Stock transfer from one customer to another customer

[Former Member]

Hello Team,

There is a new requirement we have to develop regarding Stock transfer from one customer to another customer.

Brief explanation :

Client having a own franchise (dealer) retails stores, here client placing some goods at customer A store level by using consignment fill up, after this the customer A sold some Peaces Ex out of 100 peaces 50 he sold and 50 he cannot sell, so Customer A requesting to take back the goods, (where the Clients doesn't have any plant are storage location) so client wants to move the goods from Customer A to Customer B store where the customer B is locating to same place or city or state, the final requirement  is client doesn't want to pay extra TAX to bring back the stock from customer A to own Plant and again send to customer B.

Validation points for understand

Example : Customer A and Customer B are located same place (MUMBAI) here the client doesn't have ant Plant or storage location.

                 Client business location and placing the goods at BANGALORE location.

                 When ever the goods wants to send to Mumbai he will do STO process from Bangalore to Mumbai by maintaining one dummy CFA at Mumbai

                 Location and the CFA will move the goods to customer stores.

               In this case client doesn't want to bring back the stock from Mumbai (Customer A) to Bangalore and again send the same goods from

               Bangalore to Mumbai (Customer B) by paying the TAX.

Entries for SAP Book :

SO to Invoice and COGS and Revenue accounts must be created.

Requesting you to through some Light on It. what are the possibilities is to achieve.

[phanikumar_v3]

Dear Raghu

Some flaws in your understanding.

1.when business kept the stock under consignment fill-up (out of 100, stock of 50 has been sold to consumer under consignment issue--so remaining 50 stock will be with business only in sap in customer consignment stock--so your doubt of""client doesn't have any plant &storage location is not correct".

2.Transferring the stock from one customer to other customer is called INTER PARTY TRANSFERS-( In this process,after SO>del>Bill--- you have to create an entry in sap  like Return order>Return delivery>Credit note--then Again Sales order for the new customer>Delivery>billing--Physically the return stock will not come back to the plant-Normally user will inter link these two Inter party transfer documents using the Fields like Texts or PO Number in sales document header)--But this process will not be applicable for you because your parent documents  are with Consignment fillup.

3.Are you sure that there was no physical plant in Mumbai??--please confirm with your client.

4.When there is No physical plant--how the Audit departments handling this(both Internal Audit department &external Audit departments)--As Suggested by Mr Lakshmipathi--need to take more info from your Client and your FI team.

Phanikumar

[jobis]

The Consignment fillup and consignment pick up are not priced in standard.

So if you are using consignment  process and  if its unsold items, then you can do consignment pick up, and do consignment fillup subsequently to the Store B.

And outside SAP, the goods can be moved from Store A to B directly.

This is my thought

Regards

Jobi

[Lakshmipathi]

From statutory point of view, your client would have debited the tax on Customer A and accordingly, remitted the tax statement to Government.  This being the case, now if they transfer partial quantity to Customer B, how the tax portion is addressed.  First you have get clear confirmation from Client Finance team on this, as this is nothing but tax evading which is a serious offence.

Coming to transfer of goods, though your client can transfer directly from Customer A to B, but in SAP, you have to show as if the balance material is taken back and diverted to Customer B.

For FI entries, discuss with your SAP FI team

G. Lakshmipathi