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:

• Goods receipt of an externally procured material with reference to a purchase order
• Goods receipt of a material manufactured in-house with reference to a manufacturing order (production order or process order) or run schedule header

• The production order or process order is not assigned to a product cost collector:

• The production order, process order, or run schedule header is assigned to a product cost collector:

• Goods receipt of a material manufactured in-house with reference to a product cost collector

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 link transaction key BSV (Change in stock account) to a material stock account.

• You link transaction key GBB (Offsetting entry for inventory posting) to account modification AUF (Goods receipts for orders with account assignment) and a plant activity account (inventory change).

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.

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

• With external procurement, material can be valuated either when the goods receipt is entered or when the invoice is received. If the material is valuated at the time of the goods receipt, this is a preliminary valuation using the net order price. If the invoice price is not the same as the net order price, the difference between the invoice price and the net order price is debited to inventory when the invoice is received.

• For in-house manufacture, preliminary valuation takes place when the goods receipt is entered. The valuation is calculated by multiplying the quantity delivered to inventory by the price in the accounting view of the material’s master record. The price control specified in the accounting view determines which price is used to valuate the goods receipts:

• In Product Cost by Order, you make this setting under Define Goods Received Valuation for Order Delivery.

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 order or product cost collector is credited.
• In Financial Accounting, the inventory account is debited and the inventory change account is credited. A material document and an accounting document are generated.

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:

• If valuation is made at moving average price and actual cost exceeds standard cost, the system debits the inventory account and credits the inventory change account.
• If valuation is made at moving average price and actual cost is less than standard cost, the system debits the inventory change account and credits the inventory account.

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

The prerequisites for this are as follows:

• In repetitive manufacturing, you must specify in the repetitive manufacturing profile that an automatic goods receipt is to be generated when the actual data are entered for the last reporting point.

• In order-related production and process manufacturing, you must specify in the control key of the routing that the last operation is a reporting point (repetitive manufacturing) or a milestone (order-related production and process manufacturing).
• In order-related production and process manufacturing, you must specify in the control key of the routing that an automatic goods receipt should be generated.

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.

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

Also make the following additional settings:

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.

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.

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:

• The activity quantity is determined on the basis of the quantity structure in the current standard cost estimate for the material produced, or in the preliminary cost estimate for the product cost collector. You can change the activity quantity manually.

• The current price for each activity type is taken from Cost Center Accounting on the basis of a valuation variant. The valuation variant is selected through the costing variant for the actual costs. The costing variant for the actual costs is selected through the order type of the production cost collector.

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.

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