Hello,

Is not it normal? If you scrap non-inventory material with No Credit option, it means you do not expect credit note from the supplier - so result of this operation is not part of “Received not invoiced” area.

Only return for rework, for credit and scrap for credit are part of GRNI.
 

Hi Adam,

Scenario is like this,

Good received and GRN Qty is 100

Scrapped from the above receipt is Qty 10

1. At the timer of receiving the Goods, should

GL -Consumable product                                                             DB - M92 -  100 Qty

       GL- Received not yet invoices(mapped to GRNI report)                                  CR - M91 - 100 Qty

2. At the time of scrapping the goods, should

GL- Received not yet invoices(mapped to GRNI report)        DB - M94 - 10Qty

        GL -Consumable product                                                                                      CR - M92 - 10 Qty

In the 02nd entry (at the time of scrapping the goods) M94 is not picked at GRNI report and because of it, GRNI report and the GL (received not yet invoiced) is not tally.

Thanks

Ishani

Hello, Ishani,
I believe it is correct, as you still expect supplier invoice for 100 qty…

This is the difference between scrap with credit and scrap no credit. Scrap with credit is supplier fault - and credit note is expected, therefore GRNI report is affected. In case of scrap no credit, it is your fault (damaged goods at your responsibility) - you need to pay for full delivery anyway,  and you are just reclassifying your cost from normal consumption expenses (M92) to cost of damages (M94).

Is it clear for you now? 

Hi Adam,

Thank for your great explanation..

Is it possible to match, “non inventory scrap for no credit transaction” against  a manual supplier Invoice?

Thanks and Best Regards

Ishani

Ishani, 

This is what I was trying to explain - doing scrap for no credit, you DO NOT expect any supplier invoice. Quantity scrapped for no credit is not affecting quantity available for matching on purchase order receipt and therefore such transaction cannot be matched with invoice. 
If you expect invoice and want to match scrapped quantity, you need to use option “scrap WITH credit”. 

Dear Adam,

Could you please explain this…

Non inventory scrap for no credit transaction means you still have to pay for your supplier.. Which means we need to record the supplier invoice in IFS application….?

But you mean this couldn't be matched against the PO?

Thanks and best regards.

Ishani

Ishani, 

I am referring to your example:

Goods received and GRNI Qty is 100.

Scrapped from the above receipt is Qty 10.

It means you will have to pay for entire quantity (100 - because of “no credit” scrap option used) and not for 90 only.

100 is your total GRNI quantity - you expect supplier invoice for 100, not for 90 (no credit note for 10).