Whether other incoterms can also applied to 5MQ Sell from Stock with Valuated Stock in Transit

[Stella_ST_Wu]

In SAP help portal (Valuated Stock in Transit | SAP Help Portal), it introduces that some incoterms (such as FCA, DAP) are applied to 5MQ Sell from Stock with Valuated Stock in Transit.

But if I need to use FOB as incoterm, can 5MQ also works? In FOB, the risk of goods will transfer before customer receive goods. In this situation, can I also change the external control date of shipment in delivery note?

Thank you in advance.

[DequanXu]

Hello,

The SAP Help Portal explains that valuated stock in transit Sell from Stock with Valuated Stock in Transit is applicable in scenarios where the risk and control of goods are transferred later, such as with the FCA (Free Carrier) and DAP (Delivered at Place) incoterms. This process enables the continued valuation of stock during transit until control is transferred to the customer.

Using FOB Incoterm

The FOB (Free On Board) incoterm typically signifies that the risk and control of goods are transferred to the buyer once the goods are loaded onto the transport vessel at the seller’s location. In such cases, the goods are considered in control of the buyer, and SAP’s valuated stock in transit process may not conventionally apply, as this process is generally used when the risk transfer occurs after dispatch.

Adjusting External Control Date

Even if you use FOB and the risk transfers earlier, theoretically, you could still manage the external control date in the delivery note. However, since the risk is already transferred during shipment loading with FOB, the application of valuated stock in transit might not bring the intended benefits. The practical implementation should reflect the actual business and accounting requirements specific to your scenario.

Best regards,

Dequan Xu