Article 26: What are movement types in Goods Receipt and when do I use them?

What are movement types in Goods Receipt?

Movement types are three-digit codes that define the specific business purpose and accounting treatment of goods receipt transactions[1]. They determine how the system updates inventory and creates financial postings.

What are the main Goods Receipt movement types?

Standard Goods Receipt Types

Movement Type 101 - Goods Receipt for Purchase Order:

• When to use: Standard receipt of materials from vendors
• Stock type: Usually unrestricted-use stock
• Accounting: Debits inventory, credits GR/IR clearing account
• Most common: Used for regular vendor deliveries

Movement Type 103 - Goods Receipt to Blocked Stock:

• When to use: Materials need inspection before use[6]
• Stock type: Blocked stock (cannot be used)
• Purpose: Two-step receipt process for quality control
• Follow-up: Use 105 to move to unrestricted after inspection

Movement Type 105 - Release from Blocked Stock:

• When to use: After successful quality inspection
• Effect: Moves stock from blocked to unrestricted-use
• Prerequisite: Must have blocked stock from 103 receipt

Special Receipt Types

Movement Type 107 - Goods Receipt to Valuated Blocked Stock:

• When to use: Similar to 103 but with immediate valuation[6]
• Difference: Stock is valued at receipt, not at release
• Usage: When you want immediate financial impact

Movement Type 161 - Goods Receipt from Production:

• When to use: Alternative to 101 for production receipts
• Purpose: Some companies prefer separate movement type for production
• Effect: Same as 101 but shows production source

How does the system determine movement type?

Automatic Determination:

• Purchase Orders: System suggests 101 (or 103 if inspection required)
• Quality Management: Automatically selects 103 for inspection materials
• Production Orders: Usually 101 (or company-specific settings)
• Stock Type: Based on material master quality settings

Manual Override:

• In MIGO: You can change suggested movement type
• Business requirement: May require specific movement type per policy
• Special cases: Non-standard situations may need different types

What accounting entries do movement types create?

When do I use blocked stock movement types?

Use Movement Type 103 when:

• Quality inspection is mandatory for the material
• Material master has inspection type settings
• Vendor qualification requires incoming inspection
• Regulatory compliance mandates testing before use

Two-step process with blocked stock:

1. Initial receipt (103): Goods go to blocked stock for inspection
2. Quality inspection: QM department tests the materials
3. Release decision (105): Move to unrestricted if approved
4. Rejection (106): Move to scrap if failed inspection

How to choose the right movement type?

Ask these questions:

1. What's the source? (Vendor, production, transfer)
2. Is inspection required? (Use 103/107 for inspection)
3. Immediate use needed? (101 for immediate availability)
4. Company policy? (Some companies have specific preferences)
5. Financial timing? (When should costs be recognized)