How to handle returned products originally issued out using Transport Order

[Former Member]

Dear Experts

I transfer a batch containing 10 cartons from production plant NDE1 to sales plant NDE2 within same company code using a stock transport order.

Each carton is valued at 1dollar each, that is total value of transfered stock is $10

After two weeks, 3 cartons went bad and needs to be returned to production plant NDE1.

How do I capture this return process in SAP?

If it were an outright sales to a customer, a Return Order with reference to the invoive will be created, return delivery done,PGI done which brings the returned stock into inventory, and a credit memo posted against the original billing.

How do I handle my 3 cartons of returned stock since it was given out using a transport order?

What will the accounting entries be in the system? i mean which accounts will be credited and debited by the $3 value of th ereturned three cartons?

[former_member182609 · Accepted solution]

It depends how you handle the stock .Your accounting document generated in NDE2 in plant only.

The first step you transfered the material through sto from NDE1 to NDE2 ,here there is no impact on accounting entries as you are transffering the stock with in company code.

After you get return stock from customer NDE2 you can directly scrap or after inspecction of the stock if the stock is good then you can keep in Unresticted use for further sales.

I dont think so you need again one more sto to get return stock from NDE2 to NDE1 as it is damaged stock and un necessary paying transport costs.

If you scrap the material then the 3 qty of stock 3 doller price hit to scrap account.

[Former Member · Accepted solution]

Thankks for your reply.

If I decide to scrap the 3 cartons, which accounst will be updated?

"the material stock account of the 3 cartons will be credited to the tune of $3 and scrap account debited with $3". Please is this accounting analysis by me correct?

Are there other acconts that are hit when this scrapping transaction is carried out?

[former_member182609 · Accepted solution]

No ,You are right.Please ask your accounting team to provide one cost centre for sales returns /damages.When you scrap then you can post the material gainst the cost centre.The postings you are riht credit to material account and debit to scrap account.

[Former Member · Accepted solution]

Thanks.

Is this cost center to be provided by my Accounting consultant, the same as the scrap account that I referred to in my analysis (that is the account that will be debited).

Is this scrap account to stand alone (that is without being assigned to a material)? or will there be a material number for scrap created in the system and this scrap account assigned to it.

[former_member182609 · Accepted solution]

If you want to use same cost centre which you use other material scrap you can use.If business wants to track what are the customers returns scraped then you need a different cost centre for reporting purpose,otherwise you can follow regular scrap process.

If you are reffering scarp account is oky with account people then you can post.