Rejection return to Vendor after...

Vikash Dhiman 18 posts since Jan 11, 2011 Rejection return to Vendor after processing on Raw material Oct 17, 2012 3:20 PM

Hi SAP Gurus,

My client have one requirement. As per their existing business scenario, they rejected Finished goods after QA check and found it defected due to Raw material reason which can not be recognized initially during Quality check of Raw material Now they want to send this Finished Good to vendor. But not as Finished good but as ROH material, Which is vanished from system due to Backflushing of FERT (MFBF) and other SFG in between the process.

For example --

Finished Good -- FG01 SFG -- SFG01 Raw material -- RM01

BOM --

FG01-----SFG01----RM01

This can also be three or four level BOM.

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I suggest them to revert all the confirmed order then send the last RM01 through Return PO. But it will be a lengthy and tidious job as they have huge number of cases in a day.

How this scenario can be mapped in SAP? Is there any other solution available in SAP,

Please guide. Its urgent.

Sharat S 1,106 posts since Sep 13, 2010 Re: Rejection return to Vendor after processing on Raw material Oct 17, 2012 3:27 PM

Hi

Since the rejection is due to raw material, but you came to know it after producing FG. No issue this can be mapped several ways in SAP.

1. Are you using QM notification? If yes then it is much clear and easier route. You have first reverse the goods issue of the raw material against the SFG order and reverse SFG for FG order (if you want to ge in sequence) if not then reverse RM directly from FG which is quite unplanned. How to do it, go to MB1A use 531 movement type and reverse how much quantity you want to reverse against the production order. Then you can do regular mm transaction to send material back to vendor. If you use notification to record all these things in QM then you can do by creating manual notification in QM01, if process is mapped thoroughly and you can debit the vendor too for this.

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2. If QM not mapped and you want to send back directly Then as described step, reverse the goods issue of raw material to required storage location with 531 movement type, from the move it to vendor. Debit vendor separately in FI.

If you want to adhee to order sequence then you have to reverse all components of FG order and reverse SFG, then do same for raw material, so all other components issued in order are back to stock if you are reusing it. If you are not reusing it then you should not reverse them.

Hope you understood this, if not you can raise doubts. Best regards, Sharat

Vikash Dhiman 18 posts since Jan 11, 2011 Re: Rejection return to Vendor after processing on Raw material Oct 18, 2012 6:32 AM

Hi Sharat,

Thanx for your answer.

1. Yes, we are using QA for FG but not for SFG. And the BOM is of 6 or 7 level so its very difficult to reverse upto that level. On using MB1A, I am using Repetitive manufacturing so it will not allow me to post against order. Though without reference to any order I can do MB1A but it will create stock from nowhere.

Please suggest further..

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with regards,

Vikash Dhiman

Rupesh Brahmankar Re: Rejection return to Vendor after processing on Raw material Oct 17, 2012 3:45 PM

Dear,

Any how you have to rework this defective finish material. I will suggest create a rework order without material through CO07 here use settlement rule as order ORD and assign an original production order number here. Then go component tab of this rework order here assign defective raw material as - ve quantity with backflush also assign new material which required to produce Finish product with backflush.

So while doing confirmation you will have the stock return back for defect raw material. and order will consume other required raw material. Once you will have the stock detective raw material you can do the return PO to vendor.

Apart from that if you want the quality check of this Finish product again then you need to create order through CO01 with rework order type here assign defective finish product in +ve quantity and defective raw material in -ve quantity and if required other components add then as + ve quantity.

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While doing confirmation you will have stock of defective raw material with 531 and will consume defective finish product and other raw material by 261. Also system will generate inspection lot for this order and you do the quality processing with 101.

Please refer below document for more details. Rework In Manufacturing Regards, R.Brahmankar

Vikash Dhiman 18 posts since Jan 11, 2011 Re: Rejection return to Vendor after processing on Raw material Oct 18, 2012 6:49 AM

Hi Rupesh,

i am using Repetitive manufacturing so I think I can not use CO01 and CO07.

Is there any other way out for this?

Regards

Vikash Dhiman

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Rupesh Brahmankar Re: Rejection return to Vendor after processing on Raw material Oct 18, 2012 7:12 AM

Dear,

Rework in Repetitive manufacturing is some what difficult.

Please try create separate manual planned order MD11 go to component list here add the defective FG as positive quantity and other required raw material. And add defective raw material as -ve quantity. And do the confirmation in MFBF system will consume the defective FG and product the raw material stock. But costing point of view it would not be right. You can use the production order without material using T code CO07 in REM too only for settlement use cost center. Kindly refer below link, http://scn.sap.com/thread/1289565

Regards, R.Brahmankar

TK K Re: Rejection return to Vendor after processing on Raw material Oct 17, 2012 7:23 PM

Hi As mentioned above by both Mr. Rupesh and Mr. Sharat. either you can go with rework order method of you want to capture all the activities of reversing the dismantling of manufactured FG, in some cases business does not want to do this, that time you can directly revere with respect to original order.

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And then you can transfer stock to vendor for further action. I hope you got the answer, better to close the thread. Regards, TK

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