In case of indirect materials where the materials are consumed by the user department directly and are not direct materials, then for such material consumptions the stores department passes 201 movement type.
Issues of materials for consumption from stores can be of two types i.e, direct consumption by the cost centre (Indirect materials), consumed in the production process (Direct Materials).
Shop floor is a storage location under the control of production department but not stores department. Stores location is where all the materials including raw materials are received and stored. To understand the difference between the above mentioned movement types, first we need to discuss about two storage locations namely stores and shop floor. Every movement type entry in MB51 is mapped to the corresponding ledgers. Hello viewers! If you are also one among those who dont know the difference between material movements 201 and 261, here I am to clarify the same.
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