Damages in transportation..

[Former Member]

Dear All,

We have created STO of 100 qty and delivered to another plant but 10 qty was short recd due to damaged in transportation.

How we should reconcile this 10 qty if transporter is ready to bear cost / if transporter is not ready to bear cost.

Please explain.

Amit

[raviraj_sharma]

Since this is a STO , I guess you will have to do Goods receipt even for the damaged qty in either of the cases, otherwise the stock will always show in-transit. So you can create a Sloc for Shortages/damages and do GR there without any excise entry.

Case1 : transporter bares the cost :

In this case, some companies show it as a sale to the transporter(full SD sales cycle from SO ->Delivery -> PGi->Billing), while some clients create Returns PO, goods returns -122 mov typ and issue Credit Memo-MIRO.

Case 2: Tansporter does not bear cost:

This is a Loss to the company, and can clear the difference by Creating a new Mov typ (copied fron 551 ) assign a valuation modifier to it and asign a seperate GL account for unrecoverable Damages/Losses in transportation , and issue the material using this new mov type.

[JL23]

in any case you have to get the stock released from in-transit, which can either be done with a receipt or with cancelling of goods issue (and then issue only what was received)

so the 10 will either be in stock of shipping plant or receiving plant.

you then scrap this 10 with movement 551.

You either debit your carrier for the loss, or your are just sitting on the costs yourself. The debit note is what its name is, it is not meant to book a full qualified sales order with delivery and goods issue of quantity like in a standard sales process to your customer.

so the debit note is usually done in Finance only.

[Former Member]

Hi,

Could you please help to know if this scenario is intra/inter company STO ?

Transporter ready to bear the cost.

In this case, I think you need to post credit memo for transporter in receiving plant.

Transporter not ready to bear the cost.

I think in this case you need to receipt damaged materials either in SCRAP location separately. Not very sure with this.

[Former Member]

Hi,

This is intercompany

Please can u let me know if any other soln u have

Amit