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The Sign-Off Table

Lesson 5 of 6

Goods issue and what it updates

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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.

  1. 15:30Staging complete50 alternators in three handling units at DR05
  2. 15:50Loading confirmedDriver loads; delivery order loading status complete
  3. 16:00Goods issue postedEWM outbound delivery created; logistics delivery updated
  4. 16:00Inventory and financeMaterial document (movement type 601) and journal entry
  5. 16:05Billing dueDelivery appears in the billing due list for Maria's team
Goods issue for delivery 80001234.
The Sign-Off Table · thesignofftable.com/academy/sap-ewm-203

What goods issue updates

AreaResultWhere to check
EWMEWM outbound delivery created; stock leaves the staging bin; delivery order status complete/SCWM/FD; warehouse monitor
Logistics deliveryGoods movement status complete; quantities as shippedDelivery display; document flow
Inventory managementMaterial document with movement type 601 from plant 1710, storage location 171AMaterial document list
FinanceJournal entry: cost of goods sold debit, inventory credit at standard cost ($150 each)Accounting document from the material document
SalesDelivery relevant for billing; order status updatedSales 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.

Goods issue from EWM in Detroit must post the same accounts as goods issue in inventory management in Chicago; only the standard cost differs.
The Sign-Off Table · thesignofftable.com/academy/sap-ewm-203

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?

  1. Is all of the delivery quantity picked and staged?Yes → post goods issue for the full delivery · No → next
  2. Does the customer accept partial deliveries?No → hold the delivery until complete or escalate to Maria · Yes → next
  3. 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
Deciding what to do with a short delivery at departure.
The Sign-Off Table · thesignofftable.com/academy/sap-ewm-203

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.

Reversing an early goods issue starts in EWM; the stock returns to the books with movement type 602, and putting it back in a bin needs separate tasks.
The Sign-Off Table · thesignofftable.com/academy/sap-ewm-203

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?

Key points
  • 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. 1. Which movement type does the goods issue for delivery 80001234 post?

  2. 2. What journal entry does goods issue of 50 alternators at standard cost create?

  3. 3. Which EWM document is created when goods issue is posted?

  4. 4. Goods issue was posted before the truck left. Where should reversal start?