Statistical goods receipt

[Former Member]

Hi,

In third party sales scenario, just want to know what is the effect of statistical good s receipt when we do MIGO,i.e; in accounting entries since physically goods are not received there is change in physical inventory as such.

Please throw some light on this please

regards,

raman

[Former Member]

Umesh:

Statistical goods receipt is proving that marked of product delivered by vendor.

Thank,

Dilip sadh

[Former Member]

Hi,

Thanks for the time.But I have not got proper answer.

I just wanted to understand what would be the accounting entries when we do statistical Goods receipt for third party scenario.

Thankful if anybody throw some light pls..

thanks

Raman

[jignesh_mehta3]

Hello Raman,

There is no Accounting Entry in Statistical MIGO which we do in Trird party Sales . The very name "statistical MIGO" suggest that it is just for our records & no Accounting is passed.

Now in some company the Sales Invoice Relevance (for quantity) is based either on this MIGO or in MIRO. The setting for this is at Item Category (VOV7) - Billing Relevance F (MIGO) or G (MIGO).

Now I will tell you the reason for no Accounting Entry:

See in normal Sales Process, we pass an accounting entry when we purchase Goods (MIGO) & when we delivery goods VL01N. That when Goods come in our ownership & when goods goes out of our ownership. This is mainly to Balance books of Accounts (FG Production & Purchase Account& Cost of Goods Sold Account).

But in Third Party Sales, as the ownership of good never comes under us, nither FG Production & Purchase or Cost of Goods Sold Account is hit.

Refer this thread for Accounting entries in Third Party sales:

Hope this clarifies,

Thanks,

Jignesh Mehta

[Former Member]

Dear Mr.Mehta

I've checked the 'billing reference' field in VOV7.

The following is my understanding.

For Blling ref F- customer invoice is created wrt vendor invoice (recvd from vendor) ( qty from vendor invoice)

For billing ref G- I am not clear about this. (Order-related billing of the delivery quantity)

Request you to kindly throw light on the different bililng processes in 3rd party.

Rgds

Sumanth.G

[jignesh_mehta3]

Hello Sumanth,

In VOV7 - Billing Relevance as you have already seen there are two settings for Third party Sales:

F - Order-related billing doc. - status according to invoice qty - You have already understood this.

G - Order-related billing of the delivery quantity.

Now in Third Party Sales, some companies do Satistical MIGO (which is not mandatory as per SAP Standard, but it just done for their Records, to ensure that Goods are shippied from Vendors premises).

Here, take a scenario where you have placed a Third party Sales Order of 100 TV Sets on your Vendor & instructed him to Deliver these 100 TV sets directly to your Customer.

The Vendor currently has only 50 TV sets in stock & will deliver another 50 sets after 6 days. Now your agreement with Vendor allows him to Invoice you for full 100 TV sets (of which 50 he has dispatched & 50 he will dispatch after 6 days). Accordingly he sends you Invoice for 100 TV sets & your book MIRO for 100 TV sets to release payment to him.

In this situation, if your VOV7 - Billing Relevance is F, then you (system) will create Customer Invoice (Sales Invoice) to your Customer for all the 100 TV Sets (as you have done MIRO for 100 TV sets) which the Customer will not accept as he as received only 50 TV sets.

Thus in cases like this BIlling Relevance G will help, which will ensure that you can create Customer Invoice, only till the extent of statistical MIGO quantity & not as per MIRO quantities.

Hope this clarifies your doubt.

Thanks,

Jignesh Mehta

P.S. Also my first name is Jignesh & would like if you call me Jignesh & not Mr. Mehta.

Edited by: Jignesh Mehta on Sep 20, 2011 12:18 PM

[Former Member]

Dear Jignesh

Yes, I got your point. (but still, I am missing 100 % clarity)

With reference to which doct, is billing doct ( invoice to customer created) created? ( if stastical GR is present, & also if stastical GR not present)

Is separate billing type ( for invoice to customer) advisable?

Rgds

Sumanth.G

Edited by: SUMANTH GURURAJ on Sep 20, 2011 2:21 PM

[jignesh_mehta3]

Hello Sumanth,

Assuming your Billing Relevance for Third party Item in VOV7 is G - Order-related billing of the delivery quantity

Here your Billing Document will be created with reference to Order (Third Party Sales Order), but the Invoice Quantity will be referred from Quantity in statistical MIGO (refer to 100 & 50 quantity example I have given above). Meaning to say while creating Sales Invoice all the details will be taken from Sales Order & Copy Control Settings, just the Invoice Quantity will be taken from statistical MIGO.

As far as Invoice type goes, it depends on client Requirement. Generally speaking a seperate Invoice Type is NOT required because you have different Item Category for Standard Order (TAN) & Third Party Order (TAS). The Billing Relevance in both the Item Categories would be different, so a seperate Invoice type is not required, as system will derive the Invoice Quantity from Billing Relevance in respective Item Category.

Hope this clarifies,

Thanks,

Jignesh Mehta

[Former Member]

Hi Umesh,

Please read the below process might be helpful:-

In third-party order processing, your company does not deliver the items requested by a customer. Instead, you pass the order along to a third-party vendor who then ships the goods directly to the customer and bills you. The standard sales order automatically creates a purchase requisition for the materials to be delivered by the third-party vendor.

In this scenario, the vendor sends a shipping notification. The incoming invoice from the vendor updates the billing quantity, so that the customer-billing document is only possible after entering the invoice from the vendor.

If the customer does not accept the delivered goods from the third party vendor, the customer disposes of the goods. A credit memo is issued to the customer reversing the revenue and cost of goods sold. Then a MM credit memo is created for the third party vendor. A statistical goods receipt reversal is performed for the goods in order to close out the original purchase order. The vendor credit memo may initially be blocked for payment, if previous agreement for this with vendor exists.

Thanks & Regards,

Rahul Verulkar