Managing Goods in Transit
Goods in transit transactions are created for customer and purchase orders when the parameter 029 - 'Create goods in transit transactions for CO/PO' is activated in 'Settings - Cost Accounting' (CAS900). Depending on the goods responsibility set for the delivery term in 'Delivery Term. Open' (CRS065), goods in transit transactions are created either for outbound or for inbound transactions. Note that the customer order invoice for outbound goods in transit cannot be created until goods responsibility is transferred to the customer. The delivery is held in status 61 in 'CO Delivery. Open' (OIS150). The check box 'Goods responsibility not transferred on (OIS150/E) is selected to indicate that the delivery is held because goods responsibility is not transferred to the customer.
Goods responsibility is transferred to the customer by setting the goods reconciliation date for the goods in transit transaction. MWS073MI/ConfirmDelivery is used to confirm the delivery and sets the goods reconciliation date. This can also be manually managed by related option in 'Goods in Transit. Open' (MWS073).
Accounting rules for goods in transit - outbound
Goods in transit transactions for outbound are created in table MGITTR (based on the inventory accounting price) for customer orders when goods are issued from stock, and offset when goods receipt is confirmed at the buyer's address. This applies when goods responsibility is set to 2 or 3 for the delivery term.
These accounting transactions are created when goods are issued from stock:
| Rule) | D/C | Name | Description |
|---|---|---|---|
| OI10-909 | D | Goods in transit | Represents the goods in transit value from table MGITTR. This is created when parameter '029’ is activated in (CAS900) and when goods responsibility on the delivery term is 2 or 3. |
| OI10-910 | C | Inventory | Represents the inventory accounting price of the item. |
These accounting transactions are created when goods receipt is confirmed at buyer's address:
| Rule) | D/C | Name | Description |
|---|---|---|---|
| OI10-909 | C | Goods in transit | Represents the goods in transit value from table MGITTR. This is created when parameter ‘029’ is activated in (CAS900) and when goods responsibility on the delivery term is 2 or 3. |
| OI10-951 | D | Goods delivered not invoiced | Represents delivered but not invoiced goods. |
Accounting rules for goods in transit - inbound
Goods in transit transactions for inbound are created (based on the purchase price) when an ASN (Advance Shipping Notice) is sent from the supplier and offset when goods are received in 'Supplier Delivery Note. Open' (PPS360). This applies when goods responsibility is set to 1 for the delivery term.
For internal purchase orders (CO/PO - internal sales), inbound goods in transit transactions are also created when goods are confirmed as received or received at buyer's address even if goods responsibility is set to 2 or 3.
Goods receipt at the buyer's address is confirmed at delivery level using an API transaction or manually in (MWS073).
These accounting transactions are created when an ASN is sent from the supplier:
| Rule) | D/C | Name | Description |
|---|---|---|---|
| PP09-224 | C | Ordered not received | Represents the goods in transit value from table MGITTR. |
| PP09-909 | D | Goods in transit | Represents the goods in transit value from table MGITTR. |
The following accounting transactions are created when goods are received in (PPS360):
| Rule) | D/C | Name | Description |
|---|---|---|---|
| PP10-224 | D | Ordered not received | Represents the goods in transit value from table MGITTR. |
| PP10-909 | C | Goods in transit | Represents the goods in transit value from table MGITTR. |
| PP10-910 | D | Inventory | Represents the total inventory value. |
| PP10-225 | C | Rcvd not invoiced - item | Represents the net total value of the purchase order line. |
| PP10-226 | C | Rcvd not invoiced - in charge | Represents the external charge. |
| PP10-251 | C | Internal line charges | Represents the internal charge. |
To reconcile the value of goods in transit (table MGITTR) against what is booked on the account in GL, report 'Goods in Transit. Print' (CAS540) can be used. This list shows open goods in transit transactions per selected date. There are three available lists:
- Outbound
- Inbound
- Outbound/inbound