’ll specify the production order number and the materials being issued here.
2. Automatic Goods Issue: The system can automatically trigger a 261 movement type when specific events occur, such as during production order confirmation or a delivery process in the shipping module.

Benefits of Using Movement Type 261

• Accuracy: By linking material withdrawals to production orders, you gain better control and accuracy over inventory consumption.
• Cost Tracking: Movement type 261 helps track the cost of materials used in production, aiding in accurate cost calculations and product pricing.
• Production Efficiency: It streamlines the production process by ensuring materials are readily available when needed for order fulfillment.

Things to Consider with Movement Type 261

• Backflush: This movement type is often used with the backflush functionality in SAP PP. Backflush automates the issuing of materials based on the Bill of Materials (BOM) linked to the production order, eliminating the need for manual entries.
• Configuration: To effectively leverage movement type 261, ensure the “Backflush” indicator is activated in the material master data for components used in production.

Conclusion

Movement type 261 plays a vital role in SAP PP by managing material withdrawals for production and maintenance orders. Understanding its usage and functionalities allows you to optimize your inventory management and ensure a smooth production flow.