on 07-15-2014 6:13 AM
Dear friends,
My company is selling chicken product (raw) to customer. The base unit of measure is Kilograms. We have one problem in this chicken sales. We sell in frozen state. In the way we deliver the orders, it melt and the water flow out from the meats. In proof of delivery, customer accept only what they saw on their scales.
Example :
Plant 1000 : Deliver 100kgs chicken thighs to customer A
Customer A : weight on customer's scale = 98 kgs --> 2kgs is water from the thighs
In invoice, we cannot charge them for 100kgs. Only 98 kgs. The problem is... our cost of goods sold in FI is for 100kgs. But in CO-PA the cost of goods sold only for 98 kgs (as in vprs condition value). This difference is getting bigger. Our consultant give a reccomendation to overwrite the VPRS using routines so the VPRS value will be for 100 kgs. Lets say, if the COGS of 1 kgs = 100, then for 98 kgs = 9800. But it is useless. Because no matter how we tried, the condition value always back to value 9800.
Anybody have another idea about overwriting the COGS values?
We also try another solution :
creating special sales order type, delivery order type, and billing type for the shrinkage quantity. The goods issue using Z movement type to mark that it is movement type for shrinkage. The billing type will not post anything to FI. Only create a billing document. Inside the conditions is a Z condition type that similar like VPRS. It works the value of COGS FI vs CO-PA is equal. But we have another problem after this. We need to create some additional enhancements to prevent user's error.
Anybody have similar problem with me and already have the solutions? I have already search the entire forums for this case. I only found how to solve it on MM side. But our problem is not on MM side. It is on CO-PA side.
Thankyou very much.
Best regards,
Desma
Could be wrong , but cant you try this way .It need to be a business decision and not sap process.
The concept of Gross value=100 and net value=90. This means an audited number which say each 1 KG of meat will contain 0.1 kg of water.
Now you will sell 100 kg chicken (chicken 90 + water 10)at 90 K weight .( Because 10 kg is water ) you cant sell it.
Customer will weigh the chicken and it will show 90.5 which is acceptable. 1KG tolerance is acceptable .
Its purely a business decision. Its not fair to to raise the COGS as 100 for 90 kg chicken. Think from a FI audited point of view. Have a discussion with the seniors and sort it out.
regards
manu
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I have tried to find the solution about this and still no result. But to solve the problem, I create a custom program which in this program we entry the shrinkage quantity. This program will be run after proof of delivery. So, if there is difference in Proof of delivery, then this custom program will allow you to entry. This program is not mandatory. If the returned item's quantity is the same weight with proof of delivery, then we know there is any shrinkage there. Otherwise, the difference is the quantity that shrink. In invoice, we have a validation :
quantity delivered to customer + shrink quantity in Z program + returned quantity that received by the warehouse have to equal with delivery quantity from delivery order for the same material and batch.
At end of month, we will upload the difference value to CO-PA.
Regards,
Desma
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Dear Kamlesh and Manu,
There is no problem from customer side. Customers only pay for what they receive. From FI Side, The COGS already 100 kgs. But in COPA, since it takes COGS value and quantity from condition type VPRS in billing document, then the quantity is 98 kgs and the COGS is 9800. We check this from KE24.
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Please note , Business cant raise Revenue for meat if 100 is 90kg meat and 10 kg water .
Its a revenue recognition process ref-IAS rules . You check with business and FI (for audit and legal)on this(CO is secondary in it @ internal).
or another method is
in Sd pricing put a discount cdn type with description - water shrinkage or etc- give the discounted number in it .
say Gross price is 100 and discount is 10 so that net amount become 90 in sales order.
regards
manu
Yes definitely this should be business decision not SAP process , it would be critical to fulfill this requirement so better to take decision from business users or business point of view .
If you have invoiced of 100 kg.& after delivery weight on customer scale -98kg two kg water from the things.
If your customer pays in advance for complete 100kg . then once customer receive the qty of 98 kg then rest Credit note could be issued to customer for 2 KG or payment could be adjusted in next Order.
Thx
Kamlesh
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Dear Desma Herry
Your requirement is Very sensitive , i think It may not be possible in sap sd But i am not sure
Any way once you did solve please post How you have solved .
Thanks a lot
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