Warehouse Management

What is Goods Receipt? Process and Template

Ngoc Lee
What is Goods Receipt? Process and Template
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When businesses want to store information in moving goods from suppliers, they will use goods receipts. Seen as an important component in managing the movement of items in the warehouse, goods receipts will help make this process more transparent and optimize the business's shipping decisions.

What is a goods receipt?

What is a goods receipt
What is a goods receipt

 Goods receipt is a document used by all businesses involved in the purchase and sale of goods. Goods receipts are used to record and track the transport of commodities between two suppliers. When using merchandise receipts, you will ensure that all items are accounted for. These receipts will be used as evidence if there is a mistake or dispute during the transportation of the goods.

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Goods Receipt Types in SAP

Some of the commonly used SAP cargo receipt types are:

  • Ordered products are delivered
  • Receiving products in accordance with the job order
  • Receive things by delivery
  • Receipts for Goods with No References

In most cases, the merchandise receipt generated in connection with a manufacturing order or order contains all the information needed for business planning. 

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Receipt of Purchase Order

Goods are typically received in the SAP Materials Management (MM) module with reference to the purchase order issued by the buying department. Purchase orders are essential for tracking controlling inventories and purchases.

Receipt of Production Order Goods

Goods are often received with reference to a manufacturing order in SAP's Production Planning (PP) module. A production order explains why a substance is being manufactured. It is a crucial tool for inventory planning and management.

Receipt for Other Goods

You can specify reserved amounts to plan goods receipts when establishing goods receipts without a purchase or manufacturing order.

The WM System's Goods Receipt Process

The warehouse management system (WM) includes transactions from checking the barcode on a slip of the container to the process of transporting goods into the warehouse. The process of transporting goods into the warehouse will be automated if using a warehouse management system. If shipping is done manually, the receiving process will include the following stages:

  • Enter item receipts into IM (Inventory Management) to start the receiving process in WM
  • An amount is allocated to a container for temporary storage and a transfer request is generated as soon as you post in the IM
  • The system activates the transfer order
  • The system uses search capabilities to find out where goods are located in advance and to load them when they enter the warehouse.
  • After activating the transfer command, the system begins to move goods from the temporary storage bin to the storage bin.
  • The enterprise will send an employee to confirm the shipment. Or if you want to automate this process, you can take advantage of the help of RF equipment.
  • As for the difference between the requested and delivered quantities, they will be recorded in the WM if present or deleted in the IM section.

Order Transfer Without Posting in IM

Order Transfer Without Posting in IM
Order Transfer Without Posting in IM

You can also start the pick-up procedure by manually issuing a transfer order; no transfer request is required for this. The product's receipt can then be posted in the IM.

The Workflow for Goods Receipt

A receiving process will include the following 5 steps:

Goods Identification

The first step of the receiving process is to determine that the goods have been received. This can be done by comparing packing lists or purchase orders with actual items that were delivered. Once the products have been identified, they must be cross-checked with the shipping invoice to confirm that they are all present and correct.

Checking the Quantity and Condition of the Goods

The next step is to verify information regarding the status and quantity of the item that has been received. To do this, you can check to see if the goods are in sufficient quantity, for any damage or loss. If the goods are damaged or missing, this needs to be included in the invoice to claim compensation from the carrier.

Unloading and storing merchandise

You can perform unloading and placing goods in the warehouse by placing them in the specified place in the warehouse. You should plan to arrange the goods in advance to make it easier to pick up the goods later. For example, best-selling products should be placed outside, lightweight items can be placed on higher shelves, etc. 

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Keeping Track of Received Goods

To record receipts, you can do this by creating an inventory list on paper or on a computer. The best way is to use inventory software to make recording more convenient. The inventory list also needs to be constantly updated based on current inventory counts.

Notifying Purchaser of Received Goods

The final step in the delivery process is the receipt of the goods. You can send notifications to your home via email. Once they receive the notification, the suppliers will initiate a new order process or handle the issues you requested.

After Issuing a Goods Receipt, Faulty Goods Are Discovered

Goods Found to Be Faulty After Issuing Goods Receipt
Goods Found to Be Faulty After Issuing Goods Receipt

If there are any errors after making a receipt, it is necessary to return the delivery note as quickly as possible to notify the person in charge of the payment or the business's finance party for information.

The Advantages of a Productive Goods Receipt Process

If you feel that receiving goods takes a lot of time and resources, you can apply SAP software. This software will help simplify the receiving process through its electronic automation capabilities. The benefits that businesses receive when building an effective receiving process are:

  • Ability to track delivery address and time
  • Reduce time in payment authorization
  • Limit the risk of payment authorization for damaged products
  • Limit the situation of goods being stolen, lost or unused
  • Make it easier and more convenient to split orders and authorize full billing for partial orders

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The above information has given you basic information about the goods receipt - an important component in building an efficient and transparent exchange process. The benefits of goods receipt have pushed businesses to find a way to apply it in their business in a suitable way. To do that, they will evaluate the characteristics of their goods, consult with partners, apply technology in storing goods receipts, etc. Hope you have a good time with Efex.

Ngoc LeeNgoc Lee is an Content Creator Manager at EFEX. She wields her long-term expertise in Logistics and Supply Chain, harnessing her top-notch writing and research skills to bring incredibly valuable content. Whether you're a small startup or a well-established enterprise, Ngoc Lee is here to equip you with the essential knowledge of e-commerce, fulfillment, and all things business-related.