RE:[sap-log-mm] How is 'in transit' inventory handled in standard SAP?

Posted by Sap Land Tuesday, 26 July 2011 08:02

Posted by VFRMark (Logistics Improvement Manager (Global))
on Jul 26 at 11:05 AM

Hi,
I have the same issue and am looking at two other options depending on inco terms:

If vendor owns stock in transit
1) use of confirmations with PO line item and shipping notifications. This means for any outstanding PO I can see if PO has been
a) acknowledged
b) despatched from factory
c) at docks
d) at sea
d) at local port
e) in transit to my factory
you can use any combination of these depending on the level of detail you need and want to manage.

If stocks are EX works
2) use Inbound Deliveries, which are another level and we have now accepted that the parts are in our inventory but are in transit to us to be received at the date on the inbound delivery
My problem with this is getting MRP to work with inbound deliveries and include the 13 weeks shipping time to generate an earlier delivery date.

So two new ideas both i think are very valid, but the 2nd one still needs some work to finalize the loose ends

mark

---------------Original Message---------------
From: Bo Gustavsson
Sent: Tuesday, July 26, 2011 9:53 AM
Subject: How is 'in transit' inventory handled in standard SAP?

The business scenario is: US company buy goods from Asia (can be different ports etc.)the terms are that ownership of the goods are at port so goods are in transit on ship and/or otherwise until they arrive in the US warehouse (several weeks).

Question: How is the 'in transit' inventory captured in standard SAP?
A) Use of GR into block stock in US plant.
B) Use of storage location within US plant to capture 'in transit' stock.
C) Setup a separate plant for the in transit inventory then GR at port and use stock transfer from port plant to US plant.
D) In transit inventory is not reflected in MM other than by the invoice receipt, no need for MM inventory.
E) none of the above, please advice

Please advice which would be the right standard SAP solution.Thanks

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