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Scrapping of goods at custome's site.

Former Member
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Hello,

I need to configure a scenario wherein I need to configure if the follwoing happens !

When we export low value goods and if the goods are faulty, we do not want to bring back the same to our country. Rather we want customer to destroy the same. How to handle such a scenario and what should we configure ?

a) if we have billed the customer and we have not billed the customer for the goods supplied

b) If we want to charge the scrapping of goods to cost centre and also we sometimes do not want to charge the scrapping to cost centre ! how to achieve the same with and without cost centre ?

c) Instead of configuring anything on SD side. can we just simply use MIGO and do a goods issued to cost centre ?

regds

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Answers (2)

Answers (2)

Lakshmipathi
Active Contributor
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What you had indicated is being followed by almost all exporters in India. Bringing back the low volume rejected goods will be more exorbitant and also the documentation will be very tideous.

Coming to your requirement, yes you can achieve this requirement. Create a return order type in VOV8 for such scenarios and make Order Reason as mandatory for that. As and when the manufacturer gets such rejection notice from overseas customer, a return order referencing the parent billing document should be created.

Before doing this exercise, you should create an appropriate order reason in OVAU and also in VKOA you should have this order reason as one of the combinations and assign the required G/L Account.

Now as I said above, create a return order duly maintaining the order reason and with reference to this return order, create a credit memo and save. Check the FI postings.

thanks

G. Lakshmipathi

Former Member
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HI,

after doing PGR only you have to scrap it because already PGI'ed goods is not ours. logically according to SAP you will follow this procedure and physically you will scrap material at customer's site or you will identify different customer and sell it there itself.

a) if we have billed the customer and we have not billed the customer for the goods supplied

a.a. if billed take reveral and do PGR and scrap it & if PGI is done do PGR and scrap it - with 201 or 551 with cost centres.

b) If we want to charge the scrapping of goods to cost centre and also we sometimes do not want to charge the scrapping to cost centre ! how to achieve the same with and without cost centre ?

b.b. you can only scrap against cost centre. you cannot do it without cost centre if you use GMT 201.

c) Instead of configuring anything on SD side. can we just simply use MIGO and do a goods issued to cost centre ?

c.c. first PGR process and then & yes - GMT is 201 post against the cost centre.

balajia

Edited by: balaji timmampalli achari on Dec 3, 2010 1:47 PM