Allocate Value to Acceptable goods against Rejected

thinafans

Dear All,

This is the scenario I am facing in the Commodity Business

Say I purchased 100Kg of MAIZE (Per Kg - 10) Total cost - Rs. 1000

I received all the 100 Kg of MAIZE and book the same in to my account and I started cleaning that and got the waste of 20 kg. In this industry this is volatile in nature which they can't pass debit note to their Vendor.

Client Requirement is to pass the Negative adjustment for 20 kg with Zero Value and allocate the Rs1000 to 80 Kg of MAIZE.

Item costing method is : FIFO

As per them if i pass negative adjustment with Zero value after Recalculation what is the cost impact.

Pls Guide me.

Thanks in Advance.

THINA

kranthi

How you are passing the negative adjustment???

thinafans

Hi Kranthi,

Thanks for ur reply.

Through counting journal I will pass the negative adjustment. If you have any other method to map this requirement let me.

Regards,

Thina

kranthi

I think counting journal will not adjust the cost.........

100 kgs of material costs 1000 Rs
when you adjust it to 80 by counting journal then the cost will become 800......

thinafans

Dear Kranthi,

Before I draft this query I know that same calculation. I need a solution for this, that's the reason i posted here. Pls reply if you know the solution how to handle this scenario.

Regards,

Thina

kranthi

First try to post your requirement with clarity so that every will understand your requirement...

I am trying to help you , by knowing exactly what you are doing......

secondly this is not then way of replying.....

kranthi

Any way,......

This is a kind of Inventory loss
you can either put it as loss (by profit loss journal) or
you can add this to the cost of production( If you are using this material in production)...

I think the best way is to add it to the cost of production.......