Goods Receipt Process Flow in SAP MM
Step 1: Posting Goods Receipt (GR)
1. Transaction Code: MIGO
o In the "Goods Movement" screen, select the movement type
(usually 101 for standard GR).
o Enter the PO number or Purchase Order and the relevant item
number.
o The system automatically fetches the material and quantity from
the PO.
o Ensure the quantity received matches the quantity mentioned in
the PO. If there is any discrepancy (e.g., over-delivery or under-
delivery), this needs to be addressed.
2. Goods Receipt Details:
o Choose the storage location where the materials will be received
and stored.
o You can enter additional information, such as batch numbers or
serial numbers (if applicable).
o Once all details are verified, click on Post to complete the GR
process.
Step 2: Updating Inventory and Stock Levels
When the GR is posted, the system automatically updates the inventory.
The materials are now recorded as available stock in the relevant
warehouse or storage location.
The system also updates the stock quantities and value of the received
materials according to the valuation method specified in the material
master (e.g., moving average price or standard price).
Step 3: Quality Inspection (if applicable)
If quality inspection is required, the received goods will be subject to
inspection before being made available for use in production or for sale.
The inspection process is integrated into the GR process and requires
quality control data entry.
After inspection, the materials are either approved for use (or sale) or
rejected, depending on the results.
Step 4: Accounting Entries
Upon posting the GR, SAP generates accounting entries to reflect the
change in inventory and the corresponding liabilities to the vendor.
The system generates automatic journal entries based on the material
valuation and the vendor account.
Classification: Internal
o Inventory Account (Debit): The value of the goods received is
posted to the inventory account.
o GR/IR Account (Credit): A temporary GR/IR (Goods
Receipt/Invoice Receipt) clearing account is credited to reflect that
the goods have been received but the invoice has not yet been
processed.
Step 5: Generating Goods Receipt Document
Once the GR is posted, the system generates a Goods Receipt
Document, which serves as a proof of receipt of materials.
The GR document is automatically created and can be viewed under the
PO history or GR document section.
Classification: Internal
