Significance of Movement types 103, 105, 107 and 109

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Movement Type:

A movement type is a three-digit identification key for a goods movement.Movement type describes the type of stock posting in inventory. It represents whether the posting in stock is against goods receipt or goods issue.

Movement Type	Description of movement type
103	Goods receipt for purchase order into GR blocked stock
105	Release from GR blocked stock for purchase order
107	Goods Receipt to Valuated Goods Receipt Blocked Stock
109	Goods Receipt from Valuated Goods Receipt Blocked Stock

Differences between 103, 105, 107 and 109 Movement types.

Movement type 107 and 109 are an extension to the existing movement types 103 and105. In the case of 103 movement type, stock will be posted to GR blocked stock and an accounting document is not created.Accounting document will be generated when a 105 movement is done. After 103 movement, the stock is not yet company stock/company asset and is still not the valuated stock of the company and for this reason it under MMBE we find it under GR Blocked stock.

In case of 107 movement, accounting document will be generated. This will update the inventory value. But inventory will not be updated in terms of quantity. At the time of 109 movement, no acounting document is generated.

To execute the above scenario, we need to following steps.

1. Create Material 

1. Create BP 

1. Create PO 

1. MIGO 

Create material by using (MM01) T-code.

Maintain all required data and click on save.

Material created under the number 20525.

Create Vendor by using BP T–Code in Hana and (XK01) in ECC.

Maintain all required data and click on save.

BP created under the number 90006.

Create PO by using (ME21N) t-code. 

PO- is created under the number 2000050.

Before doing the GR, check the stock for material by using MMBE T-code

103 and 105 Movement Type: 

Now Goods Receipt with respect Purchase Order with Movement type 103.

103 is the GR blocked stock which is the Goods receipt against PO here only material documents will get generated, but no accounting documents and you can manage this stock in your plant location. 

Material document will be posted 144.

But there are no accounting entries, only material document will be generated.

No subsequent document found in accounting.

Once check the stock in MMBE.

Here, stock will be move in GR blocked stock.

105 Movement Type:

Just proof of material receipt once quantity count over you can release from GR blocked stock with movement type 105 which is same effect of 101. 

Now select Release GR blocked stock with reference to Material document with movement type 105

Material document 145 posted.

Accounting Entries:

After GR, check the stock of the material.

Here, stock is moved from GR blocked stock to Unrestricted stock.

107 and 109 Movement Type:

107 is used to receipt of Goods with Valuated GR Block Stock. This means the items are received and an accounting document is generated but the goods are not delivered to the customer. 

It will be posted under Plant and the value of the goods will be increased for that Plant, but the stock will be under Blocked Stock. It will not be used for other purpose till you do the transfer posting from Blocked to unrestricted. Here Stock is showing as ‘Stock in Transit’. 

Now Goods Receipt with respect Purchase Order with Movement type 107.

Material document will be posted 146.

Accounting Entries:

Check the Stock in MMBE 

Here, the stock will be move on Receipt valuated stock in transit.

109 Movement Type: 

This Movement Type is used to transfer the material from GR Valuated Block Stock to Unrestricted Use. 

Here, Only Stock has moved from Receiving Valuated stock in Transit to Unrestricted use. So, No Accounting Entry has been generated

Follow the above steps and Do GR against PO with movement type 109. 

Material document 147 posted.

But there is no accounting entries, only material document will be genarated.

No subsequent document found in Accounting.

Once check the material stock in MMBE.

Here, stock is moved from GR valuated stock to Unrestricted stock.

 

Hope this blogpost will be help full. 

  

Thank you.