Delivery & Goods Issue

1. Simple Business Explanation

Once a sales order is confirmed and materials are available, the warehouse team prepares the order for shipment. This involves creating a delivery document, picking the items from the shelf, packing them, and formally issuing the goods out of inventory.

2. Where This Process Fits

This is the fulfillment stage of the Order to Cash cycle.

3. Departments and Roles

• Owner: Warehouse / Logistics Department
• Key Roles: Warehouse Manager, Picker, Packer, Shipping Clerk

4. Step-by-Step Process

1. Create Outbound Delivery: System generates a delivery document based on the sales order.
2. Picking: Warehouse staff locates and retrieves the items.
3. Packing: Items are securely packed for transport.
4. Post Goods Issue (PGI): A transaction that formally reduces inventory and recognizes the cost of goods sold (COGS).

5. Business Rules & Controls

• Inventory Check: Delivery cannot be created if sufficient unrestricted stock is not available.
• PGI Block: Goods issue cannot be posted until picking is 100% complete.

6. ERP / SAP Touchpoints

• Standard T-Codes:
  • VL01N (Create Outbound Delivery)
  • VL02N (Change Delivery / Post Goods Issue)