Posting Goods Receipts for Purchase Orders

Objectives

After completing this lesson, you will be able to:

Create a purchase order
Create an inbound delivery

Procurement

When there is a demand for a product or service, the demand can be fulfilled in multiple ways: purchased from an external supplier, produced in a plant, and procured internally using a stock transport order.

When there is a demand for certain products, there are three possible ways in which this demand can be fulfilled. They can all lead to an inbound process with a goods receipt that needs to be posted in the SAP S/4HANA system. Products are either purchased from an external supplier, produced in their own plant, or procured internally from another plant within the company structure. So, procurement can either be internally or externally. Frequently, certain products are always produced in-house or purchased externally. This can be specified in the material master of these products using a field called the procurement type.

The following procurement documents are presented: purchase order, production/process order and stock transport order.

Depending on the way of procurement that is selected in a certain situation, a purchase order, a production order or a stock transport order is created in the SAP S/4HANA system.

Purchasing Process

Note

See the following video to learn more about the purchasing process in SAP S/4HANA:

Goods Receipt with SAP Extended Warehouse Management (SAP EWM)

When posting a goods receipt in an SAP EWM-managed warehouse, it is necessary to work with an inbound delivery for the purchase order or the production/process order that is used. There are several ways to create this inbound delivery, depending on the physical process or the information flow between the supplier and the receiving company.

An inbound delivery can be a follow-up document to a production/process order, a purchase order, or a stock transport order.

The inbound delivery is the document based on which the physical putaway of a material in the warehouse (Warehouse Management) and the posting of the goods receipt (Inventory Management) is executed.

Purchase Order and Inbound Delivery

The process of procuring externally from suppliers and also from other plants within your own company is handled in SAP S/4HANA using purchase orders. When you procure from another plant in your own company, this purchase order has a specific document type and is called a stock transport order.

The Logistics Execution (LE) inbound delivery (as a follow-up document to a purchase order) can be created automatically when you receive a shipping notification from a supplier. It can also be created manually with reference to a purchase order. In both cases the inbound delivery is replicated to SAP EWM. Alternatively the inbound delivery can be created directly in SAP EWM at the time of the physical receipt of the products. In that case a LE inbound delivery is created as well.

For items relevant for putaway in an SAP EWM warehouse number, it is necessary to create an inbound delivery document in SAP EWM as well. This document is the basis for posting the goods receipt and creating the warehouse tasks for putaway in EWM. The Logistics Execution (LE) inbound delivery can be created automatically when you receive a shipping notification from a supplier. It can also be created manually with reference to a purchase order. In both cases, the inbound delivery is replicated to SAP EWM. Alternatively, the inbound delivery can be created directly in SAP EWM at the time of the physical receipt of the products. In that case, an LE inbound delivery is created as well.

Confirmation Control Key

In order to be able to create an inbound delivery for a purchase order, it is necessary to enter a confirmation control key in the purchase order item.

A vendor confirmation is a notification/message from a supplier regarding the delivery status of a specific purchase order. Vendor confirmations enable a company to plan better. This is because in the period between the PO date and the planned delivery date, more reliable and up-to-date information from a supplier (that is, a confirmation/delivery notification) can then immediately be used to re-plan quantities if needed. The confirmation control key defines what types of confirmations are expected from a supplier and also defines the requirement for and the possibility to create an inbound delivery in the SAP S/4HANA system.

Create a Purchase Order and an Inbound Delivery

Part 1 of the exercise/simulation:

ExerciseStart Exercise

Part 2 of the exercise/simulation:

ExerciseStart Exercise

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