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This was one of the key developments of the project.

were classified are Incoterms with Delayed Risk Transfer.īased on the Delayed Risk Transfer Incoterms, the item category in the sales order would get determined. The other incoterms like FOB, CPT, CIF, etc. ICC Incoterms like EXW & FCA were classified as immediate risk transfer as the risk transfer lies with ‘Buyer’ once the Goods are loaded onto carrier from plant. Incoterms were divided into two categories as ‘Immediate Risk transfer’ & ‘Delayed risk transfer’. The requirement for our project was to recognize the COGS & Sales revenue at the same time based on the Incoterms. The process is controlled by the movement types that are assigned to the respective schedule line categories. The system finds the item categories and thereby the corresponding schedule line categories, using Customizing for item category determination in the delivery. The system determines this based on the sales document type. The transfer of title depends on the delivery type. The customer deliveries with valuated stock in transit, is used to pin point the exact time of the transfer of title. This document covers the customer delivery with transfer of title at customer location. The functions are also available for the corresponding intra-company-code and cross-company-code return stock transfers. Throughout the process, material quantities and material values are recorded transparently and can be displayed in the stock overview, the purchase order history, and the individual stock accounts.

Using valuated stock in transit and new movement types, we can specify the time of the transfer of title precisely. Enhancement package 5 for Procurement business function “LOG_MM_SIT” allow to control goods movements both for sales to external customers and for stock transfer processes between plants belonging to the same or different company codes within the same company.