how to record Excess/Shortage quantity (Weight) received after recording MIGO 101 against PO

[former_member68831]

Dear Experts,

1) We have placed import order for material for which UOM is KG. for example 100 kg
2) We receive material from foreign Vendor.
3) Delivery Note qty, Bill of Lading (BL) qty and Bill of entry Qty is 100kg.
4) on receipt at our gate we weigh the material at our weigh bridge.
5) Actual quantity received may be less or or more for example. either 97 kg or 103 kg.
6) Now since BL and Bill of Entry quantity is 100 kg. I have to post goods receipt MIGO mvt 101 for 100 kgs only.
7) But how to record the excess or shortage as per actual weighment at our weigh bridge. so that our system stock and physical stock tallies.

😎 Please note that for this excess or shortage we will not be posting any MIRO.

Thanks and regards.

NBB

[JL23 · Accepted solution]

The design of a 2-step movement like 107 and 109 is that the quantity in both movements have to be equal at the end.

Of course you can do the second step in partials, but you cannot move more in the second step than you initially posted with the first movement. And if you move less then you will always sit on the differences and can't close the purchase order.

So the usual option is to scrap the difference either way 551 or 552 after the 109 posting. Alternative you can use 201 and 202, or even physical inventory to adjust the stock. None of them is with reference to the PO. But you can add the PO number in the text of the movement like explained in my earlier answer.

If a text field is not convenient for you then you may need to add Z-fields as append to MSEG table and capture the info there through a modified MIGO screen.

If your material is batch managed then you could capture PO number and the difference modification free in the batch classification.

If you want the real reference then you have to post it with 101 and 102 movements, but then you run into exact the same issues as mentioned earlier.

[Prasoon]

Hi,

Since you dont want to update the quantity difference in P2P cycle, you may adjust the quantity in a standalone process. You may use 201 & 202 movements or create a copy of 201 and 202, (make the PO number as mandatory for reference in the new movement type), and adjust the quantity against cost center in MIGO-Goods Issue. If its a new movement type, you can take the reports for the adjustments and against PO.

Regards,

Prasoon

[former_member68831]

Dear Experts,

Thanks for your prompt reply.

Let me elaborate more on the scenario along with exact flow of transactions.

• 1)We import Calcium Carbonate powder from mines from various countries.
• 2)We place import PO with foreign Vendor with origin acceptance indicator tick and Inco term as FOB along with other details. PO quantity is 10,00,000 kgs
• 3)The foreign Vendor dispatches the material from his mine. while loading the material in container the weight he measured there was say 27450 kgs Net.
• 4)The vendor prepared Bill of Lading for 27450 kgs. And loaded the container on the ship.
• 5)Since the INCO terms was FOB we recorded the quantity using MIGO 107 for 27450 kgs as soon as the shipper send the Bill of Lading (BL) on loaded the material on the ship.
• 6)Now after 20 days we receive the consignment at our Port.
• 7)The Bill of entry was filed for 27450 kgs based on BL and the material was cleared from the port.
• 8)Upon receiving the container at our factory we weighed the material for net quantity.
• 9)The net quantity found was 27700 kgs.
• 10)We post customs MIRO for 27450 kgs only
• 11)We post Foreign vendor MIRO for 27450 kgs only.
• 12)Now when we create MIGO 109 with reference to MIGO 107 system is copying 27450 kgs from MIGO 107.
• 13)However if we change the quantity to 27700 kgs while posting MIGO 109 system gives error message M7022 even though this error is set as warning in OMCQ.
• 14)From google we found that this error is hard coded.
• 15)Now my problems is how to record the difference i.e. 27700 – 27450 = 300 kgs. In the system with reference to Purchase order or with reference to MIGO .
• 16)So that our system stock is same as physical stock. and also the document flow link is maintained.
• 17)Because every year we import lakhs of kgs of material and the cumulative difference is very high if the difference of excess / Shortage is not recorded.

Thanks and regards,

NBB

[JL23]

Sometimes examples are important. Abstract examples may just confuse the situation. I will treat the word weigh bridge with a higher importance than the mentioned quantity. E.g. a tank truck goes over a weigh bridge, and this has maybe 5000 kg to 25000 kg, just a 100 kg is a smaller drum and would usually not be put on a weigh bridge...

For tank trucks a company has usually some tolerances specified as it is quite impossible to fill an exact weight, and even less possible to unload exact the same quantity since some product may remain in the tank based on its viscosity. Also you have to be careful and a clear process if the driver has to sit in the truck or leave the truck, otherwise the difference could be influenced by the weight of the driver.

If the weight is within the tolerance then you usually only post what is on the delivery note, as you will be unable yourself to tell the exact weight which you have in your storage tank. A withdrawal from the tank is usually done based on liters and converted to KG and not weighted again to know the exact KG. So you always have some pluses and minuses at the end of the month or with a physical inventory. So bothering about the last decimal is just wasting time and money in such cases.

Only if the tolerance is exceeded then you post what you got and you record the delivery note quantity in the delivery note quantity field in MIGO.

Unfortunately there is no field to record differences within the tolerance. If you would only post what you really weighted and record the delivery note quantity in the other field then this would cause trouble with differences in invoice verification, which could be overcome by allowing higher differences there, but this would also effect invoices which are not for bulk material, and vendor specific tolerances are often not possible since the same vendor delivers bulk and packaged material.

If you have not used the the movement reason and text, then you could eventually define a reason for weight differences and record the real weight in the text field next to it.