Understanding POD (Proof of Delivery) process within SAP

Proof of Delivery (POD) in SAP is a business process in order to complete the sales order cycle. In this article, we will run through how to configure and complete the POD process. So if you are wondering if there is a way in SAP to capture the date and time of when the goods have actually received by the customer, this article can help.

POD is a business process, which translates to receiving an acknowledgment  when goods are received by the customer, it needs a physical acknowledgement from him.  With the delivery receipt, we can also check in case there is difference between the number of goods issued and quantity of goods arrived. If there is a difference between two quantities then there is a possible loss of items. The reason for such a difference can also be tracked.

POD process – Reasons why there could be difference of quantity confirmed

Some practical world reasons for above-mentioned stock shortage can be theft, stock shrinkage, transportation damage, etc.  Based on the customer confirmed quantity, it is possible to create an accurate invoice in SAP. This makes business transparency. In addition to this, it stores the POD date, time and actual Quantity of the goods arrived.

Steps to configure POD process in SAP

In this article, we can see how to configure the POD and how to complete the POD process in SAP.

Step 1: Making item categories POD relevant

Similar to customers, not all items are relevant for POD process. For example, Samples or Free Goods may not be relevant for the process. In this step you need to mark those item categories which are relevant for the process.

Navigate to the below-mentioned path using transaction code SPRO

• Select the relevant item category for POD and Assign the ‘X’ (POD-relevant). In the example, I have selected the standard Item category for POD.

• If you intend to create the new reasons for the quantity difference then We can define in the previous step which is shown in the previous screenshot.

Step 2: Making customer POD relevant

Not all customers are relevant for POD process. You can mark a customer relevant for the process in the sales area view of the customer. Following are the steps to do the same.

• Use the XD02 transaction code and navigate customer master – Sales Area Data – Shipping Tab
• Check the “Relevant for POD” and “Mention the time-frame” ( number of days which is permitted to expect the POD receipt) in customer master which is shown in below screenshot. In the example, I have given four days as a time frame.

Note: If the Ship to party fails to send the POD within the stipulated time, which is mentioned in the time frame, the system will automatically create the Billing document.

Step 3: Run the sales cycle with Proof of Delivery

Now that we are ready with customer and product settings, let us see how proof of delivery actually works in a order to invoice cycle.

• Create the Sales Order using the customer which is relevant for POD and do the delivery, post goods issue.
• Now create the billing document for the order then you would see the error message.
• In the log, you can see the error message which is shown in below screenshot. Observe that POD is not confirmed. Which means you need to get the POD

Step 4: Complete the POD

There are two ways in which we can complete the POD. If the quantity has differences like over delivery or under delivery. In this case, we need to follow below steps.

• Use the Transaction code VLPOD
• Enter the delivery document number, enter the reasons for the Qty variation (Positive or Negative)
• Enter the Qty of variation under the “Qty difference sales Unit” which changes the POD status as “B” (Difference Reported) and save the document.

If there is no difference in quantity in such cases follow the below steps.

• Use the Transaction code VLPODQ
• Enter the delivery document number and make sure to select the radio button of “Verified with difference”
• Select the tick mark for “Display selected documents” under the worklist tab and Execute which is shown in below screenshot.

• Select the line item and hit the “CONFIRM” button which is shown in the above screenshot.

• It prompts a pop to confirm which is shown in below screenshot.

• Now we can move to create a billing document for the sales order

We can cross-check quantity difference recorded properly, by using VL02N, select the line item go to “Processing tab” .we can see that in below screenshot

Step 5: Complete the billing document

• Go to Transaction code VF01
• Enter the delivery document number and Save the document

Some Important SAP transactions for POD

Following are some important SAP transactions to execute the POD process. Having them handy can help you process in any easy manner.

Where can I find the proof of delivery date for a sales order?

Once POD is configured in the system, it will not allow creating the billing documents unless we have the confirmation of POD. You can find the proof of delivery date in LIKP table. The field name is PODAT.

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