Introducing Goods Movements

This section focuses on the concept of goods movements within Inventory Management. Goods movements are essential for tracking the flow of materials and ensuring accurate stock levels across plants and storage locations.

In the following dialogue, consultant Julia and inventory manager Finn introduce the topic.

A goods movement refers to any transaction within an inventory management system that results in a change in either the stock levels or the stock status of materials. These movements are essential for maintaining accurate inventory records and ensuring smooth logistics and production processes.

There are several types of goods movements, including:

• Goods Receipt (GR)

  This refers to the process of receiving materials into inventory. It typically occurs when goods are delivered by a supplier, returned by a customer, or transferred from production. A goods receipt increases the stock quantity and updates the system to reflect the availability of the received items.

• Goods Issue (GI)

  A goods issue involves removing materials from inventory for purposes such as production, sales, or internal consumption. It reduces the stock quantity and is often linked to outbound processes like fulfilling customer orders or supplying raw materials to manufacturing.

• Stock Transfer

  This type of movement involves relocating stock within the organization, such as between storage locations or plants. While the total stock quantity remains unchanged, the system updates the stock's location and may also adjust the stock status (e.g., from available to in-transit) or stock type (e.g., from quality inspection to unrestricted-use).

  A stock transfer can include:

  • A change of storage location within the same plant.
  • A transfer between plants.
  • A change of stock type within the same storage location or with a storage location change.

A goods movement can be recorded with or without reference to a preceding document.

• With reference

  For goods movements entered with reference, data such as material, quantity, and plant are copied from the reference document.

  • To record a goods receipt, reference a production order or purchase order, if available.
  • To post goods issues or transfer postings, you can reference a reservation, if available.
  • To reverse a goods movement, reference the original material document.

• Without reference

  Without a reference document, all required data must be entered manually.

A goods movement posting in SAP is documented primarily by a material document and, where relevant, an accounting document.

• Material Document

  The material document serves as the core record of the physical movement of goods. It captures essential details such as the material number, quantity, movement type, plant, and storage location. This document ensures traceability and transparency of inventory changes and is crucial for inventory management and reporting.

• Accounting Document

  The accounting document is generated when the goods movement has a financial impact, such as a goods receipt into stock or a goods issue to a cost center. It records the corresponding debit and credit entries in financial accounting, ensuring that the value of inventory and associated accounts are updated accurately. This linkage between logistics and finance helps maintain consistency across modules.

In addition to these, other documents may also be created depending on the process. A controlling document may be generated if the movement affects internal cost allocations. A delivery document is created in the case of outbound deliveries. If quality inspection is required, an inspection lot is generated to initiate the quality management process.