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Former Member

De-value inventory without decreasing quantity?

Hi all.

We are a food processing company and have components that are Batched / Handling Unit (HU) managed. We use / buy components on behalf of our customers. When these components expire, we invoice / bill our customer for the expired components. After receipt of payment (which can be months later) we dispose of the components per instructions of our customer.

Our current process is very tedious and time consuming. We currently write-off to a cost center at the time of invoicing each Batch / HU (this can be into the thousands) to get it out of inventory at the current moving average. Then zero-out the item’s moving average using MR21 and reload the inventory just removed. This will put the quantity back into inventory without valuation. Putting it back into inventory is mandatory so we can ensure proper handling & tracking is done on the product being disposed.

I need some expert advice with writing off Inventory valuation. We need the ability to de-value inventory to a cost center without impacting the quantity / batches / HU’s in inventory. In addition; it needs to change the moving average cost to $0 (zero), something like MR21/MR22. Does anyone have a simpler solution?

Gene

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2 Answers

  • May 03 at 07:36 PM

    there is no way in MM to issue value to a cost center without removing quantity.

    The most straight forward way would be to write off the value with MR22 . And then let Finance do a re-posting from the price change account to the cost center.

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    Former Member
    May 03 at 07:44 PM

    Jurgen,

    Thank you for your quick response. I'll approach that team to see if what you suggest is a workable solution.

    Gene

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