Early Lot Creation for the Production Order
You want to carry out an in-process inspection during production and a possible incoming inspection after delivery of the goods to the warehouse using one inspection lot. The required inspection specifications are to be defined in one inspection plan and/or in a material specification from Quality Management. A simple defects recording is also possible. In addition, you want to manage stock with the inspection lot.

Using the Early Inspection for a Goods Receipt functionality, the SAP S/4HANA system creates an inspection lot with inspection lot origin 04 when you release a production or process order. In contrast to in-process inspection lots, the inspection specifications are taken from an inspection plan and/or material specification which offers the advantage to manage inspection specifications independently from the manufacturing instructions in the routing/master recipe.
You can use this inspection lot to inspect the goods received from production before they are posted to the warehouse stock and record and track the completed production quantities in inspection stock. Once the goods have been received, the inspection lot becomes stock-relevant and can be used to manage stock (for example, to post the stock from quality inspection stock to unrestricted use stock in the case of a positive usage decision).
Note
Avoid making a usage decision for this type of early inspection lot before any goods receipts have been posted. The usage decision will then have a stock quantity of 0, but will not have the status completely credited. This means that any following goods receipts will be posted to the stock for this inspection lot. You must then credit this lot from the stock quantity yourself, even if you do not intend to perform further checks.From a business perspective, the early goods receipt inspection provides a type of inspection lot summary: In this lot summary, the stock from the inspection lot is increased by the stock quantities from the following goods movements if the additional stock posting occurs before you make the usage decision. However, the lot summary does not take place when the inspection lot stock created with the first goods receipt is already completely credited when further partial deliveries are received. If a usage decision has already been made for the existing inspection lot, the inspection lot summary is dependent on the latter's valuation:
For the valuation Acceptance, further partial deliveries are posted to the available stock without creating a new inspection lot.
For the valuation Rejection, new inspection lots are created with the following partial deliveries.
If, at the time of goods receipt, the batch or storage location differs from the planned batch or storage location, a new inspection lot (origin 04) is created.
Note
You control the creation of the early goods receipt inspection lot in the inspection setup in the material master (QM view) in the field Control Lot Creation by setting the option Early lot creation for order item in the respective inspection type (for example, inspection type 04 which is assigned to inspection lot origin in the SAP standard).
The early goods receipt inspection lot is created independently of whether an inspection lot with origin 03 exists for the relevant order. We recommend to use either in-process inspection lots or early goods receipt inspection lots, if possible.
You can find additional Information for the Early Inspection for a Goods Receipt in the SAP Application Documentation.