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trading industry -goods in transit concept

former_member316513
Participant
0 Kudos

hi all

can anybody pls tell me how a trading industry's procurement cycle works?

specially i need to understand the goods in transit concept after creation of purchase order.

po-> goods in transit-> invoice

thanks in advance

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

Hi AP,

Goods in transit concept

Goods that have been shipped to a customer.

When goods are shipped to a customer, the customer does not usually become the owner immediately. Until the point where the ownership of a good is transferred to the customer, it must continue to be shown in the supplier's balance sheet even though it is no longer physically present.

The value of goods in transit can be calculated in results analysis and capitalized in the balance sheet.

Do you want anything specific to SAP do let us know , Inshort while there's a Stock transport order (PO ) when we do PGI , this triggers the goods in transit ( this is in very brief ) and the ownership of the goods lies in the ordering plant /co.

regards

kp

dipak_kumar3
Active Contributor
0 Kudos

Hi ,

There is 1 more case comes into picture .

Ie., What if material gets destroyed / damaged in transit .

In that case issuing plant need to show that stock as damaged .

Or

Recieving plant has to show that they have recd the material

Thanks

Dipak

Former Member
0 Kudos

Hi ,

As the owner ship lies with the Ordering/receiving plant so all the claims for insurance will be raised by them.

<b>please award points for dual answers</b>

regards .

kp

former_member316513
Participant
0 Kudos

hi kp

thanks for ur leads. but after more study i feel that it is a scenario where the vendor sends u the detail regarding the goods he is sending .like loading port, unloading port, expected date it will reach , and it can also send material of more than one purchase order so the PO nos, container details, vessel no.etc.it is valuated at ur vendor side. and my clint is keeping it ias a goods in transit in its legacy system.

so i feel it can be done through inbound delivery.but dont have much idea about it. so any thing u can help me in this regard.

regards

ap

Former Member
0 Kudos

Answers (1)

Answers (1)

Former Member
0 Kudos

Hi AP,

I thing u r taking about "stock in transit ".This is in "stock transport order"

Create material in MM01 > Material type " HAWA " ( trading goods )

Create Stock transport order

Do transfer posting MB1B with mvt type 351

Once u send the material, "material will be on road " called stock in transit get in MB5T

Do the GR

Hope it will help u

Regards

Hareesha