Customer Returns - Inventory Valuation

Hi Folks,
I have a business requirement where the inbound delivery should be received at the original material price instead of the current MAP. As of now the system is receiving the item back at the current MAP price. For example:
Goods Issue:
Price = $10, Qty = 5
CR Inventory 50 DR COGS 50
Billing:
CR Customer 50 DR Revenue 50
The MAP changes from $10 to $15 and then the customer returns the goods. The system is currently doing the following:
Credit Memo (Cancel Billing)
DR Customer 50 CR Revenue 50
Goods Return (receive back in inventory)
DR Inventory 75 (New MAP) CR COGS 75
Is there any way to match the return document to the original PGI? This doesnt look like an unusual requirement but our SD consultant says there is no way to do this. is there any way around this?
Thanks

Hi,
First of all what is the MAP here.
Let me suggest a few points here:
1) Inventory Valuation hitting COGS depends on VPRS(Cost) maintained in the material master and not the price. It depends, whether the price is maintained as Stadard or Moving average which might affect your calculations.
2) While creating Credit memo request and Credit memo with reference to the original Billing document, to maintain the price constant and not redetermined pricing type has to be maintained as D (Copy pricing elements unchanged). By doing this system will copy the same price to the credit memo at which the material was sold.
Hope this helps.
Regards,
Amit
Edited by: Amit Iyer on Jun 8, 2011 11:53 AM

Similar Messages

Valuation for Customer Returns

Hi!
I understand that when goods are returned by a customer they are first placed into 'returns' stock. This is non-valuated stock. When the decision is made to put the goods into inventory (mvt 453), the system posts an FI document to valuate the returned goods based on the current price in the material master.
So, here are my questions:
1. Is my understanding above accurate?
2. If we wish to put the goods back into stock, but at a reduced value (i.e. at a cost that is lesser than the current price in the material master), how would we accomplish that?
Thanks!
Anisha.

Hi,
1. Yes.
http://help.sap.com/erp2005_ehp_04/helpdata/EN/a5/63360a43a211d189410000e829fbbd/frameset.htm
Depending on how Customizing for Sales is configured (the movement type is configured in the step Define Schedule Line Category), the delivery is posted to the following stock:
- Blocked stock returns (non-valuated, not unrestricted-use) (movement type 651)
- Unrestricted-use stock (movement type 653)
- Quality inspection stock (movement type 655)
- Blocked stock (movement type 657)
If the given quantity is posted to blocked stock returns first, you can make a manual goods movement posting in the Inventory Management component to transfer the quantity to valuated stock.
2. You can't as per my best knowledge. The price in material master (accounting view) is valid for your whole (own)stock. What you can do is to revaluate your inventory via MR21 after having moved the goods into your own stock.
Regards,
Csaba

Push the customer to have inventory valuation checkup is not polite

Hi SAP AG,
Currently I did not understand what a person that have position as "Channels Enablement and Solutions Expert" and also a support organization named SAP support.
One of newest case I have received is an inventory valuation report reminder. SAP support confirm to a person named "Channels Enablement and Solutions Expert" and He/ She said that SAP support wonders why there is no response from all of customers.
Okay. let me tell ya now about the customer's disappointing statements as follows:
1. Resolution time is more than 2 weeks
2. On the scheduled time, they must upload their live db and must shut down their SBO operation time while the fixing of the productive live db is taking place. The schedule time is only in business hours of SAP Support and not their business hour
3. They have to download their live db after fixing finished
4. They must "give" their db and they will realize soon that the secret in the db will be exposed to other company where they are sure that the company's secret will be opened
What I dislike, it seems the SAP push the customer to have the inventory valuation checkup either through Channels Enablement and Solutions Expert persons or another. Let them decide and you should not have to know their refusal or opinion
Rajh

This forum's rule and engagement has pushed me to mark this thread.
Rajh

Customer returns into repsctive stock

Hi GUrus,
we have a specific scenario. when we receive customer returns from the customer. we know before hand what is the defect of that part. So based on that can we automataically route the stock in to respective stock for ex unrestricted, blocked etc?
Thanks
Anusha

Please check SAP online help:
http://help.sap.com/erp2005_ehp_04/helpdata/EN/a5/63360a43a211d189410000e829fbbd/frameset.htm
Depending on how Customizing for Sales is configured (the movement type is configured in the step Define Schedule Line Category), the delivery is posted to the following stock:
Blocked stock returns (non-valuated, not unrestricted-use) (movement type 651)
Unrestricted-use stock (movement type 653)
Quality inspection stock (movement type 655)
Blocked stock (movement type 657)
If the given quantity is posted to blocked stock returns first, you can make a manual goods movement posting in the Inventory Management component to transfer the quantity to valuated stock.
Entering Returns with a Returns Delivery
If no returns delivery has been entered for the return because the return is unexpected or because your company does not use the Sales (SD-SLS) component, you can only post the return to returned blocked stock in the Inventory Management component as a miscellaneous (other) goods receipt. Choose the movement type 451 (Returns from customer without Shipping).
The item category in the return sales order determines trough the schedule line by which movement type you receive your stock. So, you have to use different item categories in the return order and assign the proper schedule lines to the item categories:
Item_category; Shcedule_line; MVT
IC1; SL1; 653
IC2; SL2; 655
IC3; SL3; 657
Regards,
Csaba
Edited by: Csaba Szommer on May 1, 2009 7:35 PM
Edited by: Csaba Szommer on May 1, 2009 7:35 PM

Reversing subcontracted finished goods that came from customer returns.

Dear Gurus,
I have a scenario where the finished goods that came from subcontracting needs to be reversed back to its components without reversing the subcontracting charges. How to process this scenario in SAP.
The subcontracting job is packing. The individual materials will be sent to vendor and vendor will return the packed finished product. The packed material will then be sold. The materials that came back as customer returns due to quality reasons is unpacked and reverted back to its components.
How to process this reverting of the packed finished goods back to its components in SAP.
I understand one thing that reversal of subcontracting GR without reversing the subcontracting charges is not possible and it is not a proper procedure. I am unable to trace a way to process this using other indivdual movement types too.
Kindly suggest and Thanks in advance.
Thanks & Regards,
Pradeep Kumar . S
Edited by: pradeep.spk on Oct 24, 2011 7:14 AM

Thanks for your reply Nishant but the problem is subcontracting charges should not be cancelled. The packing job done by vendor was paid and it is irrevokable.
The Finished goods returned from customer should be reduced from inventory and its components should be added back so that we can scrap the defective components and do our further processing using the good components.
The requirement is how to process the reduction of the finished goods from inventory and add the components back to inventory in SAP.
Thanks in advance.
Edited by: pradeep.spk on Oct 24, 2011 10:51 AM

Customer Return Special Stock

Hi,
Is it possible to return from customer special stock to a plant which is not the source plant? Currently, if I return to a different plant, it will say during outbound delivery, no stocks available.
For example.. transfer from plant A to customer special stock. then when customer return, receipt will be in plant B.
The materials to be returned are non valuated.
Thanks,

Hiiii
This is very much possible to get special stock return back from customer to plant B, but prior to that special stock material must be extended to Plant B. Now it is depand on business wheather u want to get it back on block stock or unrestricted use.
Regards
Shambhu Sarkar

Customer return quality

hi,
Actually i got stuck in customer return senario , when i make a return order with refence to desire sales order and do the PGR it throw me an error "Status of inspection lot 060000000115 / partial lot 000000 does not allow good issue"
Note :- (Ii checked the threatof forum "SD-QM: Sales Return Inspection lot status Error and change config with inspection type 05 instead of 06 , make new sales order and return then it work , then when we use inspection type 06 )
Please suggest
Maashish

Hi,
Both 05 & 06 lot origin we can use for customer return depending on our business process requirement.
Return process describes how the system creates an inspection lot automatically when goods are returned from a customer. When a customer return is received, the goods can be posted to one of several destinations:
Blocked stock returns (not valuated and not part of unrestricted-use stock; inspection lot origin 06)
If you make a posting to blocked stock returns, the system creates an inspection lot that is not stock relevant.
Warehouse (for example, to inspection stock, blocked stock or unrestricted-use stock; inspection lot origin 05).
Cheers,
Tushar

Customer returns without billing reference

Dear all,
What is process for customer returns without billing reference document ?
Jeyakanthan

Hello,
The best process for setting up the process of RETURN without referrence is as follows:
1. Create a New Sales Order type ZRE with referrence to Order type RE. Please use the same pricing procedure as used for order. And for referrence field, use it as blank. Maintain Delivery type too.
2. Create Delivery document in VL01N and also ensure to maintain the copying control of this to ensure smooth flowing of data.
3. Create PGR process for the Delivery document to allow the return of goods in the inventory for Quality inspections and evalution.
4. Create a Credit memo request which settles material to balance the value of the complaint delivery and atlast create Credit memo.
Regards,
Sarthak

Customer returns & Vendor Returns

Hi,
We do receive Customer returns by creating a sales Order & Return delivery.
System automatically posts the return stocks into Blocked stocks.
When we create a return PO with Return indicator tick & create a return delivery through VL10B, system picks up stock only from UR stock.
How to do necessary setting that return deliveries should be taking only from Block Stock & not from UR stock?
Regards,
Vengat

Hi Vengat,
There is not any link for this. The movement type 161 cannot return the stock to the vendor from the blocked stock returns.
A suggestion: you might want to create a storage location named "stock returns" and transfer with the movement type 453 your stock from the blocked stock returns to this new storage location. Then, you can create your Purchase order with the EKPO-RETPO indicator set and use always this new storage location in this case. The stocks will be returned to the vendor from this storage location named "stock returns".
Note: Please, consider that while the stocks are blocked returns they are not valuated and they are not part of your "unrestricted-use" stock. As soon as you send them to the new storage with the movement 453 they will be part of your valuated stock.
I hope this information can help you!
Esther.

** Balance sheet at Profit center with Inventory valuation at CoCd level **

Scenario:
Inventory valuation is at CoCd level. Moving Average costing.
There are 2 plants in CoCd 3000.
1.     I created material 1234 in plant P1 (profit ctr P1) & in plant P2 (profit ctr P2)
2.     Then, I received a PO - $1000 (100 qty @ $10) in plant P1 & $1100 (100 qty @ $11) in plant P2
3.     So the Moving average at CoCd is $10.50
4.     I created a Sales order to ship out 100 qty from plant P1. The PGI posted at moving average at CoCd level i.e.
        Dr COGS $1050
        Cr Inventory $1050
5.     Now, Inventory GL account value becomes -ve 50 at plant P1
6.     MB52 looks wrong as below. It doesnu2019t show -50 in P1 & 1100 in P2
Question:
Is there any standard way to accomplish Balance sheets at Profit center with Inventory valuation at CoCd level?
- We can do custom development to distribute Inventory balance on profit centers upon receipts or Invoice receipts (i.e. anything that updates the Moving Avg at CoCd) eg in step 2, when $1100 (100 qty @ $11) in plant P2 is received, then post +500 to inventory in P1 & -500 in P2, to make both P1 & P2 at 1050.
However, this would be huge effort on Development, Testing & ongoing maintenance.
- Another custom way would be to post to Profit centers a periodic entry to correct Inventory balance to (Qty on hand x Moving Avg at CoCd)
Please let me know your thoughts. Thanks.

Hi,
I don't think so it's happen at valuation at Company code level.
Inventory Valuation always at plant level only not at Profit center and company code level.
In your case 2 Plants and 2 Profit centers. There is no chance to different the value at Profit center . Check once in Dev. server with example.
Regards,
Kishroe

MM period / Year Closing Activity and inventory Valuation ??

Hallow Experts !
At the time of Period end, we close the Posting Period in Transaction Code - MMPV. So as a Result system opens Next posting period Automatically. (Please Correct if i am wrong). At a time two posting periods are open, Current and previous posting period.
So, while this period close and open activity, The Material Stock valuation is carry forwarded from closing posting period to Opening period Automatically ?
I want to understand the System logic for this inventory valuation carry forward in brief.
Also please explain in brief, Year end activities by Materials Management side for material Valuation ???????
Thanks in Advance !!

Hi,
Before closing a period, you must ensure that all the transactions related to are posted( Examples: GR,IR etc).Once you close the period in MM side, its difficult to post again in that closed period. For more read the SAP notes 487381.
You can check which period is open in MMRV( you can set here back posting allowed or not) and close the period in MMPV.
Initiation of period can be done in MMPI (1st time only) and setting of MM period can be done in OMSY.
Inventory valuation & automatic account posting depends on following T.codes and where is your material valuated (plant level or in co.code level)
1.OMSK: Valuation Class with Account category reference,
2.OMWM: Active Valuation Grouping Code,
3.OMWN: Active Movement type with G/L account,
4.OMWD: Active Valuation Area,
5.OMWB: Active Chart of account,Valuation Grouping Code,Account Grouping Code, Valuation Class and G/L acocounts
Regards,
Biju K

Deploying custom report for custom hardware inventory data.

Hi!
I want do the following:
1) Extend Hardware Inventory using my own *.mof file. Like,
#pragma namespace ("\\\\.\\root\\cimv2\\SMS")
[ SMS_Report (TRUE),
SMS_Group_Name ("My Inventory"),
SMS_Class_ID ("CUSTOM|My_Inventory|4.0") ]
class My_Inventory : SMS_Class_Template
[SMS_Report(TRUE)] string SerialNumber;
[SMS_Report(TRUE)] string SomeData;
2) Extend Reporting system with my own report that will use data from custom hardware inventory. For example, joins inventoried data with SCCM resources.
3) Deploy 1) and 2) programmatically to any sccm installation. So, report should not be linked to concrete data source or report server url.
If you know the tools that may help me, it will be very helpful! Many thanks!

You should ask the .rdl part from the SQL Reporting services forums, you should get better answers from there, because this isn't purely a ConfigMgr issue.
http://social.msdn.microsoft.com/Forums/sqlserver/en-US/home?forum=sqlreportingservices

EXCISE in Customer Returned Material

Had searched, but couldnt find this kind of query
Hai All,
Actual sales - OR - DEL- pgi- Invoice - Outgoing Exc.Invoice-
now, when customer returning goods,
RE order ( with / without ref) - LR - pgr - RE - Cr for Returns ( i havent created any exc invoice for RE billing)
How to reverse the excise entries, in both cases ( with OR without ref to OR/F2)
I did - J1I7 to know find the Outgoing Exc.Invocie of original/ref Billing doc-
( how can we find, if there is no ref when creating RE-order?)
Then, I tried to Capture Exc.Invoice- J1IEX ( wrt: Without Purchase ORder -EWPO)-
I entered the Original Outgoing Excise invoice - system throws mssg as " Material Document can not be processed"-
am I following wrong path? - or you want me to Make Adjustments directly in J1IH ( all debit entries - Other adj / Credit entries- Addnl Adjust) .
Please Clarify-

DOne
flow:
VA01-VL01N-VF01-J1IH

Free Goods - FI & Inventory valuation Impact

Dear All,
I would like to know what will be the FI & Inventory valuation impacts in the below 2 cases
1. When free goods indicator is flagged for an item in PO.
2. When free goods indicator is not flagged, but GR-IV and Invoice receipt indicator is unchecked.
I understand what free goods are, but what i need to know is, how will the inventory be valued in both the cases & what will be the FI impact.
I hope my question is clear, await inputs.
Regards,
Vivek

Hi,
First of all, if you activate "Free" indicator then "GR based IV" and "Invoice Receipt" indicators get deactivated automatically or when you deactivate "Invoice Receipt" indicator then "Free" indicator gets activated automatically. It's viceversa.
Now It depends upon the Price Control you have maintained in the material master.
Once you activate "Free" item indicator OR deactivate "Invoice Receipt" indicator in PO then at the time of GR if;
Price Control is "V" (MAP)
Goods Receipt happens on zero value and inturn reduces the MAP of the material which affects the material valuation. And No FI Entry will get generated.
For e.g. Current Stock of Material = 100 KG and MAP = 110 INR so Material Value = 11000 INR
After GR of 10 KG on FOC basis, Current Stock of Material = 110 KG, Material Value = 11000 INR so MAP = 100 INR
Price Control "S" (Standard Price)
After GR, there is not any effect on the Standard price of the material or material valuation.
For e.g. Current Stock of Material = 100 KG and SP = 110 INR so Material Value = 11000 INR
After GR of 10 KG on FOC basis, Current Stock of Material = 110 KG, Material Value = 11000 INR and SP = 110 INR
Here At the time of GR following A/c entry get generated;
Price Difference A/c - Dr - 1100 INR
GR/IR Clearing A/c - Cr - 1100 INR

Step for creating inbound delivery in case of customer return.

Hi,
When I start vl31N I can create with reference to vendor or PO an inbound delivery.
How to create inbound delivery with reference to a customer return?
What to do?
Thank you in advance,
Eric van Zundert.

Hi,
You can try to create a copy control for return sales order to inbound delivery document. Depending on business requirements like combining vendor PO and returns sales orders, you can try to use VL31N.
If it is only returns sales orders that needs to be processed, then SAP standard document types and its associated copy control would help.
Regards
P.S: Does your scenario relate to import process? I am in the same boat.
Edited by: Shiva Ram on Jan 22, 2008 2:17 PM

Customer Returns - Inventory Valuation

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