One popular interview question in SAP interviews is regarding Post Goods Issue. I am discussing the concept below.

Q). What happens in SAP when a PGI Post Goods Issue is made?

Answer:

When a post goods issue is made in SAP, the ownership of the materials is transfered to the carriers. The carrier in turn transfers the ownership to the final customer once goods are delivered. This updates the system data. In simple terms, the stock quantity gets updated in SAP. On PGI, stock gets reduced from the inventory. Similarly, stock figures also get updated in General Ledger. This increases the COGS Cost of Goods Sold and reduces the inventory figure.

SAP updates all old documents so as to indicate that delivery is complete. Stock Requirement list is also updated T-code MD04, removing the stock item from the requirement list. Finally, delivery status is updated in SAP enabling the billing due list so that goods shipped can be billed.