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A goods receipt is a goods movement in Materials Management (MM) that transfers a product into inventory.

The R/3 System supports the following types of goods receipts:

There are two different cases:

The manufacturing order is credited.

The product cost collector is credited.

A preliminary inventory valuation takes place with goods receipts to the make-to-stock inventory or to the valuated sales order stock. The inventory value in the material master is updated accordingly.


You have specified which accounts are updated with the relevant goods movement in Customizing for Materials Management under Valuation and Account Assignment in Creating Automatic Postings. You link the following for a valuation area:


You enter a goods receipt for the manufacturing order or run schedule header. This goods receipt can be created automatically at the time of confirmation of the last operation in a manufacturing order or run schedule header.


In repetitive manufacturing, all goods movements are entered in the Repetitive Manufacturing menu. In repetitive manufacturing, goods movements are not entered from the Materials Management menu.

If you deliver goods to the make-to-stock inventory or to the valuated sales order stock, the valuation takes place as follows:

This section will now discuss goods receipts with in-house manufacture.

When a goods receipt is entered for a manufacturing order or run schedule header, the following events take place:

The inventory valuation performed at the time of the goods receipt for the manufacturing order or product cost collector is a preliminary valuation.

When you perform settlement in the period-end closing process in Product Cost by Period or Product Cost by Order, then:

These postings ensure that the inventory is valuated at the standard price even after settlement of the variance.

If there is a Structure link mixed cost estimate for the relevant material, the standard price is the mixed price.

The moving average price can change with each goods movement and when variances are settled at the end of the period.

If the controlling area currency differs from the company code currency, the system will update the value of the goods receipt in both currencies.

Automatic Goods Receipt

You can have the system automatically generate a goods receipt when the last operation is confirmed.

The prerequisites for this are as follows:

You do this in Customizing for Product Cost by Period under Simultaneous Costing ® Check Control Data for Repetitive Manufacturing Profiles.


Note the following:

If an additional operation follows a reporting point for which an automatic goods receipt is posted, the activities of that operation are no longer automatically posted.

Goods Receipt and Backflush

When you post the goods receipt, you can backflush the input materials.

You can change the proposed material components and add others. The backflush uses the standard price or the moving average price (if the Actual Costing/Material Ledger component is not active) or the period price (if Actual Costing/Material Ledger is active) selected in accordance with the price control in the accounting view of the material’s master record.

You can change the proposed materials and quantities for the backflush.

Prerequisites for Backflush at Goods Receipt

Make the settings required for the automatic goods receipt (see above).

Also make the following additional settings:

Repetitive Manufacturing

You specify in the repetitive manufacturing profile with the indicator GR and GI that a simultaneous goods receipt / goods issue is to take place.

In repetitive manufacturing, you can create a reporting point backflush with an automatic goods receipt and simultaneous goods issue backflush. Make the required settings in Customizing in the repetitive manufacturing profile.

In repetitive manufacturing, the system explodes the current BOM for the material (the BOM specified for the posting date or the BOM specified on the basis of a revision level in the production version) to determine which material component usage is proposed.

You enter the goods receipt in the menu of Repetitive Manufacturing.


You deliver 500 tons to stock for a run schedule header. The standard cost estimate for the product was created on the basis of 1000 tons. A reference time of 100 minutes to produce 1000 tons is assumed. To produce 500 tons, an activity allocation on the basis of 50 minutes is performed. The activity price for the activity type is USD 30 per minute. The system updates actual costs of USD 1500 to the product cost collector.

A backflush of 500 tons is posted on the basis of the current BOM. The system updates material costs of USD 4000 to the product.

The standard price for the product is USD 10 per ton. The goods receipt is valuated at USD 5000. The system credits the product cost collector with USD 5000. At the end of the period the remaining USD 500 is settled to inventory.

Order-Related Production and Process Manufacturing

In order-related production and process manufacturing, you must specify in the operation of the routing that a backflush should be generated.

You specify in the control key of the last operation that an automatic goods receipt should be generated.

In order-related production and process manufacturing the system includes the BOM in the manufacturing order and includes the assignment of material components to operations.

Goods Receipt and Activity Allocation

In repetitive manufacturing, if you are not using reporting points you can specify in the repetitive manufacturing profile that an activity allocation should be performed when the goods receipt is entered.

When activities are posted, the system generates an internal activity allocation on the basis of the following information:

Special Features of Production Cost Collectors for Individual Requirements Materials

If you are using a production cost collector for an individual requirements material, the production cost collector is always debited with all material costs and activity allocations, and credited with the standard price at the time of the goods receipt.

See also:

For information on the posting logic, refer to the following section:

Costing Object Controlling from an Accounting Point of View

For more information on material valuation for the period price, refer to the documentation Structure link Actual Costing/Material Ledger.

For more information on goods receipts and inventory management, refer to the documentation LO Materials Management.

For information on goods receipts for confirmations, refer to the documents LO-PP Production Orders - Confirmations and LO-PP Repetitive Manufacturing - Backflushing

For information on the special requirements regarding product cost collectors in sales-order-related production, see the following sections:

Product Cost Collectors in Sales-Order-Related Production

Valuated Sales Order Stock: Valuation

Standard Price with Valuated Sales Order Stock

For information on settlement, refer to the section Settlement in Product Cost by Order or Period.

For information on the recommended price control, refer to the section Basic Decisions in Cost Object Controlling.



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