Article 20 - Movement Types in Goods Issue

Article 20 - Movement Types in Goods Issue


Article 20: What are movement types in Goods Issue and when do I use them?

What are movement types?

Movement types are three-digit codes that tell SAP the specific reason and method for the goods issue. They determine how the system updates stock, creates accounting entries, and handles the transaction[3][10].

What are the most common Goods Issue movement types?

Production-Related Issues

Movement Type 261 - Goods Issue to Order:

  • When to use: Issuing materials to production orders
  • Effect: Reduces stock, charges cost to production order
  • Reversal: Use movement type 262

Movement Type 262 - Goods Issue Reversal:

  • When to use: Cancel previous goods issue to production
  • Effect: Increases stock back, reverses cost posting
  • Requirement: Must reverse before order confirmation

Sales-Related Issues

Movement Type 601 - Goods Issue for Delivery:

  • When to use: Shipping goods to customers
  • Effect: Reduces stock, triggers revenue recognition
  • Automatic: Usually posted automatically via VL02N

Other Common Issues

Movement Type 551 - Scrapping:

  • When to use: Disposing of damaged or obsolete materials
  • Effect: Reduces stock, charges scrapping cost to expense account
  • Usage: No reversal typically allowed

Movement Type 711 - Transfer Posting:

  • When to use: Moving materials between storage locations
  • Effect: Reduces stock in source, increases in destination
  • Note: This is actually a transfer, not pure goods issue

How does the system determine movement type?

Automatic Determination:

  • Production orders: System suggests 261
  • Sales deliveries: System uses 601
  • Reservations: Uses movement type from reservation

Manual Selection:

  • In MIGO: Choose from dropdown based on scenario
  • In MB1A: Enter movement type manually
  • Special cases: May require specific movement types per company policy

What accounting entries do movement types create?

Movement Type

Debit Account

Credit Account

261 (Production Issue)

WIP/Production Order

Raw Material Inventory

601 (Customer Delivery)

Cost of Goods Sold

Finished Goods Inventory

551 (Scrapping)

Scrap/Loss Account

Material Inventory


How to find the right movement type?

Ask these questions:

  1. Where are materials going? (Production, customer, scrap)
  2. What's the business reason? (Manufacturing, sale, disposal)
  3. Do I need to reverse it later? (Choose reversible types)
  4. What accounts should be impacted? (Check with finance team)



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