MIGO- why we do it in third party sales?

[Former Member]

Why we do MIGO in third party sales scenario?

what is the effect of it on- our inventory?

(In the case- third party vendor delivers the goods directly to customer)

Please clear me?

[Former Member · Accepted solution]

Incase of Third Party, the scenario can be mapped with 2 possibilities (Check details as under):

http://help.sap.com/bp_blv1500/BL_India/index.htm

Path: Technical Info --> Building Blocks --> Country: India

J54: Third Party with Shipping Notification (MIGO required)

J55: Third Party without Shipping Notification (MIGO not required)

It depends on configuration whether MIGO is required or not.

Regards,

Rajesh Banka

Reward points if helpful

[Former Member]

The accounting entries if MIGO is done for third party sales are:

At the time of Goods Receipt:

Consumption A/c - Dr (This is the cost)

GR/IR A/c - Cr

At the time of invoice verification:

Vendor - Cr

GR/IR - Dr

For Sale Order billing:

Customer - Dr

Revenue - Cr

Thanks,

[former_member396676]

Hi,

Pl. go through replies on following link.

thanks,

Vrajesh