How to Perform Goods Receipt in SAP MM – Step-by-Step Guide

How to Perform Goods Receipt in SAP MM – Step-by-Step Guide: After receiving materials in the plant, there are several steps to process and manage the materials effectively. Below is a detailed explanation of the post goods receipt process in SAP MM and the subsequent steps.

Goods Receipt in SAP MM

Once the materials are delivered to the plant, the first step is to record the Goods Receipt (GR) in SAP. This is done using transaction code MIGO.

Steps for Goods Receipt

1. Enter Transaction Code: Use MIGO.
2. Select Movement Type: Choose 101 (Goods Receipt for Purchase Order).
3. Enter Purchase Order Number: Input the PO number for which the materials are received.
4. Check Item Details: Verify the material, quantity, and other details.
5. Enter Quantity Received: Input the actual quantity received.
6. Post the Goods Receipt: Save the transaction. The system will:
   • Update the stock levels in the plant.
   • Generate a Material Document Number (for the goods receipt).
   • Generate an Accounting Document Number (for inventory valuation).

Verify the Goods Receipt

After posting the goods receipt, you can verify the details using:

• Material Document: Use transaction code MB03 to view the material document.
• Stock Levels: Use transaction code MMBE to check the updated stock levels in the plant.

Invoice Verification

Once the goods are received, the next step is to verify the vendor’s invoice using transaction code MIRO.

Steps for Invoice Verification

1. Enter Transaction Code: Use MIRO.
2. Enter Vendor and Invoice Details: Input the vendor number, invoice number, and date.
3. Reference Purchase Order: Enter the PO number to link the invoice to the PO.
4. Check Invoice Details: The system will automatically populate the details from the PO and goods receipt.
5. Enter Tax and Payment Terms: Input any additional details like tax codes or payment terms.
6. Post the Invoice: Save the transaction. The system will:
   • Update the accounts payable.
   • Generate an Accounting Document Number for the invoice.

Payment to Vendor

After invoice verification, the payment process is handled by the finance team using transaction code F-53 (Outgoing Payments).

Steps for Payment:

1. Enter Transaction Code: Use F-53.
2. Enter Vendor and Invoice Details: Input the vendor number and invoice details.
3. Post the Payment: Save the transaction. The system will:
   • Clear the vendor invoice.
   • Update the bank account balance.

Material Consumption or Usage

Once the materials are in stock, they can be used for production, maintenance, or other purposes. The process depends on the material type and business requirements.

Common Scenarios

1. Production: Materials are issued to production orders using transaction code MB1A (Movement Type 261).
2. Maintenance: Materials are issued to maintenance orders using transaction code MB1A (Movement Type 201).
3. Sales: Materials are issued to sales orders using transaction code VL01N (Delivery Creation).

Also Read: How to Create Purchase Order in SAP MM, (Materials Management)

Inventory Management

Regular inventory management activities include:

• Stock Transfers: Transfer materials between plants or storage locations using transaction code MB1B.
• Physical Inventory: Conduct periodic stock counts using transaction code MI01 (Create Physical Inventory Document) and MI04 (Enter Count Results).
• Stock Adjustments: Adjust stock levels for discrepancies using transaction code MB1C.

Reporting and Analysis

Use SAP reports to monitor and analyze material movements and stock levels:

• Stock Overview: Use transaction code MMBE.
• Material Document List: Use transaction code MB51.
• Vendor Line Item Display: Use transaction code FK10N to view vendor transactions.

Summary of Key Transaction Codes

Step	Transaction Code	Purpose
Goods Receipt	MIGO	Record goods receipt for PO
View Material Document	MB03	Display material document details
Invoice Verification	MIRO	Verify and post vendor invoices
Outgoing Payment	F-53	Process payment to vendor
Material Issue	MB1A	Issue materials for production or sales
Stock Transfer	MB1B	Transfer materials between locations
Physical Inventory	MI01, MI04	Conduct physical inventory counts
Stock Overview	MMBE	Check stock levels

Best Practices

1. Timely Goods Receipt: Always post goods receipt as soon as materials are received to ensure accurate stock levels.
2. Three-Way Match: Ensure PO, goods receipt, and invoice match before payment.
3. Regular Audits: Conduct periodic audits of inventory and vendor transactions.
4. User Training: Train users on SAP MM processes to avoid errors and delays.