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author's profile photo Former Member
Former Member

How to handle GR for Subcontract PO if Materials are returned damaged?

How to handle these possible situations ?

Also, I'm curious what would be the journalizing for these

1. PO is made for 20 pcs, we provide 1000 pcs raw materials (normally 1 pc needs 50 pcs raw mat.)

vendor returns 19 pcs but no materials are retuned

2. PO is made for 20 pcs, we provide 1000 pcs raw materials (normally 1 pc needs 50 pcs raw mat.)

vendor returns 10 pcs, and 500 pcs raw materials are returned but damaged (vendor's fault)

3. PO is made for 20 pcs, we provide 1000 pcs raw materials (normally 1 pc needs 50 pcs raw mat.)

vendor returns 10 pcs, and 500 pcs raw materials are returned but damaged (our materials are faulty - our fault)

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 15, 2011 at 01:13 PM

    Hi,

    If material is damaged you have to post scrap using 551, either use 551O to post scrap of material provided to vendor or take back the stock using 542 and then scrap it, based on who has to take responsibility for the damage. If you wish to settle the damage done by vendor then you can post credit note for the vendor if you had to supply additional material to get your order completed. the credit note can be of the value equal to the material scrap cost.

    I can't confirm but you can speak to the FI consultant if there is an option to balance Scrap account with Vendor account.

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