Akila Wedasinghe
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SAP Two-Step Goods Receipt Processes
A comprehensive guide to understanding the different approaches for two-step goods receipt in SAP
Introduction to Two-Step Goods Receipt
In SAP, a two-step goods receipt process allows organizations to split the receipt of goods into two distinct steps, each with different impacts on accounting, inventory, and material planning. This approach is useful in various business scenarios where a single-step goods receipt is not sufficient.
Comparison of Two-Step GR Approaches
SAP offers multiple approaches to implement a two-step goods receipt process. Here's a comparison of the two main methods:
| Aspect | Origin Acceptance (107/109) | GR Blocked Stock (103/105) |
|---|---|---|
| First Step | Movement Type 107 | Movement Type 103 |
| Second Step | Movement Type 109 | Movement Type 105 |
| Accounting Document (First Step) | Generated | Not Generated |
| Accounting Document (Second Step) | Not Generated | Generated |
| Stock Update (First Step) | Stock moved to Block Stock | Stock moved to GR Block Stock |
| MRP Update (First Step) | Not Updated | Not Updated |
| MRP Update (Second Step) | Updated | Updated |
| Key Business Case | When goods are legally yours but not physically at your location (e.g., at port) | When initial receipt by unqualified staff needs further verification by finance |
Note: Both approaches achieve the same end result (goods in unrestricted stock), but they differ in when the financial posting occurs and who does the verification.
Origin Acceptance Process (107/109)
The Origin Acceptance process uses movement types 107 and 109 to implement a two-step goods receipt with financial posting in the first step.
Goods Receipt to Valuated Block Stock
Financial Posting GeneratedMaterial in Block Stock
MRP Not Updated Accounting UpdatedTransfer from Block to Unrestricted
No Financial PostingMaterial in Unrestricted Stock
MRP Updated Accounting Already UpdatedWhen creating the purchase order, set the "Origin Acceptance" indicator. This tells the system that a two-step goods receipt process will be used.
When goods are legally yours (as per incoterms) but not physically at your location, perform the first goods receipt step:
- Transaction: MIGO
- Movement Type: 107 (automatically selected based on origin acceptance)
- Quantity: Enter the quantity received
When goods physically arrive at your location, perform the second goods receipt step:
- Transaction: MIGO
- Movement Type: 109 (automatically selected if 107 was used first)
- Quantity: Enter the quantity to move from blocked to unrestricted
Important: The Origin Acceptance process is particularly useful for international shipments where incoterms define the transfer of ownership before physical receipt at your location.
GR Blocked Stock Process (103/105)
The GR Blocked Stock process uses movement types 103 and 105 to implement a two-step goods receipt with financial posting in the second step.
Goods Receipt to GR Blocked Stock
No Financial PostingMaterial in GR Blocked Stock
MRP Not Updated Accounting Not UpdatedTransfer from GR Block to Unrestricted
Financial Posting GeneratedMaterial in Unrestricted Stock
MRP Updated Accounting UpdatedNo special indicators are needed in the purchase order for the GR Blocked Stock process.
When goods are initially received but require further verification before financial posting:
- Transaction: MIGO
- Movement Type: 103 (manually selected in MIGO)
- Quantity: Enter the quantity received
When verification is complete and goods are ready to be financially posted:
- Transaction: MIGO
- Movement Type: 105 (manually selected in MIGO)
- Quantity: Enter the quantity to move from GR blocked to unrestricted
Key Benefit: The GR Blocked Stock process allows initial receipt by warehouse staff without financial impact. Finance/accounting personnel can then verify details before financial posting.
Business Scenarios for Two-Step GR
Understanding when to use each approach is critical for implementing the right solution for your business needs.
When incoterms specify that goods become yours at origin or port of entry, but they haven't reached your warehouse yet.
For example, with incoterms like DAP (Delivered at Place) or CIF (Cost, Insurance, and Freight), goods legally become yours at the port of entry, but they might take days or weeks to clear customs.
Using Origin Acceptance (107/109) allows you to:
- Record the financial impact as soon as ownership transfers
- Maintain accurate financial statements at period-end
- Track goods in transit separately from regular inventory
When warehouse personnel receive goods but aren't qualified to verify financial details.
Warehouse staff may be able to confirm receipt of physical goods, but might not have the expertise to verify:
- Cost center allocations
- GL account determinations
- Price discrepancies between PO and delivery documents
- Tax implications
Using GR Blocked Stock (103/105) allows warehouse staff to record receipt, while accounting personnel later verify financial details before posting to the general ledger.
When security guards record initial receipt at the gate before detailed warehouse inspection.
At many facilities, the initial receipt happens at a security gate where guards:
- Record the arrival of the truck/shipment
- Check basic delivery information
- Direct the shipment to the appropriate unloading area
Using GR Blocked Stock (103/105) allows security personnel to record the initial receipt (103), while warehouse staff later verify quantities and conditions before financial posting (105).
When goods need quality inspection before being available for use.
For materials requiring quality inspection:
- Origin Acceptance (107/109) is appropriate when financial liability is accepted before inspection
- GR Blocked Stock (103/105) is appropriate when financial liability depends on passing inspection
Note: SAP also offers dedicated Quality Management functionality that can be used instead of or in addition to these processes.
Best Practice: Choose the approach that best reflects when financial liability is accepted and who is responsible for verifying financial details.
Key Transaction Codes and Verification
Use these transaction codes to implement and verify two-step goods receipt processes:
Implementation Transactions
- ME21N - Create Purchase Order
- MIGO - Goods Movement (both steps)
- MB01 - Post Goods Movement (alternative to MIGO)
Verification Transactions
- MMBE - Stock Overview (check stock status)
- MD04 - Stock/Requirements List (check MRP impact)
- MB51 - Material Document List
- MB5T - Stock in Transit Report