SAP India CIN: Sales from Depot

[Former Member]

Hello gentlemen,

I am about to set up CIN szenario "Sales from Depot". In the standard scenario a Depot is considered as organizational element "plant" in CIN. Is it possible to maintain a depot as "storage location" instead of a "plant"?

Example: I produce in Mumbai with warehouse in Delhi. From a logistic perspective I want to run Delhi as storage location of plant Mumbai. Is that possible from an Excise perspective or is it mandatory to create a plant for depot Delhi?

Would love to get your input.

Thanks,

Andreas

[Lakshmipathi]

From SAP perspective, you can consider as a storage location but from Business point of view, how you would consider tax and duties. 

As you said, let us assume, you transfer goods from Mumbai to Delhi from where, actual sales should happen if I am correct.  So while actual sales happen from Delhi, you need to levy tax and duties prevailing in Delhi and not Mumbai in which case, considering as a storage location will not serve your purpose

G. Lakshmipathi

[Former Member]

This message was moderated.

[former_member192897]

How would you transfer the Produced goods from Mumbai to Delhi? Do you perform any stock transfers?

Material stocks are Valuated at Plant and Company code level only. You can create a separate storage location for Delhi warehouse and perform STO between storage locations. Up to here its fine. But, how do you sell the goods? how do you deal with taxes like Excise, VAT, CST etc?

Instead you can create a Plant (Depot) in Delhi and perform Stock transfer between Depot's( Mumbai to Delhi) and perform Sales from Delhi depot.

By doing so, you will have visibility of stocks at Plant level & storage location level, you can add the transportation costs during Depot stock transfer and can also deal with Excise.