Valuation of damaged goods

[Former Member]

Gurus,

if there is some inventory damaged and this is blocked. How can we eliminate this inventory in the inventory valuation? What is the SAP best practice to handle?

Thanks

[ajaycwa1981 · Accepted solution]

Hi

1. 1st of all - Transfer this inventory from Unrestricted to block Stock....

2. There is no way you can exclude it from Inventory valuation.... However, whenver your management decides - You need to scrap that material i.e. sell it as a scrap....

If it cant be sold as a scrap - Then simply issue it to a cost center using 201 mvt type

if this product can be cannibalized i.e. any useful components can be taken out of the product and re-used - In that case, create a Production order where you Consume the Damaged goods and GR the Components..

br, Ajay M

[Former Member · Accepted solution]

Thanks Ajay garu,

On the cost component structure there is an option for "Do not Valuate" What is this option for and when do we use that?

Thanks for your time.

[ajaycwa1981 · Accepted solution]

Hi Venky Anna

That option wont be useful for you in this case....

that is used when you want a particular Cost Component in your Cost Comp Structure is not to be used for Inventory valuatoin... Eg: Admin Overhead...

br, Ajay M

[Former Member · Accepted solution]

"Do not Valuate" implies to total stock, I dont think you can restrict for damaged portion.

Regards,

Mohan

[Former Member]

Hi Venkat...

I think it may be better option to follow :

1. Creat one Non-valuated mat code for damaged item in Mat master.

2. Transfer the damaged mat to non-valuated mat (MB1b/mov 309)

This way original mat will not be shown in inventory and loss of damaged mat will be adjusted and as a damaged mat only qty will remain in stock. You can also have a details of this material.

kkumar

[ajaycwa1981]

Hi Biswas da

This way, you will have to create one Non Valuated code for each material...

Companies would like to have the damaged inventory of each material separately... They are usually not interested in clubbing the damaged stock of say, 100 materials into 1 material code....

Btw, coming to your question yesterday, I know your surname because you used to post it in your initial posts.... And Thank God for my memory, My memory is very sharp.. I can remember things for long long time!

Br, Ajay M