Movement Types in SAP MM (2025): A Complete Guide for Beginners

SAP MM (Materials Management) is a core module in SAP ERP that helps manage materials, inventory, and procurement processes. One of the most important concepts in SAP MM is Movement Types, which play a crucial role in tracking material movements within an organization.

This 2025 beginner’s guide explains what movement types are, their significance, key codes like 101, 102, 601, and how they function in SAP S/4HANA.

What are Movement Types in SAP MM?

Movement types in SAP MM are three-digit codes that determine how stock is moved within or outside the organization. They define the type of material movement, such as:

• Goods receipt

• Goods issue

• Stock transfer

• Transfer posting

• Return delivery

Each movement type affects inventory levels, financial documents, and the valuation of stock in different ways.

Why Are Movement Types Important in 2025?

With the widespread shift to SAP S/4HANA, companies in 2025 expect SAP professionals to clearly understand movement types and their implications. This knowledge ensures:

• Accurate inventory management

• Reduced errors in procurement or logistics

• Proper integration with Finance (FI) and Controlling (CO) modules

• Timely goods receipt and issue posting

Common SAP MM Movement Types in 2025

Here’s a breakdown of the most widely used movement types and their functions:

How to Post Movement Types in SAP

You can post movement types using the following transaction codes (T-Codes):

• MB1C – Initial Stock Posting

• MB1A – Goods Issue

• MB1B – Transfer Posting

• MIGO – Universal transaction for all goods movements

In SAP S/4HANA, the preferred T-Code is MIGO, which consolidates multiple transactions in one interface.

Tables Involved in Movement Types

Movement Type 101 in SAP MM

Movement Type 101 is the most frequently used code. It is used to post goods receipt against a purchase order.

• Increases stock in the plant

• Updates inventory valuation

• Triggers accounting entries

Example: Receiving 100 units of raw materials into inventory after vendor delivery.

Movement Type 102 in SAP MM

This is the reversal of 101. If goods were received by mistake or damaged during delivery, use 102 to reverse the entry.

• Reduces stock quantity

• Automatically creates reversal accounting document

Movement Type 601 in SAP MM

Movement Type 601 is used in the Sales and Distribution (SD) module.

• Represents Goods Issue to a customer during delivery

• Reduces stock from the warehouse

• Posts accounting entries to recognize revenue

Real-Time Example Scenario

Use Case: Goods Receipt for a Purchase Order

• Company places a PO for 500 units of raw material.

• Vendor delivers materials.

• Store person uses MIGO to perform a 101 movement type.

• System updates:

  • Material stock in plant

  • Accounting documents in FI

  • Purchase Order status

Later, if materials are found defective:

• Store person executes a 102 movement to reverse the GR.

How to Learn Movement Types Practically

If you’re starting in SAP MM, focus on hands-on training that covers:

• Posting through MIGO

• Understanding document flow

• Analyzing accounting impacts

• Integration with Finance and Warehouse

GTR Academy offers SAP MM training that includes real-time projects, interview preparation, and practice in S/4HANA systems.

Tips for Remembering Movement Types

1. Group by function:

   • 1xx – Goods Receipt

   • 2xx – Goods Issue

   • 3xx – Transfers

   • 6xx – Sales/Delivery

2. Practice in SAP IDES system

3. Use mnemonic techniques (e.g., “101 – 1st step of procurement = receipt”)

Movement Types in Excel or PDF Format

You can download the full list of movement types as:

• PDF for offline study

• Excel for sorting and filtering by usage or module

GTR Academy provides downloadable study kits with all movement types categorized by function and usage.

Movement Types in SAP MM Interview Questions (2025)

Expect questions like:

• What is the difference between 101 and 102 movement types?

• How is movement type 601 used?

• What happens when you reverse a GR?

• How do movement types affect accounting?

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Conclusion

Movement types in SAP MM form the foundation of material movement and inventory management. Whether you’re posting goods receipts, issues, or transfers, understanding these codes is essential to perform daily SAP MM tasks accurately.

In 2025, with SAP S/4HANA adoption accelerating, real-time knowledge of movement types is more valuable than ever. Begin your learning journey today with GTR Academy’s expert-led SAP MM course.