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stock value related to sales return

cathy_liang
Contributor
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Hi experts,

When sales return, the return goods captures the current stock value after PGI. What's the system logic for that? U know, the customer wants it to capture the stock value of the responding sales delivery date.

For e.g., the goods (10 ton) is sold in June when the stock value is $10/ton. In July, 2 ton is returned while the stock value is $15/ton. According to the standrad system configuration, the return goods bases on $15/ton to calculate (accounting document in material document after PGI). But the customer want to base on $10/ton to calculate as to keep some financial reports balance.

In case the difference of stock value occurs, is it the only way to adjust material cost via MR21 & the difference of stock by KEU5?

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Dear Cathy,

In the material document the field Amount in local currency is filled from the Accounting 1 view of the material master. We maintain different prices there which are again related to price conditions of sales.

So this comes from there.

Now in your case its taking current value then the reason which i feel is updation in MM records as this date.

Now for this you thinking is perfect for using MR21 looks fine to me.

Hope this will help.

Thanks,

Raja

cathy_liang
Contributor
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First of all, many thanks for your suggestions.

The request here is the customer want to keep the same stock value between return delivery & outbound delivery. Of course, return order will refer to sales order.

No matter outbound delivery or return delivery, they just automatically capture the current stock value. Why? Is it really reasonable? The customer thinks it causes extra work to make adjustment.

Lakshmipathi
Active Contributor
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I dont have access to SAP but I have asked my colleague to check on your requirement. Understand that the cost what was flowing in original billing has been copied to return sale order. So please check your copy controls. I will get back to you if you need, by tomorrow after I go through my copy control.

thanks

G. Lakshmipathi

Former Member
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Hi Cathy

Stock value as it is rightly said will come from accounting 1view based on standard price u have maintained.

This is specific to material i.e at material level rather than any particualr batch.

The stock value does not directly relate to Pricing in SD pricing except for VPRS condition.

As the standard price is representation of cost incurred in manufacturing a particualr FG at a given time ,it includes the changed cost of components ,overheads etc.so this is bound to change eveytime u take costing run. and this is correct.

the stock value of returned goods can only be maintained separately if u have batch specific valuation,but i feel maintenance is bigger issue in that case rather than MR21 .As at every transaction level batch has to be entered .

You can better discuss with MM consultant for valuation part and options available .

Also regarding price part from SD it should be kept unchanged as we will take back material at same price at which it was sold.

Kind regards

Mandar

cathy_liang
Contributor
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Again, thanks for all your kind attention.

Hi Lakshmipathi, the overall SD process is fine. The issue here is more related to CO / MM because it focuses on the field "amount" in accounting document in material document (return delivery). Any advice?

Hi Mandar, the customer uses batch management as well as moving average price. Any further advice direct to my questions?

Former Member
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Hi

When we do revaluated the cost price of the material in MR21 then in standard, system generates one accounting doc and entry will be Dr Revaluation A/c

Cr Stock A/c

So it is clear that the revaluated value will be posted to the respective G/L account.

Now when you do PGR for the return goods then you should take the updated cost( new cost) which is maintained in Accounting 1 view. If you take the old cost of the material then you can not get the right value as it was already adjusted in MR21 .So it would be appropriate if you follow the standard.

Regards

Subhasish

cathy_liang
Contributor
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Hi Subhasish,

I agree on that somewhat. If taking the old cost of material, the current valule (in MR21) will be changed. However, this is just what the customer need. They think only this change can reflect their actual stock value as well as profit status.

Any ideas?

Former Member
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Hi,

Did you find any solution to the requirement?

I'm facing a similar requirement:

My SO-price is based on material MAP.

My SO->Del->Inv flow works fine.

The price, cogs, invoice amounts are correct.

when I run the returns process, I manage to get the correct price in the return order and credit note, but the cogs-booking opon goods receipt in the return delivery, takes the new material MAP, which is not correct since I would actually "create" money by taking goods into stock at a higher price then the goods were originally sold. (doesn't matter the price is higher now).

Any ideas on how this can be fixed?

Former Member
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Hi,

Based on my requirement, I found this thread during search. However, it still remains unanswered, like many other threads on the same issue.

The issue as explained above is regarding COGS during Sales Returns, which is required to be the same as at the time of Goods Issue, irrespective of whether the Current MAP is Higher or Lower. FG material is batch managed.

Kindly suggest a solution.

Thanks & Regards,

Khushal

Former Member
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hi

we'd something similar. We solved the curent MAP in GR with rqquiremet class setup having A in valutaion and the original MAP during return SO with routine update.

atif_farooq
Active Contributor
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Hi Lakshmipati:

We are facing the same issue, I have posted a thread regarding it http://scn.sap.com/thread/3263901. If you have any update then please do comment. Thanks

Regards

Atif

Answers (3)

Answers (3)

Former Member
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Hi Colleagues,

I am facing the same issue with my client.

Here, the project was implemented 5 years back and till now the processes in system were working fine. But, raised a concern on MAP of material during issues and returns.

Client is maintaining MAP for certain materials (includes some FG items also) in Material master data.

During goods issue MAP is captured at say 100/- But, if the stock is being returned into plant after 6 months or so.....then during goods returns, MAP is captured at current prices ..say 95/-.

Now the client want to return the stock at same price during original goods issue i.e at 100/- only. Even if goods return document captures the stock MAP at 100/- ...then where do difference (5/-) will be posted. As per logic difference will be posted to P/L account, but can we see this posting in accounting document of goods return material document?

I think it is not possible in standard process in system. To take up this activity with system modification, can we utilize userexits in MM module? If so, can anybody please tell...which include can we consider to do this.

Thanks & regards,

Praveen.

Former Member
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Hi,

In a std Return sales order with reference to Billing doc, then it will pick only the earlier price, in ur case it is only $10/ton.

Where as if u create a return sale order without any ref then the system will pick only the current rate, .

So check ur business process.

Former Member
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Hai,

During sales return the price of the material must not change according to me. And if that happens i think you can change the price during creation of sales return. And while doing PGR as you said the system will Pick up the MAP value and the difference amount will go and sit in our price difference.

regards,

Sudhir