What is running bond in SAP LO - Logistics - General?

SAP Term: running bond

• Component: LO

• Component Name: Logistics - General

• Description: An excise bond in which the bond value refers to the maximum amount of basic excise duty BED that can be covered at any one time. The net bond value is reduced when you submit an ARE-1, but goes up again once you receive confirmation that the goods have been exported. &EXAMPLE& You have an excise bond with a value of INR 10,000. You create an ARE-1 for an export with a BED amount of INR 8,000. The net bond value goes down to INR 2,000. When you receive confirmation that the goods have been exported, the net bond value goes back up to INR 10,000.

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• Key Concepts: 
  Running bond is a type of stock transfer process in SAP Logistics. It is used to transfer stock from one plant to another in a continuous, uninterrupted flow. The running bond process is initiated by the sending plant and the receiving plant is responsible for the acceptance of the goods. 
  
  How to use it: 
  The running bond process is initiated by the sending plant. The sending plant creates a stock transfer order and assigns it to the receiving plant. The receiving plant then confirms the order and the goods are transferred from the sending plant to the receiving plant. The receiving plant then confirms the receipt of the goods and the running bond process is complete. 
  
  Tips & Tricks: 
  When using running bond, it is important to ensure that both plants are aware of the stock transfer order and that they are both able to confirm its receipt. Additionally, it is important to ensure that both plants have sufficient storage capacity for the goods being transferred. 
  
  Related Information: 
  For more information on running bond, please refer to SAP Help documentation on Stock Transfers with Running Bond (LO-LT-ST). Additionally, you can find more information on SAP Logistics in general in SAP Help documentation on Logistics (LO).