In The Bike Company, now that an outbound delivery has been created for the ordered bikes, the next step is to pick the bikes and post the goods issue. Picking the goods and posting the goods issue are the tenth and eleventh steps in the overall MTO process.
Picking is part of the delivery and shipment process. Items for picking are selected, placed in a staging area, and prepared for shipping.
After the goods have been picked, the goods issue can be performed. The outbound delivery is the basis for posting the goods issue. The goods issue confirms that the goods have left the company, leading to a reduction of the material’s inventory, which is also reflected in the created material document. The reduction of the material’s inventory also leads to a reduction of the inventory value. The reduction of the inventory value is calculated by multiplying the delivery quantity of the material with the standard price determined for the material in the sales order stock. Remember, in The Bike Company the standard price for the bikes ordered is determined based on the sales order calculation.
The reduced inventory value is reflected in a subsequently created accounting document that credits the material inventory account and debits the inventory change account with an account assignment to the relevant profitability segment in margin analysis to record the corresponding expense. This is the results-relevant posting of the goods issue. The debit and credit value here corresponds to COGM.
In addition, a second accounting document is created which contains the posting of the cost component split for the goods issue expenses, again with an account assignment to the relevant profitability segment. This accounting document includes an offsetting entry to the inventory change account, serving as an additional description to the results-relevant accounting document.
Both picking and posting the goods issue for a sales order can be performed in the Pick Outbound Delivery app. As a result, the process flow diagram for the respective sales order is updated. The process flow diagram can be displayed, for instance, in the Track Sales Orders app.
Additionally, for the updated delivery document, a process flow diagram is available in the Manage Outbound Deliveries app. From there, the material document resulting from the goods issue can be accessed and the subsequently created accounting documents can be displayed.
Note
If you are interested in how to evaluate profitability in sales-order-related production, please refer to the learning journey: Evaluating Profitability Accounting in Make-to-Order Scenarios in SAP S/4HANA.