Performing Inbound Processing

The figure illustrates the position of receiving and paying in the process flow.

You have ordered goods from a vendor. You want to receive the shipment into your warehouse.

Inbound processing can be based on purchase orders which get confirmed by the provider with an advanced shipping notification (ASN) when the goods are issued.

Based on this notification an inbound delivery can be created which are then the central document to manage the inbound process and to receive the goods into stock.

The process may or may not include an external warehouse management solution (WMS) for example SAP EWM.

In addition to the goods the vendor provides an invoice (electronically or on paper) which is typically verified before a payment is triggered.

During the invoice verification information of the goods receipt (quantity) and from the purchase order (pricing) are used as reference.

The following functions are available at goods receipt:

• Goods receipt referencing a purchase order
• A purchase order can be placed with either an external vendor or an internal vendor (for example, a distribution center).
• Goods receipt not referencing a purchase order
• The system can be enabled to generate a purchase order automatically to enable you to verify the invoice.
• Goods receipt referencing a delivery
• A goods receipt can be entered for deliveries with or without purchase order reference.
• Rough goods receipts
• Entry of returnable transport packaging as special stock (third-party stock)
• Reversal of goods receipts and posting of returns to vendor
• Entry of quantities for variants of generic Materials using a matrix
• Store goods receipts

When entering a goods movement in SAP ERP you must specify a movement type. The movement type is a three-character key used to differentiate between goods movements. Examples of such goods movements are goods receipts, goods issues or transfer postings.

The movement type assumes important control functions in inventory management. It plays a central role in automatic account determination in SAP ERP. Together with other influencing factors, the movement type determines which stock or consumption accounts are updated in financial accounting (among other things).

The transaction primarily used for goods movements is MIGO.