Define valuation class for stock in transit.Switch on PoD relevancy on BP master data (shipping tab).Assign item category to schedule line categories.Assign new delivery type to new sales order type.Configuration Steps for PoD in SAP S/4HANA: Upon confirmation, the cost is then shifted from the balance sheet to the P&L account, ensuring alignment with invoicing. These remain as a balance sheet item until the proof of delivery is confirmed. When activated, instead of directly posting to COGS, the system will post goods in transit upon goods issue. Overview of Goods in Transit with PoD Functionality: There are implications with the COGS split posting functionality and returns processes. The other side of the spectrum are quick work-around solutions like modifying your account determination to post COGS during invoicing. However, there are customer scenarios were revenue recognition is just overkill to implement. Sure, you also have purpose build solutions in SAP like revenue recognition to solve this. In this post, I’ll guide you through its configuration and demonstrate its application. The built-in functionality, “Goods in Transit with Proof of Delivery (PoD),” presents a practical solution. In SAP S/4HANA, this alignment can sometimes drift due to timing differences between goods issue and invoicing. Ensuring that revenues and associated costs align within the same accounting period is crucial for accurate financial reporting and compliance with the matching principle.
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