Effect of Goods Receipt Posting in SAP MM Procurement Process

What is Good Receipt?

A goods receipt transactions is used to receive material via a purchase order or an in-house production order. The goods receipt process can be simple or complex depending on the nature of the material being received.

Each organization has its own procedures for the receipt of material, and these have to be considered when using the goods receipt functionality in SAP, if the material is received into stock, either unrestricted or quality, the value of the material is posted to the plant accounts. That means that the company has spent money to have that material in the plant. 

Effects of Goods Receipt Posting

Once the goods receipt has been posted, a series of events are triggered

Material document:

The material document is the audit that describes the movements of the material of entered in the goods receipt. The material document is created during the posting of the goods receipt and can be displayed using transaction MB03

Accounting Document:

The accounting document is created in parallel with the material document during the posting of the goods receipt. The accounting document describes the financial movements associated with material receipt. The accounting document can be accessed from the material document transaction MB03.

Goods Receipt Note:

The goods receipt note is a printed document that can be used by the warehouse to store the material in the correct location. Three goods receipt note printed versions can be selected in transaction MIGO.

Individual GRN: An individual goods receipt note is printed for each of the material document items

Individual GRN: With inspection text. Once goods receipt note is printed per material document item, but will include any quantity inspections text that s contained in the material master record.

Collective slip: This goods receipt note containing all of the items

The goods receipt note has three printed versions defined within SAP. These are WE01, WE02 and WE03. These can be modified to include the information relevant for issuing procedure of each company.

Stock Changes:

When a goods receipt is posted, the relevant stock levels will change. the stock level will be increased for a goods receipt and decreased for a goods receipt reversal. A goods receipt reversal may occur if the material was found to be defective or failed quality inspections. If this occurs. the inventory control department may decide to reverse the goods receipt so the material will be deducted from the plant stock level.