Ordering and storage of Material Abroad

[Former Member]

Hi Experts,

I have a requirements wherein my company is located in EU region and they want to procure some goods from NON-EU country and want to store the stock in non-EU country to some logistics service provider.

1. My company (Located in Europe) want to raise PO on Vendor/Manufacturer located in say China.

2. This Vendor/Manufacturer will produce goods in bulk. GRN will be booked against this PO but goods will stay in his premises or some logistics service provider in China Or say India OR within EU region.

3. As and when required, my company will ask LSP to deliver the goods in company's warehouse.

Basically my company wants to own goods thought they are located in some other country.

I checked plant abroad functionality and it suits well if goods are delivered within EU region by manufacturer.

I am struggling to map scenario where, goods are delivered by manufacturer in non-eu region say China/India and then shipped to company warehouse.

I tried using drop-shipment PO (sub-contracting) which shows stock at Venor side (In this case, its LSP) on GRN. But when I am trying to raise PO on LSP, I dont want to have any cost in PO (as LSP is just storing the goods at his premises). I am also not very sure how import will be managed in this case as PO is free of charge (as well as in original PO on Manufacturer).

I was also thinking of creating new company code in China and India and have DC under them but not very sure which process is correct to follow?

Request you all to guide me on this scenario and how well I can map it in SAP.

Thanks in Advance!!!

[raviraj_sharma · Accepted solution]

Hi Kiran,

I assume you need to only monitor the stocks in china and  Indian LSP  locations, and all financials/currencies for this will still be same as your parent company. I am not sure if creating  different plants/company codes is ok from your company's  pov.

You can try mapping this by creating additional  storage locations china and  India , from SAP point of view these will be normal strage locations but from business Point they would be used to receive the goods.

So your PO will be raised  on the Chinese vendor with the Receiving sloc as SLOC1( China )   or SLOC2(india)  , the addresses specified in customizing in these slocs will also be  that of chinese and indian lsp locations respectively and your PO form must print  delivery address at this level.

You will do MIGO for this PO and the stock will be available in either Sloc 1 or sloc 2.

now to move this stock to your actual  plant and storage location , you will need to create  a  STO between storage locations (you could also use simple 311 transferpostings but since it is  a  long distance   STO is preffered also you could probably  map additional conditions for customs/ freight in this STO). 

[Former Member]

Thanks all for your replies!!

I have decided to go ahead with storage location proposal.

Thanks a lot!!

[BijayKumarBarik]

Hi,

For NON-EU country material order and keeping in NON-EU country-Create two vendor codes  for NON-EU country V1 and V2.

Create Purchase Order (NON-EU country vendor-V1) and in the Delivery address TAB of Purchase Order line item - maintain the Vendor Number(NON-EU country  V2).When you do the goods receipt for Purchase Order (NON-EU country V1) , the material in the system will be shown as dispatched to NON-EU country  V2 vendor.

Import PO will handle differently.

Regards,

Biju K

[Former Member]

Hi Biju,

How to move these Goods from Vendor 2 to company's warehouse when the later requires them?

Thanks

NR

[BijayKumarBarik]

Hi,

All details missing to suggest a solution!

Now where is company's warehouse located?

If company's warehouse located in NON-EU country, then create a plant for company's warehouse.

With my earlier reply- you need to create a Noermal PO from plant(company's warehouse)  to get material into company's warehouse and then go for STO for transferring material NON-EU country (company's warehouse) to your  company (Located in Europe).

Regards,

Biju K

[Former Member]

Hi Bijay,

Thanks for your reply!!

I tried this process but have some doubts. Please find below requirement details for your understanding.

1. Vendor 1 (Manufacturer) is located in China

2. Vendor 2 (Logistics Service Provider) can be located in China, India or in some EU country other than company's home country.

3. Company orders from Vendor 1 and asks to deliver the goods to Vendor 2. It is possible that company may ask to store the goods at Vendor 1 premises but want to own that stock.

4. Company say orders 100 CAR in total and asks to deliver 100 CAR to Vendor 2 and then Vendor 2 will be asked to deliver goods in Company warehouse located in home country as and when required.

I hope this clarifies the requirement.

I tried having Vendor 2 address in delivery tab. But I need to tick 'SC Vend' in order to see the stock at Vendor 2 premises in MMBE. If I do not tick it then stock is shown in warehouse location and there is no vendor number against it.

Now to move the stock from Vendor 2 to company warehouse, I need to create sub-contracting PO with Free ticked.

I am not able to understand how will I manage import on free PO. Also If there is movement from China to India, and then to Company location then how import will be managed when stock moved form China to India?

Let me know if you need any further details on the same.

[BijayKumarBarik]

Hi,

Create a Normal PO from plant Located in Europe  for material to China vendor(NON-EU country vendor-V1) and in the Delivery address TAB of Purchase Order line item - maintain the Vendor Number of China (NON-EU country  V2). When you do the goods receipt, the material will be received in  (NON-EU country V2) . Finally go for STO for transferring material NON-EU country (company's warehouse) to your  company (Located in Europe).

If Vendor 2 is other than china , you need to handle it differently!

Better keep defining plant abroad functionality for each country and keep receiving material from vendor by creating normal PO and then transfer material form each plant(plant abroad) to your  company (Located in Europe) with STO.

You need to handle all tax related functions by having a custom STO pricing procedure.

Regards,

Biju K

[Former Member]

Hi,

If the whole issue is about - owning goods though they are physically in Manufacturer's premise, please use Movement Type 107 (109) and do GR. This Movement type is to Receive the Goods - Valuation also done - though the Goods have not yet reached your company's premises.

Test and revert for clarity.

Thanks

NR

[Former Member]

Thanks for the reply!!

Can I book a goods receipt in plant in Europe and have stock physically in some non-EU country? What about import/custom? Is it legal?

Also If I book whole stock by using 107, when I partially start moving my stock from block to un-restricted, how can I manage import activities?

Sorry I am not much aware about import functionality.

[Former Member]

Sorry !

I too don't know about these legal / regulatory issues between countries !

Lets' wait for the right person to comment on it.

NR