Vendor Payment and GR

[Former Member]

Hey all,

I have vendor from where we buy the material and he ships the material in rail cars.We have 2 scenarios

1.As he load the stuff in the rail car we have to pay for the material cost.We receive the material after few days physically but we have to pay at the time of load.

2.For transport we have another vendor whom we pay for the freight cost .Once we receive the material we pay for the freight cost and he doesn't deliver all the material at one time .It comes in at different times and all the time we have different invoice for the freight ,

What's the best way to manage both the scenarios ?

Thanks

[mathewgeorge]

If you are using ECC6, you can make use of valuated GR blocked stock functionality.

Once the material is loaded on the vehicle, you accept it at the location with movement type 107 and the material is in your stock even though physically it is not there. That means accounting document will be created and will be in valuated GR blocked stock.

Once it reach you premises, it is received from valuated GR blocked stock by 109 movement type. Then accounting document will not be created.

Matthew

[Former Member]

Mathew I like you solution but there is one issue.My PO is going to have 2 vendors .One for Material and for transporter.We pay the transporter once we actually receive the material.With 107 I think it will generate the financial document for him also.Do I need to create a custom movement type copying 107 and 109 ? For  107 create financial document only for material cost and when I do 109 create financial document for transporter  ?

Again how you do that in movement type ..:) ?

[former_member186100]

Hi,

Create a purchase order with basic price from material vendor and freight condition for freight vendor in same PO as u do in normal case where vendor and transporters are different entity.

Then u can use 2 step GR

1. 107 movt. to valuated blocked stock and make payment against it to material vendor , say u were delivered 100 MT  ( One GR document )  ( value of stock will be updated here as per total effective price in PO , Material vendor price + transportation charges)
2. 109 movt to valuated unrestricted stock partially , say ur transporter delivers to ur plant 10 MT per truck  (10 block stock release documents) , U book transporter invoices against these documents ( check out freight invoice booking in MIRO wrt bill of lading )

At any time u can track material value in transit via MB52 ,  valuated restricted stock column.

cheers

Avinash

[Former Member]

Avinash,

We have Problem with this solution.Transporter sends the invoice even the goods is not delivered physically and it's still in transit .SAP will not stopped doing payment to these guys and AP department doesn't know that goods is still delivered or not.System will do 3 ways match with GR (107 movement type),PO and Invoice and will find everything good .Business wants to pay transporter only the goods physically delivered

Thanks.

[former_member186100]

use payment of terms which automatically blocks invoice for payment , remove block only when 109 is done

[Former Member]

Hi

This requirement is similar to my client's request but with a little bit of complications from them

As the Vendor load the stuff in the rail car we have to pay for the material cost even though we will physically receive the material after few days or months later but we have to pay at the time of load.

Now, we tried movement type 107 but problem is that, they want to post into Stock-in-transit  account and not the stock account like it is currently doing.  They also want to post or credit the Vendor at this stage and this is not the normal procure-to-pay process, because on p2p process we only credit the vendor at the very last step when AP run's MIRO.

Now my question is, how can we help them with their requirement?  Post into stock-in-transit with movement type 107 and credit the vendor using the same move type (107. What would be the risk of not executing MIRO if we do everything at once during 107?

[Former Member]

As soon as material delivered at Vendor port - the material responsibility transferred from Vendor to client. Where as material not physically delivered / received in stores.

But payment need to be done to vendor without GRN.

These materials need to be shown as in-transit stock - and separate Transit GL - but not in un-restricted of plant stock.

Once stock physcially arrived at plant - move quantity to quality for inspection and clear stock.

THIS IS OUR CLIENT requirement  and its similar to yours...

We created 4 new movement types with respective GL postings & 2 valuation types for material as "In Transit" and "Import".

Try this.

[Former Member]

Syed I got the overview how you did that ? Can you please provide me more details like movement types and process steps? Did you down-payment or prepayment functionality for payment ?

Regards

[Former Member]

Here is a brief :

Sorry for delayed reply. Once again to clarify:

Requirement:

Stock need to not to be shown in our records either in Financial or Unrestricted inventory.

Payment (MIRO) need to be done in advance to goods arrival and posted to separate GL. 

For Stores people this stock to be show as "In Tranist" clearly.

Once material arrived at plant location, material transferred to IMPORT from In Transit.

Here separate GL posting and stock report show In transit are typical. For this we dont want to disturb movements and their backend posting settings like 103, 105 or 107, 109.

So, We created 907, 908 & 909, 910 movements.

Now process will be :

1. PR, PO creatd with valuation type "In transit". stock like in MMBE, MC. reports shows under "In-Transit"  - Store requirement fulfilled).

2. Vendor informed about material at Port make GRN with movement 907. In the background for 907 movement GL posting settings done.

Goods in Transit Dr. and GR/IR Credit.

3. Invoice (MIRO) done ref to PO. FI posting:

Vendor Cr and GR/IR Dr.

4. Material physically received to plant location - make "Transfer material to material" 909 movement.

From Valuation type : In Transit TO Import (same material).

FI entry for Transfer posting:

Goods in trasit Cr

Stock Value R/M Dr.

Stock moved from In-Transit to Import (Unrestricted).

I dont know how far this suit your requirements but looks like same procedure. You can achieve this with 107 and 109 also, but check business requirement.

[Former Member]

Syed,

Your solutions may help me but I have few questions.

1.Did you config split valuation for Valuation type ?

2.How did you configure the posting on separate G/L account (This may be a stupid question ) and why you did that ?

3.Seems like 909 910 are copies of 309 and 310 .What about 907 and 908 ? From which movement type u copied these ?

Thanks for your help!

[Former Member]

Yes - Material Split valuated : To confort separate GL postings and separate Stock show in reports.

Like as you said in your reply - These stock value has to show separate in GL so that Finance people recognize which cost paid for Transit materials and which is fully delivered.

Copied movements from 101 (because if you copy from 907 no FI postings possible). copy from 101 and do all necessary GL changes - if required share knowledge with FI/CO consultant and INSTRUCT him not request - we need these postings on these movemnet.

And accordingly for reversal movements like 908 reversal for 907 and 910 reversal for 909.

Hope you remeber

907 - for Goods receipt with separate GL : In Transit.

909 - for Material transfer from In transit to Import valuation class with relative GL postings.

[Former Member]

Hi Syed

With regard to step 3 above (3. Invoice (MIRO) done ref to PO. FI posting: Vendor Cr and GR/IR Dr.)

We're unable to process MIRO after movement type 107 in order to generate the invoice verification.

Can you please give us more details as to how we can pull through the invoice amount automatically instead of manually capturing after 107 (We need create invoice verification before Mov type 109).

Currently we're unable to process MIRO before movement type 109.

Your prompt response would be highly appreciated.

Thank you in advance

Thabo