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Former Member

Write off stock

Dear All,

We need to run write off scenario. In following way. How I can handle it.

When stock is more than 2 years then company move that stock into separate storage location by reducing its value that is called write off storage location.

1.       Suppose 1 QTY stock have value as 1000 EUR.

2.       When we move it to write off storage location, its value will get reduced as 1 EUR.

How to do this?

If in future if we got order for it we can sale that material to value 1500 EUR.

How I can run this scenario in SAP.

BR,

Mahesh

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3 Answers

  • Best Answer
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    Former Member
    Nov 03, 2015 at 09:44 AM

    Hi,

    Material is valuated at plant level and I am not sure why you transfer material to a storage location for write off 2 years ago?

    Perhaps, material have price control MAP which results price of material reduced to 1 EUR from 1000 EUR after 2years.

    Better discuss with business and find the real requirement, then go for write off with physical inventory process for material.

    Regards,

    Biju K

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  • Nov 03, 2015 at 11:21 AM

    Hello ,

    why you need to reduce the value of the material when you are not actually scrapping it out rather only placing it to other storage.

    as the material is not yet considered as unwanted or scrap ,let the value remain as it is , as it s required for valuation/ Sale in future and  also audit.

    reducing the value will affect some other GL account for which you again have to give explanations.

    so from business point it wont be good to reduce the value like that. consult with your finance person and also with business to get clear requirement.

    thanks

    kUnal

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    • Hello ,

      not sure what are the rules and laws for this , but auditor will sure ask you the explanation for this.

      you can check the year end document provided by Jürgen or search one specific to Africa....

      if they have the requirement then go ahead and use MR21 for price change followed by storage location transfer.Consult your finance person , both form SAP and business side.

      thanks

      kUnal

  • Nov 03, 2015 at 01:15 PM

    you can revaluate with MR21 or write of value with MR22

    However, you have to think, valuation is not at storage location level, it is a plant level.

    If you have young and old stock then you would need to write off the old stock only, but changing the valuation effects all stock, not just the stock in your specific old stock location.

    Is that really okay?

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