Cost of material in sales returns process

[Former Member]

Dear all,

In the process of return sales with 651 movement, the cost of material return must be the same cost that came out, however when this process goes from one month to the other, where there was a change from the standard cost, this is not happened.

For example:

GD delivery sls.ord. 601 - Period 11/2013

Quantity 0.5 units

$ 117.67

Std price $ 235.34

Per unit price $ 227.63

GD returns unrestr. 651 - Period 12/2013

Quantity 0.5 units

$ 110.67

Std price $ 220.34

Per unit price $ 224.43

In this example the cost came out to $ 117.67 and returned $ 110.67 that can not happen.

Is there some setting that can be checked or process being reviewed?

Thanks

[ajaycwa1981 · Accepted solution]

Hi Lucas

This is the problem you face when std costs are revised frequently.

The only option I see is that in copa you can use exit copa0002 and carry out valuation based on earlier price. However in FI, this will be valuated at the std price in material master at the time GR is posted from returns

Ajay M

[udo_werner]

Hi Lucas,

I am attaching a slide about a process setup were the material is moved first to  a transit stock, before the goods issue to the customer is posted.

Main purpose is to keep the inventory in the books, until the customer has reported to heve received it. This is important if the product stays in your ownership during a longer transit time.

Why I am bringing that up is, the transit stock assigned to a certain outbound delivery has it's own material segement, with it's own price.

That would mean if it turns out that the customer would reject the receipt and the material would return from transit stock to free stock it would be received with the original price, unaffected by a price change. That would mean a gain/ loss from revaluation posting will result in the 688 movement shown below.

Beginning from ERP6.0 EHP5 thefunctionality is contained under the switch LOG_MM_SIT.

best regards,  Udo

[Former Member]

Hi Udo,

I´m going to do a test and will check that is possible to use this movement in my process. Then i reply here if it worked.

Thanks in advance,

Lucas

[udo_werner]

Lucas,

It is not just using the movement types. The process starts with a sales order of the right position type and continues with using the right transactions for delivery. Find  a description of the whole process here:

Customer Delivery with Valuated Stock in Transit

Pay attention also to the prereequisites described there.

best regards,  Udo

[Former Member]

Ajay and Hrusikesh,

I had already proposed not to do this frequent change in std price, however i was looking for if there was another way when this happened.

The answers that you gave me and everything that I have been researching i also believe that keeping the std price is the only way.

Thanks for answers.

Lucas

[former_member182339]

Lucas,

On inventory side This is correct behavior in System in my opinion if company is taking back any stock then it should be on its current cost price not the previous or old.

Well not recommended if you want system to consider the same price then you have to revalue your current cost to the Previous cost at the time of sales  ( either MR21 ).

On Sales side i think the price should be same as sale price, I am not sure if this is the issue usually the returns are in reference with original order then it takes care this part.

Thanks

Hrusikesh

[Former Member]

Hi Hrusikesh,

Thanks for your answer, but in brazilian law we must to do returns with the same cost because of our tax calculating method. The reason for this procedure stems from the fact that this is not a new acquisition, but a reversal of sale.

Lucas

[former_member182339]

Lucas,

You need to use price control S and make sure the Frozen cost on Materials dont change for the whole fiscal year.

Your standards can not change frequently. the only way to avoid is what Ajay replied.

Thanks

Hrusikesh