Order Management System (OMS)

What Is Goods Receipt In SAP And How To Create 

Effective goods receipt operations are necessary for your business regardless of whether the receipt of the goods in the warehouse is used for production, sent directly to online customers, or even for consumption while offering services to customers.

Warehouses can receive commodities using goods receipt in SAP, including finished goods, components, finished assemblies, and raw materials. SAP goods receipt can now further streamline these procedures.

What is a goods receipt in SAP?

A goods receipt SAP is described as the actual transfer of products or materials through the warehouse, as well as the taking of supplies from the vendor or manufacturer and the taking of inventory from the retailer. Every positive receipt leads to more inventory being kept in the warehouse.

Effective goods receipt quality is key to warehouse management for a number of reasons. It offers real-time insight into what is in your warehouse, which helps with purchasing and manufacturing planning.

Additionally, it offers a way to make sure that incoming products are in great condition and that the business isn’t spending money on useless supplies, raw materials, or components.

To effectively manage inventories, proper goods receipt SAP records are also essential. They keep a database of what should be placed in your warehouse in comparison to what is currently there, which could also immediately raise the alarm if products are missing or stolen.

In the end, effective and precise goods receipt procedures help warehouses keep costs for personnel, holding costs in the warehouse, loss and shrink, as well as manufacturing delays brought on by stockouts under control.

– Read More: Order Management System: Definition, Process And Value
– Read More: Order management system for Ecommerce: Definition, Key Effect, Benefit

Integration

As we mentioned above, a goods receipt SAP in the WMS or Warehouse Management System involves the actual transfer of items or resources through the warehouse.

It is a flow of goods with the purpose of posting items manufactured on-site or by outside suppliers. Every time a shipment is received, the amount of inventory in the warehouse grows.

Many companies’ transactions in various SAP parts of the system can result in a goods receipt in the WMS. The goods receipt is initiated by the matching reference document in the WMS:

Documents used as references for goods receipt
Documents used as references for goods receipt

Features

The following options are available for posting a goods receipt:

Handling of goods receipt in relation to inbound delivery

The information required for generating the transferring orders is sent from the inbound delivery whether you utilize the decentralized WMS or Handling Unit Management. Whether you choose to post the product’s receipt before or after the picking and packing is entirely up to you.

Handling of goods received without regard to inbound delivery

In order for the Warehouse Management system to create a transfer need, the receipt of the goods must first be posted in WMS for unpackaged commodities. Examples of common procedures for this include:

  • Receipts for goods referencing a purchase order
  • Invoices for goods referencing a production order
  • Receipt of Goods without Previous Receipt Posting in IM

In this situation, you create a transfer request in the WMS and store the products first, delaying sending the receipt of the goods until after.

How to Make an SAP Goods Receipt

MB1C or MIGO transactions can be used to establish a goods receipt.

Since MIGO is made to include all the options for all mobility scenarios, most people utilize it.

Step 1: To create an SAP Goods Receipt

  • Put the MIGO transaction into action
  • Select option A1, “Goods receipt process”
  • Select R01, “Purchase order”
  • Input the number from your purchase order
  • Tap on the execute button
Step 1 to create an SAP Goods Receipt
Step 1 to create an SAP Goods Receipt

Step 2: Select the posting and paper dates

Select the posting and paper dates (it is advised to leave them both set to today as the default).

Step 2 Select the posting and paper dates
Step 2 Select the posting and paper dates

Step 3: View the general material info

  • To display vendor information, select the Vendor tab on the header section.
  • You can select any of the tabs that display at the bottom of the screen after clicking the line product code to examine more details of the product.
  • You will view the general material info if you select the Material tab.
Step 3 view the general material info
Step 3 view the general material info

Step 4: View Quantity details

Look at the Quantity details on this tab. If you alter it, you can complete a goods receipt for much less money than the original value. The ordered quantity will still be visible at the bottom of the screen.

Step 4 View Quantity details
Step 4 View Quantity details

Step 5: Enter or change receiver and unloading location

Information about the items’ final destination can be found on the following tab.

  • The move type employed for the receiving procedure is visible.
  • Plant and storage facilities at the destination.
  • Receipt, stock type. We will see that this resource will be submitted for quality check, thus it won’t be usable until its satisfactory quality has been determined.

Additionally, there is information on the products’ receiver and unloading location.

Here, you can modify the stock post mode or alter the storage location as needed.

– Read More: What Is Finished Goods Inventory? Example And Formula
– Read More: What Is Goods Received Note? Format And Example
– Read More: What Is Handling Fees? Calculation And Example

Step 5 Enter or change receiver and unloading location
Step 5 Enter or change receiver and unloading location

Step 6: View final details of item

Data pertaining to purchase orders can be found on this tab.

  1. You can modify the delivery finished indicator’s update kind (the purchase order). Although it is currently set to update automatically after posting, you can modify it if your procedure calls for a different strategy.
Step 6.1 Data pertaining to purchase orders can be found on this tab
Step 6.1 Data pertaining to purchase orders can be found on this tab
  1. You can mark the items as OK after reviewing all of the tabs and confirming that your data is accurate. The document can now be posted.
Step 6.2 Post the document
Step 6.2 Post the document

You can see that a resource document has been created once you post.

Step 6.3 A document is created
Step 6.3 A document is created

Then, you can use transaction code MB03 to verify the material document.

  • Complete the MB03 transaction.
  • Enter the year of the document and the material document.
  • Click ENTER.
Step 6.4 Verify the material document with MB03
Step 6.4 Verify the material document with MB03

You can view some of the items and document’s fundamental information.

Click the item twice.

Step 6.5 Overview of material document
Step 6.5 Overview of material document

You can view some further product details in the item information.

Step 6.6 View final details of item
Step 6.6 View final details of item

Submitting the receipt of the goods is done. Both the production order and the inbound delivery follow the same procedure.

Conclusion

Effective goods receipt in SAP procedures are essential for quality of product, loss and waste reduction, inventory visibility, and production planning. Understand more about improving your goods receipt procedures using apps created for your business. Hope you have a good time with Efex

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