User Experience Insights
Goods in transit using 107 & 109 mvt types
Introduction
During project in case of import procurement, the buying entity takes the financial ownership of the goods at the vendor premises and is therefore liable to pay the vendor even though the goods have not yet physically arrived at the buyer’s location (plant/warehouse)
1) Customer requirement / objective
a) FI-post the goods into our books as soon as the goods ownership is transferred to buying entity based on the Incoterms (FCA – when goods leave the supplier)
b) but at the same time, keep the PO/inbound element for MRP open until the goods are really physically available
c) have an overall visibility on when the physical goods are available
Solution approach
Step1. Create the Inbound Delivery for the PO.
Step2. Receive the Stock in “Valuated GR blocked Stock in Transit”, with the help of Post Goods Movement App and movement Type 107.
-> This means the items are received and an accounting document is generated but the goods are not delivered to the receiving plant
-> And still open the Inbound, so not indicate available stock in MRP Planning.
-> Meanwhile MATDOC will have the accounting document, indicating the transfer of ownership.
Step3. Receive the Stock with the help of Post Goods Movement App and movement Type 109.
-> now indicate available stock in MRP Planning
-> Meanwhile MATDOC without accounting document.
1) Configuration / Pre- requisite
SSCUI ID: 102974 (Mvt type : 109)
Purchasing info-record for inbound
2) Walkthrough
Step1. Display stock
Step2. PO Creation ( also can be created based on PR via MRP run)
App: Create Purchase order
Step3. Inbound creation ( it can be created via ASN)
App: Create inbound delivery
Step4. Post Goods receipt (Mvt type: 107)
App: Post Goods movement
FI Document is generated (financial ownership is transferred to buyer)
Step5. Stock overview
App: Display stock overview (mmbe) -> not available stock
MRP (Stock requirement list) still open PO as inbound delivery
Step6. Post Goods receipt (Mvt type: 109)
App: Post Goods movement
Benefit/ Impact
By movement type 107 have following impact on MM, FI and Invoice
| FI | MRP Planning | Invoice |
| During 107, Accounting document is generated | With “In Transit” the stock remains in the MRP calculation | Invoice available as per agreed term |
| Stock ownership is correctly transferred | not available to use before movement 109 |
By Actual good receipts as movement type 109 have following impact
| FI | MRP Planning | Invoice |
| no accounting document is generated | available to use stock | no |
Well articulated! Thank you for sharing this, Aehyun!