Picking and PGI
Covers the warehouse execution and goods movement stage of Order-to-Cash: picking (assigning and confirming stock against outbound deliveries) and Post Goods Issue (PGI), the event that reduces inventory, triggers cost of goods sold posting, and updates the document flow toward billing. Includes configuration of picking-relevant item categories, storage location and warehouse determination, delivery due lists, batch/serial handling, and integration with MM inventory management and FI/CO through automatic account determination.
Overview
Covers the warehouse execution and goods movement stage of Order-to-Cash: picking (assigning and confirming stock against outbound deliveries) and Post Goods Issue (PGI), the event that reduces inventory, triggers cost of goods sold posting, and updates the document flow toward billing. Includes configuration of picking-relevant item categories, storage location and warehouse determination, delivery due lists, batch/serial handling, and integration with MM inventory management and FI/CO through automatic account determination.
Lessons in this topic
- SD Picking and PGI Part 1: From Delivery to Goods Issue — The Process FlowWhat happens between delivery creation and goods issue: picking (lean, WM or EWM), picked quantity and picking status, batch and serial number assignment, and post goods issue (PGI) — which reduces stock, posts cost of goods sold, updates the sales order and enables billing.
- SD Picking and PGI Part 2: Picking Relevance, Storage Location Determination and PGI Posting LogicConfigure what makes picking and PGI work: picking relevance in delivery item categories, storage location (picking location) determination rules MALA, RETA and MARE, the movement type from schedule line categories, and the accounting logic (valuation class, OBYC transaction keys GBB/VAX and BSX) behind the PGI posting.
- SD Picking and PGI Part 3: Picking Confirmation and Its Integration with Inventory and AccountingHow picking is confirmed and posted: picked quantity vs delivery quantity, differences and adjustments, WM transfer order and EWM warehouse task confirmation updating the delivery, batch split, the stock and value effects of PGI, and reversal/correction with VL09.
- SD Picking and PGI Part 5: Architecting Picking and PGI for ScaleArchitect's view: choosing warehouse execution per site (lean, embedded EWM, decentral EWM), aligning shipping points, storage locations and HU management, PGI timing and billing cut-offs, inventory accuracy controls, performance and resilience of mass processing, and governance.
- SD Picking and PGI Part 4: Warehouse Integration and Mass PGI PerformanceIntegrate picking with warehouse systems and post goods issue at volume: WM transfer orders vs embedded/decentral EWM warehouse tasks and waves, handling units in the warehouse, collective PGI (VL06G) and background jobs, material locking and late block, error handling and monitoring.
Interview questions covered
- Which configuration elements determine how Post Goods Issue (PGI) updates inventory and financial accounts, and what must be checked if PGI fails with a stock or account error?
- What is the functional relevance of picking and packing confirmation in the outbound delivery process before goods issue is posted?
- What happens in the system when Post Goods Issue (PGI) is executed for an outbound delivery, and why is it a critical event in the order-to-cash process?
- What are the most important design decisions, trade-offs, and best practices in Picking and PGI?
- Suppose you inherit an existing Picking and PGI solution. How would you review it before making a change?
- PGI fails for a subset of deliveries with various error messages. Walk through your analysis.
- A global distribution company's nightly PGI run for thousands of deliveries overruns its window and blocks billing. How do you improve it?
- Warehouse staff override picked quantities to force PGI after short picks, and inventory differences grow. How do you fix the process?
- Cold-chain materials are picked from the ambient storage location. How do you analyse storage location determination?
- A distribution center moves from classic WM to embedded EWM during an S/4HANA project. How do picking and PGI change for SD?