Goods Receipt refers to the process of formally accepting and recording the delivery of goods into a company’s inventory. It marks the physical receipt of materials, verifying that the delivered items match the specifications of the purchase order. Once goods are received, this triggers the process to update inventory levels and handle the accounting aspects related to that specific receipt.

The Goods Receipt from Vendor process in SAP ERP starts with the creation of a purchase order by the purchasing department. Following the vendor’s shipment of goods, the warehouse clerk initiates the goods receipt process linked to the previously generated purchase order. This is completed by performing material document posting. The system then determines whether the goods are destined for a Warehouse Management (WM) storage location. If a WM storage location is involved, the system automatically generates a transfer requirement, which prompts the creation of a transfer order. This transfer order includes selection of predefined location and bin. When the transfer order gets confirmed , the warehouse stock is updated. If a WM storage is not required, inventory stock is directly updated in inventory. In either case, the process ensures all goods are properly received, accounted for, and appropriately stored in the correct location.