SAP SD Order to Cash Part 3: Delivery, Picking, Packing and Goods Issue

Key takeaway

Execute shipping: delivery creation from due orders (shipping point, route, delivery type), picking (WM/EWM or lean), packing with handling units, goods issue posting stock and COGS, and the common reasons deliveries cannot be created or goods issue fails.

Explanation

📌 KEY POINTS
✅ Deliveries are created from confirmed, due order items per shipping point (VL01N or VL10 due list).
✅ Shipping point and route determine where and how goods leave.
✅ Picking via WM/EWM or lean picking; packing with handling units where needed.
✅ PGI (601) reduces stock, posts COGS and makes the delivery billable.
⚠️ Deliveries fail if schedule lines aren't confirmed/due, blocks exist or data is missing.

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▶ WHERE WE ARE
Part 2 covered the order. Now shipping.

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▶ 1. DELIVERY CREATION

Due list by date, shipping point; delivery type LF.
Copy control order → delivery.

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▶ 2. SHIPPING POINT AND ROUTE

Shipping point from shipping condition + loading group + plant.
Route for transit time and carrier.

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▶ 3. PICKING

WM/EWM tasks or lean picking; confirmation updates picked quantity.

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▶ 4. PACKING

Handling units, packaging materials, labels.

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▶ 5. GOODS ISSUE

Movement type 601; material and accounting documents.
Billing due after PGI.

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▶ STEP BY STEP

Create deliveries with VL10.
Pick and pack.
Post goods issue; check postings.

✅ CHECKPOINT: the delivery shows picked = delivered quantity and PGI status complete.

Code example

ABAP Code

===== STEP 1: delivery =====VL10x due list | VL01N | shipping point determination (OVL2) | route determination (0VRF) ===== STEP 2: picking/packing =====EWM warehouse tasks or WM transfer orders | VL02N packing (HUs) ===== STEP 3: PGI =====VL02N/VL06G post goods issue: 601 → Dr COGS Cr inventory → billing due list

Real project scenario

A distributor's deliveries were created but trucks waited because picking confirmations from EWM arrived late and PGI couldn't be posted. Monitoring warehouse queues and setting alerts for deliveries picked but not issued reduced dock waiting time.

Common mistakes

Ignoring due dates.
Missing shipping point assignments.
Posting PGI without picking.
Unmonitored warehouse interfaces.
No handling of partial deliveries.

Best practices

Use due lists daily.
Keep shipping determination clean.
Monitor warehouse integration.
Define partial delivery rules.
Check PGI postings.

Interview angle

Questions: "How is a delivery created?", "What does PGI post?", "Why can't a delivery be created?"
Strong answer: due items per shipping point, shipping point/route determination, picking via WM/EWM, packing, PGI 601 posting COGS, common blockers.

Practice this lesson

Quick check

1. A delivery exists but PGI fails because a required batch is missing. Which layer should you investigate first?

2. Which condition is most important before a delivery can normally be created from a sales-order item?

3. What does Post Goods Issue normally do in a standard physical-goods O2C process?

Interview questions

1. For a rush order process spanning multiple plants with immediate delivery requirements, how would you architect ATP and requirements transfer to guarantee real-time stock confirmation while avoiding overselling across parallel rush order entry points?

Answer it in your own words first, then compare.

2. A sales order is complete, but no outbound delivery is created. What would you check first and in what order?

Answer it in your own words first, then compare.

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Reference-verified: the steps are checked against official SAP documentation and tutorials, and object and field names in the sample code are checked for consistency. The code has not been compiled or run on an SAP system by ERPClimb. Syntax marked release-dependent varies by SAP release, so check it in your own system.