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Damage in Transit/Loss Management - InterCompany Sales

izakqazi
Explorer
0 Kudos
366

Dear All,

I work as SAP SD consultant for an edible oil company, here we transfer our finished (packed) oil to our depots in cases/pouches/Tins etc.

Process is as follows:

For example we take 2 plants one receiving and second delivering Plant.

* Receiving depot creates a STO in the system.

* Delivering Plant creates Delivery document with reference to that STO (Tcode - VL10B).

* Then Delivering Plant creates Shipping document by using Tcode VT01N.

* And shipping cost document.

* Delivering Plant does PGI.

The problem we are facing is that during the transportation of of oil from delivering plant to receiving plant, at times some packages/bottles/pouches are damaged. That damaged cases of oil are returned to delivering plant by the receiving plant. Now, we have an agreement with all our transporters that if .5% percent of the goods are damaged then company will bare the loss but if more that .5% is lost then its cost will be paid by the transporter.

My queries are:

* Where do we cater damage and loss in transportation is SAP?

* Its Process Steps

* How do we configure and manage damages and loss in the system. ( Configuration Steps )

* How can we bill transporter for the damaged goods and its GL.

I know its a very detailed query but I really need your help.

I tried finding the solution on SCN but couldn't find any.

Your help in this regard is highly appreciable.

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izakqazi
Explorer
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Anyone?

jpfriends079
Active Contributor
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Hi Faraz,

Do you use SAP IS-Oil?

If yes, then refer SAP Note 508765 - Two-Step Plant to Plant Transfers with Gain/Loss.

Even though you are not using IS-Oil, still you can refer the available SAP Note as a reference.

Moreover, you can also have look on Proof of Delivery functionality for Valuate Goods in Transit:

- MM, Stock in Transit and Actual Costing



How can we bill transporter for the damaged goods and its GL.

For damages, you can have to raise a debit note to your transporter vendor for loss in transit.

Thanks, JP

anese_khan
Explorer
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Hi Faraz,

This requirement can be handled with WM,if you do not have then you would have to customize by creating all ZTABLES

izakqazi
Explorer
0 Kudos

Thank you for your response.

No we are not using IS-Oil.

Would it be fine if we create STO for all the damaged goods from Receiving plant (previously delivering plant who actually delivered the goods initially) to manage damaged goods in the system and make debit note for transporters?

former_member233130
Active Participant
0 Kudos

Hi,

What about just a return delivery for the damaged ones and then debit note against?Does not fit?

izakqazi
Explorer
0 Kudos

Hi,

Is it possible to create debit memo with reference to return order? correct me if i am wrong, can't we only create credit memos from return orders? and debit memo from billing document only?

Thanks

former_member233130
Active Participant
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My bad,sorry.You will credit your customer and debit your transporter if the damage exceeds %5 and it is less than 5% then only customer will be credit for the returned amount,right??

jpfriends079
Active Contributor
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Is it possible to create debit memo with reference to return order?

When you want to penalise Vendor for the damage in transit, then why you raise customer debit memo from return order to vendor(Transporter)??? For this simply raise vendor debit memo to your vendor.

And Return order will take care of any damage goods computation and reverse in inventory if any from your internal customer. Accordingly, raise customer debit/credit memo, if some values to be adjusted to your internal customer.


correct me if i am wrong, can't we only create credit memos from return orders? and debit memo from billing document only?

Not really. Please refer following SCN Wiki link:

- CUSTOMER COMPLAINTS - ERP Operations - SCN Wiki


Thanks, JP

izakqazi
Explorer
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Thanks a lot, that was helpful. Just a last confirmation required :

And Return order will take care of any damage goods computation and reverse in inventory if any from your internal customer."


What if we do not have to pay customer(create credit memo), can we stop our process here? What effects will it make on FI if we do not create Credit memo after post good receipt?  Because there is no customer involvement. Process is just goods delivered from Plant A to Plant B and returned to plant A, and debit memo will be created for Vendor (transporter). No customer debit/credit memo required.


 

jpfriends079
Active Contributor
0 Kudos

Hi Faraz,

If your stock accounts of your plants are getting settled then you can stop at PGR of return goods.

Thanks, JP