During inbound delivery process, arrival of shipment is recorded, the status of stock inside Port can be monitored by AL-Nukaly. When the inbound delivery is created, activities such as scheduling are initiated, The significant advantage of depicting the goods receipt process through the inbound delivery function is that you can execute many processes in advance, even before the actual goods receipt posting takes place in respective warehouse. When the ship arrived in the port shipping department should enter this inbound delivery in the system in order to facilitate the cold stores to check material available in port but awaiting for clearance.
Goods Receipt is done with reference to the purchase order created for the vendor. At this point of time, stock is updated and the value for the stock is also updated. Goods receipt for import procurement include additional cost like insurance, custom duty, port charges etc. apart from Cost and Freight. Batch number is generated automatically and then need to enter the expiry date and production date of the product if the material is managed in batch. Storage location is to be assigned at the time of goods receipt in order to identify the room number for stock placement.
The cycle of local /Foreign GRN hold well for capital materials. The type of material (Asset) shall be specified.
A goods issue (GI) is a good movement with which a material will be withdrawal or material will be issued, a material consumption or a shipment of good to a customer is posted. A good Issue leads to reduction of the stocks. Material shall be issued to various departments. The issues can be specific against a production order or generally to a cost centre. The consumption entries shall get posted at the time of goods issue. For raw material and packing material identified in the bill of material (BOM) i.e. direct material will be issued to a production order. For engineering, laboratory, Admin material will be issued to a cost centre.
Negative stocks shall not be allowed in the system. Currently when the stock is not available in the system, it can be sold by allowing negative stock due to various factors like goods receipt not taken in system. But in SAP, the stock has to be taken in warehouse and then it is used for selling purpose.
Presently material consumption is entered into legacy system periodically (at the end of the day), but with SAP same has to be done on-line and will have a stock dependency with respect to plant and storage location.
The authorization will be based on the type of good issue i.e. Production or Cost centre, and Plant.
A reservation slip will be printed for storage personnel convenience and all good issues will made with reference to the reservation number printed on the Slip
The material can be transferred from one location to another within the plant. This transaction does not involve accounting entry for the material. If material is transferred from one Location to another Location within the plant.
If a material changes over time in such a way that it no longer corresponds to the features defined in the material master record, but to the features of a different material, the user can carry out transfer posting from material to material.
A transfer posting from material to material results in the transferred quantity being managed under a different material number. A material master record must exist for the receiving material.
Parallel to the material document, an accounting document is posted. The issuing material master record determines the value of the transfer posting. In this case, the difference in valuation of materials will be accounted to a Expenditure / Income from Transfer posting account.
The material to material transfer should be done in consultation with accounts as it involves accounting entries being posted for the material.
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