An Introductory for SIT

                                      Valuated Stock In Transit (SIT)

Introduction and Business Requirement:

Many a times Business Requires the owner ship of the Stock Transferred from one location to another location. This will be useful for their Current Assets valuations so that they will not lose the valuation of the stock which is in between rather in Transit of the Transfer from One Plant to Another Plant of the same company code or different codes or for the sales.

Standard SAP does not speak about the owner ship rather the Title deed of the stock which is in Transit during the STO (Intra and Intercompany) Processes or during the Sale when the stock is shipped to the Customer Location.

And hence SAP through its Business Functions, with the name LOG_MM_SIT has provided   and which when activated upon the above functionality will get activated and through standard configuration for the Process, system will post the valuation as per the valuation Title Deeds

System Minimum Requirement     

SAP Enhancement Package 5 for SAP ERP 6.0

Business Function: LOG_MM_SIT

Activation:    

The Business Function needed to be activated through the   Transaction Code SFW5

Results of Activation for the MM Module:

1. For the Cross Company Code Transfers and for Reruns
2. Stock transfer with transfer of title at goods issue
3. Stock transfer with transfer of title at goods receipt
4. Stock transfer with transfer of title during transit
5. Returns stock transfer with transfer of title at goods receipt
6. Returns stock transfer with transfer of title at goods issue
7. Returns stock transfer with transfer of title during transit

2. For the Intra Company Code Transfers and Returns

1. Stock transfer with transfer of title at goods issue
2. Stock transfer with transfer of title at goods receipt
3. Stock transfer with transfer of title during transit
4. Returns stock transfer with transfer of title at goods receipt
5. Returns stock transfer with transfer of title at goods issue
6. Returns stock transfer with transfer of title during transit

Special Stocks that can be dealt for the SIT       

Sake Order Stock E

Project Stock Q

Stock Transfer or Outbound Delivery via Issuing Stock in Transit   T

What has to be done for the Module?

1. Document Types
2. Delivery Types
3. Assigning Delivery Types to the document Types
4. Item Categories
5. Assigning Item Categories to the Delivery Types
6. Schedule Line Categories
7. Assigning schedule Line Categories to the Item Categories
8. Movement Types

Points in Detail

1. Document Types

At the below path taking standard NB as the Template we can create our own document Types for the differentiation.

Materials Management–>  Purchasing –>Purchase Order –>Define Document Types

2 Delivery Types :

In the below path the Delivery Types to be defined as per the SIT process.

Logistics Execution–>Shipping–> Deliveries –>Define Delivery Types

Cross-company-code stock transfer

Transfer of title at goods issue: NCCR

Transfer of title at goods receipt: NCC2

Transfer of title during transit: NCC3

Intra-company-code stock transfer

Transfer of title at goods issue: NLIR

Transfer of title at goods receipt: NLI2

Transfer of title during transit: NLI3

Cross-company-code returns stock transfer

Transfer of title at goods receipt: NCRR

Transfer of title at goods issue: NCR2

Transfer of title during transit: NCR3

Intra-company-code returns stock transfer

Transfer of title at goods receipt: NLRR

Transfer of title at goods issue: NLR2

Transfer of title during transit: NLR3

3. Assign the Delivery Type with the Document  Type 

Path Materials Management–>Purchasing–>Purchase Order–>STO–>Assign Delivery Type with Purchasing Document Type and Supply Plant 

4. Define Item Categories

Item Categories to be defined at the following path

Sales–>Sales Document –>Sales Document Items –>Define Item Categories–>

For Example

5. Define Item Category Determination

Path

Logistics Execution –>Shipping–>Deliveries–>Define Item Category Determination in Deliveries–>Assign Delivery Type to Item Type

Like NCCR with NCCR

6. Define Schedule Line Categories 

Path

Sales–>Sales Documents–>Schedule Lines–>Define Schedule Line Categories

 7. Assign Schedule Line Category to Item Category

Path

Sales–>Sales Documents–>Schedule Lines–>Assign Schedule Line Categories–>

8. POD Relevance 

If the Transaction requires a Proof of Delivery make the POD Relevance for the Delivery Item Category .

Path

Shipping–>Deliveries–>Proof Of Delivery–>Set POD Relevance of the Delivery Item Category

9. If the STO is Return Based 

To make the below Adjustments

A Customer to the Receiving Plant

A Vendor for the Issuing Plant .

10 .Other Adjustments 

Apart from the above settings additional , normal STO settings for the Plant and for the Master Data assignments with the Sales Organization to get the shipping Tab Etc are as Usual .

11. Movement Types 

At the Transaction Code OMJJ the Movement Types can be configured .

Below are the Movement Related to SIT .

The Movement types  will be assigned to the Schedule Line Categories .

Important Transaction code to check Stock:

MB5SIT

SAP Transaction Process

1.Create an STO at the Transaction Code ME21N with the Created document Type by the Receiving Plant

2.Create the delivery at VL10B / VL10G for the PO at the supply plant

3, Do the PGI at VL02N

4, Post the Goods Receipt for the PO at MIGO by the Receiving Plant

5.Do the Billing to the Delivery

5. Do the Invoice at MIRO

Results for a Scenario with Transfer of Title (Owner Ship ) at Receiving Plant 

As soon as the PGI is done to the delivery

• Material is reduced from Unrestricted Stock and Issued to Valuated Stock in Transit in same Plant ( Supply Plant )  
• During the Goods Receipt the actual Title will be Transferred and the SIT will get reduced and the Receiving Plant Inventory will be reduced .During this MB5SIT will say stock is delivered .
• And the Accounting entries will be as per the Valuated Stock in Transit procedures .During the PGI the Finished goods account will be debited and SIT account is Credited .
• During the GR , the SIT account will be cleared in the supply plant and the Cost of sales is Debited  and in the Receiving Plant Inventory will be Increased.

End of the Blog