Asset manufactured inhouse

Dear Experts,
We have a scenario where fixeda asset/capital item like reactor is bought out from outside as well it can be manufactured inhouse from raw material.
How to deal with this scenario/. Is there two separate material master required for asset bought out and asset manufactured? what will be the excise register impact for asset prodoced inhouse?
Thanks and Regards,
Mukesh Agrawal

Dear Zubin,
do you mean we have to maintain two separate master records , one for asset purchased from outside and another for asset produced inhouse? Do we need to create production order for asset? what is excise register impact for asset manufactured inhouse?
Thanks and Regards,
Mukesh Agrawal

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Posting of electricity procured from outside and manufactured inhouse

Hi Experts,
Kindly guide us as to how we need to go about the below scenario in SAP.
We are in cement industry. We procure electricity from outside and also we purchase gas and manufacture electricity for the purpose of use in our factory.
We do not have a problem with externally procured electricity.
With respect to electricity manufactured inhouse
The mapping as of now is done as below:
Accounting Entries:
When I use gas for conversion into electricity T code COR6N
Dr Natural Gas consumption   100    P&L
        Cr Stock-fuel oil                          100 B/S
Dr Stock -Semi Finished Goood (electricity)             120 B/S
          Cr Cost of goods Manufactured                      120 P&L
At the time of consumption of the electricity in Production T Code MIGO (Goods Isssue)
Dr    Electricity Consumption                      120        P&L
         Cr Dr Stock -Semi Finished Goood (electricity)    120 B/S
Now our problem is that the expense for inhouse manufactured electricity is recorded twice as per our client.
Once when we are doing COR6N and the next time at the time of posting consumption to Production order using MIGO GI.
Kindly let us know how to overcome the above issue and see to it that the expense is booked only once.
Regards,
Hari

Hi,
Thank you for the quick response.
Vimal As per what you are saying that the expense is not booked twice, when I see the electricity consumption it is overstated and also the same is posted in gas consumption.
So when I see the both the GL accounts, the amount is appearing in both the GL accounts which I think should reflect only in one GL.
Regards,
Hari

Inhouse production / Subcontracting mapping in SAP PP

Hi,
I have a scenario for inhouse and subcon. My FG is canbe manufactured inhouse and as well as can send for subcontracting for operation.
for this I have maintained X (both procurement type) in Material master and also created a MRP group and assigned in Material Master, in that MRP group I have maintained order type for my Prd.Ord and in external procurement I have maitained a subcontracting PR doc type.
When I run MRP it is giving me planned order and allowing me to convert in to either prd.ord or PR, till this point its fine but when I try to convert in to PR its getting converted but it is not a subcontract PR, but I want to convert into subcontract PR.
Can anybody tell me what more I need to do to achieve this scenario.
Regards
Ramana

Dear Clifford and Brahmankar,
I have tried to maintain as you said special procurement type in MRP 2 view as 30 (subcontract) after maintaining this and running the mrp its giving me only PR in the md04 screen, but when I run MRP with the processing indicator as 3 i.e. planned orders it will give me planned order where I can convert into either prd.ord or sub con PR.
But If I give processing indicator as 3 (planned order) while running MRP for all other external procurements also mrp giving planned orders, which again they have to convert in to PR which is extending one step of work which is not desirable.
To overcome this I maintained the conversion indicator in MRP group to planned order (3), but still its giving me PR when I run MD02 with processing indicator (3).
So how do I Over come this situation, so that only for this material I'll get Pl.Ord and for all other F procurement its PR. Please help me.
Regards
Ramana

Sale Order Status Change after delivery of materials from projects

have ETO sccenario which consists of all modules such as SD,PS.PP etc. Materials will be procured from external vendors & manufactured inhouse through project systems. After delivery of materials from project systems, billing & invoicing will be done at sales level.
On delivery of materials from projects, sale order status remain open. Request you to look into the matter & suggest about status change of sale order after delivery / billing.
Regards,
Ranjan

Hi,
In sale order, WBSE is assigned. Delivery of materials are through cns0. then subsequently picking / packing / billing will happen at sales level. Billing is of delivery related. Please suggest to fix the issue.
Thanks & Regards,
Biplab Ranjan

Sale Order Status after dellivery of materials from Projects

Hi,
I have ETO sccenario which consists of all modules such as SD,PS.PP etc. Materials will be procured from external vendors & manufactured inhouse through project systems. After delivery of materials from project systems, billing & invoicing will be done at sales level.
On delivery of materials from projects, sale order status remain open. Request you to look into the matter & suggest about status change of sale order after delivery / billing.
Thank you in advance.
Regards,
Ranjan

Hi,
In sale order, WBSE is assigned. Delivery of materials are through cns0. then subsequently picking / packing / billing will happen at sales level. Billing is of delivery related. Please suggest to fix the issue.
Thanks & Regards,
Biplab Ranjan

Change of price control in material master

Hi, SAP experts,
We have business scenario where the procurement type in MRP-2 view of material master gets changed from F to E that is an externally procured item will be manufactured inhouse.
In such case in costing view the price control needs to be changed from V to S. If both MAP & std. price are not identical, system is not allowing to change. Secondly since the item will be manufactured inhouse from now onwards, I have to run the cost estimate & update the master.
How do I deal with the situation.
Valuable advice is awaited.
Regds
T.S.Shankar

Hi Shankar,
When the price control indicator is "V", system will allow changing the Standard price manually through Transaction code MM02.
Similarly when the price control indicator is "M", system will allow changing the Moving average price manually through Transaction code MM02.
Hope this clarifies
Regards,
Som

Material type questions and fields on the MRP tabs

Hi Gurus,
Can anybody please answer these questiosn for me?
1) material types determine what views will be created in the materil master right?
2) for materail types can we have procurement type as F, E or both?
3) MRP controller and purchasing group fileds on the material master, what are their significance? like which field will take importance in what ccase is my questions?
Can anybody please help me in answering these
thanks
Anmusha

All the materials which can be produce inhouse that only can have Procurement type E and The materials which can be procured externally always can have F.
The materials which can be manufactured inhouse as well as procure from external source can have both type procurement
eg. Raw material will always have F
Finish goods will have E
and SEMI finish can have both procurement type
the reason you can prodice inhouse, procure from outside or you can do sub contracting.
Yes, the material should have MRP controller to pull in MD07

Special procurement type in Matrl Master?

Hello All,
Could someone please explain the significance of the field pecial procurement type in the material master?
We are working on a subcontracting scenario wherein the parent matrl is sometimes manufactured inhouse and sometimes sent to a subcontractor. I maintained the procurement type as X for this reason. Now should I maintain the special procurement type as 30 (Subcontracting)?
What exactly is the functionality of this field?What purpose does it serve? I have read the F1 help but have not understood it properly.Would really appreciate if someone could explain with a live example.
Regards,
V S

Hi,
Through Procurement type you define whether the procurement will be in-house production or extranal or both.
Sometimes this information isn't enough to describe the process, generally in the following cases :
Special Procurement for In-House Production
+ For a phantom assembly+
+ Production in alternative plant+
+ Withdrawal from an alternative plant+
Direct production
Special Procurement for External Procurement
+ Consignment+
+ Subcontracting+
+ Stock transfer+
+ Direct Procurement+
for the above cases, to carry out this information into system we use the "special procurement type field"
the most commun situation are: phantom assembly : we use in general indicator 50
Subcontracting : we use in general indicator 30
regards

Third Party Control Account?

Dear all,
Does anyone know how can I make use of "Third Party Control Account" in R12 financials? Any real cases we can make sure of third party control account?
Thanks.

Hi,
Following are the answers to some of your queries -
1) Inventory Valuation - The inventory of your company is your investment in the goods. Hence, you should know much money is invested in the inventory. You can valuate your inventory in 2 ways -
S - Standard Valuation
V - Moving Average Price Valuation
Standard valuation is used for material manufactured inhouse, where as MAP is used for materials procured from outside.
2) G/L Account - This is the General Ledger Account, where all the financial postings from various areas are done. For every transaction a G/L account is specified. These entries are then accumulated either to P/L statement or Balance sheet
3) Bill Of Material - This indicates the quantity of sub assemblies / semifinished materials which are required for manufacturing final product.
4) Third Party - When you ask your vendor to supply a material directly to your customer, then the PO is Third Party PO.
5)Scheduling Agreement - When you make a long term agreement with your vendor, & release a partial quantity at a time for supplying (as per your requirement) it is called a Scheduling Agreement.
Hope the answer fulfills your query.
Reward points if answer is usefull
Regards,
Prashant Kolhatkar

Desiging Specs

Hi,
I have to prepare technical specs from the below mentioned functional specs.
Description :
Product A is supplied by the vendor and not manufactured inhouse. This product is considered as made to order product. Currently whenever salesorder is created for this product it will create a purchase requisition automatically. Creation of Purchase order should be automated whenever purchase requisitions are created for this product.
How this program will work
The end user will give the list of products for which the purchase order need to be created within a period. The program should collect all the data from Purchase requisition relevant to the product group them by vendor and display them in a ALV before posting as purchase orders. Additionally the program should handle if the purchase requisitions are uploaded as flat files.
Options : 1)Do using BDC on transaction ME21
2) File upload using BAPI on transaction ME21n
i would appreciate if some one can give me guidance on this.
Thx.
Raghu

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INTEGRATION WITH QM

Dear All,
can u pl explain integration b/w PP and QM,
if possible pl send some screen shots or document at [email protected]
thanks in advance
raj

Hi,
For a material manufactured inhouse, you can maintain in QM view, the inspection type as 03 (In Process Inspection) and / or 04 (Goods Receipt from Production) as per the requirement.
Then for usage 03, you maintain Inspection Operation in the production routing of the material & assign the inspection characteristics to the operation alongwith sampling & PRT. Depending on this when the Production Order is released (not create) an inspection lot is created. System will not allow you to confirm the production operation unless you post results for the inspection lot & take usage decision. For the inprocess inspection, there is no stock posting option.
FOr usage 04, you have to maintain the inspection plant alongwith the characteristics to be inspected. When you post the goods receipt from the Production Order, system posts the goods to inspection stock & create an inspection lot. Here you can inspect the material & then post the results. After this you can take the usage decision & post the stock to the required option (restricted, blocked) & complete the inspection ot.
Hope this clears your query.
Regards,
Prashant
- Pl. reward points if answer is helpful to you

Reg material master price

Dear all,
For a finished material which is manufactured inhouse we are following one process and price is 100 per unit, same material if it is going through another process inhouse it is 150 per unit. in material master if price unit is s. in my inventory there are 100 units which are made through process one, there are 100 pieces which are made through process 2. While doing initial stock uploading for the 200 pieces what is the standard price to be taken.
Thanks in advance
Madhav

Dear Rao,
In this case ,I have few queries.
1.If you want to use mixed costing and if it is going to be 50%-50% for each process means,then use the average price,say Rs
125 while uploading the stock using MB1C and for 561 movement,here you can enter the amount in CC.
2.In case if you are not using the mixed costing concept then its a business decision to be made by the client side people.
3.But generally standard cost estimate is performed before uploading the stock,so that it automatically valuates the material
using the standard price.
Check and revert back with your further queries.
Regards
Mangalraj.S

OPM implementation in Pharma Industry

Hello All
I am looking for information (case studies/white papers/others) on OPM Implementation in Pharma industry primarily to learn :
- How active drug mfg & formulations mfg was mapped to OPM
- Business requirements that could be fulfilled by standard package
- Business requirements not fulfilled by std package and the workarounds for the same.
Any info this regards would be great to have.
Thank you !

We have implemented OPM in a pharma company. I will try to give you some of the inputs.
- How active drug mfg & formulations mfg was mapped to OPM
These were mapped as items and we used recipe versions extensively. For Samples we used the same itemcode prefixed with S.
- Business requirements that could be fulfilled by standard package
OPM was able to fulfill almost all the requirements of the pharma business.
- Business requirements not fulfilled by std package and the workarounds for the same.
We had problem in costing. The cost is maintained at item level in OPM. However the company wanted the cost at a lot level. For example, the same item could be manufactured inhouse or purchased outside. They wanted to track costs separately. This was not possible in OPM. Hence we mapped the company on Standard cost for accounting purposes. This was more of a compromise.
I have recently implemented lot costing which specifically addresses the above problem.
I feel that Oracle OPM with lot costing will address most of the manufacturing / costing requirements of a pharma industry.
If you want more info. kindly update these columns or you can contact me at [email protected]
Regards
Ram

Valuation type proposed

Hi,
In MFBF, after I click on u2018 post with correctionu2019 I can see screen containing bill of material to be issued. I can also see for split valuated materials , a valuation type DOM is proposed. That material is valuated in two valuation types DOM and IMP.
Please tell me why DOM is proposed by system, why not IMP?? Where is the control? My client is asking based on what system proposes valuation type.
Regards.

Hi,
intention to set valuation type to the materials,
Due to material availability constraint, same type of material code is either procured from vendor or manufactured inhouse,
for such, we assign valuation category into Accounting view,i.e. Y or may be others,for this valuation category we extent
valuation type may be BO OR IH. in your case is DOM/IMP,
Pl. check into T code OMWCGLOBAL CATEGORIES-Valuation types maintain for your valuation category,
if for the same material DOM/IMP,maintained then system ask for one of the valuation type during confirmation,
as the stock availble with the valuation type.
Regards,
Devendra

Split valuation implementation.

Hi, we are running ECC 6 and recently our Finance department wanted to enable Split Valuation.
The story started when we purchase 1 item (says Item A) 1 pc with purchase price of $1000, we GR (Goods Received) under Batch 1.
We also have 1 pc of item A returned from user with value of $1 (after depreciation), and we GR under Batch 2.
Therefore,in total, we have qty 2 pcs with amt $1001.
If we issue 1 pc from Batch 1, SAP will take the average price of $500.50 per piece.
However, when Split Valuation enable, when we issue 1 pc from Batch 1, SAP will take the actual cost of RM1000.
What puzzle me is to enable Split Valuation in SAP, those historical PO and existing PO that purchased item A need to be deleted as well ?
Does anybody know what is the logic ?
Thanks & regards
Chin
27-Aug-2014 @1:58pm

split valuation is usually made to care about financial aspects, while batch managment is in general a logistic thing.
The main purposes of batch managment is to identify a certain receipt, to trace shelf life and quality
The logistic people will use the stock for production or sales based on the batch characteristics rather than on financial aspects.
It usually does not matter in logistics if the material was manufactured inhouse of procured externally.
The finance people are intrested to trace the costs seperate based on the origin.
If the valuation type plays a role for logistics too, then you can still include it in batch determination to pick the batch accordingly.
Batch determination is the tool that supports the people to pick the batch according to a defined strategy instead of manual picking base on the info that is shown in MMBE.
It is SAP design that you will not see the valuation type in MMBE when you use batch management.
If you want see batch number and valuation type next to each other in a stock list, then you have to do own development
Why do you use batch management for these materials? what is the purpose of the batch? split valuation is possible without batch managment, then you will see the valuation type in the batch column of MMBE

Asset manufactured inhouse

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