Delivery & Goods Issue

1. Business-User Summary

The Delivery and Goods Issue process handles the physical fulfillment of a customer's order. It involves checking stock, picking the items from the warehouse, packing them, and legally transferring ownership of the goods to the customer (Post Goods Issue).

2. Why This Process Matters

This is where digital records turn into physical actions. Efficient delivery processing ensures the customer gets what they ordered on time. The "Post Goods Issue" (PGI) step is financially critical because it reduces our inventory value and officially records the Cost of Goods Sold (COGS).

3. Where It Fits in Order-to-Cash

This occurs after a Sales Order is created and released from any credit blocks, and directly precedes the Billing and Invoicing process.

4. Trigger, Input, Output, Owner, Frequency

• Trigger: Sales Order reaches its scheduled material availability date.
• Input: Approved Sales Order, Available Stock.
• Output: Outbound Delivery Document, Picking List, Packing Slip, Material Document (PGI).
• Owner: Warehouse / Logistics.
• Frequency: High (Daily).

5. Roles Involved

• Sales / Customer Service: Ensures the order is ready for delivery.
• Warehouse Picker: Physically collects items from the bins.
• Warehouse Packer: Packs items and generates shipping labels.
• Logistics Manager: Posts Goods Issue when the truck leaves the dock.

6. BPMN Process Flow

7. Step-by-Step Process

1. Delivery Creation: The system or a logistics planner creates an Outbound Delivery for sales orders due to ship.
2. Picking: A picking request is generated. Warehouse staff locate the items and bring them to the shipping area. The exact quantity picked is confirmed in the system.
3. Packing: Items are packed into handling units (boxes, pallets).
4. Post Goods Issue (PGI): Once the truck leaves, PGI is executed.
   • Financial Impact: Stock quantity decreases, inventory value decreases, and Cost of Goods Sold (COGS) increases.
   • Status Update: The delivery is marked as complete, and the order is handed over to Finance for billing.

8. SAP Transaction / Fiori Touchpoints

• VL01N / VL10A: Create Outbound Delivery
• VL02N: Change Delivery / Post Goods Issue
• LT03: Create Transfer Order for Picking (if using Warehouse Management)

9. Business Rules & Controls

• Stock Availability: PGI cannot be posted if there is insufficient physical stock in the system.
• Quantity Match: You cannot post goods issue for a quantity larger than what was picked.
• Irreversible Financials: PGI creates an accounting document. To reverse it, a specific cancellation transaction (VL09) must be used before billing occurs.

10. Fit-Gap / Customization Notes

• Custom Development (WRICEF): Ameco uses a custom mobile app for warehouse staff to scan barcodes during picking. This interface automatically updates the picked quantity in SAP, replacing the standard manual entry in VL02N.

Source Document Reference

Knowledge Check

Question: Which of the following happens exactly when "Post Goods Issue" is executed? A) The Sales Order is created. B) The system reduces inventory value and posts Cost of Goods Sold. C) The customer's credit card is charged. D) The invoice is printed and emailed.

(Answer: B)