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author's profile photo Former Member
Former Member

outbound delivery

what is the physical relevance of this term

i mean what happens and why to create the outbound delivery because if i have asales order then why cant i create a transfer order with refrence to that by skipping the outbound delivery document

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3 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Jan 26, 2008 at 07:44 AM

    Hi,

    Transfer order is used only if u have warehouse management..ie ur storage location is relevant to warehouse....thats becoz physically u remove the stock from storage bin which is nothing but picking, then only u can do PGI and PGI is only possible through outbound

    If ur client business doesnt have ware house then u dont need TO and straight away after outbound delivery u can do PGI

    U cannot create TO ref to sales order...becoz sales order is just a punching of PO raised by customer and is reference for stock department to process for stock movement...u cannot have stock movement and COGS that is cost of goods sold account get hit just through sales order ....thats the way SAP work....and let me tell u that way business also work.

    Regards

    Jagdish

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    • Former Member Former Member

      Hi,

      The term DELIVERY refers to the movement of goods / material in Industry terms

      Generally we have 2 types of delivery's

      1) Inbound delivery : This is when we receive goods. This term is relevant to purchasing when goods are bought into the plant from a vendor location.

      2) Outbound delivery : This is when we send goods. This term is relevant to sales when goods are sold from our plant to the customer's location.

      In SAP - SD this often is used to the 'PROCESS OF DELIVERY' which is nothing but electronically creating the documentaion and readiness of a material for OUTBOUND DELIVERY. There is no physical movement of material during this process. The physical movement takes place during 'Shipment'.

      PLEASE AWARD POINTS IF USEFUL.

      Regards,

      Jn.

      P.S. - Please donot confuse between Transfer Order & Sales Orde & Delivery. Understand the process of sales in SAP first, which is :

      Inquiry - Quotation - Order ( Sales / Service ) - Shipping ( Outbount Delivery ) - Billing .Shipment takes place eventually!

  • author's profile photo Former Member
    Former Member
    Posted on Jan 29, 2008 at 08:41 AM

    Hi Baxter,

    When you create thesales order you need to create the outbound delivery.

    Following are the reasons why you need to create the outbound delivery..

    1) You need to remove the goods from a particular point which is called as shipping point in Sap, hence the delivery document needs to be created with refrence to a shipping point which indicates that the goods have been moved out of the plant and are put in a truck or any mode of transport a sales order will not tell you that goods have been moved out of your factory or plant...

    2) Once the delivery document is done a transfer order is given at the gate of the factory or plant which indicates that the goods need to be picked from various storage locations or from various parts of the plant, hence a transfer order is always created with reference to a delivery document and not with a sales order since if you create the sales order the same does not tell you when the goods will move out of your factory nor does it tell you that the stocks have decreased at your plant or factory level..

    3) Actual picking will start only after creating the delivery document which indicates that goods needs to be picked from the various places and be loaded onto the truck or any other means of transport..

    4) Once the picking is done it is followed by packing and post goods issue the same is done which indicates that goods have reached the customer or in transit.. which a sales order cant do..

    5) Hence you should always create the outbound delivery with first with reference to the sales order followed by the transfer order

    Reward points if this helps...

    Regards

    Atul Keshav

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 29, 2008 at 01:17 PM

    thanx

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