
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