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How to account(financial) for difference between PGI qty and POD qty in Sales?

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I have done a lot of research on this topic on this forum but not found a complete answer. so posting here.

Lets say the Sales order was for 100 qty, delivery and PGI done for 100 qty. But customer reported through POD that he has received 95 qty. So we did the POD for 95 qty and hence invoice created for 95 qty.

Now, the inventory was reduced for this material by 100 qty as PGI was done for 100 qty. COGS is also for 100 qty. But actually only 95 have been invoiced. So how to financially account for the difference 5 qty? what will be detailed accounting entries? How to deal with it?

Please give your valuable inputs


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Answers (3)

Answers (3)

Active Contributor


Yes! Creating a Credit Note is not a good option at all as customer is invoiced for delivered quantity only.

What you can do is to map a process in SAP through which you will directly create a Return delivery without any reference and post goods receipt and check the outcome, also in return delivery document you can enter original invoice or delivery document number as a reference to future reporting requirement purpose

You need to make configuration as follows:

  • Configure a pseudo sales document type - here no need to assign billing type
  • Configure item category which won't be billing relevance
  • Assign item category, Configure schedule line category
  • Configure a return delivery type and assign pseudo order type here and mark order required as blank
  • Delivery Item category determination
  • Copy control settings

Few settings may not have mentioned which you can do that yourself too

Now create a return delivery using VL01NO and post PGR and check the desired outcome

I'm not 100% sure if business users/ legal team accept this solution but this is the way you can recommend them to address this requirement



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one way to create a credit memo remaining 5 qty to get the actual financial accounting from the customer perspective. the other way around is to reverse the PGI if your management says so and make actual qty PGI for the correct invoice and remaining 5 stock transfer to the designed storage location as company business suggested.

Active Contributor
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When you have done PGI for 100 Qty -Customer accepted 95 Qty only-firstly what is the reason for difference-any physical loss?

How your Business team wants to find this variation-means in which way they want to analyse this difference-any actions suggested by them-so we can think on those-Just let us know.

We can very well create a credit memo for the differed qty to get the actual accounting.


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Hi Phanikumar,

The customer is in the chemicals business and it is a common business scenario in chemicals/oil business for material to get lost in transit through evaporation/spillage etc.

So i do not think there is any need of a credit memo as we are billing the customer only for the POD quantity (the quantity actually received by the customer). I need ideas as how should we deal with the difference in PGI and invoiced quantity.

Hope this helps.