Goods receipt
Goods Receipt (GR) records the physical receipt of ordered goods into inventory, a pivotal step that updates stock quantities and value and posts to finance. It is typically done against a purchase order (transaction MIGO).
GR is a textbook integration point: it updates MM inventory and posts to FI (inventory value, GR/IR) and, for consumables, to CO.
- When goods arrive, a GR is posted (usually referencing the PO): it increases stock at the plant/storage location, updates the…
- Movement types (e.g. 101 for GR against PO) classify the movement.
- GR/IR clearing: the interim account cleared later by invoice verification.
- Watch out: Wrong movement type, incorrect stock/postings.
What happens at goods receipt
When goods arrive, a GR is posted (usually referencing the PO): it increases stock at the plant/storage location, updates the material’s value, and creates financial postings, debiting inventory (or consumption) and crediting the GR/IR clearing account. It is the moment procurement affects both inventory and finance.
Key concepts
- Movement types (e.g. 101 for GR against PO) classify the movement.
- GR/IR clearing: the interim account cleared later by invoice verification.
- Stock types: unrestricted, quality inspection, blocked.
- GR-based invoice verification links receipt and invoice.
Integration
GR is a textbook integration point: it updates MM inventory and posts to FI (inventory value, GR/IR) and, for consumables, to CO. The GR/IR clearing account temporarily holds the offset until the invoice arrives, its balance is a key thing to monitor and clear.
Common pitfalls
- Wrong movement type, incorrect stock/postings.
- Uncleared GR/IR balances accumulating.
- Receiving to the wrong stock type (e.g. unrestricted vs QI).