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

Posted by Sap Land Thursday, 28 July 2011 05:38

Posted by rory.goodwin
on Jul 28 at 8:43 AM

We have had similar issues both before and after our SAP implementation.
In SAP, we have a unique solution that may interest you.

A) Use of GR into block stock in US plant.
Don't do this. It will be bad for planning.

B) Use of storage location within US plant to capture 'in transit' stock.
We tried this. It works, but it requires additional transactions and someone must take responsibility to monitor the "in transit" StorLoc (that was our problem).

C) Setup a separate plant for the in transit inventory then GR at port and use stock transfer from port plant to US plant.
Even more work than option B, with the same qualifications.

D) In transit inventory is not reflected in MM other than by the invoice receipt, no need for MM inventory.
Does not solve anything or give a good representation of legal liability.

We have a process that uses the "average inspection duration" in a QM inspection type in the Material Master. We set the field to the usual ocean transit time e.g. 20 days. We receive (MIGO) the purchase order when the vendor ships and the transfer of liability takes place. Therefore, the material is on our books, the material is good for planning (not blocked) but not available for MRP purposes for 20 days. MD04 shows all this. Upon physical receipt, (and any REAL inspection, if applicable) we perform the QM transaction to move from Q stock to unrestricted use. While this solution is also an extra transaction, it provides much better visibility and solves several issues we had.

---------------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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