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Process Order Goods Receipt (GR) to be happened at different price


Client has the below requirement :

Before doing process order confirmation for GR, quality team checks the quality of output. If the output is ok then process order GR confirmation happens and as usual system post accounting entry also at standard price of process order output material.

However, in some cases quality team finds defect in the output. In such cases, when you do process order GR confirmation, system should not take standard cost estimation. It should take down graded / grade 2 value and should have to post FI document.

Let us take an example :

Finished Goods (FG) is the output of process order and its standard cost estimation value is Rs. 100

Process order 1 : FG Quality is fine, process GR happnes at Rs. 100 (Inventory - FG Dr 100 and Change in Inventory 100


This scenario, there is no issue as it is standard process.

Process order 2 : FG Quality is defective. This output cannot be sold at prime rate. Hence when you do process order GR confirmation, system should not take rs. 100 , it should take some other price which client wants to give / decide that time.

Is there any way to deal with this kind of process, looks like this requirement is possible for any industry. Kindly advise how to go forward and provide detailed solution.

Thanks & Regards


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3 Answers

  • Posted on Dec 27, 2011 at 10:46 AM

    From SAP point of view Standard Price field in Material master is Standard Cost.

    Standard cost will be arrived when we manufacture or procure

    Sale price will be entered in Sale order as condition value.

    Cost of defective finished goods will be valued based on business policy/requirement at MM level

    In 2nd case while selling the defective goods, sales department enters value manually at the time of creation SO


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    • We are producing both FG (Good and Defective) with same Raw Material & Processes and can not be sold at the same rate.

      Since we are using same Raw Material & Processes the Cost Price should not differ since the cost incurred is same even for defective goods. While you sale the FG it will have different Sales Price when Billing to Customer.

  • author's profile photo Former Member
    Former Member
    Posted on Dec 30, 2011 at 03:57 PM

    Hello Srimedha,

    A workaround solution may to confirm the entire quantity as normal FG at Rs.100 and then create another production order for defective material and issue this FG to the defenctive material order and then confirm the qty for defective material. Other alternatives may be too cumbersome.


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  • Posted on Dec 31, 2011 at 09:10 AM

    Dear Srimedha,

    First of all I assume Material Ledger is not active in your case.

    Kindly understand what Srinivasa is trying to explain.

    Your GR should always be with one standard price only. Inspection lot gets created after GR only and quality inspection starts there onwards.

    You have got standard BOM and Routing for Good FG and there no seperate Master data exists for Defective one.

    IF production is of bad quality that is a loss and you should not book that at a lower cost as the actual cost is the same in the both the case.

    I would propose further to maintain split valuation for FG Good and Defective. If there is defective production transfer the same through 309 movement. This will provide tracing and proper explanation.

    Explain to the client what they want is incorrect.


    Divraj Agarwal

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