Origin Acceptance at Vendor Premises

[mohamedhasanrifaie_m]

This article explains the functional benefit of Origin acceptance in SAP and the related SAP settings and processes. This will be helpful for the consultants, subject matter experts and business users in the procure to pay area. It is explained in a simple and easy way.

Overview:

Origin acceptance is meant for accepting goods at the supplier's premises before actual dispatch to the customer warehouse. This functionality helps government organizations, Electro-mechanical Projects which involves turn key projects, where the requirements of source inspection needed before dispatch.

End to end process which includes quality management and GR posting is possible in case vendor and customer systems are integrated.

The movement types 103 (goods receipt for purchase order into goods receipt blocked stock) and 105 (release from goods receipt blocked stock for purchase order) did not meet the requirements for acceptance at origin.

As of ERP 6.0, new movement types 107 and 109 have been introduced for this acceptance at origin purpose.

Unlike 103 movement type, 107 movement type posts stock in to valuated blocked GR status and because of this, the value of the stock gets posted to own stock. Financial posting of 107 movement is similar to movement 101 posting, even though the goods has not arrived at warehouse. Later, as soon as goods arrived at warehouse, release of the valuated GR blocked stock is taking place using 109 movement type.

Integration:

In case, material master data needs to be replicated to other system, like SRM for this integration purpose to collaborate the vendor the following settings needs to be done for the material master.

Enable origin acceptance for material master:

Transaction: OMT3

Select screen sequence "21" and screen 14, remove subscreen 2313 and place 2314.

With the above setting, field "Origin acceptance" gets enabled in material master under "Purchasing view". This will help master data replication to another system in case origin acceptance is needed.

Also, irrespective of material master setting, as of ERP 6.0, field Origin acceptance is always visible in Purchase order under Delivery tab.

By default, system expects 107 movement to be selected for for Purchase orders with origin acceptance during GR posting. Otherwise, system prompts the following error.

Finally, after successful posting of 107 movement, the posted stock showing up under Valuated GR blocked stock in Stock overview screen. Purchase order history gets updated with 107 posting. Later using movement type 109 the stock can be released to Unrestricted stock, Quality stock and Blocked stock.

To Summarize:

• Buyer inspects and accepts the goods at origin.


• Supplier ships the goods to the destination.


• Buyer acknowledges acceptance but does not perform the final goods receipt until the goods arrive at the final destination.


• System acknowledges the origin acceptance posting by updating the purchase order history.


• When origin acceptance is posted, the system allows proper financial postings. The system also allows for payments prior to the arrival of the goods at the purchaser's location.


• When the goods arrive, the system posts the final goods receipt in the logistics system and acknowledges their final receipt. The system then updates the PO history.

Reference:

https://help.sap.com

Conclusion:

Origin acceptance at vendor premises overview has been explained in this article with business reason, steps and settings. Please feel free to contact in case of any queries and clarifications.

Mohamed Hasan Rifaie M,  Associate Principal at Larsen & Toubro Infotech Ltd (LTI)