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author's profile photo Former Member
Former Member

GR without PO reference

From controls perspective it is advised to do a goods receipt always with reference to purchase order.

As we know, we can do a goods receipt without referring to a purchase order through movement type 501.

We have almost 5000 instances of such postings done in the production environment, thereby building up the inventory levels without referring any purchase order and hence distorting the valuations.

What is the solution?

Experts please help!

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    author's profile photo Former Member
    Former Member
    Posted on Nov 09, 2012 at 08:42 AM

    Ensure User's are given access to Goods Receipt for Purchase Order alone using the authorization object M_MSEG_BWE this will restrict user's from creating goods receipt without any PO's in either MB1C and MIGO transactions.

    You can try using Parameter BWA to mention the default Movement Type as well.

    If either are not useful then you will have to go for an enhancement to restrict user's from using 501 Mvt type altogether.

    /Manoj

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  • author's profile photo Former Member
    Former Member
    Posted on Nov 09, 2012 at 09:24 AM

    OK...Thank you experts, Now I can at least block the authorization from using mvt 501.

    But what should I do now for the open LPO's ?

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  • author's profile photo Former Member
    Former Member
    Posted on Nov 09, 2012 at 08:23 AM

    I assume your physically inventory is not matching with system inventory. You need to keep only those records for which there is actual stock and others should be written off from the books.

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  • Posted on Nov 09, 2012 at 08:36 AM

    you can restrict authorization for movement type 501

    to adjust stock phaps you can resort to physical inventory or scrapping.

    if valuation is MAP, and you need to correct the value, use MR21.

    you need to make sure that local compliances are met while writing of the quantites ( e.g if input credits are taken, it need to be reversed etc )

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  • author's profile photo Former Member
    Former Member
    Posted on Nov 09, 2012 at 08:42 AM

    Hello,

    You can take below action :

    1) Block mvt. type 501. Block for transactions in OMJJ

    2) Take the data of material document posted for 501 mvt. type in MB51.

    3) You can reserve the documents individually by MBST. Accounting document will get generate exact reverse of 501 mvt.

    4) if step 3 is not possible, then take physical inventory of materials. And, create & post physican inventory document in SAP by MI01, MI04 & MI07.

    Hope, this will resolve your proble.

    Regds,

    Nilesh

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  • author's profile photo Former Member
    Former Member
    Posted on Nov 09, 2012 at 08:44 AM

    Hi,

    could you please clarify what do you mean by distorting the valuation.

    What exactly is the issue

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    • a 501 movement adds inventory which gets valuated at current moving average price (or standard price), which may be different from the price that you have to pay to your vendor.

      Without PO reference you will not be able to post the exact amount to the stock account, hence your valuation does not reflect the price.

      But more important is to find out why the warehouse guy does it. Just blocking the transaction without knowing the root cause is not a well thought decision.

      Does he use 501 because the buyer missed to create a PO in SAP?

      Or does he not understand the different between account assigned procurement and procurement made to stock? (doing a subsequent 501 if a 101 does not create stock?)

      This is then probably a training issue on the one side, but on the other side you may also have a glitch in your design as you store consumables in your warehouse and your warehouse manager wants to manage this inventory.

      Talk to person to understand why he is doing this.

  • author's profile photo Former Member
    Former Member
    Posted on Nov 09, 2012 at 09:42 AM

    Thank you for the prompt reply!

    Will work on it. If I get any other query into it will post it.

    Thank you again.

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