STO & deliveries

[Former Member]

I have an issue . Plant B placed an STO on plant A for 3900 kg of a material in NOV 2007. Delivery was created in NOV 2007 for 3900 kg, it was fully picked, the WM transfer order was confirmed without any difference, GI was done in NOV 2007 for 3900 kg. But plant B received only 3840 kg as per the GR. This difference of 60 kg is causing problems. How to eliminate this difference ?

Thanks in advance,

Cam.

[Former Member · Accepted solution]

Dear Cam,

Plant B received only 3840 KG. In MIGO after replenishmnet delivery you can give the actual status of quantity received. While goods issue have you given 3900 KG of materai? If so you can agin receive remaining quantity later.

Regards,

Ravi

[Former Member]

Hi there,

For some items the transit loss is calculated. Usually for some perishable items.

But the loss is to be taken care by the sending plant. When making the A/c postings, the difference is posted into the transit variance / difference A/c.

As far as the cost paid by the receiving plant is concerned, then a credit memo request is raised by the receiving plant.

If the business already knows how much % will be lost during the transit (like electric tramsmission or perishable goods), then the difference is calculated accordingly before raising the invoice. In pricing, the loss is calculated as per a new condition type transit loss.

Regards,

Sivanand

[Lakshmipathi]

The receiving plant should do MIGO only for 3840 kgs and accordingly, the duty also has to be calculated only for this quantity. Of course, the difference in quantity and duty paid for the remaining 60 kgs has to borne by sending plant. This is the excise rule.

thanks

G. Lakshmipathi