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The Sign-Off Table

Lesson 5 of 6

Goods receipt and technical completion

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The finished alternators enter stock through a goods receipt for the production order, movement type 101 with reference to the order (reversal 102). The receipt is usually posted after the last operation, either manually in MIGO (Goods Receipt, reference Order) or automatically by the confirmation of the last operation, if the operation's control key or the production scheduling profile says so.

  1. Last operation confirmedEnd-of-line test at TEST-10: 195 pieces yield
  2. Goods receipt (101)MIGO with reference to the order, or automatic at confirmation
  3. Stock195 pc CMC-ALT-100 into storage location 171B (or into quality inspection stock if QM is active)
  4. Journal entryFinished goods inventory debited at standard $150 × 195 = $29,250; production output credited with the order as cost object
  5. Order statusPDLV while partly received; DLV when the full quantity is received or delivery is flagged complete
Receiving finished alternators from the production order.
The Sign-Off Table · thesignofftable.com/academy/sap-pp-204

Because CMC-ALT-100 is valued at a standard price, the receipt posts at $150 per piece regardless of what the order actually cost. The difference between actual costs on the order (components, activities, scrap) and the credit from the receipt is the order variance. Finance settles it at period end, typically to a price difference account, with the material as the settlement receiver.

Under-delivery, over-delivery and delivery completed

The order quantity was 200, five were scrapped, so 195 is a realistic final receipt. Tolerances on the order decide whether the system warns or stops when the receipt is lower or higher than planned. The delivery completed indicator tells the system no more receipts are expected; MRP stops expecting the missing five. Without it, MRP may still count five alternators as incoming.

An order that will never deliver its last five alternators must say so, or MRP keeps counting them as incoming supply.
The Sign-Off Table · thesignofftable.com/academy/sap-pp-204

Technical completion (TECO)

Technical completion closes the order from a logistics point of view. According to SAP's documentation, setting TECO makes the order no longer relevant for MRP, deletes open reservations and capacity requirements, deletes purchase requisitions for external operations or non-stock components, and sets status TECO on the order and its operations. The order can no longer be changed, although its data stays visible. Postings are still allowed, for example a forgotten goods issue or confirmation. TECO can be revoked if the order has to be corrected.

StatusAllowsBlocks
RELGoods issues, confirmations, goods receipts, changesSettlement of final variances until period end
DLVFurther confirmations and late goods issuesMRP no longer expects receipts from the order
TECOLate postings that were forgotten; revoking TECOChanges to the order; it disappears from MRP and capacity load
CLSDDisplay onlyAll postings, including late ones (set after final settlement)

What key statuses allow and block. Check your business transaction control settings, which can be adjusted.

Each closing status narrows what the order allows: TECO takes it out of planning but still accepts late postings, and only CLSD after settlement ends all postings.
The Sign-Off Table · thesignofftable.com/academy/sap-pp-204
  1. Is all expected output received or written off?No → leave the order open or receive the rest · Yes → next question
  2. Are all confirmations and component issues posted, and is COGI clean for this order?No → fix them first · Yes → set TECO
  3. Has finance settled the final variance?No → order stays TECO until period-end settlement · Yes → order can be closed (CLSD)
When an order is ready for TECO and closing.
The Sign-Off Table · thesignofftable.com/academy/sap-pp-204

What would you do?

A supervisor wants to set TECO on an order with 20 alternators not yet received, because the line has moved on. What do you advise?

Key points
  • Goods receipt for the order is movement type 101; it can be manual or automatic at the last confirmation.
  • At standard price, the receipt posts at standard; the difference to actual cost is the order variance.
  • Delivery completed tells MRP not to expect more receipts.
  • TECO removes reservations, capacity requirements and MRP relevance, but late postings remain possible.

Check your understanding · not graded

Lesson check

  1. 1. Which movement type receives finished goods from a production order?

  2. 2. What happens to open reservations when an order is set to TECO?

  3. 3. After TECO, a clerk finds a goods issue that was never posted. Can it still be posted?

  4. 4. Five of 200 alternators were scrapped and 195 received. What tells MRP not to expect the last five?