need some functional knowledge from u ppl!!

[Former Member]

Hi experts,

I need some functional knowledge from u

i want to know what is and why we need

1.outbound delivery

2.shipment

3.good recipt

4.inventory movement

5.inbound delivery

6.goods issue

suppose i am having a company XYZ .and i want to buy some PC's from Dell.

i can understand that first i will ask for qutation,then dell ppl will create a purchase order and if i agree they will create a sales order.

after that how the process flows...

if any 1 can explain me with the help of above example.. i will be thankful to him...

thanks...

[Former Member · Accepted solution]

google search will fetch more than our inputs.............sincere advice...

[Former Member · Accepted solution]

hi have gone thro' google and all ...but everytime i am getting confused....

so please explain the things..... !!

[Former Member]

Hi das

i have understood your question.

example you are the customer iam the company.

1) when you want some products you place "ENQUIRY" to me.

2) with respect to your enquiry i will send "QUATION" is nothing but so--and so products so and so rate and so so date i will deliver.

3) with respect to my quation you will palce the "ORDER" to me.

4) with respect to your order i will "DELIVEY" the goods to you.stock will reduce from my plant.if i buy from out side it will increase.

5) with respect to deliver i raise the "BILLING" to you.

6) now you have to send the money for me for received goods as for payment terms which you have with me.

hope you have understood .

if points rae there don't forget to reward

thanks

surya

[Former Member]

>

> Hi experts,
> I need some functional knowledge from u
> i want to know what is and why we need
> 1.outbound delivery
> 2.shipment
> 3.good recipt
> 4.inventory movement
> 5.inbound delivery
> 6.goods issue
> 
> suppose i am having a company XYZ .and i want to buy some PC's from Dell.
> i can understand that first i will ask for qutation,then dell ppl will create a purchase order and if i agree they will create a sales order.
> after that how the process flows... 
> if any 1 can explain me with the help of above example.. i will be thankful to him...
> 
> thanks...

Hi Biplab,

I will try expaining one by one let us start right after sales order the point till where you are clear

1.outbound delivery:

Once you have made the sales order the next logical step is to make the delivery. Since in our case the delivery goes OUT of plant we call it OUTbound delivery (if delivery is coming to plant eg in case of returns we call it INbound delivery). The document identifying that the sales order has been delivered is calle delivery document.

6.goods issue

Taking goods issue earlier as it maitains logical flow.

Once you have made the delivery document you have to take the goods out of warehouse/plant/storage location this removal of goods with respect to delivery document is called Goods Issue so if your delivery is for 100 cartons jam you issue 100 cartons and so on.

2.shipment

Once you have issued the goods most of the times you need to drop it to customer's location like home delivery in that case you need to make a shipment (you would realize now why Blue Dart calls all its courier packages shipments )

In shipment you decide what vehicle on wht day following which rout would take which all deliveries (remember point 1 outbound deliveries)

4.inventory movement

Inventory movement is nothing but movement of inventory once you do goods issue or goods receipt(we will see goods receipt in next step) the inventory count changes simple match you had 100 cartons of Jam you issued 10 you have only 90 Cartons now inventory has been moved you issue another 50 you have 40 and so on.

3.good recipt

You would have guessed it by now goods receipt is when you receive goods in your plant say a customer returns your goods or you purchase it from a vendor in such cases you need to move goods into your plant. This is goods issue this also will have inventory movement you had 40 Cartons in previous step you purchased 100 Cartons from Kissan you have 140 now.

5.inbound delivery

As i explained in step 1 & 3 the process of receiving the goods to your plant is Inbound delivery

Hope i cleared the mess a bit

Post for further problems

Reward if Helpful

-Abhishek

>

[Former Member]

Hi Abhisekh,

thanks a lot man!!

that was a superb explenantion...now i am getting clear picture..just need little more explanantion.

if possible can u also tell wat information/data we send thro' each of this i.e

1.outbound delivery

2.shipment

3.good recipt

4.inventory movement

5.inbound delivery and

6.goods issue.

Another question.

suppose.. i am having a company XYZ.. which sells computer and buys the raw materiels from ABC company.

perviously i implemented Oracle, all my order,planning,transportation.. i.e business was running by OTM(oracle transportation manager)..

and Now i am going to implement SAP...and at the same time i want to keep alive the OTM system also....

so ..how i should proceed??

Thanks a lot!

Regards

Biplab

[Former Member]

also if u have some document on these things....for a laymen perspective...please send across

Edited by: biplab das on May 23, 2008 3:38 PM

[Sunil76]

Dear Biplab,

In this case i suggest that for a while you keep your legacy system ie OTM alive till you are aquinted with SAP, but once you are migrating to SAP then this system is powerful and flexible enough to take care all your needs perhaps it should be configured in right way. You need to document your business process and how its currently done in the Oracle system, the SAP consultant will go through your Asis document and analyse the GAP, you have to ensure that what ever there was in your earlier system should be avilable in SAP may be with some added features and What additional SAP provide you.

hope this will help you, if it is suitable answer then reward accordingly.

Regards

Sunil

[Lakshmipathi]

Dear biplab

Assume that you are a supplier of XYZ product and you receive order for this.

You have stock of this and you want to delivery this product to the customer. In SAP, we create a delivery document which is nothing but an outbound delivery. For selling the goods, you need to recover money from your customer. For this, in SAP, we generate a billing document by which, the customer gets debited and your inventory get credited.

The difference between an outbound and inbound deliveries is that when you sell a product, outbound delivery will take place. When you purchase any goods, inbound delivery will take place.

Goods issue is that you are posting the goods issue through a material document and passing on the information to finance.

thanks

G. Lakshmipathi