SAP LGM Demo Series: 02 – Inbound Process: Receive Goods from Purchase Order Based External Procurement

With the previous session, we covered the foundational overview of LGM and showcased the 3D warehouse layout. In this session, we shift to a simple starting scenario – processing a PO receipt without an inbound delivery, before moving into more complex processes and advanced LGM capabilities in future sessions

The PO‑based goods receipt without an inbound delivery posts materials directly against the purchase order, making it a fast, low‑overhead option for simple receipts where no ASN, staging, or warehouse orchestration is required. Its importance lies in enabling quick operational posting with minimal master‑data and process dependencies, ideal for suppliers or scenarios that don’t justify the structure of an inbound‑delivery driven flow.

With LGM integration, this process becomes fully streamlined, and in this session, we walk through the end‑to‑end inbound flow – from creating the purchase order in SAP S/4HANA to performing goods receipt and stock putaway in SAP Logistics Management.

SAP LGM enhances inbound operations by:

• Replicating S/4 HANA purchase orders into LGM as logistical demands
• Driving warehouse execution through inbound warehouse requests
• Supporting unloading, goods receipt, quality check status and putaway in a unified, guided flow
• Posting the goods receipt from LGM back to SAP S/4HANA, ensuring real‑time stock accuracy, reduced manual intervention, and seamless synchronization across systems

The result is accurate stock updates, reduced manual effort, and seamless synchronization across systems.

Demo Highlights:

• Create Purchase Order in SAP S/4HANA

Purchase order is created and replicated to SAP Logistics Management via replication job as logistical demand.

• Monitor Logistical Demand

Validate replication and check demand status in SAP Logistics Management

• Create Inbound Warehouse Request

Generate inbound warehouse requests based on purchase order items

• Execute Goods Receipt Process

Perform unloading as needed, then post the goods receipt to update stock. The received quantity is posted in SAP S/4HANA against the purchase order, generating the corresponding inventory movement.

• Perform Quality Check (Optional)

Record inspection results for received goods before putaway

• Plan and Execute Putaway

Create and process warehouse tasks to move goods to storage bins