Owen Dun, senior SAP Specialist for Publicly Traded Corporations
The complete concepts of PGI are provided as follows:
PGI - Stands for “Post Goods Issue”. It is a significant phase in the Sales Order processing. In its simplest form, it is a confirmation of delivered quantity. PGI is the final step of the delivery/shipment processing; it is the stage where the ownership of the goods transfer to the customer and the stock is being updated. PGI transfers the ownership of the material to the customer; accordingly, your company’s Inventory reduces – it signifies the end of the delivery processes. At PGI, there is integration with Inventory Management by reducing the inventory stock quantity and the related Material document reflects the stock quantity update. Likewise, it also triggers integration with FICO by reducing the stock value and the Accounting document reflects the stock value update. There are some activities that will happen after the PGI of the delivery document of the Sales Order. They are:
1. Reducing warehouse stock & updating inventory management.
2. Posting the value change to the stock accounts in the inventory account.
3. Reducing the delivery requirement.
4. Updating the document flow and status of the preceding document.
5. Creating work list for billing due list.
During PGI, the stock status and accounting entry is passed into MM and FI modules for updating. The accounting entries are follows:
Cost of goods sold …………DR. $ xx,xxx
Inventory …………………….CR. $ xx,xxx
Once PGI is performed, stock reduces from the companies stock and the delivery is completed. No longer have the goods remained as the property of the company, as soon as PGI is done.
***For Advanced SAP users:
During PGI your inventory is getting reduced or shipped to the customer using movement type 601. When conducting PGI, these documents will be generated by the following t-codes:
1. Material Document (MB03)
2. Financial Document (FB03)
3. Co Document (KSB61)
One can create a delivery today and SAVE it WITHOUT doing PGI. Then, after a few days, one can go to VL02N & do the PGI. One can also do Partial PGIs under VL06. PGI can be reversed by using the t-code vl09n. One can create a Proforma Invoice from Delivery Document before PGI & then create actual Invoice after doing PGI. For Proforma Invoice before PGI, one can follow this path:
IMG –> Sales and Distribution –> Billing –> Billing Documents –> Maintain Copying Control For Billing Documents –> Copying control: Delivery document to billing document.
Here, select the Delivery & Billing Type & at Header Level in Copying requirements insert routine 11 – Head.dlv-rel.w/o GI. No other setting is required for Delivery to actual Invoice. Movement type is assigned to the schedule line of the line item & 601 movement type is used for PGI.
Note: in the case of Inventory Consignment, in the stage of ‘fill up’ delivery, when you post goods issue via 631 movement, neither accounting document nor material document will be generated because you are just moving your stock from one place to another (from unrestricted to special stock). In the later stage where you generate ‘issue’ delivery via 633 movement, both the above documents will then be generated.
In conclusion, PGI has the following effects on SAP:
1. Billing Due list is updated.
2. Inventory quantity / valuation are updated including material planning.
3. LIS is updated.
4. Updated the Document flow in Sales Documents.
Hope that this document can provide you with some insights on how SAP's PGI works.
Owen Dun, senior SAP Specialist for Publicly Traded Corporations
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