Sales order in place of return purchase order

[Former Member]

Hi experts,

The requirement for my client is like that, he receives raw material from vendors/suppliers. In standard scenario, for any damaged goods he should create a return delivery to vendor with reference to purchase order (mov. type 122). But the client don't want to use this process. Instead of creating returns delivery to vendor, he wants to send the damage goods to the vendor by creating a normal sales order for the damage goods and invoicing the vendor for the same. He wants posting for this into specific G/L account not into normal sales account. He also wants to capture the excise for the same and give cenvat utilization.

Can u guide me how to map the above scenario into SAP , with G/L account assignment and excise settings.

[aramsum · Accepted solution]

Hi Arveen,

Maintain the vendor as a customer and assign the same in master record. Now follow the standard sales cycle but maintain an order reasn and seperate account assignment group for the customer(who is also the vendor in this case) and maintain the "VKOA" assignments and use this customer only in this particular scenario. By doing all these you can bill the vendor. Kindly please let me know If you need any more help on this.

Regards

Ram Pedarla

[Former Member · Accepted solution]

Thanks a lot Ram, I will try this in development and will let you know how it works.

[Former Member]

Hi,

Maintain Vendor also as Customer and use the std Sales Cycle.

regards,

Parag.

[Former Member]

Thanks parag for your reply. But what about G/L account ? he wants the posting in specific G/L accounts not into normal sales account for this transaction. So how to assign the that particular G/L account ?

[reazuddin_md]

I didnt see any business need that, vendor returns routed through SD sales- logically its not right.

because, when we do PGI,

Dr - Inventory / Cr- Cost of gods sold account will get triggered

If you process vendor rejections through normal sales, final reconcillation will not give proper results.

your COGS account will give inflated figure.

Instead of routing Vendor returns through SD route, educate the client, what wil be the impact in financial accounting.

being a Consultant, its not suggestable to recommed this scenario into SD.

if vendor availing credit in modvat, you can do so in Tcode:J1IS ( Excise JV) wrt: Material Document which is generated through 122 mov type-

revert

[Former Member]

Thanks for your valuable suggestion. In first place I have given the standard solution for the vendor returns with mov. type 122,

but his end user were not accepting the same. So finally I have to accept the clients request. But anyway I will once again try to educate him about the financial impact of the same.