RE:[sap-log-sd] Revenue Recognition problem

Reply from BertB on Feb 7 at 9:47 AM
One could use a consignment-like approach in which a plant is created at the destination location for the originating company to receive inventory. Product delivered to this plant remains on the originating companies books. Stock is withdrawn by the receiving company and reported periodically triggering stock transport orders and intercompany billing. Advantages are that quantities can be adjusted to optimize economics of transportation and optimize other logistics requirements eg package type, lot size or batch selections.

---------------Original Message---------------
From: Dennis Phelan
Sent: Wednesday, August 15, 2007 6:50 PM
Subject: Revenue Recognition problem

Our company uses stock transport orders with SD billing to transfer
finished and semi-finished materials between our worldwide plant
structure. For our plants in the US it is to our tax advantage to
retain ownership of the inventory until the GR is done by the receiving
plant. This is the opposite of the way standard SAP works. Using the
two step inventory movement method; the initial GI material movement
(643) reduces the inventory and increases the inter-co cost of goods
sold. This changes the ownership at the post-goods issue time; we want
to retain ownership until the GR is done by the receiving plant. We are
presently doing manual journal entries to make this work - anyone know
of an automated way of accomplishing our objective?

Dennis Phelan, CPIM

MM/PM Business Analyst

Blount Inc - OCSG


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