PO with incoterm EXW, FOB, FCA

[Former Member]

Dear Experts,

Been trying to search this for answer in forum but without success.

We have a situation whereby our PO is issued with incoterm EXW, FOB, FCA. Under this type of incoterm, the onwership of the goods is transferred to the buyer (PO issuer) uopn shipment hand over to the buyer/cross the rail. However we have a 60days of payment term for this PO.

We considered as part of our own goods because:

- We, as a buyer, are liable if shipment is damaged during the transit or on the water; this would be considered as so-called our stock from the financial point of view.

- We don't want to perform GR 101 because the goods still on the water; and this will give a wrong status of stock on hand

- We don't want this in-transit stock to be included in our MRP planning since it is not yet arrived.

Question:

1. Does SAP have any alternative to handle this if we are not using inbound shipment?

2. Can I use MIGO - valuated GR block stock (movement 107, 109)? would this be appropriate way in terms of SAP best practise?

3. Any other alternate way per SAP best practise?

Thanks in advance,

[Former Member · Accepted solution]

Hi Chin,

Question:

1. Does SAP have any alternative to handle this if we are not using inbound shipment?

2. Can I use MIGO - valuated GR block stock (movement 107, 109)? would this be appropriate way in terms of SAP best practise?

3. Any other alternate way per SAP best practise?

Solution:

You question no:2 Is correct.

Because you have to take the stock in to your inventory as block stock of damaged goods. then based on decision how you want to make furhter screp / rework . you can decide.

SAM

[Former Member]

Hi Chin

I want to konoow ur business process in SAP . what are step ur following in SAP

Edited by: sivasankar cherukuri on Jun 8, 2010 11:38 AM

[Former Member]

Hi

Best you can keep it in the Goods receipt for purchase order into GR blocked stock[103 Movement type]

as a Gate entry.

Once confirmation get it then you can move it to Actucal Unresrticted stock.

When material is in GR-Blocked [103 Movement type] No accounting happens.

Once approved or received then use 105 Mov Type[105Release GR blocked stock for warehouse]

you can have proper tracking

with regards

Shrinivas gangoor

[Former Member]

Hi SAM,

At the Question :2

While i go for 107 and 109 mov.type. at this time my material subject to split valuation. In this case how can i go for 107 and 109 .

As per SAP best practice 107 and 109 not suggestable for Split valuation material and Spl.procument .

So pls check once again Chin business process.

Hi CHIN

In what cases are applicable at your material business process?

[Former Member]

Hi sivasankar,

Can you please clarify your qquestion again?

Generally this scenario is pretty important to us if you apply the incoterm well to our business. We need a way to identify the value of purchases which fall under our liability under the EXW, FCA, FOB.

At the finance side, they also need to know what are the total value of "goods in transit" as well.

Hope this clarify.