Orange County Convention Center

Orlando, Florida | May 15-18, 2011

Stock in Transit@Company XYZ and new

features available with ERP 6.0 EHP5

Uwe Pfisterer
Solution Manager
SAP AG

Agenda

Introduction Stock in Transit

New Features & Scenarios in Logistics

New Features & Scenarios in Accounting

Demo

Customer Examples

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Confidential

Stock Transport Processes

Company Code

Stock Transport

Plant
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Confidential

Existing Stock Transport Options in SAP ERP

Cross-Company Code

Intra-Company Code
STO w/o Shipping

STO with Shipping

STO with Shipping+Invoice

2-Step

1-Step

2-Step

1-Step

2-Step

Order
Type

UB

UB

UB

NB

NB

Movmt
Type

GI: 351
GR: 101

GI: 647+101

GI: 641
GR: 101

GI: 645+101

GI: 643
GR: 101

NL

NL

NLCC

NLCC

1-Step

Delivery
Type

Stock
after GI

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Stock in
transit

Stock in
transit

(MARC-TRAME)

(MARC-TRAME)

Dynamically
calculated
SIT
Confidential

Stock Transport in the

Traders and Schedulers Workbench (TSW)
What is it ?

Available in industry
solution Oil&Gas or with
ERP 6.0 EHP5 (Business
Function LOG_TSW_ECC)

Separate Pricing

New Master Data object

is used to depict stock intransit
Transport System
(TS)

Each Transport System

has exactly one SAP plant
underneath it.

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Confidential

New Features & Scenarios in

Logistics

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Confidential

Features & Functions of the new SIT Concept

in a nutshell
With enhancement pack 5 of ERP 6.0 SAP
provides an integrated solution to the process
consisting of

Logistics
Introducing a valuated stock in transit that either belongs
to the sending or the receiving plant

Company
B

Company
A

Valuated
stock in transit

New order types and movement types and configuration

to support the process
Ability to use this new concept either for cross-company
processes or intra-company code processes

Accounting
Enhancements in actual costing to connect the value
chain across company codes
Inclusion of intra-company profits (or mark-up) into the
cost components
Group actual costing parallel to the legal view
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Confidential

New in EHP5:
New Concept for Stock In-Transit (SIT)

Outbound
Delivery

Sender
In plant

Senders
Stock

Senders
Stock

Senders
Stock

Senders
Stock

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In transit

Purchase
Order

New in
EHP5!

Receiver
In transit

In plant
Receivers
Stock

Senders
Transit Stock

Senders
Transit Stock

Immediate Transfer
(1-step scenario)

Receivers
Stock

Goods stay in senders

ownership during transfer

Receivers
Transit Stock

Receivers
Stock

Ownership changes
during the transfer, e.g.
upon arrival in the port
of destination

Receivers
Transit Stock

Receivers
Stock

Ownership changes
when leaving the sender

Confidential

Stock in Transit for Sales Processes

Sales Order

Sender Company Code

In plant

Senders
Stock

r4

Purchase
Order

Outbound
Delivery

External Customer

In transit

687

Senders
Stock

Senders
Transit Stock

Senders
Transit Stock

688

Delivery address

601 T

Rejected or
not
delivered

Customer

Goods stay in senders

ownership and control
during transfer to an
external customer

Customer

Returning goods are in

senders ownership and
control and will keep the
original values

The enhancement helps also in business with external customers to keep

sold goods in the books until they are finally arrived at the customers and
keep control over returns

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New Features & Scenarios in

Accounting

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10

Motivation
Issue

Requirement

Actual costing provides no visibility into

cost structure after inter-company sales

The enhanced Solution shall keep the

cost transparency through intracompany sales and add freight
costs and intracompany profits to
the costs from the selling company
code from a group point of view

Group
Company
A
Costs
Raw Mat.
Energy
Labour
Production

20
25
15
40

Company
B

Sales process

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Costs
Raw Mat. 100
Energy
0
Labour
0
Production 0

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Sales Process
without enhanced Cross-Company Actual Costing
Before the enhancement, a sales process does not transmit the internal cost
knowledge from a vendor to a purchaser. At the receiver the goods appear as
purchased raw materials.

Plant

Group
Marketing

Costs
Raw Mat.
Energy
Labour
Production
Maintenance
Freight
Marketing
Duties
Intercompany profit
Sales Costs

Costs
Raw Mat.
Energy
Labour
Production
Maintenance
Freight
Marketing
Duties
Intercompany profit
Sales Costs

Regional
Sales
Org
Costs
Raw Mat.
Energy
Labour
Production
Maintenance
Freight
Marketing
Duties
Intercompany profit
Sales Costs

Customer

Revenues
Costs
Raw Mat.
Energy
Labour
Production
Maintenance
Freight
Marketing
Duties
Intercompany profit
Sales Costs
Profit

In SAP standard an internal sales process cuts the value flow for
actal costs. Costs will only be transparent for the last step in
the chain. Costs from previous steps will appear as raw
material costs only
2011 SAP AG. All rights reserved.

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Sales Process
with enhanced Cross-Company Actual Costing
After the enhancement, the full cost information is collected along the groupinternal supply chain and can be compared with the revenues achieved.

Plant

Group
Marketing

Costs
Raw Mat.
Energy
Labour
Production
Maintenance
Freight
Marketing
Duties
Intercompany profit
Sales Costs

Costs
Raw Mat.
Energy
Labour
Production
Maintenance
Freight
Marketing
Duties
Intercompany profit Plant
Sales Costs

Regional
Sales
Org
Costs
Raw Mat.
Energy
Labour
Production
Maintenance
Freight
Marketing
Duties
Intercompany profit Plant
Sales Costs
Intercompany profit Marketing

Customer

Revenues
Costs
Energy
Labour
Production
Maintenance
Freight
Marketing
Duties
Intercompany profit Plant
Sales Costs
Intercompany profit Marketing

Profit

Profitability Analysis will make cost and profit contributions from

the whole chain transparent.
Actual costs of the month in production, marketing and sales will
be compared with actual revenues
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Demo

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Planned for EHP5:

3 New Possibilities to transfer Material
Company Code 1000

Company Code 0001

Plant 1000

Create Outbound Delivery

(From Plant 1000 to 0001)

Perform Goods Issue

(VL02N: 681)

Plant 0001

Demo
In-Transit Stock

Create Purchase Order

Perform Goods Receipt with

reference to Outbound Delivery
(VLPOD: 685 + 101)

Perform POD
(VLPOD: 685 + 107)

Perform Goods Issue

(VL02N: 681)

Perform Goods Issue

(VL02N: 683 + 107)

Create Billing document

(with ref. to outb. delivery)
2011 SAP AG. All rights reserved.

In-Transit Stock
(Plant 1000)

In-Transit Stock
(Plant 0001)

In-Transit Stock

Perform Goods Receipt with

reference to Outbound Delivery
(MIGO: 109)

Perform Goods Receipt with

reference to Outbound Delivery
(MIGO: 109)
Create Invoice
(automatically or manually)
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Planned for EHP5:

3 New Possibilities to transfer Material
Company Code 1000

Company Code 0001

Plant 1000

Create Outbound Delivery

(From Plant 1000 to 0001)

Perform Goods Issue

(VL02N: 681)

Plant 0001

Demo
In-Transit Stock

Create Purchase Order

Perform Goods Receipt with

reference to Outbound Delivery
(VLPOD: 685 + 101)

Perform POD
(VLPOD: 685 + 107)

Perform Goods Issue

(VL02N: 681)

Perform Goods Issue

(VL02N: 683 + 107)

Create Billing document

(with ref. to outb. delivery)
2011 SAP AG. All rights reserved.

In-Transit Stock
(Plant 1000)

In-Transit Stock
(Plant 0001)

In-Transit Stock

Perform Goods Receipt with

reference to Outbound Delivery
(MIGO: 109)

Perform Goods Receipt with

reference to Outbound Delivery
(MIGO: 109)
Create Invoice
(automatically or manually)
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Customer Examples

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Sales Process@HighTech Company X

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Sales Proces@High Tech Company X

ERP 6.0 [Company X]

Create Sales Order

Customer
Create Purchase Order

Create Outbound Delivery

Perform Goods Issue

(VL02N: 687)

In-Transit Stock

Perform Goods Receipt +

send Proof of Delivery

Maintain Proof of Delivery

(VLPOD: Goods Issue 601)

Create Billing document

2011 SAP AG. All rights reserved.

Receive Invoice

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Stock & Title Transfer@Trading Company Z

Plant 0002

Plant 0001
Create STO Purchase Order

Create Outbound Delivery

SPED

1
TTO

Perform Goods Issue

(VL02N)

Inbound Delivery

In-Transit Stock

Perform Goods Receipt with

reference to Inbound Delivery
(VL32N or MIGO)

Inbound Delivery
SPED

Perform POD (VLPOD):

- Title Transfer
- Movements

Update inbound delivery

2
TTD
TTI

Perform Goods Issue

(VL02N)

Create Billing document

(with ref. to outb. delivery)

2011 SAP AG. All rights reserved.

In-Transit Stock
(Plant 0002)

In-Transit Stock
(Plant 0001)

Perform Goods Receipt with

reference to Inbound Delivery
(VL32N or MIGO)

Create Invoice
(automatically via EDI)

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Procurement@Automotive Company Y

ERP 6.0 [Company Y]

External Vendor

Sales Order

Outbound Delivery / ASN

Purchase Order

DESADV idoc

Inbound Delivery

User-Exit: Post Goods Receipt

107 in Background

In-Transit Stock

Goods Receipt with reference

to Inbound Delivery (109) with
VL32N

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Project Stock Transfer@Engineering Company V

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Thank you for participating.

Please remember to complete and return your
evaluation form following this session.
For ongoing education in this area of focus, visit
www.asug.com.
SESSION CODE: 4111
INSERT SESSION CODE

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Appendix

Valuation View: Group Valuation

Group Valuation
In group view the transfer is valuated like a plant-to-plant transfer. The costs at the receiver will
reflect the costs at the sender plant
No Intracompany Profit is shown. The PO and invoice values play no role for material valuation
Freight costs and other planned delivery costs will be added at the receiver
Cost information from the sender will be kept
Note: Internal invoice needs to be created via EDI-interface and not manually in MIRO

Plant 1

Plant 2

Total cost

1000

Materials

500

Labor
Overhead

Total cost

1100

Materials

500

400

Labor

400

100

Overhead

100

Freight

100

transfer

Freight
Intrac Profit

Shipper
2011 SAP AG. All rights reserved.

Intrac Profit

After period end, price differences

from the sending plant will be
transferred to the receiving plant in
multi-level settlement, only in group
valuation

Freight
invoice
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Valuation View: Legal Valuation

Company Code Valuation (legal valuation)
In legal view the transfer is valuated like a sales process. The costs at the receiver will reflect the PO value
initially and finally the invoice value
The difference between the cost at the sender site and the invoiced price is shown as a mark-up or intracompany profit within the cost components*
Freight costs and other planned delivery costs will be added at the receiver
Cost information from the sender will be collapsed (Option 1)
It can be chosen in configuration to transmit all cost split information from sender to receiver and keep them in
the receivers cost component split (Option 2)
Invoice
1100,-

Plant 1

Option 1

Option 2

Plant 2

Plant 2

Total cost

1000

Materials

500

Labor

400

Labor

Overhead

100

Overhead

Intrac Profit

2011 SAP AG. All rights reserved.

Sold to

Total cost

1100

Total cost

1100

Materials

1100

Materials

600

Labor

400

Overhead

100

Intrac Profit

100

Intrac Profit

100

* Via a BADI implementation it can be achieved to split markups (e.g.

into contributions from different parts of the organization
)
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Confidential

BAdI: Control of Cross-Company Code Transfers

ROLLUP_COST_COMP_SPLIT
Using this method you can control that the cost
component split is also transferred cross-company
code in the legal view.
REVAL_MARKUP_AT_ACTUAL_COSTS
Using this method you can control that the
intercompany profit is calculated on the plan costs
of the sender and not using the actual costs.
DISPLAY_COST_COMPONENTS
Using this method you can control in Material Price
Analysis (CKM3) that all cost components not
relevant to inventory valuation are displayed (and
not just the cost component for the intercompany
profit).
GET_MARKUP_COMPONENT
Using this method you can control that the
intercompany profit is assigned to any cost
component not relevant to inventory.
MODIFY_MARKUP
With this method, you can calculate the
intercompany profit in accordance with a separate
algorithm.

2011 SAP AG. All rights reserved.

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Release Info
The enhancements in logistics and accounting are planned for ERP 6.0
enhancement pack 5 and included in the ERP user license.
In order to make use of the new functionality the business function
LOG_MM_SIT has to be activated in transaction SFW5.

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