S/4HANA Public Cloud Essentials: 05 – Sell from Stock with Valuated Stock in Transit (5MQ) 

Introducción 

In a customer sale, ownership transfer and revenue recognition do not necessarily occur at the moment the seller posts goods issue from the plant or warehouse. Instead, they are governed by the INCO terms agreed between the seller and the customer, which define the exact point at which risk, responsibility, and control of the goods shift within the Order‑to‑Cash cycle.  

Sell from Stock with Valuated Stock in Transit (5MQ) is a business process in SAP S/4HANA that allows organizations to retain ownership of goods while they are being transported to the customer.  Instead of transferring ownership at Post Goods Issue (PGI), the stock is moved into Valuated Stock in Transit (VSIT) and remains under the seller’s ownership until Proof of Delivery (POD) is confirmed. This process provides better inventory visibility, accurate financial postings, and supports compliant revenue recognition. 

Demo 

In this demo, we will showcase the complete Sell from Stock with Valuated Stock in Transit process. We will create a Sales Order and Outbound Delivery, execute Picking, and perform Post Goods Issue. We will then observe how stock moves into Valuated Stock in Transit and validate the process using the Value Chain Monitor. After Proof of Delivery is confirmed, ownership is transferred to the customer, and the VSIT stock is cleared. Finally, we will create the Billing Document and perform final validation of the complete value chain process.