SAP MM Training in Hyderabad

Handling Goods Receipt and Goods Issue in SAP MM: Including Quality Inspection and Transfer Postings

SAP Materials Management (MM) is a comprehensive module that plays a critical role in ensuring effective procurement and inventory management within an organization. The processes of goods receipt and goods issue are pivotal within SAP MM, encompassing quality inspection and transfer postings, all of which contribute to the smooth operation of supply chain and inventory functions. Version IT, recognized as the best SAP MM Training in Hyderabad, provides in-depth training on these essential processes, equipping professionals with the necessary skills to manage them efficiently.

Goods Receipt Process

The goods receipt (GR) process in SAP MM involves the receipt of materials or goods from external vendors or internal production. This process ensures that the inventory levels are updated and that the received goods meet the required quality standards.

1. Creation of Purchase Order:

   • The GR process begins with the creation of a purchase order (PO) in the SAP system. The PO specifies the materials to be purchased, the quantity, and the delivery date.

2. Receiving Goods:

   • When the goods arrive, they are physically received at the designated location. The receiving personnel perform a preliminary inspection to verify the quantity and condition of the received goods.

3. Recording Goods Receipt in SAP:

   • The next step involves recording the goods receipt in the SAP system. This is done using the transaction code MIGO (Goods Movement). The GR is posted against the respective PO, updating the inventory levels and triggering further processes such as quality inspection and invoice verification.

4. Quality Inspection:

   • If the materials require quality inspection, they are moved to the quality inspection stock. The quality inspection process ensures that the received goods meet the specified quality standards. The inspection lot is created automatically when the GR is posted, and the quality inspection team carries out the necessary checks. Based on the inspection results, the goods are either accepted and moved to unrestricted stock or rejected and moved to blocked stock.

5. Update of Inventory Records:

   • Once the GR is posted and the quality inspection is complete, the inventory records are updated. The SAP system reflects the increased inventory levels, and the materials are available for use in production or sales.

Goods Issue Process

The goods issue (GI) process involves the removal of materials from inventory for various purposes such as production, sales, or internal consumption. This process decreases the inventory levels and updates the financial records accordingly.

1. Creation of Reservation or Sales Order:

   • The GI process can be triggered by different documents such as reservations (for internal purposes) or sales orders (for customer deliveries). These documents specify the materials to be issued, the quantity, and the destination.

2. Performing Goods Issue in SAP:

   • The GI is recorded in the SAP system using the transaction code MIGO or VL02N (for outbound deliveries). The materials are physically removed from inventory, and the GI document is posted in the SAP system. This process updates the inventory levels and financial records.

3. Impact on Inventory and Financial Records:

   • Posting the GI decreases the inventory levels and updates the corresponding general ledger accounts. For sales orders, the cost of goods sold (COGS) is recorded, impacting the financial statements.

Quality Inspection Process

Quality inspection is an integral part of both the GR and GI processes, ensuring that the materials meet the required standards. The quality inspection process involves several steps:

1. Creation of Inspection Lot:

   • An inspection lot is created automatically when a GR or GI is posted for materials that require quality inspection. The inspection lot contains details about the materials, quantity, and inspection specifications.

2. Inspection Execution:

   • The quality inspection team performs the necessary checks and tests on the materials. This can include physical inspections, laboratory tests, or measurements. The results are recorded in the SAP system.

3. Usage Decision:

   • Based on the inspection results, a usage decision is made. The materials can be accepted, rejected, or sent for rework. The usage decision is recorded in the SAP system, and the inventory records are updated accordingly.

4. Stock Posting:

   • Accepted materials are moved to unrestricted stock and are available for use. Rejected materials are moved to blocked stock, and further actions such as returns to the vendor or disposal are initiated.

Transfer Postings

Transfer postings involve the movement of materials from one stock type to another or from one location to another within the organization. This process ensures that materials are available where they are needed and that inventory records are accurate.

1. Types of Transfer Postings:

   • Stock-to-Stock Transfer: Movement of materials from one stock type to another, such as from quality inspection stock to unrestricted stock.
   • Location-to-Location Transfer: Movement of materials from one storage location to another within the same plant.
   • Plant-to-Plant Transfer: Movement of materials from one plant to another within the organization.

2. Performing Transfer Postings:

   • Transfer postings are recorded in the SAP system using the transaction code MIGO or MB1B. The relevant transfer posting document is created, specifying the materials, quantity, and source and destination locations.

3. Updating Inventory Records:

   • The transfer posting updates the inventory records, reflecting the movement of materials. This ensures that the inventory levels are accurate and that materials are available where they are needed.

4. Impact on Financial Records:

   • Depending on the type of transfer posting, there may be financial implications. For example, plant-to-plant transfers may involve cost transfers between different cost centers or profit centers.

Conclusion

The effective handling of goods receipt, goods issue, quality inspection, and transfer postings in SAP MM is crucial for maintaining accurate inventory records and ensuring the smooth operation of supply chain processes. Version IT, the best SAP MM Training in Hyderabad, provides comprehensive training on these processes, equipping professionals with the skills needed to manage them efficiently. By understanding and optimizing these processes, organizations can improve inventory control, reduce costs, and enhance overall operational efficiency.