Scrap at normal vendor location

[former_member637283]

Hi Experts,

Is there any way to manage scrap at the time of GRN against normal purchase order (no subcon scenario)? Below is the scenario.

1. PO given to vendor for Qty 100

2. GRN posted for 95 (5 to be scrapped)

Since the invoice needs to be posted for 100 qty, we can not receive only 95. So is there any standard way to post scrap at the time of grn. Customer is looking for automation to save time.

Thanks,

[robin_mcrae2]

Hi there,

It seems a little strange that a certain amount of the vendor delivery is, well, for all intents and purposes, rejected. Would you like that value of the 100 be reflected in the inventory value of the 95 accepted units? I'm just guessing that these are inventory items. Or are your accountants happy with you taking a loss.

Robin McRae

[ahmed_abdelatif]

You can receive 95 EA at MIGO and invoice amount of 100 EA without adding this cost to the material.
you can add the difference in GL tab amount of 5 EA as debit side and in vendor amount you'll put all amount of 100 EA.

[former_member197616]

Exactly.

1. Is it a transit loss? If so dies ur purchasing has not gone in for proper negotiations for return or replace?

2. Do u have qm in place?

3. Simultaneous posting of grn and scrap not posaible.

4.for qty 75 grn and 100 qty invoice leavee u with grir clearing

5.try use qm module so that you can accept 95 through ud.

Regards

[former_member637283]

Hi ..No this is no transit loss..this is in agreement in vendor that in some cases scrap will be owned by customer ..OK will check with QM and update..thanks

[robin_mcrae2]

Considering that the business reality is; a quantity of stock is ordered for a total value… the quantity of useable items is lower than the order quantity because some units are not perfect. Personally, I would opt to increase the cost of the remaining units. It’s the cost of getting your stock from the vendor.. it’s inbound. I don’t see it as a production waste or a loss.

Robin McRae

[BijayKumarBarik]

5% scrap will post to which G/L account?

But not sure why vendor production with scrap cost your customer wanted to incur to their inventory account!

Upon GR posting you must design on inventory account posting completely or partly with scrap account also!

For automation- you can create condition for scrap and add in your MM pricing procedure with new routine ( design to have formula in it with 5% scraps quantity from quantity with PB00).

[former_member637283]

the material is non valuable item so no accounting will hit..just that we need to manage scrap quantity at the time of GRN ..Batch job is not possible for MIGO otherwise we would have created one more sloc and post scrap qty to it at the time of GRN and run background job for 551 movement.. Customer is also not ready for custom solution ..

[BijayKumarBarik]

If customer not agree for custom solution and then....

Create PO(100 quantities), do GR(100 quantities) and scrap 5 quantities

You cannot do GR of 95 quantity as your PO will open with 5 quantiies

[former_member637283]

Yeah we had already informed client that there is no std solution to this..either go for custom program or post scrap manually after GRN..Thanks for the support..

[BijayKumarBarik]

Good , your issue resolved!