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In transit accounting entry

Former Member
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Hi experts

Please guide in below requirement.

Procurement scenario: Import procurement in India with custom conditions in import PO line items.

In case of import procurement, confirmation key is maintained in each line item of import PO which allows us to create Inbound delivery. Inbound delivery is created once the material is received at the Port or customer receives shipping confirmation from the supplier. Then, Customs payment invoice (custom miro) is posted for custom conditions for making the payment to Indian customs department for releasing the material from port to plant. Then, excise/custom is captured (in J1IEX) giving reference of Inbound delivery and custom miro document followed by posting of GR at Plant giving reference of Inbound delivery and custom Miro document.

Requirement: There should be an accounting entry at the time of Inbound delivery as under:

Transit material - Debit

Transit material liability – Credit

And automatic entry at the time of GR:

Transit material - Credit

Transit material liability – Debit

Please suggest if there is other alternative.

thanks

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Answers (1)

Answers (1)

former_member192897
Active Contributor
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Have you mapped the Port as a Port or Bonded Warehouse in SAP system? If yes, you can first receive the goods in the Port. Here you donot need to pay the Custom duties. Once Goods are removed / transferred from Port to the Manufacturing Plant, you need to pay the duties.

Please note that there would not be any accounting document generated / possible for Inbound deliver against Import Purchase order.

Could you please elaborate your business requirement in detail.

Former Member
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thanks for the reply. suggested option will not work, please refer my business scenario again where custom miro, cenvat capture etc is required. And business requirement is to have status of value lying at port and we create inbound only when material is received at port.

thanks

former_member192897
Active Contributor
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Duties can be paid during Purchase at Port. Or they can be paid while moving the goods from Port to Mfg. Plant or Depot.

If you want to Pay the duties while procurement at port, you have to insert the Excise conditions in Import Pricing Procedure and have used them in PO created for Port.

If you want to Pay the duties while transferring goods from Port to Mfg. Plant or Depot, the same condition types can be used in STO.

Please go through the below link and see the scenarios 1) Import Procurement at Logical Plant 2 ) Stock transfer from Logical Plant / Bonded Warhouse.