Part 1
Course reading
Goods in transit describes material moving between locations or partners before the receiving process is complete. Physical location, ownership, risk transfer and availability are different questions. Incoterms describe delivery obligations and risk, but contractual terms and accounting policy determine when ownership and valuation are recognised. Do not assume every shipment in transit must use SAP movement 107; stock transport orders and other processes can use different movements.
In the standard SAP MM valuated goods receipt blocked stock process, movement 107 records a goods receipt into valuated GR blocked stock against a purchase order. The stock is valuated but not yet released into ordinary usable stock. It differs from movement 103, which represents the non-valuated GR blocked stock process in the standard design. Movement 109 releases the quantity recorded with 107. Always check that this process is appropriate for the contract, material and local configuration before posting.
Worked example: a PO is for 120 pumps. The business has approved recognising 100 pumps in valuated GR blocked stock while final acceptance is outstanding. A 107 posting records those 100; it does not make them automatically available for production. The remaining 20 are still an open order quantity. When only 90 of the 100 are accepted, release the supported 90 with 109 and investigate the remaining ten. Receiving the full 120 just to close the PO would overstate receipt.
Track PO/item, vendor, shipment reference, 107 material document, quantity, valuation date, physical location, acceptance owner and expected release date. Monitor ageing and blocked value. Compare carrier documents, quantities, batch/serial numbers and approved risk-recognition evidence. Prevent duplicate receipts by matching existing material documents before posting. Movement 108 normally reverses a 107 posting; obtain authorisation and check follow-on documents first.
An effective handover tells stores what is physically arriving, quality what must be accepted, finance what has been valuated and planning what is still unavailable. The key distinction is valuated does not mean available. Test the sequence with SAP support in a sandbox rather than using these examples as production-posting instructions.