GOODS-RECEIPT-Part -1

The transaction in which it records the receipts of the goods or materials from an
external vendor or from internal source (Production) also it updates the inventory
and financial system. The Goods receipt leads to the increase in warehouse stock.

[Note: What is Movement type?

Movement type is a three-character key which is indicated and used to
differentiate movement between various goods
Movement type controls:
➢ Quantity and Value updating
➢ Influences account determination
➢ Influenced field selection
➢ Influences message determination
What is Goods movement?
A transaction that causes a stock change is termed as Goods movement
What are the Common documents generated in Goods movement of
inventory management?
For each goods movement, documents are created on the basis of quantity
and value update also it serves as the verification of movement.
Material document-Act as the verification of goods movement and it is the
source of information which contains Header=delivery date, date &
Item=individual movement
Accounting document-When the stock is valuated and relevant for financial
accounting, the system creates the accounting document parallel to material
document. Also, the accounting document is identified by the Company code,
Document number, Fiscal year.

Generally, Goods receipt are two types:

Prepared by Shiva A
SAP-MM Consultant
 1.Goods receipt without reference
2.Goods receipt with reference
1.GOODS RECEIPT WIHTOUT REFERENCE
This is also known as OTHERS GOODS receipt, when we enter goods
movement without reference to any document like P.O, P.R, order, Reservation.
I.Initial entry of Stock balance:

We perform initial entry of stock balance when we implement SAP system to

start recording the physical house stock (or) transferring book inventories from
a legacy system to the SAP system. (No physical material movement occurs
during this process)
561 Mvt-For Unrestricted use stock
563 Mvt-For stock in quality inspection
565 Mvt -Blocked stock.

II.GR without production order:

This occur when we do internal GR from production without production order.

521 Mvt-For Unrestricted use stock

523 Mvt-For stock in quality inspection
525 Mvt -Blocked stock.

Prepared by Shiva A
SAP-MM Consultant
III.GR without P.O or SA

This process occurs, while doing GR without P.O or SA.

501- Mvt-For Unrestricted use stock
503- Mvt-For stock in quality inspection
505- Mvt -Blocked stock.
IV.Delivery free of charge:

This happens when we receive free of delivery from vendor without P.O, so in
the system we have to specify text and vendor for each item Mvt-511
GOODS RECEIPT WITH REFERENCE
A Goods receipt with reference is always a planned GR, the main aim of pre-
planned GR is to avid bottlenecks and for better organising of work in goods
receiving department.
1.The Planned GR or GR with reference can be posted with reference to
PURCHASE ORDER, PRODUCTION ORDER, sometimes against reservation.
Those stock can be posted in all the three types of stock as UNRESTRICTED,
QUALITY INSP & BLOCKED STOCK.

Prepared by Shiva A
SAP-MM Consultant
Note: If the GR is planned to post in QUALITY INSPECTION STOCK, we can do
it in 2-ways (Mvt 101)
i.In MATERIAL MASTER---PURCHASING VIEW & WORK SCHEDULING
there we can [] check box as “Post to inspection”
ii.In P. O=DELIVERY TAB…..PROD ORDER=GR TAB, here we can decide the
stock type going to be post.(Even though the stock type is defined in Material
master and purchase order, the stock mentioned at the time of the GR will be
considered finally
2.GR-BLOCKED STOCK:
GR-blocked state is a non-valuated stock that is not accounted for the inventory
due to numerous reasons
The material not yet inspected or approved
The material is on hold for missing procedures.
PERFORMING GR BLOCKING ACTION: Mvt 103
While doing this,
➢ Material Document only created, P.O history updated but open P.O not
reduced
➢ No accounting document generated.
(We can check the GR blocked stock in MMBE and in P.O history.)
RELEASING GR BLOCK: Mvt 105
When the Material is ready or corrected, we can post that stock to any type of
stock
RETURN BACK TO VENDOR: Mvt 124
If the material no longer needed, we can return back to the vendor.
3.AUTOMATIC P.O CREATION WHILE DOING GR:
If we receive goods without P.O we can enter it as “OTHERS GOODS
RECEIPT” For that GR we can’t perform invoice verification barely so we have
to do some Configuration in SAP-Automatic P.O creation while doing GR.
Configuration
1.SPRO---Enterprise structure---Assignment---Material management----Assign
standard pur org to Plant.

Prepared by Shiva A
SAP-MM Consultant
2.SPRO---Material Management---Inventory Management---Movement types---
Copy change Movement type---101------[] enable check box AUTOMACTIC
P.O (info-record mandatory)
Doing GR after Configuration:
1.MIGO-SCREEN---------GOODS RECEIPT------PURCHASING DOC
2.Click NON-ORDER ITEM

Then enter the details of MATERIAL, QTY, PLANT, PARTNER,

Summary
1.What is Goods receipt?
2.What is movement type?
3.GR with reference
4.GR without reference
5.Automatic creation of P.O while doing GR.

Prepared by Shiva A
SAP-MM Consultant