How to handle DDP shipment to customer?

[Former Member]

Hi everyone, I would like to know how to handle a situation like this.

A customer purchased stock from us, which will take 1 month to deliver. We have the ownership of the stock until it is delivered to the customer. The double entries I would like to achieve in SAP B1 is:

1. Credit (inventory), Debit (inventory - stock in transit) when the stock is on the way to customer.

2. Credit (inventory - stock in transit), Debit (COGS) once it has been delivered.

How can I achieve this? I am able to get no 1 by using a Delivery Order. However I am not able to proceed with debiting to COGS after that. Please assist. Thank you.

[hdolenec · Accepted solution]

How about using Shipped Goods account (checkbox on BP Master Data, Accounting Tab)?

The purpose of Shipped Goods account is to reflect COGS after you create an invoice for the customer. So the posting go like this:

1. Regular situation:

- Delivery: COGS acct is debited, Inventory acct is credited

- AR Invoice: BP Receivables acct is debited, Revenue acct is credited

2. With Shipped goods account

- Delivery: Shipped Goods acct is debited, Inventory acct is credited

- AR Invoice: GOGS and BP Receivables acct are debited, Shipped Goods and Revenue acct are credited

[agustin_marcoscividanes]

Hi

you can use the AR Reserve invoice, copying to delivery note everytime you need.

Kind regards

Agustín Marcos Cividanes

[Former Member]

Anyone?