Complete SAP Warehouse Outbound Process
Step-by-Step Guide for Beginners with FIFO & Important T-Codes
What is Outbound in a Warehouse?
Outbound process means dispatching goods from the warehouse to the customer. It starts from a sales order and ends when goods leave the warehouse after posting PGI. Most companies follow FIFO (First In First Out) during outbound.
Outbound Process Flow Overview
Sales Order → Delivery Creation → Picking → PGI → Invoice → Gate OUT
Step-by-Step SAP Outbound Process
1️⃣ Check Sales Order – T-Code: VA03
Purpose: To view customer order details.
When to Use: Before creating delivery.
- Verify material
- Verify quantity
- Verify delivery date
2️⃣ Create Delivery – T-Code: VL01N
Purpose: To generate delivery document.
When to Use: After confirming sales order.
3️⃣ Picking & Batch Selection – T-Code: VL02N
Purpose: To update picked quantity and batch.
Important: Always follow FIFO (Oldest batch first).
4️⃣ Check Stock – T-Code: MB52
Purpose: Verify available stock before picking.
5️⃣ Post Goods Issue (PGI) – T-Code: VL02N
Purpose: Final confirmation of dispatch.
PGI reduces stock in SAP and completes delivery. Always perform PGI only after physical loading.
6️⃣ Display Delivery – T-Code: VL03N
Purpose: To verify completed outbound document.
FIFO in Outbound
FIFO means dispatching the oldest manufactured batch first. This prevents expiry loss and ensures audit compliance. Always check batch manufacturing date before picking.
E-Way Bill & Documentation
- Generate E-Way Bill after invoice
- Verify vehicle number
- Check validity period
- Attach invoice and LR copy
Manager Questions You May Get
📊 “Show today’s dispatch report.”
Use VL03N or delivery list with date filter.
📦 “How much stock was dispatched this week?”
Use MB51 with movement type 601.
📄 “Show delivery document for this invoice.”
Use VL03N and check document flow.
📈 “Which batch was dispatched?”
Use VL03N and check batch details.
Common Outbound Mistakes
- Not following FIFO
- Wrong batch picking
- Posting PGI before loading
- Dispatching without E-Way Bill
- Incorrect quantity entry
Final Advice for Beginners
Outbound is not just dispatching goods. It affects stock accuracy, financial posting, and audit compliance. If you understand VA03, VL01N, VL02N, MB52, and PGI clearly, you can confidently manage warehouse outbound operations.
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