Stock Transfers with Valuated Stock in Transit

Stock Transfers with Valuated Stock in Transit

One uses Stock Transfers with Valuated Stock in Transit to pinpoint the exact time of the transfer of title.

As an example, looking at the conventional Intra-company Stock Transfer process, using movement type
641 for goods issue, stock is moved from unrestricted stock of issuing plant to stock-in-transit of
receiving plant.

Following are the account postings during goods issue from Issuing plant:

Inventory Inventory
at at
receiving issuing
plant plant

This implies transfer of title during goods issue since inventory is shown in books of receiving Plant as
soon as goods are issued from issuing plant.

However the goods may not have reached the receiving plant physically.

Once the goods reach physically, movement type 101 will be used to post the stock into unrestricted
stock of receiving plant from stock-in-transit.

An alternate approach can be to follow transfer of title during goods receipt, in conjunction with actual
time at which goods are received by receiving plant.

The Valuated Stock-in-Transit functionality in SAP allows for these options.

With Valuated Stock-in-Transit postings, the transfer of title can happen at any of the following points:
- Goods Issue
- Goods Receipt
- During Transit

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Stock Transfers with Valuated Stock in Transit

Pre-requisite

To implement Valuated Stock-in-Transit functionality, the business function LOG_MM_SIT needs to be

activated. This is available from ECC 6.0 Enhancement Package 5 (SAP_APPL 605) onwards.

On activating this business function, following schedule line categories provided by SAP become
available.

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Stock Transfers with Valuated Stock in Transit

Below documentation from SAP Help Library explains the use of the schedule line categories with
corresponding movement types for cross-company and intra-company stock transfer processes with
defined times of transfer of title.

Cross-Company-Code Stock Transfers and Returns Stock Transfers

In the following cross-company-code processes, valuated stock in transit specifies the exact time
of the transfer of title:

• Stock transfer with transfer of title at goods issue (schedule line category N1)
• Stock transfer with transfer of title at goods receipt (schedule line category N2)
• Stock transfer with transfer of title during transit (schedule line category N3)
• Returns stock transfer with transfer of title at goods receipt (schedule line category R1)
• Returns stock transfer with transfer of title at goods issue (schedule line category R2)
• Returns stock transfer with transfer of title during transit (schedule line category R3)

The following graphic shows these processes according to schedule line category with the
corresponding movement types

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Stock Transfers with Valuated Stock in Transit

Intra-company-code stock transfers and returns stock transfers

In the following intra-company-code processes, valuated stock in transit specifies the exact time
of the transfer of title:

• Stock transfer with transfer of title at goods issue (schedule line category N4)
• Stock transfer with transfer of title at goods receipt (schedule line category N5)
• Stock transfer with transfer of title during transit (schedule line category N6)
• Returns stock transfer with transfer of title at goods receipt (schedule line category R4)
• Returns stock transfer with transfer of title at goods issue (schedule line category R5)
• Returns stock transfer with transfer of title during transit (schedule line category R6)

The following graphic shows these processes according to schedule line category with the
corresponding movement types

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Stock Transfers with Valuated Stock in Transit

The process of Intra-company Stock Transfer with transfer of title at Goods Receipt (using Schedule Line
category N5) is shown below.

Configuration Steps

The steps below show the settings pertaining to Stock transfers with Valuated Stock-in-transit.
General settings of stock transfer processes such as maintaining shipping data of plants and copy
controls between sales document types is not mentioned.

(A) Determination of Delivery type

The delivery type is determined based on the Purchase Order document type and sending plant.

SAP has provided new PO types and delivery types for valuated stock-in-transit postings.

PO document type NBC2 and delivery type NLI2 is provided for Intra-company stock transfer with
transfer of title at goods receipt.

Here for sake of illustration, assignment is maintained between document type UB and delivery type
NL.

(B) Delivery Item Category determination

SAP has provided item category NLI2 for intra-company stock transfer with transfer of title at goods
receipt.

Here for sake of illustration, item category NLN is used with delivery type NL.

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Stock Transfers with Valuated Stock in Transit

(C) Schedule Line category determination

Schedule line category N5 is assigned to the item category.

The process is controlled by the movement types defined in the schedule line category.

Movement type 68A is used to post stock from unrestricted stock of issuing plant to Valuated Stock-in-
transit of issuing plant.

Movement type 68I is used to post stock from Valuated stock-in-transit of issuing plant to unrestricted
stock of receiving plant.

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Stock Transfers with Valuated Stock in Transit

(D) POD relevance of delivery item category

The delivery item category needs to be marked as POD relevant.

(E) Maintain GL account determination for Valuated Stock-in-Transit Inventory

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Stock Transfers with Valuated Stock in Transit

Master Data Settings

(A) POD relevance for customer

The customer (corresponding to receiving plant) is marked as POD relevant.

(B) Valuated Stock-in-Transit Valuation Class of Material is Issuing Plant

The Valuation Class of Valuated Stock-In-Transit inventory in Issuing Plant needs to be maintained in
field “VC: Sale Ord Stk” as shown below.

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Stock Transfers with Valuated Stock in Transit

The GL account for Valuated Stock-In-Transit inventory posting in issuing plant will be determined under
t-code OBYC with this.

(C) GL Account for Valuated Stock-in-Transit inventory in issuing plant

GL account for Valuated Stock-in-Transit inventory needs to be defined.

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Stock Transfers with Valuated Stock in Transit

Process

Below steps show process flow for Stock Transfer with Valuated Stock-In-Transit for material ANTENNA-
1 from Issuing Plant 1000 to receiving plant 1100, with transfer of title during goods receipt.

Initial overview of stock

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Stock Transfers with Valuated Stock in Transit

(A) PO Creation

PO is created for transfer of 1 ST of material ANTENNA-1 from Plant 1000 to 1100.

(B) Delivery Creation

Delivery is created

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Stock Transfers with Valuated Stock in Transit

(C) Pick/pack and PGI

The delivery item is picked, packed and Goods issued.

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Stock Transfers with Valuated Stock in Transit

As per delivery item category and schedule line category assignments, the movement type determined
during goods issue is 68A for transfer of stock from unrestricted stock of Issuing plant to Valuated Stock-
in-Transit of issuing Plant.

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Stock Transfers with Valuated Stock in Transit

Following is stock situation in Plant 1000 after goods issue. Stock has moved from unrestricted stock to
Valuated stock-in-transit.

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Stock Transfers with Valuated Stock in Transit

Following is the accounting document during goods issue:

Valuated
SIT
Inventory Inventory
at at
issuing issuing
plant plant

Since the goods have not reached the customer, transfer of title during goods issue has not happened.
The stock is shown lying with Plant 1000 in Valuated Stock-in-transit.

(D) POD Posting

Once the goods reach the receiving plant, Proof of Delivery is posted for the delivery.

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Stock Transfers with Valuated Stock in Transit

With this, stock moves from Valuated Stock-in-transit of issuing plant 1000 to Unrestricted Use stock of
receiving plant 1100. This is done with movement type 68I as per definition of schedule line category
N5.

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Stock Transfers with Valuated Stock in Transit

Following is the new stock situation in Plants 1000 and 1100.

Stock has moved into unrestricted use stock of Plant 1100.

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Stock Transfers with Valuated Stock in Transit

Following is the accounting document:

Valuated
SIT
Inventory Inventory
at at
Receiving issuing
plant plant

Inventory at receiving plant is now recorded.

Hence Transfer of title has happened during goods receipt in conjunction with the actual time at which
goods were received in receiving plant.

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