The agenda of this blog is to enable the process of making the COGS (Cost of goods sold) hit at the later stage of delivery i.e once the stock is handed over to the customer.
In order to execute this we are required to make use of concept called Valuated stock in transit where ‘Stock in transit’ refers to the goods that have left the physical plant, but the control of them isn’t transferred to the buyer at the same time. These goods are still in the control of the company that ships the goods and are still part of the valuated stock of that company.
This process where the stock is been transferred to valuated stock in transit is then been used to hit COGS at the time of POD ( Proof of delivery ) by which invoicing can be carried out immediately right after the confirmation from customer on stock received where by invoicing and cogs can be made to hit right after each other.
Change the movement type field in schedule line with ‘687’ from ‘601’ GM del to issue valuated stock in transit. This field helps in transferring the goods to valuated stock in transit instead of hitting the cogs.
Maintain Movement type issue valuated SiT with the movement type which hits COGS (601) so this accounting would be carried out at the time of POD.
While executing the transaction make sure you have activated the customer as POD relevant and maintained the necessary configuration for POD on item categories as well. When enabled POST GOODS ISSUE button at top would have been disabled at the time of creation of delivery where by we are required to go to change mode to post goods issue which creates an accounting document as mentioned below.
And after saving the POD document you can find the COGS been hit in following document which would have been created.
And we can carry out invoicing as we do and document flow is given for reference.
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