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SD_O2Cbeginner

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

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?

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