replacement component in production order

[Former Member]

Hi Gurus,

I have a scenario in my company whereby customer return a faulty FGD for replacement.

We will then create a PO to ask vendor for free replacement for that component of the FGD which is faulty. We will also create a production order to take existing component stock and build into FGD and deliver to customer.

Now the issue is with the MAP. When performing settlement, the cost of the production order is inflated as it is taking into consideration component stocks that have been valuated, rather than the zero cost stocks that the vendor can deliver only months later. Is there a way that I can revalued only the stocks that I use in the production order to be zero, beside using MR21 which is to revalue the whole Plant stock ?

If you have a separate replacement process, pls let me know also.

Thank you in advance for your answers which will be rewarded.

[madlercm]

It doesn't make sense to me to reduce or devaluate the component value; instead you could have a different production order type for this business with a different settlement profile, for example settle this cost to a cost center, rather than the material.

Nevertheless, you will still have problems if later you receive a free replacement component from the vendor on a normal PO (if price control is V).

To avoid this you should either move and return to/from the vendor using just a transfer posting, or a return PO and then a normal PO.

Another way could be to receive the returned FGD in customer stock, and dismantle it there, where customer stock is not valuated. Problem here is that you will have to wait for the vendor replacement.

[Former Member]

Thank you guru for the advice,

We have actually managed to resolve this last week using the return PO method but am interested to know that if I were to use MIGO Transfer Posting, what would be the movement type to use for this kind of transfer ? The return to and from the vendor ?