Paid Leftover Scenario

[Former Member]

We pay for a sample material charged to a cost center of R&D.  After which there are leftover of this materials which we intend to take into our inventory.

Can someone give suggestions for the SAP process for this?

Initially I'm thinking of it as follow:

Reversal of Good's Issue vs Cost Center for remaining amount

Creation of Material master

Creation of PO for the material left until it is GR then IR

Can I ask for help on the process this will go through in SAP and its account postings significance?

Thank you so much

[sushant_wanjari]

Hi Jay,

I belive you are posting goods issue to cost center with movement type 201. By doing this, the cost center is debited and the inventory is credited. And, after the goods are consumed by the cost center, you want to take back the leftovers into your inventory.

Assuming the leftover mat no. is the same as original material provided to cost center, the easiest step I could think of is posting the movement 202 through MB1A. By doing this, your accounting entries would be simply reversed(which should be the case ideally).

If the leftover material is different than the original material provided, then you need to define the individual material masters for as many by-products and, decide upon the suitable valuation data(price, v. class, etc). After this you can post the movement 202 for the appropriate no. of leftovers.

by the way, what do you do with the leftovers? are they used in production or sent back to vendor?

Hope that helps.

Regards,

Sushant

[Former Member]

Hi Sushant,

Thank you for your answer.  Basically the process goes as follow:

R&D will need to evaluate certain materials so they request for this and then they will charge this to R&D cost center.

After evaluating those materials, what is left from the paid samples given by the vendor must then be put into inventory.  Note that these sample materials does not yet exist most of the time.

Once it is in inventory, it may then be used for production.

Hope you can give more information for the process.

[sushant_wanjari]

Hi Jay,

I suggest you can create a standard material code(for e.g. Mat

byproduct xyz) for all sort of leftover materials and keep them

valuated at moving average price and, preferably use the material type

as Raw Materials.

Please try posting movement 202 for the newly created materials for

the appropriate amount and quantity. your moving average price shall

be adjusted accordingly.

Regards,

Sushant