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Material Accounting - Actual material received cost + in transit loss cost

Discussion in 'Oracle SCM & Manufacturing' started by karthikppillai, Jun 21, 2011.

  1. karthikppillai

    karthikppillai Active Member

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    Hi,

    I am a newbie to Oracle Implementation and I greatly appreciate any help from the experts of this forum.

    The client I am working for transports raw materials from a govt. vendor employing his own transporters. The govt. vendor needs to be paid on the material quantity that had been dispatched. But the material would have lost some weight while reaching the client's location. So the actual weight received is less than the weight dispatched from the vendor's place.

    Now, actual quantity of the material to be taken into stock will be based on the weight measured at the client's place e.g 10 Tons. Where as the vendor will be paid for the material weight during dispatch e.g 11 Tons.

    Assuming each Ton is Rs 10, my receipt will be for 10 Tons (Rs 100/-) and the vendor will be paid for 11 Tons (Rs 110/-). But my material cost for the 10 Tons should be Rs 110/- instead of Rs 100/-. How do I achieve this?

    I believe this needs some out of box thinking, but I am hoping that someone would enlighten me with the approach that they have taken for such a scenario.

    Thanks a lot

    Karthik
     
  2. Indra Stp

    Indra Stp Active Member

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    Hi Karthik,

    I am assuming that you use average cost, and the 10 Tons is an inbound logistic of Purchase Order
    Scenario:
    -You can receive the goods 10 Tons and than your material cost will be 100/10 at average.
    -Make invoice match to the PO and than add a line type Freigth in the Invoice Lines
    -Allocate this Freigth type to be prorated to item line type.
    -Validate your invoice and the cost of your material will be updated 110/10 at average.

    My assumption migth be misinterpretated from your goal, if so please inform me with clearer step by step case.

    Regards
     
  3. karthikppillai

    karthikppillai Active Member

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    Hi Indra,

    Thanks for the update. Your understanding of my requirement is correct. I will try the option of Freight line type suggested by you and will get back to you with the result.

    Thanks,
    Karthik