Regarding sales process

[Former Member]

Dear SD guru,

Customer want to keep the inventory already sold to them in the company, the good delivery to them is after COGI and revenue recognized, which means shipout is requested last, instead of billing of normal slaes, please kind to check the details again as below:

Normal sales process: SO->DN(do GI, ship out & COGS recognized)->Billing(revenue recognized)

My requirment: SO->DN(do GI,COGS recongnized, BUT no shipping out, inventory still in the company)->Billing(revenue recongized)->shipout per customer inform

My question is how to set up such sales process and manage or monitor customer inventory mentioned above?

Regards,

JunlingJUNLING00

[Former Member]

Hi,

As mentioned the normal Sales Process is SO>Delivery>Shipment-->Invoice

In your case you the best way is to recognize the COGS when you do your billing after Shipment.

Step1: Create your Sales Order

Step 2: Do Delivery and PGI. Now the Inventory Cr and the COGS unrecognized Dr.

Step3: Send the Proforma invoice to Customer

Step 4: Do the Shipment for the Delivery

Step 5: Create the Billing Document

During Billing the Customer a/c Dr

Revenue a/c Cr

COGS unrecognizedCr

COGS recognized

For the Unrecognized COGS a/c information you will get the quantity,Value and for which customer.Or with a Z report you can track the Customer Quantity value in unrecognized G/L.When shipment is done then COGS is recognized.

Regards,

Saju.S

[Former Member]

Thanks for all your comments

the reason is that customer doesn't have enough room to keep the inventory, COGS and revenue recognized is requested to post ahead... since sometimes the inventory is shipped out after two months of deal.

Regards,

Junling

Edited by: JUNLING00 on Aug 3, 2011 8:13 AM

[Former Member]

Hi,

You can process it by following ways also

Create sales order >> Create delivery (Do not do PGI) >> Create invoice

You can able to create invoice without PGI also in copy control delivery to billing at HEADER level set copying requirement as 11-Head Dlv-Rel w/o GI

and after that do PGI when customer inform/request to send material

Optional step after sales order >> If you want then RESERVE material for sales order by MB21 use movement type 231 and same you can deliver

Kapil

[former_member188076]

Hi

As I understood your requirement is that even after doing the PGI and Commercial Billing, actually you do not send the material to Customer, and only after the confirmation from the Customer you send the material to Customer.

In this process the sending of material to customer is not in SAP. So system is not going to stop you in keeping your material at your Plant even after doing the PGI and Billing. HOWEVER, this is not the correct practice as PGI means as per the system the stock is reduced from your Plant so you should not kep that material in your Plant legally. Sales Tax and Excise authority will penalise you if they caught you.

So my querry is why your Client is doing such practice?? If this is for collecting the payment first from Customer and then giving the Delivery of Material, then you should follow the below standard process of SAP:-

Sales Order --> Proforma Invoice (No accounting) with ref to Order --> Delivery (once your client receive the payment from Customer) --> PGI --> Commercial Invoice

Thanks and regards,

Amitesh Anand