MM, Stock in Transit and Actual Costing

Technical Data
Technical Name of Business Function	LOG_MM_SIT
Type of Business Function	Enterprise Business Function
Available From	SAP Enhancement Package 5 for SAP ERP 6.0
Technical Usage	Central Applications
Application Component	Materials Management - Purchasing (MM-PUR), Materials Management - Inventory Management (MM-IM), Logistics Execution - Shipping (LE-SHP), Actual Costing/Material Ledger (CO-PC-ACT)
Directly dependent business function requiring activation in addition	Not relevant

This business function allows you to control goods movements both for sales to external customers and for stock transfer processes between plants belonging to the same or different company codes within the same company. Using valuated stock in transit and new movement types, you can specify the time of the transfer of title precisely. Throughout the process, material quantities and material values are recorded transparently and can be displayed in the stock overview, the purchase order history, and the individual stock accounts. The functions are also available for the corresponding intra-company-code and cross-company-code return stock transfers.

All processes with defined transfer of title take place with reference to the delivery. In addition, for stock transfer processes that include receiving stock in transit, you can set up the system to create inbound deliveries with reference to the delivery automatically.

Using the Actual Costing/Material Ledger application component (CO-PC-ACT), you can include stock in transit in actual costing. The system then considers transit values automatically in period-end closing. You can display a transparent, company-internal cost structure that is divided into the different cost components. In addition, you see intercompany profit across all levels of the entire value chain, which enables you to compare actual costs with actual revenue.

Prerequisites

You have installed the following components as of the version mentioned:

Type of Component	Component
Software Component	SAP_APPL 605; EA-APPL 605

In the case of stock transfers between plants that belong to different company codes, the company codes must belong to the same client.

For more information on the prerequisites for stock transfers, returns stock transfers, and customer deliveries with valuated stock in transit, see SAP Library, under Prerequisites: Processes with Valuated Stock in Transit.

Features

Valuated Stock in Transit and Special Stock Indicator T

With valuated stock in transit, you can record the quantity and value of a material that has been removed from the stock of the issuing plant and has not yet arrived in the receiving plant. In sales processes to external customers, you can post the quantity and value of a material to issuing valuated stock in transit initially, and then remove it when proof of delivery arrives. In this way you can keep an exact record of the transfer of title.

The special stock indicator T (Stock Transfer or Outbound Delivery via Issuing Stock in Transit) has been introduced for movement types that include the new issuing valuated stock in transit. All movement types with this special stock indicator are applied with reference to the delivery.

For the new movement types you can use serial numbers.

Inbound Delivery with Stock in Transit

With condition type SPED (Stock Transfer Generates Inbound Delivery), you can set up the system to create inbound deliveries with reference to an outbound delivery automatically for stock transfer processes with receiving valuated stock in transit. You can post inbound deliveries into the receiving plant either in the usual way, or via receiving stock in transit.

For inbound deliveries with stock in transit, the following stock transfer processes (intra-company-code and cross-company-code) are supported, as these include receiving valuated stock in transit:

Stock transfer with transfer of title at goods issue
Stock transfer with transfer of title during transit

The system updates the inbound delivery if the quantity changes during proof of delivery.

Automated Process Flow

You start the process by entering a stock transport order, a returns stock transport order, or a sales order. You specify the transfer of title, for example in stock transfer processes, by assigning an order type in the header data of the corresponding purchase order. The order type corresponds to the document type, which must be assigned to a delivery type in Customizing in accordance with the issuing plant. The delivery type enables the system to find the movement types set up in Customizing.

The stock transfer process is only determined by the transfer of title. For the person responsible, it is irrelevant whether the process is cross-company-code or intra-company-code.

In detail, the following processes are available.

Stock transfer with transfer of title at goods issue and the corresponding return with transfer of title at goods receipt (via transaction VL02N)
Stock transfer with transfer of title at goods issue and the corresponding return with transfer of title at goods receipt (via transaction VLPOD)
Stock transfer with transfer of title during transit and the corresponding return with transfer of title during transit (via transaction VLPOD)
Outbound delivery with transfer of title at customer location (via transaction VLPOD)

After a successful goods transfer, you can perform internal clearing for cross-company-code stock transfers in the usual way. If you are working with transfer prices and using the profit center valuation view, the goods movement generates the necessary revenue lines and cost lines at transfer of title for stock transfers that are within one company code yet across profit centers. For more information about transfer prices, see SAP Library, under Multiple Valuation Approaches/Transfer Prices.

Note Note

The business function also supports the transfer of materials subject to batch management requirements to a plant belonging to a different company code.

End of the note.

Transparent Display of Valuated Stock in Transit

Throughout the process you can track the quantity and value of materials in the stock overview, the purchase order history, and the relevant stock accounts. For each process, you can display the valuated stock in transit in the issuing plant (outbound delivery) as well as the valuated cross-company-code and intra-company-code stock in transit in the issuing and receiving plant (internal stock transfer).

In addition, you can use the inbound delivery number to display the receiving stock in transit for the cross-company-code and intra-company-code process.

Actual Costing in Processes with Stock in Transit

This function allows you to map stock transfer processes with valuated stock in transit in actual costing at multiple levels, as follows:

In the legal view, an intercompany profit is displayed that is calculated based on the actual price of the sender and the purchase price of the receiver.
In the group view, price differences on the receiver side are rolled up, and the cost component split transferred to the receiving company code.
In the profit center view, these processes are not mapped at multiple levels, meaning with a profit center change no intercompany profit is displayed. With cross-company-code profit centers, no price differences are rolled up, and no component split is transferred.

Example

In a stock transfer process within a company, the two plants belong to different company codes. Plant 1000 orders a particular material from plant 7000 and sends a stock transport order to plant 7000. The transfer of title depends on the delivery type. The system determines this from the document type and the issuing plant in the purchase order, for example Transfer of Title at Goods Issue.

First, you create an outbound delivery for the purchase order in transaction VL10B (Purchase Orders, Fast Display). You can also set up this program to run periodically.

An employee in plant 7000 registers the document for the outbound delivery and takes the necessary steps to deliver the material. He posts the goods issue in transaction VL02N. As a result the quantity and value of the material are transferred completely from the unrestricted use stock of plant 7000 to the valuated cross-company-code stock in transit of the receiving plant 1000. The transfer of title is complete.

When the employee in receiving plant 1000 has received the material, he posts the goods receipt in transaction MIGO (with reference to the outbound delivery). This ensures that the quantity and value of the material are moved from the valuated cross-company-code stock in transit to the unrestricted use stock of plant 1000.

Generally, plant 7000 creates the invoice after it has posted the goods issue (transaction VL02N), and plant 1000 settles the invoice after it has posted the goods receipt (transaction MIGO).

More Information

For more information, see SAP Library under Valuated Stock in Transit.