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Hi All

I have a question about the M94 scrapping inventory part with no Credit.

 

Example. Ordering goods for 100 EUR, qty 100 pcs.

Material arrival triggers M92 - M91 for 100 EUR

10 pcs gets scrapped system triggers M94 - M92 10 EUR

Now you create the supplier invoice and match it against the receipt System triggers now M91 - M92 100EUR

My M92 is now not balanced anymore. now i have a balance issue of -10 EUR on the M92.

 

Does anyone know whats the further process in order to balance M92? Do i need to handle the matching differently in the supplier invoice?

 

Thanks in advance for the tipps.

 

Best Regards

Sophal

does it makes sense to setup M94 like M92? therfore it will post an in and out?

Hi @bytsophan 

Manual Adjustment of the Supplier Invoice

Before matching the supplier invoice to the receipt, adjust the invoice to account for the scrapped quantity. You would invoice only for the net quantity of goods received (90 pcs).

This way, the matching would reflect the actual inventory movement, and the M91 - M92 transaction would only occur for 90 EUR, ensuring M92 stays balanced.

Alternatively, You might need to make sure the M94 transaction is properly balanced when the supplier invoice is matched. This could mean reviewing the scrapping process setup to ensure it affects the supplier invoice posting correctly or making a manual adjustment in the GL if needed.

I'm happy to share my advice on this. If you found the answer helpful, please mark it as the correct answer. This will allow us to close the thread and make it easier for other community users to find and benefit from in the future.
 

Regards,

Chanuka

Hi @bytsophan 

Manual Adjustment of the Supplier Invoice

Before matching the supplier invoice to the receipt, adjust the invoice to account for the scrapped quantity. You would invoice only for the net quantity of goods received (90 pcs).

This way, the matching would reflect the actual inventory movement, and the M91 - M92 transaction would only occur for 90 EUR, ensuring M92 stays balanced.

Alternatively, you may need to ensure the M94 transaction is offset correctly when the supplier invoice is matched. This could involve checking the scrapping process setup to ensure it impacts the supplier invoice posting or a manual GL adjustment if necessary.

I'm happy to share my advice on this. If you found the answer helpful, please mark it as the correct answer. This will allow us to close the thread and make it easier for other community users to find and benefit from in the future.
 

Regards,

Chanuka

Hi Chanu_Yazi

if i change the matching to the quantity of 90 pcs with a value of 90 EUR then i have a problem with M91.  Now M91 is inbalanced with 10 EUR. 

I mean the supplier sent me 100 pcs not 90 pcs. additionally the scrapping is due to our own fault therfore i need to match actually 100 pcs since 100 pcs arrived but 10 pcs needed to be scrapped due to false quality handling from our own site.

 

I think the best way is to setup posting control M92 equal to M94.

 

Best Regards

Sophal

Hi @bytsophan 

Manual Adjustment of the Supplier Invoice

Before matching the supplier invoice to the receipt, adjust the invoice to account for the scrapped quantity. You would invoice only for the net quantity of goods received (90 pcs).

This way, the matching would reflect the actual inventory movement, and the M91 - M92 transaction would only occur for 90 EUR, ensuring M92 stays balanced.

Alternatively, you may need to ensure the M94 transaction is offset correctly when the supplier invoice is matched. This could involve checking the scrapping process setup to ensure it impacts the supplier invoice posting or a manual GL adjustment if necessary.

I'm happy to share my advice on this. If you found the answer helpful, please mark it as the correct answer. This will allow us to close the thread and make it easier for other community users to find and benefit from in the future.
 

Regards,

Chanuka

Hi Chanu_Yazi

if i change the matching to the quantity of 90 pcs with a value of 90 EUR then i have a problem with M91.  Now M91 is inbalanced with 10 EUR. 

I mean the supplier sent me 100 pcs not 90 pcs. additionally the scrapping is due to our own fault therfore i need to match actually 100 pcs since 100 pcs arrived but 10 pcs needed to be scrapped due to false quality handling from our own site.

 

I think the best way is to setup posting control M92 equal to M94.

 

Best Regards

Sophal

Hi @bytsophan 

Core Issues to Consider:

  1. Supplier Responsibility vs. Internal Scrapping:
    • The supplier sent 100 pcs, so you do need to invoice for the full 100 pcs (100 EUR). This matches the reality of the purchase and receipt process, so M91 must reflect 100 pcs (100 EUR).
  2. Internal Scrapping:
    • The 10 pcs were scrapped due to internal issues, so this should trigger M94, reducing your inventory value by 10 EUR. This scrapping should impact M92 without affecting the supplier invoice, since it’s an internal issue, not a supplier fault.

Why Not Set M92 = M94:

 

If you set M94 equal to M92 with both an "in" and "out" posting, you risk obscuring the real meaning of scrapping. Scrapping, represented by M94, is meant to reduce inventory value, not to reverse it. If M94 posts both in and out like M92, you may incorrectly account for the scrapped goods, essentially "re-adding" them to inventory when they should be written off.

I would recommend the below approach

  1. Match the invoice against the full 100 pcs (100 EUR).
  2. Scrap the 10 pcs and trigger the proper M94 posting, reducing your inventory value for 10 EUR.
  3. If needed, post a manual journal entry to reconcile any minor differences between M91 and M92 if they persist after these postings.

This way, the M91 remains in balance with what you owe the supplier, and the M94 correctly handles the internal loss, without the risk of misrepresenting the inventory values.

Regards,

Chanuka

Hi @bytsophan 

Manual Adjustment of the Supplier Invoice

Before matching the supplier invoice to the receipt, adjust the invoice to account for the scrapped quantity. You would invoice only for the net quantity of goods received (90 pcs).

This way, the matching would reflect the actual inventory movement, and the M91 - M92 transaction would only occur for 90 EUR, ensuring M92 stays balanced.

Alternatively, you may need to ensure the M94 transaction is offset correctly when the supplier invoice is matched. This could involve checking the scrapping process setup to ensure it impacts the supplier invoice posting or a manual GL adjustment if necessary.

I'm happy to share my advice on this. If you found the answer helpful, please mark it as the correct answer. This will allow us to close the thread and make it easier for other community users to find and benefit from in the future.
 

Regards,

Chanuka

Hi Chanu_Yazi

if i change the matching to the quantity of 90 pcs with a value of 90 EUR then i have a problem with M91.  Now M91 is inbalanced with 10 EUR. 

I mean the supplier sent me 100 pcs not 90 pcs. additionally the scrapping is due to our own fault therfore i need to match actually 100 pcs since 100 pcs arrived but 10 pcs needed to be scrapped due to false quality handling from our own site.

 

I think the best way is to setup posting control M92 equal to M94.

 

Best Regards

Sophal

Hi @bytsophan 

Core Issues to Consider:

  1. Supplier Responsibility vs. Internal Scrapping:
    • The supplier sent 100 pcs, so you do need to invoice for the full 100 pcs (100 EUR). This matches the reality of the purchase and receipt process, so M91 must reflect 100 pcs (100 EUR).
  2. Internal Scrapping:
    • The 10 pcs were scrapped due to internal issues, so this should trigger M94, reducing your inventory value by 10 EUR. This scrapping should impact M92 without affecting the supplier invoice, since it’s an internal issue, not a supplier fault.

Why Not Set M92 = M94:

 

If you set M94 equal to M92 with both an "in" and "out" posting, you risk obscuring the real meaning of scrapping. Scrapping, represented by M94, is meant to reduce inventory value, not to reverse it. If M94 posts both in and out like M92, you may incorrectly account for the scrapped goods, essentially "re-adding" them to inventory when they should be written off.

I would recommend the below approach

  1. Match the invoice against the full 100 pcs (100 EUR).
  2. Scrap the 10 pcs and trigger the proper M94 posting, reducing your inventory value for 10 EUR.
  3. If needed, post a manual journal entry to reconcile any minor differences between M91 and M92 if they persist after these postings.

This way, the M91 remains in balance with what you owe the supplier, and the M94 correctly handles the internal loss, without the risk of misrepresenting the inventory values.

Regards,

Chanuka

Hi Chanuka

 

i dont like either to Set M92 = M94. But i dont see another way to automize the process without having manual adjustments

 

But neverthless you are right M94 should represent the scrapping.

I see no other way arround to manually adjust M92 with a voucher entry.

 

Thanks a lot for your opinion.

 

Best Regards

Sophal

Hi @bytsophan 

Manual Adjustment of the Supplier Invoice

Before matching the supplier invoice to the receipt, adjust the invoice to account for the scrapped quantity. You would invoice only for the net quantity of goods received (90 pcs).

This way, the matching would reflect the actual inventory movement, and the M91 - M92 transaction would only occur for 90 EUR, ensuring M92 stays balanced.

Alternatively, you may need to ensure the M94 transaction is offset correctly when the supplier invoice is matched. This could involve checking the scrapping process setup to ensure it impacts the supplier invoice posting or a manual GL adjustment if necessary.

I'm happy to share my advice on this. If you found the answer helpful, please mark it as the correct answer. This will allow us to close the thread and make it easier for other community users to find and benefit from in the future.
 

Regards,

Chanuka

Hi Chanu_Yazi

if i change the matching to the quantity of 90 pcs with a value of 90 EUR then i have a problem with M91.  Now M91 is inbalanced with 10 EUR. 

I mean the supplier sent me 100 pcs not 90 pcs. additionally the scrapping is due to our own fault therfore i need to match actually 100 pcs since 100 pcs arrived but 10 pcs needed to be scrapped due to false quality handling from our own site.

 

I think the best way is to setup posting control M92 equal to M94.

 

Best Regards

Sophal

Hi @bytsophan 

Core Issues to Consider:

  1. Supplier Responsibility vs. Internal Scrapping:
    • The supplier sent 100 pcs, so you do need to invoice for the full 100 pcs (100 EUR). This matches the reality of the purchase and receipt process, so M91 must reflect 100 pcs (100 EUR).
  2. Internal Scrapping:
    • The 10 pcs were scrapped due to internal issues, so this should trigger M94, reducing your inventory value by 10 EUR. This scrapping should impact M92 without affecting the supplier invoice, since it’s an internal issue, not a supplier fault.

Why Not Set M92 = M94:

 

If you set M94 equal to M92 with both an "in" and "out" posting, you risk obscuring the real meaning of scrapping. Scrapping, represented by M94, is meant to reduce inventory value, not to reverse it. If M94 posts both in and out like M92, you may incorrectly account for the scrapped goods, essentially "re-adding" them to inventory when they should be written off.

I would recommend the below approach

  1. Match the invoice against the full 100 pcs (100 EUR).
  2. Scrap the 10 pcs and trigger the proper M94 posting, reducing your inventory value for 10 EUR.
  3. If needed, post a manual journal entry to reconcile any minor differences between M91 and M92 if they persist after these postings.

This way, the M91 remains in balance with what you owe the supplier, and the M94 correctly handles the internal loss, without the risk of misrepresenting the inventory values.

Regards,

Chanuka

Hi Chanuka

 

i dont like either to Set M92 = M94. But i dont see another way to automize the process without having manual adjustments

 

But neverthless you are right M94 should represent the scrapping.

I see no other way arround to manually adjust M92 with a voucher entry.

 

Thanks a lot for your opinion.

 

Best Regards

Sophal

Hi @bytsophan 

Yes. Nice to help you.

 

Regards,

Chanuka

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