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Export sale with Stock in Transit

former_member242511
Participant
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sHi

My requirement is  for Export from plant, when goods move out of plant, it should be in Stock in transit and when it reaches port(eg after 5 days) it should go out of plant liability(by doing some transaction).

Does SAP support stock in transit for Export sale(this is not STO scenario)

Reg,

Antaa21.

Accepted Solutions (1)

Accepted Solutions (1)

moazzam_ali
Active Contributor
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Hi

We have this requirement from our current client and I got some solutions for it.

If you are using MTS scenario then you can use business function log_mm_sit and use POD concept. Once you PGI delivery it will post accounting entry as Stock in Transit Dr and Finished Goods Cr. Once delivery is on port and vessel leaves the port and you receive BL you can run VLPOD and confirm POD. It will post accounting entry as COGS Dr and Stock in transit Cr.

This is the best possible solution which we have implemented earlier. Now there is one constraint in it which we have raised to SAP and currently we are having emails exchanges with SAP for getting this issue resolved which we have in case of MTO scenario.

If I am not wrong you get this requirement from client because of the fact that they want to book revenue and COGS in same period. In export shipments we have this requirement from almost every client. We can use STO process as an alternative. We cal also go for 311 E solution which has already been suggested but in this case you must create one store for Stock in transit and one for port for better reporting purpose.

We selected 311 movement type solution until we get some solution to our issue in MTO case.

Thank$

former_member242511
Participant
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Hi Moazzam,

Can you tell me whether log_mm_sit business function will show stock in transit for 601 movement type(Normal Sale ie not STO)?

Also can i activate this business function for particular Delivery document type?

I want only export delivery document type as Stock in transit and i will do VLPOD for Export document type otherwise for all types of sales it will show stock in Transit.

BTW your post is very informative.

Reg,

moazzam_ali
Active Contributor
0 Kudos

Hi

If you Google this business function you can get answers to all your questions.

This business function can be activated only with SAP EHP5 release or latest by this release.

POD is always activated at item category level.

Movement types are different after activating this business function. At the time of PGI it will be 687 I guess and at the time of VLPOD it will be 601.

For further details please hit Google search with this business function name and you'll see SAP help documents and some SCN documents as well.

Thank$

Answers (3)

Answers (3)

ajith_kumar10
Participant
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HI Amol

there is a business functionality “LOG_MM_SIT kindly explore that.

regards

Gopi

Lakshmipathi
Active Contributor
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As you should be aware once you do PGI with movement type 601, the inventory gets knocked off from the system and you cannot have any traceability over this.

May be what you can do is create deliveries and just save based on which, you can certainly, create a proforma which can be filed with customs.  Once the export formalities are over, you can do PGI and generate a commercial invoice. 

The other option you could consider is to have one more storage location for port.  As and when the goods are ready for despatch, you can transfer the goods with 311 movement type.  But if this export scenario is from India, then you also need to take care of excise formalities.

G. Lakshmipathi

former_member242511
Participant
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Hi Vaseline,

As in India the client's plants are spread across and export happens only from few ports, so it takes time to reach port from plant(may be 4-5 days) also currency Exchange rate fluctuates so much that invoice need to be booked on the day of port of lading.

Hi Lakshmipathi,

What you have said is correct, as goods need to be moved with excise invoice, so storage location option becomes void.

Ill check if client agrees for doing PGI on the date of Bill of lading.

Reg,

Antaa21

VeselinaPeykova
Active Contributor
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Do you always get information immediately when the truck reaches the port?

If yes, then another possible option can be to take advantage of something like transportation cross-docking functionality and define the port as a virtual location (plant). In this case you will get 1 outbound delivery from the original delivering plant and one inbound at the port location. When you get a message that the truck arrived at port you can perform goods receipt for the inbound and move the stock from transit to the virtual location. This goods receipt in the port location can trigger the generation of another outbound delivery to the end customer.

Such approach requires significant development effort, but I have seen something similar implemented to comply with local legislation.

I do not know the specifics of Indian law, so this idea might be not suitable in your scenario.

One addition to the suggestion of - if you go with the delayed goods issue posting approach, please be extra careful during month-end closing and physical inventory. The products in such export deliveries can be physically out of the plant premises, but not according to the system. So when you perform the inventory count you will need to extract a report of export deliveries with created proformas, but without goods issue and consider these quantities when entering the count results.

VeselinaPeykova
Active Contributor
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Hello.

What is the reason behind this requirement - does the business need to achieve a better visibility of the stock movement: delivering plant->port-> end customer or you have some legal requirement for specific postings in inventory management?