What type of movements can inventory accounts relate to in the context of SAP S/4HANA?

Inventory accounts in SAP S/4HANA can indeed relate to both goods receipt and goods issue movements. When a goods receipt occurs, inventory is increased as materials or goods are received into stock. This movement triggers the appropriate accounting entries, increasing the inventory assets on the balance sheet, which is reflected in the inventory account.

Conversely, during a goods issue, inventory decreases as materials or goods are removed from stock for consumption or sale. This movement invokes another set of accounting entries, which reduce inventory assets and reflect the consumption or sale of items in the relevant accounts.

Since both these movements account for the inflow and outflow of inventory, inventory accounts are directly influenced by both processes, making the choice identifying both goods receipts and goods issues as the correct one. This holistic view of inventory management demonstrates how SAP S/4HANA integrates procurement and financial accounting processes, ensuring accurate reporting and inventory control.