Delivery process

[Former Member]

Hello friends,

In sales and distribution, at what point does the delivery process begin? Is it at the storage location or at the shipping point? If it is the shipping point, what is the movement of goods between the storage location and shipping point called?

Regards,

Vydehi.

[Former Member]

Hi there,

Delivery process starts with creation of delivery docuement.

You have the the following processes in delivery:

1) Picking

2) Packing

3) Goods Issue, PGI.

In picking if Warehouse is active for your plant, you need to create a transfer order to track the movement of goods within the warehouse. This is because goods should be moved from one storage bin to another to fulfill picking. Once the goods are brought to targer storage bin (like packing bin), transfer order is confirmed. This will update picking in delivery. If warehouse is not active, logistics team will update picking in the delivery. The choice of storage bin arangement is a business decision.

After items are picked or Transfer Order is confirmed, only then items can be packed.

After picking & packing is done PGI is done.

It is at Shipping Point level that deliveries are processed. Note that shipping point is not a physical location which exists away from the plant. In reality shipping point, plant, warehouse are all at one location. Storage locations have various staging areas to process picking, packing & GI. After proceesing each step goods are brought to the next staging area.

Hope this clarifies your question.

Regards,

Sivanand

[Former Member]

Hi

There is no movement between Sloc and Shipping Point. Delivery process is begin once u create the delivery from sales order thr VLO1N ( SO) or VL04 ( STO ). Good Mvt will also recorded at the time of PGI e.g 601 for SO and 641 for STO etc.

Storage location is the place in palnt where we store the finish product or raw material.

Shipping point is the palce from where we ship the good to the cutomer.

Hope this will help u.

Thx.

[Former Member]

Hello Vydehi,

Any sales scenario delivery process starts with a shipping point.

Shipping point is an organization unit. The entire Outbound delivery is processed by a single shipping point. If in a sales order different items having different shipping points that leads to a delivery split.

Example:

In sales order:

Item 10 Shipping point A

Item 20 Shipping point B

Item 30 Shipping point A

This will leads to a delivery split because of two different shipping points in the sales order. This leads two deliveries for that sales order.

Delivery -1 contains Item 10 and Item 30 (shipping point A) and Delivery -2 contains Item 20 alone (shipping point B).

Storage location is a space provided with in the plant and shipping point is connected to a plant. So there is no specific moment type between these two. If once we does PGI that itself tells goods are ready to ship that will updates the document flow, reduces warehouse stock, reduces delivery requirements, posts the value change to the stock accounts in the inventory management and creates the work list due for billing.

Let me know if you have any queries.

Regards,

Vamsi

[Former Member]

Hello,

Once the schedule line got confirmed in sales order, the delivery process starts on the date. When you create the delivery document with reference to a sales order, the system validates the shipping point and the schedule line date.

I don't think we specifically call any movement name for transfering the material from storage location to shipping point. Shipping point is an intermediate inbetween the material trnasfer from Plant/storage to end customer's place.

Prase