SAP BW-Inventory Management Concept

SAP BW Inventory Management involves extracting inventory data from an SAP ERP system to analyze and report on stock levels. It focuses on managing both the quantity and value of materials like raw materials, work-in-progress, and finished goods, often using a special "non-cumulative" key figure to track stock over time accurately
Inventory vs. Stock: Inventory includes all goods (raw, work-in-progress, finished), while stock refers only to finished goods.Non-Cumulative Key Figure: This is a critical concept for inventory in BW, as stock levels change over time (e.g., on January 1st it was 100kg, on January 2nd it was 90kg). You can't simply add these values. A non-cumulative key figure requires a time reference to be meaningful (e.g., "What was the stock on January 2nd?").Data Sources: To load inventory data into BW, SAP uses specific data sources from the source ERP system, such as:\(2LIS\_03\_BX\): Used for extracting an initial, opening stock balance.\(2LIS\_03\_BF\): Used for extracting goods movements.\(2LIS\_03\_UM\): Used for extracting revaluation data (value changes).Data Modeling: In BW/4HANA, inventory modeling often uses Advanced DataStore Objects (ADSOs) to replace InfoCubes and simplify the loading and activation process.Business Process Integration: Inventory management in BW integrates with various business processes, including purchasing, sales, and production, to provide a comprehensive view of stock operations and their financial impact.