Inventory Management Goods Receipt In Sap MM

19 September, 2020


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Goods Receipt


• Company Sends a PO to Vendor

• Vendor will send Material to Company based on the PO may be full quantity or partial quantity to the delivery address mentioned in the PO

• Company makes a Goods Receipt

• GR will be done at the plant premises called GR area

• During the GR, the system will generate one material document as a proof of action i.e. GR and it also generates Accounting

Effects of Goods Receipt

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The diagram shows an overview of all the key effects of a goods receipt referencing a purchase order.

At the goods receiving point

  • The system checks whether the delivery is the same as the purchase orders data, that is, whether the goods that were ordered have been delivered.
  • The system suggests data from the purchase order when you enter the receipt of the goods (for example, items and quantities). This makes it easier to enter the receipt of the goods and check over deliveries and under deliveries when goods arrive.
  • The purchase order history is automatically updated as a result of the deliveries.
  • The Purchasing Department can send a reminder about late deliveries.
  • When you post a goods receipt to the warehouse, the system creates a material document containing information such as the material delivered and the quantity delivered. The system also records the storage location in which you place the material into stock in the plant concerned.
  • In transactions relevant for material valuation, the system creates at least one accounting document, which records the effects of the goods movement on the value of the stock.

Result of the goods receipts posting

1. Creation of the Material Document

When you post a GR, the system automatically creates a material document that serves as proof of the goods movement.

2. Creation of the Accounting Document

Parallel to the Material Document, the system creates an accounting document.

3. Creation of goods receipt/issue slip

When you enter GR you can print GR/Issue slip

4. Sending a mail message to Purchasing

If the GR message indicator has been set in PO, the buyer automatically receives a message about the delivery

5. Stock update

Stock will be updated in the material master record, depending on the destination of the goods

6. Good receipt into the warehouse

Here the system will increase the total valuated stock and the stock type (unrestricted etc) by the delivered quantity. The stock value is updated at the same time.

7. Good receipt into the consumption

Only the consumption statistics are updated in the material master record. [However, it does not update this stock for SPL stock like sales order, project stock]

8. Good Receipt into GR blocked stock

The stock levels remain the same - It records only in the PO history

9. GR into a new storage location

New storage location will be created when GR is posted (Provided customizing of automatic creation of storage location is done already) - Otherwise you have to add a new store location to the material master before you post a GR to it.

10. Update the GL accounts

The system automatically updates the G/L accounts by the value of the receipt of the goods.

11. UP date in PO

PO History:

During the GR a PO history record will be automatically created which contains data like delivered qty, Mat doc no, item, Mat type and posting dates of GR

PO Item:

If the delivery completion indicator is set in the mat document the order is considered to be closed and the open PO qty is set to be zero

12. Other Updates

Depending on the characteristics of the material, movement, and components used other updates are carried out like:

  • Entries will be made in the planning file or independent requirements reduction in the mat. Page
  • Statistical data in Inventory controlling
  • Vendor evaluation data in purchasing
  • Transfer requirements and quota in WM
  • Inspection lots in QM

SAP MM Tutorials

Effects of GR on PO and Material Master 

Before GR                                                                                                  After GR In PO    

Header Data                                                                                                Header   data   

Status view                                                                                                   Status View  

 Order Qty - X                                                                                              Order Qty - X     

 Delivery. Qty - 0                                                                                          Deli. Qty - Y                                                                                                                                                    

Still to be del - X                                                                                          Still to be del X - Y 

Item Overview                                                                                              Item Overview

No New tab called PO history                                                                      A new tab PO History create 

Delivery Tab                                                                                                  Del. Completed indicator 

(No check/masked) (If full PO Qty receives)  

In Material master 

No New view                                                                             A new view will be added

For Plant stock                                                                            for plant stock

For Storage loc stock                                                                   for the storage location

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