How to hold the government's stock under our location

[Former Member]

Hi All,

We have a scenario where in we need to hold the stock of some government's material in our plant /warehouse. The government agrees to pay for the storage for whatever period of time we need to . What I want to know is

1. Though the stock is at our facility we don't want the stock to be valuated. We will ship the material until the govt asks us to sell. In a nutshell we should be able to hold the stock in our warehouse ,but that should be shown as Gov't stock in the system.

The scenario I am talking about is reverse of Consignment . Please let me know how to achieve this in SAP ECC 5.0.

Thanks

Amrith

[jignesh_mehta3 · Accepted solution]

Dear Amrith,

I had a simalar problem for Customs Bonded Stocks which were lying at Ports, but we could not own it we had not yet paid the duties.

Just see if it also works for your case with some modifications... :

Bonding and Ex-bonding at Customs

My client is receiving goods at customs and he will keep the goods in custom bonding store. So while receiving the goods at customs office, we should have information and entry into sap and we have to make payment to vendor. But after some time, we will make the payment to customs and we will get the material into our store. So please explain how to configure this?

There are two ways to handle this scenario:

1. Create a separate Plant for Customs Warehouse & post goods in this Plant where they are lying as Bonded stock. Later when you pay duties & release the stock, use Plant to Plant Stock Transfer process & move the stock to your regular Plant after adding Customs duty & other charges.

2. In the existing plant create a Puchase Orer & post a MIGO (GRN) with movement type 105. This will show the stock lying your plants as GR Blocked Stock, there would be no valuation & you cannot futher process this Blocked stock. After you release the goods from Custom bond, post a MIGO with movement type 103. This would valuate the stock & consider it as normal stock available for further processing.

Hope this helps...

Thanks,

Jignesh Mehta

[Former Member · Accepted solution]

Hi Jignesh,

We won't be paying any duties/taxes to the govt during the period we are holding the materials for them. My question is

1. In my scenario, can the stock be still held as bonded stock. If so how can I achieve it . I mean the movement types etc..

2. Will this stock be valuated . The material I am talking about is semifinished and already has the material type. So I want to make this as non valuated ,how would I do it. I don't think I can have the same material as valuated as well as non valuated.

Thanks

Amrith

[Former Member · Accepted solution]

Hi Jignesh,

You say that if I move the stock to blocked it will be non valudated.But I think the stock will still show under our Inventory ,but only as blocked .

Is there a way by which I could Identify that stock as the stock for government. Is there a configuration which identifies the stcok as govt stock.

Thanks

Amrith

[Former Member · Accepted solution]

Hi

there is nothing like a govt stock as such in SAP. you have to identify any object like plant / warehouse and keep the stock in that location and name that as Govt Plant or warehouse. You can keep the stock as blocked stock so nobody other than the authorized person can use it. Alos u can have seperate Authorization profiles where in you allow transactions only to this plants and for other profiles you can exclude this plant / warehouse. By this way you will have full control over the stocks.

Regards

Yatin Thakkar

[Former Member · Accepted solution]

Hi,

I know that there is nothiing like govt stock in SAP. My question is , Is there a way in SAP where you can identify the stock in your location as some one else stock .

Secondly how will you create a plant/sloc which refers to govt,if govt is not a customer for you at all.

Thanks

Amrith

[Lakshmipathi · Accepted solution]

The simple solution is that you should have a separate storage location to store the stocks intended for government. Once the goods comes to unrestricted, immediately, some authorised person should transfer the stock from Unrestricted to this special storage location via MB1B with movement type 311.

thanks

G. Lakshmipathi

[Former Member · Accepted solution]

Hi

As mentioned above in couple of answers you have to either create a Vendor or Customer with name Govt and use the consignment process to hold the stock there. Or else you can create plant which will tell that it is a govt plant and store the stock there.

I am not sure whether you can create a special stock indicator for this. You can check with ur MM consultant on this. If you can have a new special stock indicator which says Govt Stock. It will solve the problem. But there will be a lot of customizing on the movement types.

Regards

Yatin Thakkar

[Former Member]

Hi Amrit,

Did you manage to map this scenario, can you please explain.

Regards

D A

[Former Member]

Hi Amrit,

Did you manage to map this scenario, can you please explain.

Regards

D A

[Former Member]

Hi Amrit,

Did you manage to map this scenario, can you please explain.

Regards

D A

[Former Member]

Check with MM consultant if Subcontracting scenario can be helpful to meet the requirement.

I understand that the scenario is rever of Consignment Process, but subcontractng ideally should identify the stock separately. The difference would be in Subcontracing, material might bring about some change in the material and in described scenario, there would not be any change in the material.

Regards,

Rajesh Banka

[csaba_szommer]

Hi,

I think you can handle the goods as vendor consignemnt ("reverse consignment") only if you sell your goods in your name. in this case you can post the GI from consignment stock --> you have to pay to the government (governement is the vendor in this case) and you will payment from the customer to which you sold the goods.

(in this case maybe you have to use stock determination)

If you sell the goods in the name of the government (you are an agent, intermediator, goer between), you have the option to have the goods in stock as non valuated (you can also use split valuation with 0 value if you have the same goods as own stock too).

(in this case you have to set the material type as non valuated (no value update) for your valuation area: SPRO > Logistics - General > Material Master > Basic Settings > Material Types > Define Attributes of Materia Types)

Other solution might be the already suggested new plant...

Regards,

Csaba

[Former Member]

Hi,

As per your Req....You can make stock as Blocked stock (Movement type-344).

when ever Govt will ask for Goods ...do the Transfer post to Unristricted or Special stock.

Regards

raj.