Returning Demaged Material and getting new Material free of Cost

Question

Dear Experts
As per my sceneriao ,one of our Bearing is got demaged and we told to vendor for the replaement.Once replacemnt is recived we will send back demaged material what is correct Cycle for this.
Regards
Raj

Answer 1

Hi Raj,
As per your scenario, one of our Bearing is got damaged and returned to vendor for the replacement. Once replacement is receivedwilll send back the damaged material the correct Cycle for this is as below.
You can create a single PO for free of goods PO by ticking 'Free Item" indicator & item which has to be return with 'Return" tick.
Now in MIGO, enter PO number & post the document. For free goods, there won't be accounting entry. Same you can not have liability to pay anything to vendor.
For Return Goods, have to use movt type 161 which reduces your inventory & inventory account will get credited & GR/IR will get debited. If previously MRO vendor invoice posting was happened then you have do MIRO-Credit MEMO in order to reverse the amount. If you had carried out returned delivery before MIRO vendor invoice posting then system automatically take care of the qty when you performed MIRO which will post after reducing return delivery qty. Hope this helps you.