Material after n before dispatch from Plant

[reazuddin_md]

Hai,

I know it sounds silly, but still needs confirmation from your end too.

Out transporter collects goods from our manufacturing plant & transported it to the customer.

Where as when transporter moves out of plant premises ,means stock reduced from the plant ,but it doesnt reached to customer. We call it as "Goods in Transit"-

Here in SAP, when stock reduces in plant means i have to do PGI. at the same time i cant do PGI, as we know PGI is the confirmation that goods reached to the customer,but in real it hasnt reached to the customer.

Now please let me know, wen transporter moves out from plant, shall i do PGI r shall i do only when customer receives the goods.

Note: Here client will send dispatch details along with invoice with the transporter.

[former_member550050 · Accepted solution]

Hi

PGI is Post goods issue only and it is done after the stocks gets reduced from the plant is the standard practice

however if some clients insists that if the material is delivered to SH then only the PGI has to be done that is after getting the POD that is proof of delivery that can also be done depending upon scenario

That is why i think in standard SAP the delivery is in process status even if PGI is done and only after billing it gets closed

The standard practice is PGI after the material is loaded in to truck and truck leaves your premises

Regards

Raja

Edited by: ramanathan raja on Nov 4, 2008 4:41 PM

[reazuddin_md · Accepted solution]

Thanks for ur reply,

But we consider PGI is the confirmation that the goods reached to the customer,in some cases.

right?

at the time of dispatch, client issues dispatch doc & invoice same time.

So i am planning to do PGI n create comm & excise invoice same time when goods leaving from the plant premises.

Client is not following the POD concept so far,

Let me know your inputs,if any.

[Former Member · Accepted solution]

hi,

PGI is done when inventory gets reduced , means as soons as you have the truck .

If u want to prepare excise invoice , then PGI shoul be done , then only truck can be removed from factory premises.

Ex : Just for assumption , if the truck met with an accident , then u lost all the product loaded in the truck , then what will you do ? . If you do not do PGI , then you lost the product and your book showing the stock.

hence , it is clear theat PGI should be done before goods removed from factory premises.

saravanaan

[reazuddin_md]

thanks to all

[Former Member]

PGI has got nothing to do with the customer. Its to do with reference to INventory posting to material stocks and to balance sheet accounts.

What you are talking about is POD - proof of despatch. Sometimes the Invoice is done only after POD is received. This may be the case but in no ways stops PGI.

When you do a PGI, there is also a corrsponding excise movement which cannot be reversed. Material stocks get reduced immediately after PGI immaterial of the fact whether the goods reach the customer or not. How you reconcile this later has nothing to do with material stocks account.

If the material comes back then it has to come back on a separate document. Remember there are rules for onward and reverse movbement both in excise and sales tax. You just cannot bring back the goods to your factory under your own invoice, DC whatever document...

regds

Jude

[former_member184555]

Thanks,

Ravi

Edited by: Ravi Sankar on Nov 4, 2008 6:38 PM

[former_member550050]

Hi

For this transit stocks only we define incoterms like

Incoterms-CMR

) CIF: Costs, Insurance & Freight which means all three will be borne by seller.

2) C&F: Costs & Freight which means costs and freight will be borne by seller

3) FOB: Free on board which means insurance and freight will not be borne by seller.

Seller here should be the Client

You have to find out the other options in incoterms

Proof of delivery

When POD is activated for customer & at delivery item, then billing is possible only after POD update. System will not allow to create billing before POD.

Usually POD update happens through inbound IDOC / mail from customer which will update POD date in LIKP. Only then billing generation programs generate..

Hope these inputs gives you some idea

Regards

Raja

[former_member184555]

Hi

You have this option in Customer master record - Sales area data - where you can specify that POD is mandatory and the number of days (eg., 7 days). Till seven days you cannot raise the invoice without POD and afterwards you can raise. I donot have configuration knowledge on POD concept, but this is out of my general understanding and basic knowledge.

Thanks,

Ravi

[reazuddin_md]

please read my last post once again, will be clear for you.

i want to issue invoice without POD. I will do POD once i receive from the customer.

There is no such condition to the customer- in a specific customer has to give POD.

[former_member184555]

Hi

If anything like what Saravanan has told happens, then if the material is insured, the Insurance claims processing should be done by the client only and not the Customer since the customer will not get ownership for that material during transit.

Thanks,

Ravi

[former_member184555]

Hi

PGI doesn't mean that the goods are at customer site. The Post(ing) Goods Issue is done when the goods leave our premises and it is the point where we lose the ownership of the stock.

If you implement POD (Proof Of Delivery), then the system will allow you to raise Invoice only after receiving the POD from Customer which is nothing but confirming the Goods Receipt.

You can find number of threads in this forum on POD. Please make a small search.

Thanks,

Ravi

[reazuddin_md]

Thanks for ur reply, Ravi

whereas the client here is rasing invoice with ref to the delivery before getting POD.

customer sends the POD afterwards. How can we achieve this?

is there any option in POD, whether it can be done before & after invoice kind.

this is actually Make to Order scenario.