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Introduction

Hello and welcome to sap learning academy and welcome to this tutorial. In this tutorial, I will be telling you about inbound and outbound delivery and what is the relation between goods receipt and goods issue.
So you will have overall information on how this supply chain management works in sap.

Flowchart

flowchart

So first we will be showing you a flowchart, then some definitions of inbound and outbound, then the relationship with grungy, and some t-codes about inbound and outbound creation.
So that is the main point that we need to understand the flow chart here everything starts with the purchase order. When a company needs some material so they first create a purchase order and that order goes to the vendor then the vendor now based on the uh agreement with the company
so the vendor sends the material or you know just to the warehouse is the company’s you know shipping point where all kinds of the material come from different vendors so here is this processing from the purchase order and up to this warehouse or shipping point that’s what we call inbound processing
meaning that your vendor is sending the material in terms any the logistic process can be any communication system like track or van whatever it is so that inbound and that time the inbound document will be created and on the other side when you are having when the store is raising a sales order to the warehouse then the warehouse sends that material into the store so that process is called outbound processing and where the gr and gi lie the gear is lying here when the material received at the warehouse that’s called you are receiving the goods you are verifying the goods that are called goods receive and as soon as you do the outbound when as soon as you just put the material again into the track in some communication systems like track or van whatever it is or company van so that’s what we call outbound processing and here we create the gi ei means goods issue so this is the complete approach that what every kind of ERP system follows and every kind of company follows.

Definition Of Inbound

When a purchase order is created to the vendor they provide the material and once it is reached to their warehouse or shipping point and as per confirmation based on the as Tim is a new term here advanced shipping notification meaning that so that is the notification meaning that between your supplier and customer your vendor and company so what is the so supplier send some notification like quantity and
the material and all so for the confirmation so once the company confirms that so the inbound processing starts.

Definition Of Outbound

When a store or customer raises a sales order to the company then the company creates an outbound delivery process so here I’m talking about the warehouse or shipping point actually sending the material from the storage bin to the delivery pika van.

Relation With GR and GI

GR and GI so here are goods received as I said earlier so receipts the goods are shipping point or warehouse based on the purchase order GR will start once based on inbound delivery and updates into
production or company account meaning that when the goods are received meaning that your inbound should be available at that moment so the year will be done based on inbound delivery and that stock will be updated into the system on the other side if I talk about goods issue so once the outbound delivery is done at shipping point then it will generate the GI meaning that the GI process which contains lowering the inventory stock and warehouse on the other side if I talk about gr it increases the inventory stock and on the other side in gi, it lowers your inventory stock and also after that, you should also provide the uh you should update the financial document because you need to pay the vendor so that is the point where you receive your gi and you do the gi you receive the goods and do the gi then
you’re the payment process starts to the vendor, you have to update all the financial documents and so on.

T-Codes

So now we are coming to the last part which is the t codes of inbound and outbound so for the inbound.
in order to create inbound delivery you have at code v l 31n. For changing inbound delivery vol 32n. Inbound delivery monitor vol 061 and on the other side if I talk about outbound. To create outbound vol 0 1n and vol o2 change outbound and vol or 2n change outbound and for display vl03.
So that is all about this topic and where we discussed these process inbound and outbound processes, how does it work, and very importantly that the chart is in this slide so what is the main part which you need to understand how does it work in supply chain management.

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