SAP Goods Movement

SAP Goods Movement

In SAP goods are moved in different locations. There are transactions that are responsible for carrying out the Goods Movement.  For carrying out goods movement the following need to be understood. Goods Receipt, Goods Issue, Stock Transfer, Transfer Posting.

Goods movements include both external”and internal movements. In general, a transaction that causes a stock change is marked as a goods movement. You can distinguish between goods receipts, goods issues, stock transfers, and transfer postings

SAP Goods Receipt: 

When goods are received from a vendor or from production and a posting is carried out in SAP, then it is known as a  Goods Receipt (GR). Once a Goods Receipt is performed the Ware House Stock is increased.

Goods Issue:

Goods going out are termed as goods Issue. Basically it can be of the following type.

• Material Issue
• Material Withdrawal
• Material Consumption
• Shipment of Goods

Once the posting is carried out in SAP , Goods Issue results in Reduction of Stock.

Stock Transfer:

The movement of goods internally from one place to another is termed as stock transfer. This can be between Storage Location to Storage Location, Warehouse to Warehouse or between Bins, between same plants or between different plant.

Transfer Posting:

Some examples of Transfer Postings are as follows.

Material to Material, Release from Quality Inspection Stock, Transfer of consignment in companies own stock. A transfer posting may or may not carry out a physical movement of goods.

Also See: High Level & Fundamental understandings of SAP System Architecture