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Reply from Viraj Kamat on May 29 at 3:11 PM This is how we manage the parts that needs to be repaired.
Scenario 1) Parts is not under warranty (which mean I need to pay for the repair, etc).
We get the parts in Inventory with Split Valuation called "REPAIRABLE" with Zero value ( set-up material with Standard cost = Zero)
We then create a refurbishment order and issue that part which has zero value along with other parts that is required to repair.
Once that part is repaired we get it in our Inventory as "REFURBISHD" split valuation (set up material with Moving average price)
We settled the Order to Material so the cost that is incurred in repairing process then become the cost of the Refurbished parts.
Scenario 2) Part is under warranty
We get the part in Inventory as NEW (since we know that this part is under warranty and will be replaced or repaired free by the vendor)
We use Subcontractor Purchase Order to issue that Part to Vendor and receive the same back from vendor.
Regards,
Viraj
| | | ---------------Original Message---------------
From: Anna
Sent: Wednesday, May 28, 2014 10:11 PM
Subject: Split Valuation Scenario Mvt Types
Yes, this makes sense. You can have a different cost/value for each
valuation type. The used inventory (returned to the warehouse) would be
valued less than new but more than the repaired material. When the
repaired material is received back into stock, what valuation will it
have? Do you need to consider a fourth valuation of broken to be issued to
the supplier and then receive it in as repaired? The broken material could
have a no value whereas once repaired it would have a value... |
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