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Posting 107 with Incoterms DAT and DAP

prashant_pandey2
Employee
Employee
0 Kudos

Hi Experts,

Can we use origin acceptance functionality for all incoterms including DAT and DAP.

We are using PO-SO Scenario and while performing PGI on SO, generating LAVA output to post 107 at PO end. Hence, we are showing In-Transit Inventory in receiving plant (transfer of title at the time of PGI). Are Incoterms DAT and DAP acceptable for this scenario.

Thanks,

Accepted Solutions (0)

Answers (3)

Answers (3)

fortian
Active Contributor

Hello Prashant,

The system is not crosschecking the incoterms in the purchase order with the value of the "origin acceptance" field. So you shouldn't have a problem.

Best regards,

Fortian

fortian
Active Contributor
0 Kudos

Hi Prasahnt,

Your understanding of how the 107 works is correct. So considering your explanation about the DAT incoterms it doesn't seem correct to use the 107, unless you post the 107 only once you have received confirmation that the goods have arrived to the terminal.

May I ask why aren't you using STOs (instead of PO and SO)?

Regards,

Fortian

prashant_pandey2
Employee
Employee
0 Kudos

Hi Fortian,

Thanks for reply. I understand it's technically possible.

My concern is by 107 we are transferring ownership to receiving plant at time of PGI as accounting docs get created. But with incoterm DAT, seller should be responsible to deliver goods till terminal of receiving plant. So, purpose of 107 and DAT are getting contradictory here.

So, can we use 107 and DAT in same scenario. Please correct me if my understanding is incorrect.

Thanks,