Goods Receipts 107 & 109 In SAP

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A goods receipt is used to receive material from a purchase order or an in-house production order. Goods receipts are mainly used for receiving stock from an external vendor via a purchase order (PO) or for receiving material from in-house production via a production or a process order.
Goods receipts are also used for movements that initially create inventory in the system or for entering materials received without a PO. Goods receipts are important because they move the material into stock, updating the stock levels and allowing production to occur. In this particular Document we will discuss about Movement type 107 and 109

Goods receipt to Valuated Blocked stock (Movement Type 107)

1. What is Valuated Blocked Stock?

Valuated Blocked Stock refers to inventory that is physically available but is not available for use in the operations until certain conditions are met (e.g., pending quality inspection, approval process, or other restrictions). The goods are still valued in the system, but they are blocked for any further transactions such as issuing, consumption, or sale.

For example, if materials are received and need to undergo a quality inspection before being accepted for use in production, the materials can be stored in Valuated Blocked Stock. This ensures that the value of the goods is recorded but is not available for further processing until approved.

2. Movement Type 107

Movement Type 107 is used specifically to post goods receipts into the Valuated Blocked Stock. It is used in scenarios where the goods are received but are not immediately available for use or consumption due to certain restrictions or conditions.

When the goods are posted using Movement Type 107, the following occurs:

  • The material stock is updated to the Valuated Blocked Stock.
  • The value of the stock is updated in the system, but it is not available for use until it is later moved to unrestricted stock.
  • The stock is blocked for further usage, and any consumption or movements involving the material will not be allowed until it is cleared from the blocked status.

3. Scenario for Using Movement Type 107

A common scenario for using Movement Type 107 is when goods are received but must undergo a quality inspection before being accepted into the warehouse or being used in production.

For example:

  • Materials received from a supplier may be delivered but require inspection for quality assurance purposes.
  • Pharmaceutical goods may be required to be stored in blocked stock until they pass safety checks.
  • Defective or rejected items that need to be returned or processed are often placed in blocked stock until they are either corrected or disposed of.

4. Steps for Posting Goods Receipt to Valuated Blocked Stock (Movement Type 107)

Follow these steps to post a Goods Receipt (GR) to Valuated Blocked Stock in SAP:

Step 1: Access the Goods Receipt Screen

  1. Open SAP and enter the transaction code MIGO for the Goods Movement screen.
    • Alternatively, you can go through the menu: Logistics → Materials Management → Inventory Management → Goods Movement → MIGO.

Step 2: Choose Movement Type 107

  1. In the Goods Movement screen:
    • Select the Goods Receipt (GR) radio button, since you are receiving goods.
    • Choose the correct Document Date (the date the goods are received).
  2. Under Movement Type, select 107 for Goods Receipt to Blocked Stock. You can either manually enter “107” or select it from the drop-down list.

Step 3: Enter the Purchase Order (PO) Information

  1. Document Reference: Enter the Purchase Order (PO) number from which the goods are being received. This ensures that the GR is linked to the correct purchase order.
  2. Item: Enter the item number associated with the material you are receiving.
  3. Quantity: Enter the quantity of the goods you are receiving. Make sure this matches the quantity that is being delivered.
  4. Plant: Enter the plant where the material is being received.
  5. Storage Location: Enter the storage location within the plant where the material will be stored (even though it’s blocked, it still needs to be assigned to a location).

Step 4: Post Goods Receipt

  1. Once all details are filled, review the information for accuracy.
  2. Check the Status: Ensure that the stock is being moved to Blocked Stock (Valuated), not unrestricted stock.
  3. Click Post to confirm the Goods Receipt. After posting:
    • The system will update the stock in the Valuated Blocked Stock.
    • The stock will not be available for any further processing until it is cleared from the blocked status.

5. Viewing the Stock in Valuated Blocked Stock

Once the Goods Receipt (GR) to Valuated Blocked Stock has been posted, you can verify the stock using the following methods:

Transaction Code MB52 (Stock Overview)

  1. Go to transaction MB52 to check the stock overview.
  2. Enter the plant and storage location where the goods were received.
  3. Review the stock types and confirm that the material is now in Blocked Stock (B).

You should see the material under the Blocked stock category, and the stock will have a value since it’s a Valuated Blocked Stock.

Transaction Code MMBE (Stock Overview by Material)

  1. Enter transaction MMBE.
  2. Select the Material and the relevant plant/storage location.
  3. Under the stock types, check for Valuated Blocked Stock (sometimes referred to as Blocked Stock (B)).

You will see the quantity and value of the material in Valuated Blocked Stock, indicating that while the material is physically in the warehouse, it is blocked for further use until it is cleared.

6. Clearing or Releasing Blocked Stock

Once the goods in Valuated Blocked Stock pass inspection or the conditions for being “blocked” are lifted, the stock can be moved to Unrestricted Stock using Movement Type 105.

Steps to Release Blocked Stock (Movement Type 105)

  1. Access MIGO again for Goods Movement.
  2. Choose Movement Type 105 (Goods Receipt to Unrestricted Stock).
  3. Select the material and quantity to move from Blocked Stock to Unrestricted Stock.
  4. Post the movement to release the stock and make it available for use in production or for sale.

Business Scenario: During Project in case of import procurement, the buying entity takes
financial ownership of the goods at the vendor premises and is therefore liable to pay the vendor even though the goods have not yet physically arrived at buyer’s location (Plant / Warehouse)

Movement Type 107 – (Accounting document will be generated and this updates the inventory value but stock will not be updated)

Let’s understand this scenario with example.
Assume I am in India and we do order from places like Australia for example. Where shipping can take at least 60 days but the vendor wants to be paid in 45 days. Ownership is legally transferred to us when it leaves Australia and paper work sent. So we record this transfer of ownership using mvt type 107 into plant virtual plant. Invoice is also provided and posted via live.

GR from Valuated GR Blocked stock to unrestricted (Movement Type109)
Movement type 109 — No Accounting document is generated & stock transfer from GR valuated block stock to unrestricted use
Let’s understand this scenario with example
I know that when the goods physically available in India. I need to execute a 109 mvt type to move from restricted to unrestricted when goods may have actually received at plant

Steps involved

  1. Create material – T code: MM01
  2. Create vendor – T code: XK01
  3. Create purchase order – T code: ME21N
  4. Goods receipt to Valuated block stock Movement type 107 – T code: MIGO
  5. GR from valuated block stock into unrestricted use Movement Type 109 – T code: MIGO
  6. Invoice verification – T code: MIRO

Create material(T code: MM01)

Material 60000615 created

Create vendor( T code: XK01)

Vendor 0000100746

Create Purchase Order(T code: ME21N)

Standard PO created under the number 4500022623

Check stock overview in MMBE

Goods receipt to Valuated block stock using Movement type 107 – T code: MIGO

Material document 5000001728 posted

Check stock overview

We can observe the Stock of material still in on-order stock even after GR
Check Accounting Entries during MIGO

Check Purchase order history Tab in ME23N

GR from Valuated block stock into unrestricted use Movement Type 109 – T code: MIGO

Movement type 109 — No Accounting document is generated & stock transfer from GR valuated block stock to unrestricted use
First we will check our stock of material in MMBE

We can observe the Stock of material in on-order stock

GR from valuated Blocked stock to unrestricted use in MIGO Movement Type 109

Material document 5000001729 posted
Let’s check accounting document is generated during MIGO mvt type 109

No accounting Document generated because it is already generated during movement type 107

Let’s check stock of material in MMBE

Purchase order history Tab ME23N

Invoice verification

Document no. 5105609754 created
Accounting entries During MIRO

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