Raw material - Customer return

[Former Member]

Hi all,

please go through the following scenario and advise

Raw "A" we supplied along with our FG. On site the performance is not up to the marked, client return back to us. Now we want to return these Raw "A" to the respective vendors & do not want any kind of replacement. In short we need to recover the cost of these Raw "A" & additional logistic cost to receive this material at our end & to supply good quality material to our client. Pls. note that we canu2019t hold our plant idle. In the mean time we purchased the Raw "B" & supplied to the client. Now, our interest is to raise debit note on supplier of PVC housing.

Hope this info. Will suffice your requirement about how to handle the rejection in SAP.

thanks in advance

[former_member187989]

If you have raised invoice for 'Raw A' material ,then adopt return purchase order cycle for all vendors.

How do you capture additional logistics cost ? Whether it is for same vendor or different vendor ?

[amitbakshi3]

Hi,

Create a Return delivery (Movt type 122) in MIGO to return the material A back to the Vendor , (reference GR of Material against PO) for supplying the Bad quality Material.

For the costs / expenses occurred on account of the rejected Material, the same can be done by raising a Debit note (thru FI) to the same Vendor.

Hope it helps,

best regards,

[Former Member]

thanks Amit,

but first i want to take this material into the stock. how can I do ? as whole project is dispatch. all the settlements are completed.

[amitbakshi3]

Hi,

To bring back the material you will need to cancel the Delivery made to your Client. (Reversal of Delivery) Movt Type 602 and also need to cancel the Invoices raised for this material.

The material will be back in your stocks and then you can proceed to make a Return Delivery to your Vendor.

Best regards

Amit Bakshi