Module 5 · Transport + inbound SAP

Goods in Transit, Logistics & Receipt

Inbound logistics, tracking goods in transit, freight modes, delivery scheduling, goods receipt against PO, handling unit management and stock posting.

Course reading

Understand the process

Part 1

Track the journey before the warehouse

Goods in transit have left the supplier but are not yet available for production. The transport booking, dispatch notice, tracking reference and expected arrival date tell planners whether material is genuinely on its way. Ownership and stock accounting can change at different points depending on the agreed delivery terms; do not assume that dispatched means received.

Consider 500 units shown as shipped on Friday but not delivered until Tuesday. If the plant counts them as usable on Friday, it may promise production it cannot start. If it ignores the shipment entirely, a buyer may place a duplicate emergency order. A shared in-transit record avoids both errors.

Part 2

Receipt is a controlled handover

At arrival, match the delivery against the PO: material, quantity, packaging and any visible damage. Post the goods receipt in SAP using the correct document and stock status. Quarantine items that require inspection rather than moving them straight into unrestricted stock. Then reconcile short shipments, excess quantities and transport damage with the supplier.

A goods receipt updates the system, but it does not prove the material is ready to use. The chain continues through quality inspection and putaway. Keep the PO, transport reference, receipt and any discrepancy record linked so a later stock or invoice question can be answered.

What you must take away

Goods in transit is real stock with real value — it belongs in the plan, not in a blind spot.
The receipt date that matters is the one when stock becomes usable, not when the truck arrives.
Short and damaged receipts must be recorded at the gate, not discovered at month end.

In the SAP process

Create the inbound delivery against the purchase order and confirm the ASN quantity.
Post the goods receipt against the PO with the correct movement type and batch.
Record shortages or damages as a separate line with a reason code, not as a silent adjustment.

Case study

The month-end shipment that existed twice

Setting. An import-heavy operation with sea freight lead times of five to seven weeks.

Problem. Finance and planning disagreed on stock every month end. Planning counted containers at sea; the system did not.

How it was investigated

Mapped where ownership transferred for each Incoterm actually in use.
Compared the shipping documents with the goods receipt postings for one month.
Found receipts posted on paperwork arrival, not on physical arrival.

What was changed

Introduced inbound deliveries so in-transit quantities were visible before receipt.
Aligned the posting rule to the Incoterm ownership point.
Added a weekly in-transit review to the shortage meeting.

Outcome. The month-end stock discussion moved from arguing about numbers to acting on them.

Lesson: Make in-transit stock visible in the system, or your planners will keep a private spreadsheet.

Illustrative composite of common shop-floor situations — no client names or confidential figures.

Practical template

Goods-in-transit tracker

See every shipment between supplier gate and usable stock.

PO	Material	Qty	Dispatched	Incoterm	ETA	Documents received	Status
4500012	MAT-1042	500	12 Mar	FOB	18 Apr	Yes	At port — clearance

How to use it

Update ETA weekly; an ETA older than seven days is treated as unknown.
Flag any shipment where documents are missing — customs delay is a document problem, not a shipping problem.
Feed the ETA back into planning so MRP is not planning against the original date.

Download workbook & KPI template (PDF)

Quick quiz — check your understanding

1. Incoterms define:
2. Common SAP transaction for goods receipt:
3. A bill of lading is:
4. At goods receipt, the storekeeper should check:
5. Tracking shipments helps to:

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