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
- Configuring Picking Relevance, Storage Location Determination, and PGI Posting LogicExplains how picking relevance, storage location determination, and PGI account posting are configured and how they interact at delivery item level.
- Picking and PGI Fundamentals: Business Purpose and Process FlowIntroduces why picking and Post Goods Issue exist in the Order-to-Cash cycle, what business and system events they represent, and how they connect sales, warehouse and finance.
- Warehouse Management Integration: Transfer Orders, Handling Units and Mass PGI PerformanceCovers how Warehouse Management (classic LE-WM or embedded/decentralized EWM) drives picking through transfer orders and handling units, and how to design and troubleshoot high-volume mass PGI processing.
- Architecting Picking and PGI for Scale: Warehouse Integration, Performance, and GovernanceAn architect-level treatment of designing picking and PGI processes across complex landscapes, covering warehouse system selection, batch job architecture, performance at high volume, error governance, and migration strategy toward S/4HANA and EWM.
- Picking Confirmation and Its Integration with Inventory and AccountingExplains how confirmed pick quantities on the outbound delivery drive real-time inventory management, batch/serial determination, and the financial postings triggered at PGI.
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?