on 10-08-2011 3:10 PM
Hi gurus
Is there a standard SAP procedure for CIF delivery? I mean, the goods (inventory) still belong to sales company until they are carried to the certain agreed unloading point. When should the goods issue be posted?
Any input would be highly appreciated
yu
In export sales, there would be various Inco terms which relates to payment. Having said this, once the stock is made available for despatch, you have to do PGI followed by commercial invoice and that seizes the exporter's responsibility on inventory part.
Hope you should be aware of the terminology CIF which is nothing but the exporter has to bear both the sea / air freight charges from origin to destination port and insurance as well.
If at all any damage happens to the cargo, exporter has to take up the issue with shipping agent and coordinate with insurance as the exporter only have paid the premium for that cargo.
G. Lakshmipathi
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Hi G. Lakshmipathi
Thanks for your answer. I have been thinking about the business process here. Yes you are right that we should do the PGI which follows the physical goods movement. But if the billing has to be issued next month due to the incoterm, at COPA report we will see this sales order with cost of sales posted but without revenue. Further by the end of next month we will see this sales order with revenue but without cost of sales. Is my understand correct?
yu
But if the billing has to be issued next month due to the incoterm
If the requirement is such that you need to issue a commercial invoice by the succeeding month, then in that case, once you do PGI, you can generate delivery related proforma to process and complete the customs formalities. Once that is over and shipping agent issued the Bill of Lading, based on that date, commercial invoice can be generated again by referencing the same delivery which many exporters follow this procedure.
G. Lakshmipathi
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