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!
Very helpful document, thank you for sharing
If I may ask a question. How would the process flow change in the following scenario: The plant for which the purchase order was created, is actually virtual. The product will either be delivered to another (real) plant, or directly to a customer to fulfill their order. The movement type 107 was to this virtual plant but now I would need to clear that
Thanks
Sergio
Hi Sergio
If I understand correctly, The process flow is the same only Good receipt 2times via 107/ 109.
and this scenario not be involved any virtual plant code, during GR via 107 then stock type will be different as Rec.Val.SIT under the same plant code.
Please refer to the attached screenshot as below.
screenshot
Hi Aehyun
I am in Canada and we do order from places like Australia for example, where shipping can take at least 60 days but the vendor wants to be paid in 45 days. Ownership is legally transferred to us when it leaves Australia and paperwork is sent. So we record this transfer of ownership using movement type 107 into plant virtual plant. Invoice is also provided and posted via LIV
Screenshot
Receipt via 107 shows as On-Order Stock in our system (I may have something wrong there as it does not show as Stock in transit), and is correctly reflected on the balance sheet as an asset.
I know that when the goods are physically available in Canada, I need to execute a 109 movement to move from restricted to unrestricted, but the goods may have actually been received at a plant 1000, an actual physical location. Or the goods may have been shipped directly to a customer. Should I assume that the 109 movement type must occur for plant 1560 and then a subsequent movement to reflect the receipt at plant 1000? If it is delivered direct to a customer, do you see a different movement type scenario?
Thanks
Sergio
Hi Sergio
To make more clarify, I believe you are using SAP S/4HANA Cloud public edition.
If you are using ECC then solution may slightly different.
As assumption that you are using SAP S/4HANA Cloud,
For the Mvt 107, 109 please refer to the above pre-requisite first as configuration and inbound creation needs to be involved.
after all are is done, during 107 GR, please check whether account document is generated or not.
and also still MRP (Stock requirement list) still open PO as inbound delivery as above.
For direct delivery to customer, please refer to the 3rd party direct shipment SAP S/4HANA Best practice scope item.
BD3(Sales Processing using Third-Party with Shipping Notification): Process Navigator - SAP for Me
BDK(Sales Processing Using Third-Party Without Shipping Notification): Process Navigator - SAP for Me
Thank you
Kind regards,
Aehyun
Hi Aehyun
I ought to have mentioned that we are not yet on S4. In fact we are at ECC 6.0.
I do have the financial posting to inventory with the 107 movement type and I recognize that movement type 109 makes the product available from a logistic point of view. I will review your suggested reference material
Thanks again for taking the time to share you knowledge in this area. it is very helpful
Sergio
When using 107/109 we are seeing that it affects the product moving average which has all sorts of implications. It not only potentially affects audit values but also when product is issued to packets the "new cost" is used.
How do you manage this?
We also activate the Origin Accept tick box in the PO delivery Tab. Is this required? I see from the Blog Article that it seems that this is managed via the Info Record
Hi Simon
Sorry for late replay.
Yes you are right, as I wrote Invoice available as per agreed term and goods ownership is transferred to buying entity based on the Incoterms (FCA – when goods leave the supplier).
and regarding the origin accept tick in SAP S/4HANA Cloud is not required for Mvt 107/109.
Thank you.