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STOCK IN TRANSIT

Former Member
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when we are transfering material from plant-to-plant using stock in transit movement 641 ,then issuing plant has both updates of quantity as well as value.Why on receiving plant side there is update of valuated stock ? Actually quantity as well as valuated stock should be update on receiving plant side after goods receipt only.

How to avoid this please let me know.

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Answers (2)

Answers (2)

Former Member
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Dear,

Plant to plant stock transfer affects Financial accounting and Material requirements planning.

Financial accounting (Only if the two plants are assigned to different valuation areas):

A cross plant stock transfer leads to a value update in the stock accounts. An accounting document is generated parallel to the material document for the stock transfer. The stock transfer is valuated at the valuation price of the material in the issuing plant.

A cross company code stock transfer, two accounting documents are created at the time of posting: one for each company code. The offsetting entry to the stock posting is then made to a company-code clearing account.

A Change in the plant stock is taken into account by MRP.

Regards,

Syed Hussain.

kunal_ingale
Active Contributor
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hi as stock is in transit and not yet received at plant 2

there will be no update ,as the material an be damaged in transit or it can be reach to the plant2

so onlyvalue is updated as for some debit entry at plat1 it needs a credit entry at plant2

hope it clears

regards

kunal

Former Member
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But when we received quantity which is in transit in the receiving plant then quantity is updated which may be less than valuated stock in transit so at any time there is difference between quantity and valuated stock.

suppose 100 is stock in transit from plant 1 (issuing)to plant 2(receiving) from 01.11.08 to 30.11.08

and receipt is of only 80 for perticular period of 01.11.08 to 30.11.08 then there is always quantity & valuated stock difference for material in receiving plant.

I just want to know whether it is possible to restict valuated stock updation during stock in transit as we are restricting quantity.

kunal_ingale
Active Contributor
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hi

accordingly the 20 quantity have to adjust by u

like u have to cancel the doc by 20 then show it as scrapa at plant1 if it is damaged

so the valuation of 20 will auto reversed ,

regards

kunal

Former Member
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The option u said is ok if rest of the transit quantity is damaged or returned.but in our senario for perticular month there is difference because out of 100 valuated stock in transit only 80 is receipt at receiving plant and rest may be receipt in the next month.so there is always difference because not all the valuated stock is receipt everytime.

Former Member
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Please help to solve this matter.

Former Member
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waiting for your answers