In the following dialogue, consultant Julia and inventory manager Finn introduce the topic of goods issues, as well as outline the scope of the lesson.
Posting Goods Issues Based on the Core Inventory Management (BMC) Scenario
Objective
After completing this lesson, you will be able to post goods issue for various scenarios and verify the changes in stock.
Introduction
Goods Issues Without Reference
Posting an Unplanned Goods Issue with the Post Goods Movement App
There are various reasons for an unplanned goods issue, for example:
Withdrawal of material for a cost center or a project
Sample taking quality inspection
Scrapping material
Unexpected material provision for production
With the Post Goods Movement app, you can post all kinds of unplanned goods issues. Using this app also enables you to withdraw several materials in a single transaction.
Watch the interactive demo to learn how to post an unplanned goods issue using the Post Goods Movement app.
Goods Issues with Reference
The most common types of planned goods issues are goods issues related to a delivery and a production or process order.
Posting a goods issue to a delivery is covered in the Stock Transfer unit, for example in the Exploring the Stock Transfer with Delivery (BME) scenario lesson. It is also covered in the Sales LOB training courses.
Withdrawal of components for production is covered in detail in the Manufacturing LOB courses.
In this unit, we focus on planned goods issues that are posted manually using the Post Goods Movement app with reference to a reservation.
Note
A reservation is a request to the warehouse to have materials available for a specific goods movement - typically a withdrawal - on a designated date and for a defined purpose. Reservations are integrated into Material Requirements Planning (MRP) to ensure that the necessary materials are procured and available at the right time to support production or other operations.
If a reservation has been created for a material, the goods issue is posted on the specified date with reference to the reservation.
Reservations can be created either manually or automatically:
- The Manage Manual Reservations and Manage Reservation Items apps allow users to manually create, copy, and manage reservations as needed.
- Automatic reservations are typically generated by the system - for example, when a production order is created, reservations for the required components are automatically created based on the bill of materials (BOM).
By referencing the reservation, you simplify the goods issue entry process, as the system can automatically retrieve the relevant data for each item directly from the reservation.
Additional Information on Goods Issues for Production Order
When a production order is created, the system automatically generates a reservation for the required component quantities. However, there may be situations where additional parts are needed. Let’s explore the various methods for posting a goods issue to a production order.
- Planned Goods Issue:
You post a planned goods issue by referencing the dependent reservations associated with the production order. The system automatically determines the appropriate movement type 261 (consumption for order from warehouse).
Example:
A production order is created to assemble 50 bicycles. The bill of materials (BOM) includes 2 tires per bicycle.
- The system automatically creates a reservation for 100 tires (2 × 50).
- During production, the warehouse clerk posts a planned goods issue referencing the reservation.
- The system uses movement type 261 to post the withdrawal of the 100 tires.
- Unplanned Goods Issue:
You enter an unplanned goods issue for a production order without any reference. In this case, you must manually select movement type 261 (consumption for order from warehouse) and specify the production order number as the account assignment.
Example:
During the assembly of the same 50 bicycles, a batch of pedals is found to be defective. The team decides to use a different type of pedal not listed in the original BOM.
- The replacement pedals are issued to the production order without a reservation.
- The warehouse clerk manually posts an unplanned goods issue.
- The system requires movement type 261 and the production order number as the account assignment.
- Backflush:
In this type of goods withdrawal for a production order, the components are already available at the production site. They are physically consumed during the production process, but the consumption is not posted immediately. Instead, it is recorded later—typically when the production order is backflushed. Backflushing is usually performed using manufacturing apps, once the actual quantity consumed is known.
Example:
A worker assembles a product that requires 4 screws and 1 bracket per unit. These components are already staged at the workstation. As the worker completes 10 units, the system automatically posts a goods issue for 40 screws and 10 brackets during the backflush process - without requiring manual entry for each component withdrawal.