Need to book revenue for stock movement from plant to plant in same company

[ram_ramesh]

Hi,

Can you please suggest me how we can proceed to book revenue for materials movement from plant to plant within same company.

Actually client trying to book some small revenue for moving stocks from plant to plant and need to post to saparate GL A/C and they reverse them later.

Please suggest me the process and ideas.

[virupasan_balanathan · Accepted solution]

Hi Ram

Please Find the Document Below created Exclusively for you.

http://www.scribd.com/doc/100697016/STO-With-Margin-Within-One-Company-Configuration-Document

Please Keep it in mind this is not a Standard Recommended practice, Just a Work around.

Reagards

Viru

[virupasan_balanathan]

Dear Ram,

i also came across exact scenario in my company also.  But In our case we didn't Use the SD To Archive the Requirement. Since our  Country (Sri Lanka) Accounting Standards it is not possible to Process Invoices between Business unit under one Company Due to Tax Issues.

So What we did was Created a Condition 'Margin' with Account Key to Post to Separate G/L  and Assigned to the "Stock Transfer Order" Pricing Procedure.

Every Time we Want to Transfer Stock From one Plant to another we create STO with Margin Value.

According to Standard SAP Procedure It is not possible to Generate Profit with in a Company. So margin Value Goes and hit the Receiving Profit Center.

End of the Month our Accounting Department Transfer the Amount to Sending Profit center.

Regards

B.Virupasan

[ram_ramesh]

Hi Balanathan,

Thanks for your solution and please update me if you have any document for complete setup process. If then then share with me.

Thanks

Ram

[Lakshmipathi]

if you have any document for complete setup process. If then then share with me.

Please AVOID asking like this.  Put some efforts to search in Google / forum to take the inputs.

G. Lakshmipathi

[Former Member]

Hi Ram,

In my previous company we had similar requirement.

We had followed below processing :

• STO setting is same as standard
• Copy control in bet'n STO delivery Type NL and Billing Type F2.
• Determine New Pricing procedure for STO in Billing document.
• Maintain price by VK11 or copy it from MM Pricing if needed.
• Post all necessary accounts based on SD pricing to Account determination.
• Default Order type DL related settings should be same as OR.

Let me know if you face any issue in configuration or Testing.

Regards,

Mahendra Jani.

[Lakshmipathi]

Actually client trying to book some small revenue for moving stocks

Do you mean to say they require billing concept for moving the stock from one plant to another plant ??

G. Lakshmipathi

[ram_ramesh]

Hi Lakshmipathi,

Scenario is like as below

There are two plants in the system i.e.A manufacturing Plant and Plant B Project Plant.

1.    The Plant A and B Plant are created under same company code.
2. 3.   There is sale between A Plant and B  Plant.
3. 4.   The plant A manufactures the product and sold it to B with cost (Rs 5 and margin (Rs2).
4. 5.   The plant  B sold the product to  external customer with cost and margin - No need to think about that.
5. We need to know the what will be the best process for above 1 to 3 steps ?
6. Post goods issue in Plant A  and needs to post cost of goods sold to a perticular GL acc
7. needs to post internal sales revenue to special GL A/C

Hope this will help you ...

Ram

[Lakshmipathi]

Treat Plant B as a customer and extend in XD01 accordingly.  Pricing Procedure should have VPRS as the selling price with one more condition type for margin. Now follow the normal SD process like creating sale order in Plant A on Plant B.  For point 6, you need to assign the relevant G/L account in OBYC for Transaction GBB.  For point 7, you need to assign the special G/L Account in VKOA.

G. Lakshmipathi

[ram_ramesh]

Thanks for the valuable answer

Ram

[ram_ramesh]

Hi Laxmipathi,

Here need your help in pricicng procedure. Margin condition type will need to post to saparate GL a/c for selling plant and that need to be reversed manually in months ends as per my understanding.

Please update me here if i am wrong.

Thanks

Ram

[ram_ramesh]

Hi Laxmipathi,

Need your help in the pricing procedure as like the scenario for above issue

Postings :

1. Post goods issue in Plant A (Selling Plant )

    Cost of googs sold  to - GL XX Rs - 5 (Debit)

    Inventory a/c  -- GL XX Rs -5 (Credit)

2. Sales Entry in Plant A

    Internal Cust a/c - GL XX Rs - 7 (Debit)

    Sales ( Internal sales) - GL XX -7 (Credit)

So i am going with a price condition PROO as  Rs -7 and Cost (VPRS ) as Rs -5 and we need to map them in VKOA and OBYC.

Please update me if i am wrong and suggest me the pricing procedure need to proceed.

Thanks

Ram

[Lakshmipathi]

From Business perspective, I would say, it is wrong due to the fact that it should not be treated as a sale but only a transfer of course with some margin in that.  Having said this, you should treat VPRS as your PR00 and one more condition type for profit margin to arrive from VPRS.

Also, before posting here, have you taken the concurrence from Business Finance people whether the FI entry what you had indicated is what they needed ??

G. Lakshmipathi

[ram_ramesh]

Dear Laxmipathi,

I am confused here and please suggets me. As suggested i will check with business about postings.

In pricing procedure

I will maintain PR00 as - 7 ( as cost)  and need help to setup condition type for profit margin to arrive from VPRS.

Please suggest me.

[Lakshmipathi]

As I said already, first get the concurrence from Business Finance based on which, you can do whatever you want in SAP.  Also you can post a question to Business that are they want to treat this scenario as a sale or transfer ?? 

Ideally, it should not be treated as a sales; but only a transfer.  From their point of view, what they would have meant is sales means for the products whatever transferred, they should get some profit which I said, you need to consider one more condition type for this. Terminology differs and conveys a different message.

G. Lakshmipathi

[ram_ramesh]

Its a sale only and they need to book some revenue and they will reverse in month ends.

So i am following the SD process. Please find the attached screen shot and i am maintained PR00 as 7 and getting a profit magrin by removing VPRS in PR00.

Please check and correct me.

Thanks

Ram