Invertory damaged and generated scrap against it.

[Former Member]

Dear Experts,

Pls guide me on below.

My stock is damaged in store and converted in scrap and i will do the scrap sale for the same.

MM consultant will reduce the inventory let say 10 rs is cost and generate scrap inventory for the same let say 4 rs.becoz damage stock is my scrap and have scrap inventory cost.

Then i will do the sale for the same throgh PSG as object and transfer cost and revenue for the same to copa.

MM consultant want to track or link 10 rs and 4 rs in order to capture how many cost i reduced stock and generated scrap for the same.The objective of link are to track loss on the above example (6 rs loss).

How to do costing for the same.Becoz when inventory are reduced or scrap qty are generarted against the same. need some cost object for the same. let say cost center.they how to do the treatment for the same.

regards

RR

[ajaycwa1981 · Accepted solution]

Hi Raman

Since you wanna track both, I would recommend solution as below....

1. Create a sales order and assign your damaged stock to the sales order.. I guess the Mvt Type is 412 / 413 E, if I am not wrong

2. Once you assign the stock, do an MR21 for Material + Plant + Sales Order combination.... This will reduce the inventory value from 10 to 4... The difference of 6 rs can be charged to Cost center as per OKB9

3. Now you do the PGI / Billing for the Scrap item... The Posting can go to COPA...

Its your choice if you wanna define the Sales Order Item as a CO Object.... You may manage even w/o defining it as CO Object

The above solution makes it possible to have 2 different valuation for the same material i.e. 10 for normal stock and 4 for damaged stock, without creating a separate code

br, Ajay M

[Former Member · Accepted solution]

Dear Ajay,

Thanks for your reply....

I want to reduce the stock with full value rs 10 and create GR for another scrap material code with rs 4.so i will use two material code.

All this entry will post on cost center and statistical internal order. so that i will get -6 loss on internal order and 6 rs loss on cost center.

Then i will do sales order for scrap material code with psg as real object and same statistical interal order.

So i will book revenue 5rs and cost 4rs for the same.

will it be possible?

But how my internal order balance look like in above scenerio.

rs 10 consumption fg stock

rs 4 scrap stock cost

then

rs 5 revenue and rs 4 cost on internal order at the time of same in same statistical internal order.

and second point is m posting rs 10 and rs 4 on cost center. what will happen with this cost.from where i will charge.

regards

RR

[ajaycwa1981 · Accepted solution]

Hi

What you are proposing is also possible....

The 6 INR loss on the cost center will have to be allocated to COPA as an overhead...

In my opinion, create a separate cost center for scrapping purpose or use a Real Int order instead of Statistical Int order...

This Real Int order will then contain

1. 10 Rs FG charged to the IO

2. -4 rs Scrap generated

3. 4 rs COGS again

4. 5 rs revenue from scrap

You can use PA Trf Str during settlement to map Revenue to a separate Value Field, the Costs to a separate value field

br, Ajay M

[Former Member · Accepted solution]

Dear Ajay,

I have some doubt on soltion purposed by you.

You told me to create scrap sale cost center and use real internal order to collect all cost and revenue.

Shall i settle IO to cost ceter.If yes then revenue posted on IO will be settled to cost center. but cost center is not revenue object. then what will be cost element category for scrap revenue.

or i will settle direct to COPA from IO then what is the use of cost center.

regards

RR

[ajaycwa1981 · Accepted solution]

Hi Raman

Look at my reply carefully... I said, have a Separate Cost center OR Use a Real Int Order

br, Ajay M