Sell from Stock with Valuated Stock in Transit (5MQ)

Sell from Stock with Valuated Stock in Transit (5MQ)

Sell from Stock with Valuated Stock in Transit lets you use valuated stock in transit (VSIT). After the goods issue is posted to an outbound delivery, the stock is transferred into VSIT. With the transfer of control of the delivered goods to the customer (for example, based on incoterms and transportation management), the goods issue from VSIT to the customer is posted. At this point in time, revenue and COGS can be recognized.

The material movements are done based on configuration settings and are posted automatically through a process orchestration framework, called Value Change Management (VCM).

Key Process Steps Covered

  • Create Sales Order
  • Create Outbound Delivery
  • Create Stock Transfer from physical stock to Valuated Stock in Transit (VSIT)
  • Post Goods Issue from VSIT to Customer
  • Create Customer Invoice
  • Use Value Chain Monitor to keep track of postings

Benefits

  • Supports the use of existing sales document type, item category, and schedule line category
  • Support legal compliance with event-based revenue recognition (IFRS 15 matching principle)

Additional Information

  • This scope item is excluded from the default activation

This is an Advanced Intercompany relevant scope item and requires significant additional manual setups. 

If you requested this scope item, see the set-up instructions in the SAP Activate Roadmap.


Where is Sell from Stock with Valuated Stock in Transit(5MQ) being used?

This Scope item is used in the following way:

  • As a core function of Order and Contract Management within Sales Scope Item Group

Process flow of Sell from Stock with Valuated Stock in Transit (5MQ)

Find below the process flow of the scope item Sell from Stock with Valuated Stock in Transit as it is defined for release s4hc-2111.


Download Process Flow of Best Practice scenario Sell from Stock with Valuated Stock in Transit (5MQ) - S/4HANA Cloud
Ref: Sales of SAP S4HC-2111
Best Practices related to S/4HANA*1) Yearly Updates are released per September of each year
*2) The Quarterly updates are released per Februari, May, August and November
Details of future releases can be found in the SAP Roadmap section of each product. Go to SAP Roadmap Product Finder.
Knowledge Center Scheer Nederland | The Process Experts Visit also the SAP Cloud ERP knowledge center of Scheer Netherlands. The following topics are covered:
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