Hi all,
We are using MM scheduling agreement to purchase goods. When GR happens (lets say 10 PC of same material) at the warehouse, it is found that materials are not good and needs to be returned to vendor. We are creating return PO for 1 PC of material as a sample and mark it as free of charge. Delivery is created and goods issued to vendor. On receipt Vendor shall confirm if the product is faulty due to Vendor reasons or not. Now there are two cases:
1. Product is faulty and Vendor accepts the return. We create a new Return PO with remaining quantity (9PC), outbound delivery is created and goods issued. Additional line item is added for handling any other charges like admin cost to handle return etc. We already sent 1 PC to vendor as free of charge earlier, which means that the inventory value was impacted earlier. Note we use standard price of material. What would be the best way to handle this kind of case from process point of view so that there is no impact on Financial values ?
2. Product is faulty and Vendor suggests to perform scrapping at our end as Vendor does not want material to be sent back. 1 PC was already goods issued from stock as free of charge. How to handle the scrapping to avoid any financial impact due to free of charge material issued.
If any one can provide some insights, it would be really helpful.
Regards,
Arvind