Packing Material returned back to inventory

Hi,
Our client uses standard costing for all materials. We have a scenario where material is packed in drums. The drums are then returned back into inventory as the material is despatched to the customer packed in a different form. A drum rate per pound of production is loaded into the standard cost of the packed material. The problem now is that the inventory of the used drum is in a balance sheet account while the credit for drum cost on production goes to the P&L account. Is there some method by which only that portion of the drum cost on production can be credited to a reserve account?
I was thinking i could apply an overhead rate on the packed material and credit it to an internal order and end of month settle to a balance sheet account. But overhead cannot be provided on output, rather it is based on input. is there some way by which I could use template allocation to credit an order andd debit the production order? Or is there some other better method?
Thanks,
Shivram

Hi
I myself never used it, but I know it can be used to allocate OH based on Output....
refer this thread for more details... Re: Activity Type Planning on the basis of Raw materials
Moreover, I would prefer to use a work around as below, which I used in a similar scenario
1. Convert the Drums into Fixed Asset... The FA recon account can be "Inventory of Drums".. Dont club this account under FA in your Financial St Version in FI
2. Assign a Manual Dep Key in this asset masters... i.e. You can manually post the Depreciation of these assets as per your choice
3. Post this entire dep into one cost center... Later on allocate it to the Prod orders or absorb it as an overhead using costing sheet
To make it more simpler, assign an activity type "PRDQTY" in your Routing.... This PRDQTY will record your Prod Qty....
The Activity Qty of this PRDQTY will be equal to your Base Qty of the routing.... So, whatever output you confirm on the Prod order in CO11N, the same amount of Act Qty will also get confirmed
Then calculate the Act Price for this act type which will be Depreciation amount for wear n tear / Prod Qty.... THIS IS EXACTLY WHAT YOU WANT!!
Br, Ajay M

Similar Messages

Movement type for customer supplied packing material returns

Hi,
The scenario is like this,customer will give the packing material to the company.Company does the service required & return that packing material to customer.Presently we are using 624V movement type can you suggest some other movement type for this.
Regards,
Rajesh

hi,
this is to inform you that,
if customer is supplying the packaging material to us receive it through 501 - M and Issue 502 - M, manually if you want to track the packing material wise take the material into NON VALUATED ITEM.
you can create a Z report for the same and the fields in that is,
material number, packing material associated with that, quantity received thru 501 - M and consumed against 502 - M and GI quantity.
balajia

Customer material return back

Dear Sir,
I have a query. We are a manufacturing company (Sheel metal). We receive raw material from customer and return after jobwork. If somwhow any material has left which can not be processed (for any reason), then we have to send back this material to our customer. My query is how we can do this in SAP?

Not sure, how the client is receiving the raw material from customer / vendor. From excise point of view, this should be handled. So you have to explain how it is being handled currently from excise point of view.
If it is against PO / MIGO, then you can follow the standard MM process by creating a return PO.
On the other hand, if you follow SD route, then you can create a standard sale order, delivery and delivery related proforma so that customer will not be debited but I feel this is not an ideal way to handle.
G. Lakshmipathi

MM: Packing Material Supplied to Subcontractor for packaging.

Dear MMers,
I have a scenario here that we re purchasing a RAW material from a vendor, but to purchase this raw material we are providing the vendors with the packing material, say bags. when PO is issued to this vendor, the bags are also provided to the vendor so that he can pack the material the way we want it.
When we finally receive the RAW material it is actually the receipt of RAW+Packing material. How can i handle this issance and then receiving of packing material in SAP?
If i use the subocntracting procedure, the packing material when attached as a component to the raw material is consumed when the raw material is received in stock. This should not happen, i want to receive the packing material also back in stock.
Any help is appreciated.
Warm regards.
OSss

hi
try following
create BOm for the packing material as +100 and -100 (100 is quantity
two line items with +and - quantity
so +quantity will be for sending material and -will be when u return
regards
kunal

Refurbish work order get settled before this refurbished material returned

Hello guy, can somebody help to analyze the problem I have in our production system.
the problem is that I found a strange thing that one of the refurbishment work order get settlem and the refurbished material is not yet returned back to stock.
And I check the cost report of this work order, and found this cost receiver is material, which means this cost is already posted against material.
I have no idea why this can be settled?
However it is impossible to settle refurbishment work order before refurbished material returning back to stock in my opinion.
Can any one help me, many thanks in advance.

Hi,
The refurbishment order can be settled to material when if it is in System status
DLV- delivered, after GR has been done or
TECO - If the order status is Technically completed
So in your case the order status may be in Teco status so that the cost is settled to Material before u do GR.
So check the System status of the maintenance order.
Reverse the settlement & do GR & settle again to material.
Regards,
Raj

Returnable packing material

Dear all,
I am in the process of configuring returnable packing material.
Please provide me the details of configuration .
saravanan

You have to create the material master of the packaging material with Material Type "VERP".
Packaging materials are of two types
1. Non-returnable
2. Returnable
The Non-returnable packaging material uses Item category group "VERP".
Packaging material is an order independent item (without order), so its Item category will be determined in the Delivery.
Item category determination_
Delivery type (e.g LF )
+
Item category group ( VERP )
+
Item usage ( PACK )
+
Item category of higher level item if exist
In standard setting ,Item category of the Non-returnable packaging is DLN.
This non-returnable packaging is copied to the Billing document.
The Returnable packaging uses Item category group LEIH.
Similarly LF + LEIH + PACK = Item category TAL.
Retunable packaging is not copied to the billing document as the customer returns it back. If the customer does not return then it is charged to the customer.
If it is returned by the customer, then an order is created with order type "Returnable packaging pick-up" (LA) ,followed by a Return delivery.
If it is kept by the customer, then order type (LN) and a order related billing is created.

Stock Transfer of Returnable Packing Material - CRATE

Dear Sap gurus,
This process involve into a dairy industry,
They sell of fresh milk pdoduct like Chaach, Paneer & Shrikhand at Manufacturing plant as well as Parlours .
Now, as per the business process, my client wants to do stock transfer of these products along with CRATE (material type LEIH for Returnable packaging). to their Parlours. Next day crates will be return to the plant.
My question is when i am doing normal sales to customer my returnable packaging material process working fine as per standard SAP Process but in case of stock transfer of crate - line item doesn't display at the time of delivery:
Now my client will have track record of how much qty of crates they have given to their Parlours.
Right now we went ahead considering the scenario & the process is:
1) ME21N --- Create PO with2 line items as milk Product & crate
2) VL10B --- Put PO number and Create Delivery in background
3) VL02N --- Delivery created with ONLY 1 line ie milk and NO CRATE line item.
4) MIGO
So the major issues in this are:
1) During Delivery creation, the material crate should appear automatically as a separate line item.
2) The Parlour should be able to do GR for this crate .
Please suggest, the configuration to be done.
Thanks & Regards
Prashant Ray

Hi Prashanth,
This is std feature in returnable packaging scenario & very well achievable with Config.
In your case, you are not able to get the ret. packing line item in STO delivery.
Which means, Delivery item category determination is missing.
To populate packing material in a seperate line item, you need to check the below settings-
- in Packing material type ( Tx:VHAR) - Plant determination field should be = B -Determine Plant from first line item
- Tx:0184 - maintain
Delivery type + Item Cat Group + usage + heigherr leve item cat = Def item cat
eg: NL + LEIH + PACK = HUPM
- Packing material should exist in respective sales org & dist channel which is available in Delivery - Header - Adminstration tab
- in Delivery, after packing- select the "additional data" tab in packing screen, item category should be displayed, if its blank. line item will not be displayed
Test & revert.
Its tested scenario & working fine.
Regards,
Reazuddin MD

How to inventory packing material on Handling Units frm Inbound Del @ PO?

I am receiving raw material against a PO via VL31N, where I pack into handling units. When I post GR for this inbound delivery, the Raw Material is getting a 101 but the packaging material is not being considered. Is there a way I can get the packaging material into inventory? I did verify the following settings as suggested in a different post here and yet the Packing materials are not considered. Any help is appreciated.
1. there is a plant in your HU (you can control this in your packing material type in transaction VHAR; set plant determination either to A or B).
2. there is an item category in your HU (you can control this in transaction 0184; create the following entry: EL / VERP / PACK / / ELP. If you now create an inbound delivery type EL and your packing material has item category group VERP the system will assign item category ELP to your HU.
If both requirements are met the system will generate an item in your inbound delivery after packing.
Then make sure that the item category of the HU (ELP for example) has movement type 501 assigned to it in transaction 0VLP.
If you then post the GR for your inbound delivery, the packing material will be posted on stock.

Hello,
It is well described in:
[Note 831204 - Delivery items for packaging materials|https://service.sap.com/sap/support/notes/831204]
pay atention on this prerequisit
For the relevant delivery types the 'ItemRequirement' routines
have to allow items which does not refer to a sales order.
Standard routine 202.
[Customizing path: Logistics Execution --> Shipping --> Deliveries
--> Define Delivery Types]
Andrzej

Returnable packing material flow

Dear All,
We are suppling finished goods to our vendor with packing material (try or carate, PP boxes) on returnable basis. ( For example lamps with plasctic bins) In sales order we are not entering the returnable material but in delivery Vl01n we are taking it as packing materialitem categery TAL-ret. packing shipment. In MM we are maintaining gen. item cat. grp as VERP-packing and item cat. group as LEIH-ret. packing. Now at time of billing system is considering only regular codes for billing, system is not generating billing for re. packing material as we have given item cat as LEIH. But if you go to vf04 the delivery is showing pending coz of returanable packing material. I want to know hot to cleare the pending delivery.
I want the process flow.
nikhil
9325064414

If the customer wants to retuns the packaing material then
Returnable Package Pick Pickup > Returns Delivery> Goods Reciept. Then the quantities of returanble package items, will move from specal stock to unrestricted stock.
If customer does not want to return, Returnable Package Issue --> Invoice.
Hope this helps.

SAP Inventory Manager 4.0 (WM 1.0) issue downloading material returns on Goods Receipt

Hi all,
We're facing an issue related to GR and material returns, connecting to SAP backend system.
On this first screen we're using MIGO transaction and you'll see that we have a PO (4200000027) with one material (MATERIAL-1) which has a pending quantity of 298 EA to be received.
However, on this second screen, you'll see that when the PO gets downloaded to the Agentry client, it shows that only 295 EA are pending and that it shows that 5 EA has been received, while there are no items reversed or returned.
Finally, when we go to verify the Purchase History for the material using ME23N transaction, you'll see that indeed 5 EA have been received of the material, but also several returns have been made. So, after calculating the difference, the total quantity of items received are 2.
From this I understand that the SAP IM application has not downloaded the returns, and that is only considering the receipts that have been done. For that reason, it thinks that 295 EA are pending, when in reality it's supposed to be 298 EA.
Has anyone faced this issue before? Is this a known bug? Am I missing some configuration?
Thanks for your help
-Omar

Omar,
I'm not aware of any known issues with respective to calculation of open quantity which is quantity ordered - ( Total received ) - Total returned. In your case it is not working I guess.
what I would I suggest is to put a break point on SAP side for Purchase order fetch and check if it is something wrong with calculations. if it something to do with calculation then please open OSS message with SAP support team for IM 4.0 product.
Thanks
Manju.

Packing material consumsion

Hi ,
I am doing packing at the time of delivery. When i do PGI the packing material stock is not reduce. if the packing material is not present it also not giving any error.When I checking the Handling Unit " status " tab it is showing the field " HU storage location " is showing "Handling unit without inventory management".
That field is non editable . But i also want the inventory of the packing material .
Guide me . Where is the setting for that .
Thanks In Advance .
Regards,
Abhijit ...............

Dear Abhijit
For Packing materials, you need to ensure certain criterias.
Please check the following:-
1) Go to *VHAR,* you create the packing material type say carton
2) In IMG -- Logistics-Execution --> Shipping --> Packing --> Define Material Group for Packaging Material. Here create a group, say PACK
3) Choose the next- Define Allowed Packaging Materials. Here for Material Group PACK, assign carton (as stated in point 1)
4) Now create packing material in material master with type VERP and also Item Category Group VERP.
5) In Sales: General/Plant tab, you need to maintain the following
             a) for Matl Grp Pack.Matls   as PACK
             b) Packaging mat. type        as Carton
             c) Allowed Pkg weight
Save the master. Now while creating delivery, after selecting Goto -- Pack, ensure that you block both the "Pack material" and "Material to be Packed". Once you do this, click on "Pack" which is above Material to be packed (left top). Once clicked the pack button, system will show a message material packed. Now select "Back" button so that you will come to the main screen of delivery.
Now do pgi and check the stock of packing material. The stock will get reduced to the extent of you posted goods issue.
thanks
G. Lakshmipathi

MM-Material return to supplier

Dear Experts,
We have the following scenario which needs to be addressed
We have the material "A" which is procured from the supplier
Then the said material has been sent to subcontractor for some processing and converted as "B"
while inspecting the material "B" it is rejected by QM due to base material defect (Material "A" defect)
This has been communicated to supllier ( Who has supplied material "A" ) and they agreed to take back the material.
Now we need to convert this material as "A" from B without affecting the valuation to return back to supplier thro Movmnt 122
Can I get any suggestion for the above
Venkatesan

Hi,
As per subcontracting process ,you have to pay to subcontractor a processing charges right.So in this case as there is no fault from the subcontractor side ,ok.Then there are Two ways to settle the charges:
1.Return the material to subcontractor & it will be showing inventory of Raw material.Ask subcontractor to raise the Credit note against the same.
2.You have rejected the finished material ,then tell the Rawa Material supplier to bear all the charges as this is his fault.Raise a debit note on him from Raw Material+Processing charges and raise a credit note for the supplier.
Thanks,
AMIT

Packing material in inbound delivery - intercompagny process with SPED

Hi,
I am processing intercompany stock transfer using SPED functionality, with automatic creation of inbound delivery.
Using HUM and WM storage location managed, I would like to add automatic packing material items in inbound delivery.
What I did already check:
1. there is a plant in HU (packing material type in transaction VHAR; plant determination: B).
2. there is an item category in HU (transaction 0184; following entry: EL / "blank" / PACK / / ELP -> Inbound delivery type EL, packing material has general item category group "blank" , then I expect item cat ELP in inbound delivery).
With these settings, automatic creation of inbound delivery does not work anymore: output SPED failed. Error message is VN056:
"Processing log for program /SPE/STO_ID_PROCESSING routine STO_ID_CREATION". When I check output analysis, it is mentioned for SPED : "Output ignored (requirement 408 not fulfilled)".
I also tried with following setting:
transaction 0184; delete previous setting; add following entry: EL / VERP / PACK / / ELP -> Inbound delivery type EL, packing material with general item category group VERP.
In that case, automatic inbound delivery creation OK but no packing material in it.
Any idea to help me?
Thanks in advance.

A few years ago I got some help that got some Inbound delivery functionality working, but it was never put into production.
1. Receiving storage location specified on the STO.
2. Receiving points set up in the receiving plant: IMG > Logistics Execution > Shipping > Basic Shipping Functions > Shipping Point & Goods Receiving Point Determination > Assign Goods Receiving Points for Inbound Deliveries.
3. On packaging material to be used the assigned packaging material group should coincide with the IMG setting of the packaging material type assigned to the packaging material group.
4. Assigned movement type 101 to the DIGN item category: IMG > Logistics Execution > Shipping > Basic Shipping Functions > Deliveries > Define Item Categories for Deliveries
Other settings but not mandatory
1. In delivery copying control assigned source NL to target DIG: IMG > Logistics Execution > Shipping > Basic Shipping Functions > Deliveries > Copying Control > Specify Copy Control for Deliveries > Define Item Categories for Deliveries
2. Make packing control mandatory for item category DIGN: IMG > Logistics Execution > Shipping > Basic Shipping Functions > Deliveries > Packing > Packing Control by Item Category
3. HUM Required for Plant/Storage Location: IMG > Logistics General > Handling Unit Mgmt > Basics > Technical Basics > Materials Mgmt > Inventory Mgmt > HU Requirement for Storage Locations
In our process the HU was already created in the Outbound delivery for the STO. These HU were then copied to the Inbound delivery. It still works in our DEV client, but it's not being used. Hope it helps.

Material returns in case of Inter company stock transfer

Hello,
In the inter company stock transfer, when material is recived in the receving company code, it will get rejected in the quality check. what is process in the SAP to return back material to supplying company code.
Regards
Manish

Hi Manish,
Here's the process (generally)
1. (At Recv Plant)
EITHER:
         1- a) Create a Return Delivery w.r.t. the Material Doc that Goods were received (Opens the Order qty in PO) and do the PGI (Dlv Ty RLL)
OR
         1-b) Create a Return PO (with Return Ind) and Return Delivery (does not open PO qty) and do PGI (Dlv Ty NCR)
2. (At Supp Plant)
    Create Returns Order in SD and Returns Delivery (Dlv Ty LR) and do PGR
NOTE: The Supp Plant must have a Vendor Master (maintained at CC level) assigned. And the Recv Plant must have Customer master and other Shipping data (SOrg, Ds Ch, Div) maintained.
After the postings AP and AR accounts are updated to reflect the postings in each CoCd. Verify this in the Accouting Document created as a result of PGI and PGR.
Let me know this helped.
Regards,
-Mewan

Material return to vendor ( line rejection)

Dear MM gurus,
i have a scenario where material received is accepted at the time of Quality inspection. Same material issued to production but if found faulty has to be returned to vendor. Such line rejection occur daily and at the end of the weak rejection quantity are enough to be sent back to vendor.
we are using two step process for GR i.e 103 followed by 105. following process does not allow material return through purchase return order i.e 161. creating return delivery via migo with movement type 122 against GRs is not viable as such returns will need reference to around 30 goods receipt for single return delivery creation.
kindly suggest a solution were return delivery can be created without reference of GR. Please ask for clarification if information here is insufficient.
regards
Avinash

Hi Avinash,
Please check the link
http://help.sap.com/saphelp_470/helpdata/en/a5/63351643a211d189410000e829fbbd/frameset.htm
Regards,
Bijoy Kumar

Packing Material returned back to inventory

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