Avoid Inventory Valuation for purchased goods till I sell them.

[former_member238230]

Hello all,

As soon as the goods receipt is done for a purchase order,the valuation of those products is hitting my accounts.Is there a way to avoid valuation of those purchased products till i sell the same goods (PGI) to a customer ?

[kai_ziegenhals]

Hello Vijay,

can you please let me know what you exactly want to achieve? If you post the goods receipt you also have to post it in accounting?

Thanks

Kai Ziegenhals

[former_member238230]

Hello Kai Ziegenhals ,

Let me elaborate this question this way.

I sell goods through online.I do not have a warehouse of my own.I buy goods and store them in an third party managed warehouse.

And the goods which I buy is also in consignment process.The goods stay in the ownership of the supplier till I sell them to my customers.

So I want to avoid the valuation of the goods which I buy from my supplier till I sell them to my customers.

Actually I am looking for consignment process with 3rd party managed warehouse in ByD system.As it is not available I am looking for a work around.

Please help.

Thanks,

S.Vijay Chandu.

[kai_ziegenhals]

Hi Vijay,

have you checked the help center in ByD for example "Third-Party Order Processing"? If I understand your request correctly this scenario is fully supported by ByD.

Let me know if you have further questions.

Thanks

Kai

[former_member238230]

I have run the complete 3PL process prior to posting this question.

My concern is the valuation of that consignment stock which I purchase.Though the stock is in the ownership of the supplier , the valuation of that stock is seen in my inventory accounts as soon as my warehouse provider receives the stock.

In a Consignment process the stock received from supplier will be treated as "special stock" (in ECC) and will not be valuated until it is consumed.

Please let me know if my request is still not clear.

Thanks,

S.Vijay Chandu

[stefan_resag]

Hi Vijay,

the 3PL (Third-Party Logistics) and the TPOP (Third Party Order Processing) are different processes. Kay is mentioning the TPOP, also known as drop-shipment. In this process the goods never enter your own warehouse. In short the process is as follows:

- you get a sales order and mark the item as 'external fulfillment'

- a purchase order is automatically created out of the sales order and can be sent to a supplier

- you capture in the ByD system, when goods are sent from supplier to the customer

- your supplier invoices you

- you invoice the customer.

Best regards,

Stefan

[Former Member]

Hello Chandu,

I sell goods through online.I do not have a warehouse of my own.I buy goods and store them in an third party managed warehouse.

And the goods which I buy is also in consignment process.The goods stay in the ownership of the supplier till I sell them to my customers.

So I want to avoid the valuation of the goods which I buy from my supplier till I sell them to my customers.

*********************

unfortunately consignment process in not supported in current version as you already know.

However you can follow the Third party order processing as Kai and Stefan explained which will support your requirement to some extent.

However to this process has the following downside

1. You wont buy stock which wont make posting to accounting and sell to customer. Customer demand a product and you raise a SO which will in-turn create a PO. The supplier will delivery to your customer, bill you for product supplied and you can bill your customer for product delivered.

2. You will not have any control over the stock as this is directly shipped to customer

This will make posting to accounting at Third party delivery and invoice(customer and supplier)

*************************

If you want this supported you can go for PDI and base it based on ERP consignment process logic

http://scn.sap.com/docs/DOC-46456

Regards

Leo

[former_member238230]

Hello Nishanth,

Thank you for the response.