Lesson 5 of 6
Goods issue and what it updates
10 min
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Goods issue is the moment the alternators stop being Contoso's inventory and become a cost of sales on their way to a customer. In embedded EWM it is posted from the warehouse side, and its effects reach sales, inventory and finance at once. Getting it right, and testing it properly, is where warehouse and order-to-cash meet.
When goods issue is posted
SAP describes three common triggers: manually from the outbound delivery order once goods are in the goods issue zone; automatically when products reach the staging area; or when the loaded truck leaves, through the transportation unit or vehicle. Contoso posts goods issue manually from the delivery order at departure, because Marcus wants a person to confirm the truck really left.
- 15:30Staging complete50 alternators in three handling units at DR05
- 15:50Loading confirmedDriver loads; delivery order loading status complete
- 16:00Goods issue postedEWM outbound delivery created; logistics delivery updated
- 16:00Inventory and financeMaterial document (movement type 601) and journal entry
- 16:05Billing dueDelivery appears in the billing due list for Maria's team
What goods issue updates
| Area | Result | Where to check |
|---|---|---|
| EWM | EWM outbound delivery created; stock leaves the staging bin; delivery order status complete | /SCWM/FD; warehouse monitor |
| Logistics delivery | Goods movement status complete; quantities as shipped | Delivery display; document flow |
| Inventory management | Material document with movement type 601 from plant 1710, storage location 171A | Material document list |
| Finance | Journal entry: cost of goods sold debit, inventory credit at standard cost ($150 each) | Accounting document from the material document |
| Sales | Delivery relevant for billing; order status updated | Sales order document flow; billing due list |
Results of one goods issue in embedded EWM.
For 50 alternators at Detroit's standard cost of $150, the journal entry is $7,500 cost of goods sold against inventory. Dan, the finance process owner, does not need to see every delivery, but he needs proof that goods issue from EWM posts the same accounts and amounts as goods issue posted directly in inventory management for an IM-only plant such as Chicago. That comparison belongs in the integration test set.
Partial shipments and splits
Because a goods issue must cover the full quantity of the logistics delivery, partial shipments need a delivery split, triggered from EWM. If 44 of 50 alternators are picked and the truck must leave, the delivery order is adjusted so that 44 ship on the original delivery and 6 move to a new delivery, or the open quantity is handled as the business decides. The exact options depend on configuration, so the business rule must be written down before testing: does Great Lakes accept partial deliveries, and does a backorder stay on the sales order?
- Is all of the delivery quantity picked and staged?Yes → post goods issue for the full delivery · No → next
- Does the customer accept partial deliveries?No → hold the delivery until complete or escalate to Maria · Yes → next
- Can the rest ship within the agreed time?Yes → split, ship the picked part, keep the rest on a new delivery · No → split and reduce the delivery, leaving the backorder on the sales order
Undoing a goods issue
Sometimes goods issue is posted too early, for example before a truck actually leaves. In embedded EWM the reversal starts from the warehouse side, which updates the delivery and inventory; reversing directly in the logistics delivery does not work the same way for EWM-managed deliveries. The physical return of the goods to a bin then needs its own tasks. Reversal rules and prerequisites vary, for example once billing has happened, so test the reversal you will actually need.
What would you do?
Goods issue for 50 alternators was posted at 14:00 by mistake; the truck leaves at 16:00 and the order is still physically in staging. Billing has not run. What should happen?
- Goods issue can be posted manually, at staging, or at truck departure; Contoso posts at departure.
- It creates the EWM outbound delivery and updates the logistics delivery, inventory (601) and finance.
- Partial shipments need a delivery split; write the customer's partial-delivery rule into the test case.
- Reverse an early goods issue from the EWM side and test the reversal you will really use.
Check your understanding · not graded
Lesson check
1. Which movement type does the goods issue for delivery 80001234 post?
2. What journal entry does goods issue of 50 alternators at standard cost create?
3. Which EWM document is created when goods issue is posted?
4. Goods issue was posted before the truck left. Where should reversal start?