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Former Member

Good Missed in STO Process

Dear Gurus,

we are transferring 100 mt of material from Plant A to Plant B.

we have fixed vendor for transportation. rate = 200rs/MT

But while receiving Plant B received only 95MT.

As per best practice, we will receive the whole 100 mt.

But the question is how to tally the

1. Missed stock = 5 mt missed. is it with stock adjustment every time(701/702)

2. How to pay for transport vendor. vendor ask for 100 mt charges but we have received only 95 mt.

Please explain.

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6 Answers

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    Former Member
    Dec 26, 2014 at 10:27 AM

    Dear Shiva,

    What are the reasons for the difference in quantities : pilferage, damage ?

    And what do you mean by Sent 100mt and received 120 MT, from where do the additional 20 MT get loaded ?

    For most cases, the GRN quantity  = Outbound Delivery. ( Considering it is a single shipment transfer). In your case, it seems so you have to push the business guys to have a deeper visibility of the inventory transfer process so such situations do not arise. If such aberrations are happenly regularly, then its time to raise a red flag and send your entire STO process under a microscope.

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    • Former Member

      Hi Nikhil,

      Thanks for your reply.

      We are legacy now, we are moving into SAP by march.

      Might be this problem occur because of clubbing of orders/STO.

      Let me check with logistics team for this.

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    Former Member
    Dec 26, 2014 at 10:07 AM

    Kindly Explore :

    1. check Stock in MB5T to be sure the stock shows as SIT stock

    2. For a damage in transit scenario, either you have to reverse the PGI ( Not so easy as the truck has reached the receiving plant) or receive the full Outbound delivery quantity at the receiving plant. Later, you can scrap the damaged quantity.

    2. Instead of stock correction, you have to scrap the damaged quantity with MB1C 551.

    3. Since a GRN of 100 MT will be doe, you can pay to the vendor for 100 MT.

    I think so this approach can resolve your issue. Stock Corrections 701/702 cannot connect to a external party payment process,

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  • Dec 26, 2014 at 10:09 AM

    It is not best practice to receive 100, as this cures only the ordering/receiving part, but not at all the shipping part.

    Best practice is to analyze the situation in detail to know the root cause.

    This may include to check the stock for that material in the shipping plant. They may have sent less than posted.

    If there is in evidence (e.g. photo from the load)  that the goods have been on the truck, then the carrier must have lost them, so he has to reimburse you for that. (which often exceeds the freight portion)

    If you received 100 (and adjusted 5 internally) and the carrier expects to be paid for 100, then I do not see where you have any problem in this process.

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    • Let us assume you live in a region where robbers neither remove only a part nor add the same stuff to your truck while it is on the way between two of your plants.

      If you encounter a difference when doing the receipt, then it can only be caused by the fact that the shipping plant posted either too less or too much as goods issue.

      If you only correct the inventory in the receiving plant, then the inventory is still wrong in the shipping plant and may cause even more problems (wrong planning because of wrong stock in SAP, overaging of stock which is not seen in SAP ....) in future until a regular inventory uncovers the differences.

      Hence the best practice from my point of view is to talk to each other. Clarify the issue as soon as it is discovered, even before you post the goods receipt in SAP.  The shipping plant can cancel the goods issue, can post the correct goods issue. No reason to take the burden and the costs for the adjustment  in the receiving plant.

  • Dec 26, 2014 at 10:55 AM

    In my opinion, it is quite scarcity of your business process. Nikhil has asked you a momentous question. How can you will receive 120 MT as you have send only 100 MT ?

    If you do not want to use an apposite business process, then you have to continue the same thing which you are following right now in legacy system. You need to do invoice for manually entered quantity and amount, then you need to close the PO manually for open invoiced quantity by marking the final invoice (for those which will be invoiced lower than GR quantity/amount).

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  • Dec 26, 2014 at 01:24 PM

    Hi,

      If the remaining quantity is not supposed to be received in future also, you may do GR for the complete issued quantity (100MT). Based on the responsibility (business team will be able to answer this) of the loss, you may either scrap (551 movement) the lost quantity in the receiving plant itself or you may do a virtual return STO (or direct transfer posting with 301 movement) for the lost quantity and then move the stock to the first (actual supplying plant) plant and then scrap it.

    Regards,

    AKPT

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  • Dec 26, 2014 at 06:23 PM

    Dear Shiva,

    Kindly do let us know stock status whether it will be consider as lost or transporter bring it back later...

    Also do payment to the transporter based on KG basis instead of Trip basis  and debit money for all losses.

    Regards,

    Karna J

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