A goods issue posting is a fundamental transaction in inventory management that signifies the physical movement of materials out of stock. This transaction has direct financial implications. When goods are issued, the system reduces the inventory quantity and its corresponding value on the balance sheet. To reflect this change in the company's financials, an accounting document is automatically generated. This document typically debits a consumption account (e.g., Cost of Goods Sold) and credits the inventory stock account, thus capturing the reduction in inventory value in the general ledger.

C. It generates an invoice for approval: Invoice creation is a subsequent, separate step in the billing process within the Sales and Distribution (SD) module. A goods issue is a prerequisite for billing but does not trigger it directly.

D. It increases the inventory value: This is incorrect. A goods issue represents an outflow of materials, which decreases the inventory value. An increase in inventory value is associated with a goods receipt.

1. SAP Help Portal

SAP S/4HANA

Goods Issue: "When a goods issue is posted

the system carries out the following tasks: [...] It creates a material document. [...] If the movement is relevant for accounting

it creates an accounting document. [...] It updates the stock value and the consumption values in the material master record." This confirms the creation of an accounting document (A) and the update (reduction) of inventory value (B).

Source: SAP Help Portal

SAP S/4HANA Cloud

Product Assistance - "Goods Issue".

2. SAP Help Portal

SAP S/4HANA

Integration of Materials Management and Financial Accounting: "A goods issue for a sales order reduces warehouse stock. The value of the material issued is posted to the cost of goods sold. This transaction is posted in Financial Accounting and Controlling." This statement explicitly links the goods issue to a reduction in stock and the creation of a financial posting (accounting document).

Source: SAP Help Portal

SAP S/4HANA

Product Assistance - "Integration of Materials Management and Financial Accounting".

3. SAP Learning Hub

Course S4F20 - Processes in Management Accounting in SAP S/4HANA: The course materials detail the integration between logistics modules (like MM) and Financials (FI/CO). The goods issue transaction is presented as a key integration point where a material movement automatically triggers a financial posting

debiting Cost of Goods Sold and crediting the Inventory account

thus reducing its value.

Source: SAP Learning Hub

S4F20

Unit on "Integration with Logistics".