Alternate Bom for a finished product has huge varience in cost estimate

Hi all
I have created alternate BOMs for a finished material. One is local raw materials and another has imported raw materials. Goods are produced using both these boms but in one period i can release cost estimate of one BOM. Thats why there is a huge variance in cost estimate when alternate BOM is used for the material. kindly give me a solution as to how i can fix this issue.
regards,
shahzad

Dear,
Please refer this link for,
[Costing with alternative BOM |Re: Costing with alternative BOM]
One thing you can do it with split valuation with batch managment please take help from CO person.
Regards,
R.Brahmankar

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Dear PP GURUS N EXPERTS,
My company want to TECO all the production order automatically for which finished date has been reached or (Finish date is before current date).
On SDN, I have found that it can be carried our by scheduling the variant of PPIO_ENTRY or COHV. and it will be a periodic job.
I want to know that for this which parameters I have to select and where / how I mention that order finish date has been reached. Since it will be a periodic job.
Early response will be highly appreciated.
With thanks,
DSC

Dear DSC
You can use tranaction code CO44, define a variant for periodic job.
Important selection parameters :
Status selection profile : define which kind of production orders you want to set TECO indicator, for example with status CNF or DLV.
Basic finish date : define basic finish date, for example if you want to TECO the production orders whose basic finish date is less than or equal current date, when you create the variant, selection variable can be D ( D: Dynamic date calculation ), name of variable can be "current date"
Actions : please select the indicator "complete Technically".
You can have a try, please let me know the result.
Qiu

How to create an alternative bom for the same product

Hi expert,
I want to know how to create an alternative bom for the same product. Can i use the different bom usage to create or use the same bom usage? In addition, how can i use the production version to link the alternative bom for the same product?
Please help me solve the problem.
Thanks in advance for any assistance.
George shi

HI
you can go with t-code CS01
if you have the BOM already and you want to create the alternative BOM then just goto create BOM
and enter the material and plant and uasge system will auto matically prapose the next numner ie, if you have Alt BOM1
then next system will prappose 2.
then you can enter the components as per you requirement
if you go to different BOM usage then sytem will not go for alternative BOM it gives again alt bom 1.
prodcution version you need to craet from mateial master
each version you can go woith alternative BOMS
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Version 2 can haev ALT BOM2
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Dear Gurus,
One of my client faced the issue that the semi-finished products is valuated-sales order. We are in Mill Industries, downstream (steel processing). The situation is:
1. We use configuration material for both finished and semi-finished products. Both are valuated at standard costs with valuated sales order stock.
2. Once the sales order is created, the cost estimates are created for both Finished, and semi-finished products.
3. The production orders is created for the semi-finished products. During production, several semi-fg and fg can be manufactured at the same time. We are using the co-products feature to cover that.
4. During the goods receipt of semi-finished products, instead of using the standard costs in sales order cost estimate, it use the planned costs in production orders which against our design.
I tried to use the user exit COPC002 and influence the standard costs. But it seems that the routine is not called for semi-fg at all. Anyone has any light on this?
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Hi
I think you are talking about Special Stock "E"...ie) Sale Order Stock...
If my understanding is correct then,
If you go and see the Table T156....For the
Movement Type: 101,
Special stock Indicator : E,
Qty. Updation Checked,
Val. Updation Checked,
Movement Indicator : Against PO,
Consumption Indicator: Sales Order Stock.....combination....the transaction Event Key....GBB only has been Assigned....these settings you cannot change...
This linkage you can view in OLMW-----> Account Determination -
> Acc. Determination W/O Wizard -
>Account Grouping....also
Reward if useful
Regards
S.Baskaran
Edited by: baskaran srinivasan on Dec 20, 2007 12:18 PM

STO for semi finished product along with returnable package

Dear Experts,
I am transferring semi finished product along with returnable package from Manufacturing to depot, for that i am creating purchase order (two line items in po, one is semi finish and other is returnable package) and creating delivery through VL10B.
system creates delivery, showing the item category NLN for both line items i..e semi finished and returnable package and billing(vf01) is coming for both item.
my requirement is billing to be only semi finished, returnable package should be update only qty billing should not coming for returnable package
for that which item category have to maintain and where it maintain for returnable package and how it flows from mm to SD?
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The packagings material master record should use the material type VERP for packaging and the item category group LEIH. The item category group LEIH is the SAP standard for returnable packaging.
TAL (the item category for returnable packaging) in the shipping unit
header, then when you create the delivery, SAP will also create an item TAL for that shipping material in the delivery. When you goods issue the delivery, SAP will record that this shipping material has been issued to the customer and must be returned. Note that you only have to price the returnable packaging in the returnable packaging issue order document. It does not need to
be priced in the sales order and cannot be in this method.
Check if this all ok, rest please note returnable packaging material behaves in same way as packing material

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Hello All,
I have one finished product with different characteristics like color and sizes, I have to create demand for the same finished product
and to define different characteristics but should get one planned order for each combination of characteristics. Can anybody suggest how to create demand in make to stock situation.

Hi ,
Try using "Planning with Planning Material' .
1: Define Planning material ( which is never produced) & it's BOM with only common assemblies( Finished product specific assmblies should not be added here)
2: Create Finished products seperately & assign planning material to Finished products. Finished product BOM should contain common assemblies & Variant assemblies
2:Enter Planned independent req for planning material & run MRP , it will generate procurement of it's common componenets
3: SO for Finished product reduces PIR of planning material & triggers Final assembly.
4: Planning with planning material should be 60 strategy . it must be entered in both planning material & Finsihed goods.
This is possible with make -to stock as seperate Finished goods are created for each combinatin of color & sizes.
Hope it helps,
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Automatic creation of purchase requisition for semi-finished product HALB

Hi Gurus,
We want the MRP to generate automatically a purchase requisition, instead of a planned order, for a semi-finished product. Of course, we still want to be able to convert it to a planned order.
thanks
Jean-Francois Millaire

Hi Jean-Francois Millaire,
You want a purchase requisition after MRP run & you should also able to convert that purchase requisition to planned order,If i understood correctly, hope this is your requirement
First one is possible -in MD01/MD02 maintain create purchase requisition as "1"
Second is not possible,its not possibel to conver a PR(purchase requisition to Planned order where as vice versa is possible
confirm my understanding,pls revert if you differ
Regards,
SVP

Error creating a requisition for a finished product

Hello,
I am having the following error message while trying to order a finished product(FERT):
"Material not subj. to inventory mgmt. in plant XXX (Pl. check your input)".
I have maintained the plant/storage location view for that plant.
But I'm still getting the same error.
Please help.

Hi Chaka,
This problem will occur if you not copied plant but created plant indivisually. Please check whether value updation and qty updation tick is there for material type.
This will solve your prob 100 %
Regs,
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Authorisation for Semi Finish Product Only....

Hi Experts,
I want to give authorisation for MM01 transaction and for only material type 'Semi Finish'. How to give only for Semi Finish to create?
For display I want to give full authorisation ?
YAB
Message was edited by:
        YUSUF BHORI

1. Use transaction MMB1 which is specially designed for creating semi-finished products. However I don't know of this really blocks the road for creating materials of another type.
2. If you really want to authorize on Material Type you need to set an authorization group on the material type. In SPRO: Logistics - General --> Material Master --> Basic Settings --> Material Types --> Define Attributes of Material Types. Select Material Type HALB and type in a ctext of your choice in the Authorization Group field (tip: just use the name of the Material Type: HALB).
Restrict on Authorization object M_MATE_MAR as follows:
M_MATE_MAR
Activity                    01, 02
Authorization Group HALB
M_MATE_MAR
Activity                    03
Authorization Group 0-HALA, HALC-Z
Good luck!
Points are always appreciated!
Kind regards,
Lodewijk

Moving average price for semi finished products

Hi
Could anyone light on this issue,
Our client maintain moving average price for the semi finished material, need clarification on below points
1) What is the advantages and disadvantages due moving average price,
2) Which price in the material master after the production order settlement,
3) Is there any impact of this on WIP calcaultions
Thanks in advance
Mohan M

Hi
there are no advantages of it, ONLY Dis Advantages!!!
That will ruin your inventory valuation forever.. Consider the eg below if your price control is V
1. Your moving price in mat master is 100 USD
2. You Mfr on Jan 1 @ Actual cost = 110 in Prod order and Qty = 1.
Upon GR, GR will happen @ 100 and at period end if Qty is lying in stock, 10 variance will also be inventorized
BUT, now consider this
1. 1. Your moving price in mat master is 100 USD
2. You Mfr on Jan 1 @ Actual cost = 110 in Prod order and Qty = 1.
Upon GR, GR will happen @ 100 and variance lying is 10 in prod order
3. You Mfr on Jan 10 @ Actual cost = 110 in Prod order and Qty = 1.
Upon GR, GR will happen @ 100 and variance lying is 10 in prod order
4. On jan 15, you consume Qty 1 and qty lying in stock is 1
5. In period end, when you do settlement, following will happen
a. For prod order 1: Qty Mfd 1 and Qty lying in stock 1 - Result: variance 10 will be inventorized.
Mvg Avg price will shoot upto 110
b. For prod order 2: Qty Mfd 1 and Qty lying in stock 1 - Result: variance 10 will be inventorized.
Mvg Avg price (MAP) will shoot upto 120
System wont check whether the qty lying in stock pertains to prod order 1 or 2... It will simply check if the Qty of prod order matches with qty lying in stock. hence, it will keep on inventorizing variance in this case.... and your MAP will touch the sky
Regards
Ajay M

Incorrect Initial Stock calc for Semi-finished products in SNP PBook

Dear all,
Situation is as follows:
The Stock list on /SAPAPO/RRP3(Product View) matches the Stock in ECC (MMBE) perfectly. Also when we load the product in our SNP planning book, right click on the Stock on Hand and then Display Stock, it matches the RRP3 and the ECC stock.
Still the actual Initial stock displayed in the Planning book Cell in the initial column and thereafter is different from what the actual sum of stocks should be. This quantity is huge (in millions!). There is no Receipts planned which can contribute to this!!!
Is this a known bug in SAP? Can we rectify by running any programs?
Note: Already tried CCR, OM17, everything looks fine (which actually is because RRP3 view matched ECC perfectly.)
Kindly help.
Regards,
Rimjhim
Edited by: TEAM BASIS on Dec 18, 2008 4:00 PM

Hi ,
I couldn't find any problem with the macro.
One more observation:
The UOM in ECC is KG (in transaction MMBE). The base UOM in APO is ZUN (customized Tonnes).
The conversion in Prod Master is 100 ZUN=7484 KG
If we change this conversion to 1 ZUN = 1 KG then in the planning book the Initial Stock start showing as OK.
The random value shown earlier doesn't seem connected to the UOM conversion, it's just a very very high value. How can there be a connection between UOM conversion and the Initial Stock display.
Any ideas?
Regards,
Rimjhim
Edited by: TEAM BASIS on Dec 19, 2008 12:47 PM

Subcontracting components and purchasing a finished product

We have a vendor that sells us the finished product. However we have to supply them with 2 of the components. One of the issues is that we cannot tell our vendor how much we pay for those 2 components. And we canu2019t give the parts to the vendor FOC otherwise the board cost will be minus those 2 components. In addition we need to make sure we drive demand for these 2 components.
So Iu2019m stuck. How do we do this in SAP while driving demand for those two components and not informing our vendor how much those 2 components are and not to screw up costing?
Please note: That I do have a production BOM for the finished product and we only need to supply the vendor with 2 components out of the 100 components that take to build the finished product.

You can create a Subcontracting PO i.e. create a normal PO with Item Category L in ME21N.
Also the components that you need to provide to vendor can be maintained in the Item Details in Material data tab. Note, when the PO is printed vendor will not be able to see any prices of components provided.
You then issue the components to your vendor using T Code ME2O or MB1B (with mvt type 541).
You can receive the components using normal MIGO 101 route.

Product cost estimate

Hi Experts,
Can somebody explain me the theoritical point of need for product cost estimate. From my know somepeople say we need to enter the standard price in the cost estimate tab of the material master, but sometime i see that when we run the CK11n the price automatically updated in the standard price field of the material master when we mark and relese the std cost estimate.
Do we need to enter price in the material master before the cost estimate for the materials or if we do the cost estimate do we do cost estimate only for the finished products so that all the cost under that product will be calcualted or do we need to do cost estimate for all material raw material, HALB & FERT?
what is the purpose of cost estimate and the result of cost estimate?
Thank you
Edited by: Nivi ram on Dec 29, 2009 9:52 PM

Hi Nivi,
Partly I agree with Pradeep, but I would to add more information regarding product cost estimate concept.
Maintaining material master on Accounting view or Costing view is mandatory prior to run Product Costing. It is true, by maintain price manually you cannot get cost breakdown or what so called as cost component structure. It is initial price which then later can be updated by "process Marking and Release" product cost estimatel.
How the system get the value of material costs and process costs are defined by Costing Variant. Costing variant control how the system find the BOM and routing to calculate the material costing and the production costing. System will access the material and activity cost based on Valuation variant in the Costing variant. I am sure you can costing variant use in the CK11N.
When the product cost are free of error then, you can go to the process to utilize the product cost estimate to update the material master with CK24 ( update material master indivdually). You can also use mass costing using CK40N - Edit Costing Run to maintain the costing and update material master. So product cost estimate can be run either for finished product (FERT), semi finished product (HALB) or other components
Hope this help.
Regards,
Irhasni

Upload update for Warehouse for finished product in BOM

Hi everyone,
Is there a way to update the warehouse for the finished product in BOM using DTW? I can only update the warehouse for the raw materials / components through DTW but not the warehouse for the finished goods, except by doing it manually one BOM after another.
Thanks and regards,
Derrick

Hi Rakesh N,
I changed the default warehouse then I noticed that only the newly added/uploaded BOM took the default warehouse are the warehouse for the finished goods. The earlier BOMs were not affected by the change in the default warehouse - the warehouse remain as they were when initially uploaded. Is there a way to update the warehouse for the earlier added BOM. we have quite a huge number of BOM and updating them one by one will take too long to complete.
Thanks,
Eric

Purchase requisition generate for alternative bom use for finished product

i hav alternative BOM for finished product in which different raw material component in both BOM of same finished product.But when i RUN MRP that time only one raw material requisition generate another alternative bom raw material requision not generate.
Is there any option when i RUN MRP that time we select one of the alternative bom component of raw material for generation purchase requisition.
Thnaks in Advance

Dear ,
MRP will select the BOM based on the MRP4-BOM Explosion tab -Selection Indicator .It can eitehr of these ways :
1.Maintain Production Version with different Alternative BOM and keep Selection Indicator -3 .So sysetm will look into only the Valaidty and lot size of the Production version and select the correct BOM to explode and generate PR for depednts based on stock situation
2.If you maintain Blank -then it will look into order qty and select the BOM according ly
As in your case , selection methods 3 will fit and you need to maintain PV with correct validity and lot size in MMR-MRP4-PV option .
Try in sand box with different lot size and validity with indicator-3 .Create Order and run MRP-MD02-1,,3,3,3,2
Check and revert
Regards
JH

Alternate Bom for a finished product has huge varience in cost estimate

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