¶ Goods Receipt and Goods Issue in SAP ECC
In the SAP ERP Central Component (SAP ECC), materials management (MM) plays a critical role in the logistics and supply chain operations of an enterprise. Two fundamental processes within this module are Goods Receipt (GR) and Goods Issue (GI). These processes ensure that inventory levels are accurately maintained and transactions are properly recorded in real time. Understanding how GR and GI work is essential for effective inventory and materials management in SAP ECC.
Goods Receipt is the process of receiving goods or materials into the warehouse or plant. It represents the physical entry of goods into the inventory, and in SAP ECC, it also updates financial and inventory records.
- Triggered after a purchase order (PO), production order, or stock transfer.
- Increases stock levels in the system.
- Posts a financial document (if required) for accounting purposes.
- Updates relevant documents like the purchase order, material master, and inventory records.
- MIGO – Most commonly used for GR posting.
- MB01 – Legacy transaction for GR posting.
- MIRO – Used for invoice verification after GR.
- GR against Purchase Order (PO): Received materials are compared to the PO.
- GR against Production Order: Finished goods are received from the production process.
- GR without PO: For direct stock addition, such as internal transfers.
Goods Issue is the process of removing or issuing goods from inventory for consumption, sales, or transfer. In SAP ECC, GI decreases the stock and may also post accounting documents depending on the transaction.
- Reduces the available inventory.
- May be related to production, sales, or internal consumption.
- Updates inventory valuation and financial accounts.
- MIGO – Also used for GI.
- MB1A – Used for GI for cost center, production, etc.
- VL02N – Used for delivery GI during outbound delivery processing.
- GI for Production Order: Raw materials are issued to production.
- GI for Cost Center: Goods are consumed for internal operations.
- GI for Sales Order: Goods are issued for outbound deliveries to customers.
Both Goods Receipt and Goods Issue are tightly integrated with several other SAP ECC modules:
- Financial Accounting (FI): Automatically generates accounting entries based on the movement of goods.
- Controlling (CO): Tracks costs for internal processes like production.
- Warehouse Management (WM): Supports complex storage and retrieval operations.
- Sales and Distribution (SD): GI for deliveries is managed through this module.
- Production Planning (PP): GR and GI are closely linked to production orders and BOM consumption.
¶ Document Flow in GR and GI
- Create or reference a purchase order.
- Post Goods Receipt via MIGO.
- Update material master and inventory.
- Accounting entries generated: Inventory Debit, GR/IR Credit.
- Reference production/sales/cost center order.
- Post Goods Issue via MIGO/MB1A/VL02N.
- Update stock quantity.
- Accounting entries generated: Inventory Credit, Expense/CO Object Debit.
Goods Receipt and Goods Issue are core functionalities in SAP ECC that support efficient inventory and supply chain operations. Mastery of these processes ensures accurate inventory tracking, financial integrity, and effective logistics planning. SAP ECC provides a robust framework for handling these transactions with transparency, automation, and real-time integration across departments. Whether receiving raw materials for production or shipping finished goods to customers, GR and GI are essential building blocks of enterprise resource planning.