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Material return and budgeting

atif_farooq
Active Contributor
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365

Hi:

I have created a PO for a three material. Budget assigned to fund center in PO is 100 $. Cost of three materials in total is 16 $. Budget was checked at PO saving . In report FMRP_RW_BUDCON, system started to show budget consumed as 16$ and 84$ is available and at inspection time it was found that a material 6 $ is faulty , it was returned to vendor and hence no GRN was done for it. GRN for done for other two material with value 10, at GRN posting FM document generated shows 10 $ but still shows 16 $ as consumed budget. Why is this so...what configuration i am missing, we are using payment budget. Please guide me.

Regards

1 ACCEPTED SOLUTION

Former Member
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288

Hi Atif

At time of creation of PO Budget will get committed (based profile settings as posting date,due date or delivery date), hence the amount will be showing as consumed amount. At the time of GRN Posting PO commitment will get cancelled and actuals will be generated.

In your case once PO is created budget got consumed Rs. 16$, Suppose If you found any faulty materials also it may not impact on budget consumption. Only the changes will impact on budget consumption if you reduce faulty material qty or amount in PO Line item.

Let me know if any wrong.

Regards

Rao

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6 REPLIES 6

Former Member
0 Kudos
289

Hi Atif

At time of creation of PO Budget will get committed (based profile settings as posting date,due date or delivery date), hence the amount will be showing as consumed amount. At the time of GRN Posting PO commitment will get cancelled and actuals will be generated.

In your case once PO is created budget got consumed Rs. 16$, Suppose If you found any faulty materials also it may not impact on budget consumption. Only the changes will impact on budget consumption if you reduce faulty material qty or amount in PO Line item.

Let me know if any wrong.

Regards

Rao

0 Kudos
288

Hi:

Upon doing GRN , budget consumption stands at 16 $, PO commitment does not get reduce...I just learned that we have to set the delivery completed check in PO in order to have the actual commitments updated in system. I did it and it started to show me 10$ in report.

Regards

0 Kudos
288

Hi

Ok, but as far as know based on OFUP settings actuals will be generated, it is not required to select delivery completed indicator in PO. 

Regards

Rao

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288

Hi RAO:

There is still some meat left in this thread and i guess moderator was in hurry to close this thread . For PO whose material have been returned to vendor and there is no further activity against them, setting delivery completed flag in PO and making the PO commitment go zero seems a good solution but what if there is partial delivery against PO and partial GRN done against them , commitment should be updated and budget should be shown consumed only for those material whose GRN has been done but system does not. I am attaching screen shot of OFUP settings, please let me know if i am missing something.

0 Kudos
288

According to the SAP library, if you have GR/IR update set to GR and Inv then:

If Invoice posts before GR, that will trigger the PO 0200 posting.  If the GR posts before the Invoice, that will trigger the 0200 posting.

Then, for example, if you post a partial GR, the 0200 would be for only that partial value.

0 Kudos
288

Hi Atif,

There is no issue at all. PO's create commitments and GR's (or IR's) reduse the commitments and at the same time create actuals. Both commitments and actuals consume budget.

For exsample:

1. A PO of $100 creates a commitment $100 with VT 51, AmtTyp 0100. The total consumed budget = PO commitment = $100.

2. A partial GR of $40 creates a commitment -$40 with VT51, AmtTyp 0200 and an actual $40 with VT 54, AmtTyp 0100. The total consumed budget = PO commitments + GR actual = $100 - $40 + $40 = $100.

Yes, you are right, if you do not expect the remaining $60 to be delivered any more, you set the delivery complete indicator, which creates an additional PO commitment -$60 VT51, AmtTyp0500. Consumed budget = PO commitments + GR actual = $100 - $40 - $60 + $40 = $40.

Regards,

Ming