In MC44 – Inventory Turnover (1) I explained the concept of Inventory Turnover and how it can be used. In this post I will explain the transaction itself. The transaction is mostly self-explanatory, but there is one option of particular importance.
When you go to transaction MC44 you will see the below screen:
Like I said, most settings are easy to understand since they mostly concern filters on organisational unit (Sales Organisation, Purchasing Organisation, etc.) or filters on materials (material group, material type, etc). Of specifc importance is the setting “Daily usage” in the section Analysis period.
Daily usage unchecked: the report will use consumption quantitiesper period as registered in the material master. This means that if you use period Month for a material you can not analyze in shorter period intervals than Month. This should be no issue since Inventory Turover should be calculated over longer periods of time (minimum 6 – 12 months).
Daily usage checked: instead of the consumption values in the previous option the daily consumption values are used as you see them in report MB51 – Material Documents. I recommend this setting if you want to analyze the calculation of SAP and to find out what movement type are included. The runtime of the report is increased.
So what movement types are included? You can find the included movement types in the movement type configuration in MBJJ. Here you can toggle the consumption parameter. This is a fundamental setting that also influences forecasting. Forecasting will use consumption values of a material. When you decide you do want to use goods issue to production order for forecasting, but not for calculation of inventory turnover, you have a problem. This cannot be done. You should calculate either value manually.
Conclusion: calculate Inventory Turnover over a longer period of time 6 to 12 months. Daily values are not relevant, unless you want to analyze results for your understanding.