Tracking stock in transit

[Former Member]

Dear Expert,

I have scenario,

My company purchase goods from overseas. the moment its shipped my company want to capture as Goods in transit ( G/L acc).

After it arrive at the warehouse, need to do GR and captured to stk account.

How to handle thi requirement?

[kunal_ingale]

Hi

Create a storaglocation as In transit

Do the GR in blocked stock in trasit locaiton (103 Movement) (No accounting will be hit for this )

Using MMBE you can see the stock in transit

now once the  goods reached to your premises do the GR (105 movement )from blocked stock to unrestricted stock (Accounting will post)

if loss in transit ,Say out of 100 only 98 received, then Do GR with 105 movement for 98 quantities and do 551movement (issue to scraping )for 2 quantity or if the liability is not with you then you can just revese the 103 movement for 2 quantity

Regards

Kunal

[Former Member]

1. Goods loaded to vessel

How if I use a customised movement type of 103 just say Z97. But I need an accounting document created where it will CR : GR/IR and DR Goods in Transit and will be posted to GR blocked stock in transit where I can track the qty. Can I do this? Guide on steps to perform this?

So when goods received at the warehse .

1. Cancel the Z97 with movement type Z98.

2. Perform 101.

Is this solution possible?

[Former Member]

Hi Mitra

But as explained in this thread, there wont be any accounting document generated using Z97 since it is copied from 103. Instead you can think of creating Z97 by copying from 101 so that it can generate accounting entry. then you can reverse the same using movement type Z98 which can be copied from 102. Then again make a new entry using movement type 101

[Former Member]

Hi Balan,

Please check below process matches to your requirement.

ME21N -   Create Stock Transfer order (STO)

VL10B -   Create Delivery

VL02N -    Post goods issue & Batch / qty. picking (Stock in Transit)

VF01 -     Create Billing Documents ( STN )

VF02 -     Display STN

VF03 -     Printout for STN

GR-             Outbound delivery

IR-              Invoice reciept

[Former Member]

However it is suggested to handle the GIT purely under financial accounting without complicating in MM module

But another thought could be to have a storage location called "In transit" and do a GR to the storage location (may be under blocked status). In this case, system will post an accounting entry increasing the Stock account and keeping the liability in GRIR account. You may then do a transfer posting from sloc to sloc where there will be no accounting document. Later on you can do MIRO to book the vendor liability.

Please see if this is workable.

[Former Member]

HI Rajesh,

Referring to your statemen"But another thought could be to have a storage location called "In transit" and do a GR to the storage location (may be under blocked status). In this case, system will post an accounting entry increasing the Stock account and keeping the liability in GRIR account. You may then do a transfer posting from sloc to sloc where there will be no accounting document. Later on you can do MIRO to book the vendor liability"

Please advise what would be the movement type do a GR to the storage location (may be under blocked status)

and movement type transfer posting from sloc to sloc where there will be no accounting document

[Former Member]

Hello,

Use Movement type 103 for brining the stock under " in transit ( blocked )" storage locaiton, at then do 105 for brining stock in unrestricted.. But in 103, system will not generate any accounting entry..

Thanks

[Former Member]

As the materials are procured on FOB terms, liability is yours once it is shipped from supplier port. Hence it is your liability, i.e. anything should happen to these goods on the way, you are still liable to pay to the supplier.

Hence, even though goods are not physically with you, you need to account for it in your books. For this requirement actually a simple JV (of supplier value only) should be posted as liability and once goods are received, you should reverse this JV.

Regards,

Dakshesh

[Former Member]

HI ,

If sismple JV posting done then how about if the goods damaged or lost on the way. What would be be the entry?

[Former Member]

Consult your Finance, they will tell you how to transact in that case, as it depends how you cover that, whether it is insured or not? whether that has to be booked as inventory loss or not? But in either case that will be FI transaction only.

Regards,

Dakshesh

[tejyadav]

Check below link for your requirement,

Stock Transfer with Valuated Stock in Transit