Customer Delivery – Stock in Transit

(EHP5 – LOG_MM_SIT functionality)

Introduction

Enhancement

package

5

for

Procurement

business

function

“LOG_MM_SIT”

allow

to

control

goods

movements

both

for

sales

to

external

customers

and

for

stock

transfer

processes between plants belonging to the same or different company codes within the same

company. Using valuated stock in transit and new movement types, we can specify the time of

the transfer of title precisely. Throughout the process, material quantities and material values

are recorded transparently and can be displayed

in the stock overview, the purchase order

history,

and

the

individual

stock

accounts.

The

functions

are

also

available

for

the

corresponding intra-company-code and cross-company-code return stock transfers.

This document covers the customer delivery with transfer of title at customer location. The

customer deliveries

with

valuated stock in transit,

is

used to pin

point the exact time of the

transfer of title. The transfer of title depends on the delivery type. The system determines this

based

on

the

sales

document

type.

The

system

finds

the

item

categories

and

thereby

the

corresponding schedule line categories, using Customizing for item category determination in

the

delivery.

The

process

is

controlled

by

the

movement

types

that

are

assigned

to

the

respective schedule line categories.

Client Requirement

The requirement for our project was to recognize the COGS & Sales revenue at the same

time based on the Incoterms. Incoterms were divided into two categories as

‘Immediate

Risk

transfer’

&

‘Delayed

risk

transfer’

.

ICC

Incoterms

like

EXW

&

FCA

were

classified

as

immediate risk transfer as the risk transfer lies with

‘Buyer’

once the Goods are loaded onto

carrier from plant. The other incoterms like FOB, CPT, CIF, etc.. were classified are Incoterms

with Delayed Risk Transfer.

Based on the Delayed Risk Transfer Incoterms, the item category in the sales order would

get

determined.

This

was

one

of

the

key

developments

of

the

project.

Based

on

the

item

category the posting to COGS / SiT account would happen at the time of PGI.

The

Requested

delivery

date

would

be

maintained

by

the

Customer

Service

Representative while processing the Sales Order. Based on the

RDD

&

route

information

in

the

sales

order,

the

PoD

is

carried

out

through

a

program

scheduled automatically.

Features of Business Function LOG_MM_SIT