Third-Party Processing: Inventory

[Former Member]

We are using the SAP function "Third-Party Processing". We are using the function in it's standard (SAP R/3 4.7).

The auditor now has the following issue: Shipping the goods starts after paying the goods. Out of this, while shipping the goods, we are the owner of them. In this circumstance the ship is our warehouse.

SAP does not allow an Inventory Management within Third-Party Processing:

Since a third-party order involves a movement from the vendor direct to the customer, Inventory Management is not in any way affected. If you wish to document the movement in the system, however, you can create a goods receipt for the third-party order.

The issues of our auditor are the following:

- warehouse stock is wrong

Does any body know, how to solve the issue? How do you manage Third Party Processing & Inventory?

[former_member218253]

Seems to me that the warehouse stock not being impacted is correct in this scenario. Do you want to explain why the auditor thought it was wrong?

[Former Member]

With the SAP functions in this scenario it is correct that the warehouse stock is not being impacted.

Let me explain what is wrong out of the view of our auditor:

For example we initiated the order of a customer in June and we have paid the goods in June. The shipment starts in June and the goods will arive in July.

Due to the fact, that we are the owner of the goods on the ship, we have to increase the stock. This is the opinion of our auditor.

[Former Member]

Dear muellmich,

You have posted the question in ERP financials. You will get the right and quick answer if you post this question in SAP MM forum.

Regards

Naveen