What is inventory true-up in SAP LO-AGR-3PT - 3rd Party Integration?

SAP Term: inventory true-up

• Component: LO-AGR-3PT

• Component Name: 3rd Party Integration

• Description: A process used to calculate the value of the firm's inventory. A firm's inventory is valued at a market rate. Quantities of goods moving in and out of the firm’s locations must be included in this valuation. Some of the valuation occurs in real time, as goods move in and out, but valuations for non-contract related inventory for example, shrinkage must be netted with the valuations for these movements. This is known asinventory true-up. Inventory true-up is especially needed if a third party trading system is involved and the quantities and valuation information is spread across different systems.

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• Key Concepts: 
  Inventory true-up is a process used in SAP's LO-AGR-3PT 3rd Party Integration component to ensure that the inventory levels of a company's external suppliers match the inventory levels of the company itself. This process is used to ensure that the company has accurate and up-to-date information about its suppliers' inventory levels, which can help it make better decisions about its own inventory management. 
  
  How to use it: 
  In order to use inventory true-up, a company must first set up an integration between its own system and the systems of its external suppliers. Once this integration is established, the company can then use the inventory true-up process to compare the inventory levels of its suppliers with its own. If any discrepancies are found, the company can then take steps to correct them. 
  
  Tips & Tricks: 
  It is important to regularly check for discrepancies between your own inventory levels and those of your suppliers. This will help ensure that your inventory management decisions are based on accurate information. Additionally, it is important to keep track of any changes made to your suppliers' inventory levels, as this can help you anticipate any potential issues in the future. 
  
  Related Information: 
  Inventory true-up is just one part of SAP's LO-AGR-3PT 3rd Party Integration component. Other features of this component include order management, product data synchronization, and supplier collaboration. Additionally, there are other tools available for managing inventory levels, such as SAP's Inventory Management module.