MIGO Cancel: Reversing Material Postings in SAP

1. Introduction to MIGO Cancel

What is MIGO Cancel in SAP?

The MIGO Cancel transaction is a critical tool in SAP’s Material Management (MM) module. It allows users to reverse previously posted material documents—transactions that affect stock levels and general ledger entries. If you've ever made a mistake while performing a goods movement, MIGO Cancel gives you a way to “undo” the entry, restoring your system to its accurate state.

Purpose and Use in Material Management

Primarily, MIGO Cancel is used when an error occurs in data entry during Goods Receipt (GR), Goods Issue (GI), or Transfer Posting (TP). By reversing the incorrect document, SAP ensures transparency, traceability, and accuracy in inventory records.

2. Understanding SAP Material Documents

Role of Material Documents in Inventory

In SAP, any stock-related transaction automatically generates a Material Document. These documents serve as proof of movement and are essential for:
  • Inventory tracking
  • Cost accounting
  • Auditing and compliance

Importance of Accurate Entries

Since SAP operates on the principle of “no posting without documentation,” each movement must be accurate. If any mistake is made—wrong quantity, incorrect material, or wrong cost center—it must be canceled and re-posted using MIGO Cancel.

3. SAP Transactions Related to Material Movement

Overview of MIGO

MIGO (Movement In Goods Out) is SAP’s central transaction for handling most goods movements. It replaces older transactions like MB1A, MB1B, MB1C, and MBST, making material management more user-friendly and streamlined.

4. What is MIGO Cancel Used For?

Common Scenarios for Cancellation

  • Wrong material number or quantity entered
  • Posting to the wrong cost center or G/L account
  • System or user error during goods movement

System Behavior During Cancellation

When a material document is canceled via MIGO Cancel:
  • The system generates a reversal document
  • The stock is updated accordingly
  • Any linked accounting entries are reversed

5. Prerequisites for MIGO Cancel

Required Material Documents

You must have a posted material document to perform a cancellation. This document must be complete and saved in the SAP system.

Data Integrity Checks Before Reversal

Before using MIGO Cancel, ensure:
  • The document is not already reversed
  • No downstream transactions (like Invoice Posting) are pending
  • No material block exists due to Quality Inspection or Reservation

6. MIGO_GR vs MIGO Cancel for GR Cancellation

Purpose of MIGO_GR

MIGO_GR is specifically for performing Goods Receipts against Purchase Orders (PO). It enables you to consolidate receipts for multiple items into one transaction.

How MIGO Cancel Differs

MIGO Cancel, on the other hand, is used to reverse an already completed Goods Receipt. While MIGO_GR adds stock, MIGO Cancel removes it by creating a 102 movement type reversal.

7. How MIGO Cancel Works in SAP

Step-by-Step Explanation

  1. Go to MIGO Transaction
  2. Select “Cancellation” as the action type
  3. Enter the Material Document Number
  4. Execute the transaction
  5. Save the reversal document

What Happens in the Backend?

  • SAP generates a new material document with the reversal movement type (e.g., 102 for reversing 101).
  • Stock levels are adjusted.
  • Any linked accounting entries are reversed.

8. How to Reverse a Material Document

Manual Reversal Steps in SAP

  • Use MIGO → Select Cancellation
  • Choose the right Movement Type (e.g., 102 for GR reversal)
  • Provide the original Material Document
  • Review and Post

Important SAP T-Codes

Transaction Code Purpose
MIGO Perform and reverse goods movement
VL09 Reverse outbound delivery
VF11 Cancel billing document

9. Impact on Accounting and Cost Centers

Reversing Accounting Documents

When a movement also impacts accounting, a FI document is created. MIGO Cancel reverses both MM and FI documents, ensuring consistency.

Implications for Cost Centers and POs

The original values are reinstated to cost centers and purchase orders, restoring the system to its state before the erroneous posting.

10. Reversing Intercompany STO Transactions

Common Challenges with Intercompany Transactions

In Intercompany Stock Transport Orders (STOs), reversing transactions can be complex due to the involvement of two company codes.

GR Reversal Using Movement Type 102

If you receive an error like:“Deficit of PU IR quantity XXXX.000 EA”It means the Invoice Receipt (IR) was already posted. Reverse the IR before using movement type 102.

11. Troubleshooting Common Errors

Example: “Deficit of PU IR Quantity”

This error often confuses users. It appears when you try to reverse a GR after the invoice has been posted.

How to Resolve Typical Errors

  1. Cancel the Invoice Receipt via MR8M
  2. Reverse the Delivery via VL09
  3. Cancel Billing via VF11 (if required)
  4. Then perform MIGO Cancel using 102

12. Invoice Receipt and Reversal Order

What is PU IR?

PU IR stands for Purchase Order Invoice Receipt. It records that an invoice has been received and linked to a PO.

Canceling Invoice Before 102 Movement

ALWAYS cancel the invoice before performing MIGO Cancel with movement type 102. This ensures there’s no mismatch in quantities.

13. Canceling Associated Documents

Using VL09 to Cancel Deliveries

VL09 is the transaction used to reverse an outbound delivery. Ensure the delivery is canceled before reversing the GR.

Using VF11 to Cancel Billing Documents

VF11 cancels any billing issued from the supplying company code. If billing exists, GR reversal may fail.

14. Best Practices for Material Posting and Reversals

Avoiding Common Mistakes

  • Always check PO History
  • Validate all associated documents
  • Document all reversals with reasons

Documenting Cancellations Properly

Use comments and references while canceling to help auditors and team members understand the reason behind reversal.

15. Frequently Asked Questions (FAQs)

Q1: Can I cancel a material document without reversing the invoice?

A: No. You must first cancel the invoice receipt using MR8M.

Q2: What movement type is used for canceling a Goods Receipt?

A: Movement Type 102..

Q3: Why am I getting a "Deficit of PU IR Quantity" error?

A: This occurs when you try to cancel a GR after posting an invoice. Cancel the invoice first.

Q4: Can I change a material document after posting?

A: No. Material documents are immutable. You must cancel and repost.

Q5: How do I cancel an outbound delivery?

A: Use transaction VL09 to cancel the delivery.

16. Conclusion

Understanding how to use MIGO Cancel in SAP can save your organization from costly errors, inventory mismatches, and reporting inconsistencies. Whether you're dealing with standard GR/IR postings or complex intercompany STOs, following the correct cancellation flow ensures clean data and accurate financials.

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