Both procurement types with repetitive manufacturing

Hello Experts,
I have a problem with a material and I am not sure about what is the best way to solve it. I have a material that initially was a purchasing material and was defined like:
- Procurement type: External procurement.
- Price control: Moving average price/periodic unit price
Now, because of the plant capacities, it is possible to produce this material too, depending on the necesities. This means that the new procurement type for it will be both procurement types. The problem is that in this plant the manufacturing strategy is Repetitive Manufacturing, but the price control should continue being moving average price.
Is it possible to have a repetitive scenario with a moving average price? the solution is in this case correct? Should I define any different information for this material?
Thanks in advance.
Laura

Dear ,
As long as you are manufactuing FERT at plant , you should use Standard Cost Estimate in case of REM .In material master you should use , Costing Variant for Finished Goods , Price Control as S (Standrad Cost Estimate ) .
Product Cost = Materials Cost(ROH + HALB Materials Cost)Activity Cost (Operation Cost)Overhead Cost.
1.Raw materials cost are generally entered as Planned price along with the valid from date in Costing 2
view,and price control indicator is "V".Origin group has to be given to all the Raw materials in costing 1
view.
2.For HALB Materials Price control indcator will be S for Inhouse manufactured & V for externally
processed materials (Sub-Contracted Items) respectively.Also assign Overhead group for all Inhouse
manufactured items.
Refer : COSTING DIFF B/W DIS & REM
Regards
JH

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Procurement type u201CE (In-house production) u201D & u201CXu201D (Both procurement types)

Hi SAP Gurus,
What is the Deference between Procurement type u201CE (In-house production) u201D & u201CXu201D (Both procurement types)
Cause after MRP run in Both cases I come across same options.
With This Procurement type we can get plan order as well a Purchase requisition & all other option then what is the difference between E & X ?
Best Regards,
Parag.

Dear Parag,
This is flexibility given by SAP, suppose you have material which is produced in-house and procured from vendor also. In these cases the procurement type is kept X. The MRP will give planned order in case of X and you have liberty to create Production order and purchase requisition also. This you can verify in MD04 for X procured material.
Shekhar

Order type for planned order in repetitive manufacturing

hi
In repetitive manufaturing there is no prodcutiion order
planned order only. so i want know what is order type for repetitive manufacturing
In configuration order type for reptitive is required or not if yes then how will define order type ,where
In Discrete order type will define to control prodution order
like that i want know details about order type in repetive manufature
ravikumar

HI
Planned order in REM is of PE type thar s non convertible in PO and also these planned orders are assigned to PVs thru Planning table and the Confirmation is done agianst these planned orders.
check these links:
Re: order type in repetitive manufacturing
http://www.sapfunctional.com/PP/REM/page1.htm
Regards
Anupam Sharma

Both procurement

Hi,Experts,
I am in a project for a client,where they want to maintain,both procurement type that is external as well as the inhouse for the same material type,Now
1) First question is how can it be possible?
2) Second if done,which date will be the delivery confirmation date,after the availability check and if the inhouse production date is earlier but,still i want the material to be procured externally,then how to customize the same.
please mention the necessary configuration to be done to implement the specific requirement.
Thanks in advance,

Hi,
Dear Shiva Ram,
Thanks for the initiative of yours,towards replying my question, but still i have the query unanswered so far as the date of confirmation and which RLT will it take into account when both type of Procurement type is active,say when there is only one RLT which we can maintain,is there any way we can make this RLT(Replenishment Lead time) perform dynamically,that is when we are going for inhouse production it will conform the delivery date as the specific RLT and when we go for external procurement it will take the RLT as which is meant for externally procured material and conrfim the delivery date accordingly.
Since the time requirement for both the scenarios is different.
And as per your suggestion i have navigated the ovx9 but i could not find,as how can this be managed with the RLT tab over there.Also tell me if there are any other ways by which we can handle this requirement.
please guide me in this regard,
Thanks and regards.

Material procurement types

hi friends,
can any one tell me material procurement types

Hello
Check this document on Material Type:
Use
When the system determines the procurement element, it first asks whether procurement should take place via in-house production or external procurement.
Prerequisites
You have defined whether in-house production, external procurement or both are allowed for the material, in the material master record, in the Procurement type field. The procurement type is preset by the material type in Customizing for the material master.
If necessary, you have defined more precisely how the in-house production or external procurement is to be carried out, in the material master (MRP 2 view), in the Special procurement field.
You define special procurement keys in Customizing for MRP in the IMG activity Define special procurement type.
Features
Procurement Type
If both in-house production and external procurement are defined for the material via the material type (indicator X in Procurement type field), then you can set the procurement type as follows:
By overwriting the indicator in the material master
By converting the planned order either into a production order or a purchase requisition
By using quota arrangements, in that you define that a certain percentage of the material is to be procured via in-house production and the rest via external procurement (see Quota Arrangements).
If you leave the indicator X for both procurement types in the material master record, and you have not maintained any quota arrangements, the system automatically switches to in-house production. The planned order therefore firstly creates planned orders, which you can then convert into production orders or purchase requisitions.
Special Procurement Type
The special procurement type is used to precisely define how in-house production and external procurement is to be carried out.
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
Reg
assign points if useful

Procurement Type "X" in MRP 2 for Discreate Manufacturing

Hi,
If we maintain Proc Type as "X" in MRP 2 view for the materials how will system plan for both In-ouse manufacturing and external Procurement.
Can someone explain the logic in this.
Regard's,
Uday.

Hi,
procurement type X into MRP 2 view,
Pl. refer following options
1.it is generally refer to SEMIFINISH materials,in which intention is to opt for BOTH Inhouse & Bought out items.
i.e same material code could be refer to either produced inhouse or in emergencey for production could Bought from the vendor.
in this case accounting entry hit with incorrect, i.e only semifinish account updated during GRN.
2.It is generally work for Split valuated material,initially material is created with procuremnet type X,
Then same material exted with Split valuation type BO / IH ( Bought out item/inhouse produced item)
In this case accounting entry is hit correctly.i.e With BO bought account hit & For IH Semi finish accounthit,
Could check into accounting data for the materials.
3.During cost run for the materials ,if set with Procurement type X, then system consider it as Inhouse production & ask for BOM items.for this u have to make untick into DO NOT COST tab into costing 1 view into material master.
Regards,
Devendra

CK11n with procurement type X

i have a material that can be purchased or manufactured. at costing time, i want the system to ALWAYS use the purchase cost (planned price 1).
if i set the material to be purchased with producrement type F, the cost is correct, so my costing is fine, but when i set procurement type to "X", it uses the manufactured cost.
I have set up a quota arrangement, and coded the material master to use the quota arrangement.
I have not seen anything in the valuation variant for costing to specify a quota arrangement, except for subcontracting, and this is NOT subcontracting, it is a direct purchase.
any ideas on how i can make the system use the purchase cost, rather than the manufactured one, for CK11n?

Dear David,
Though I'm not from a CO Module,but let me share my comments.
1.Materials which has a procurement type as X will be a split valuated material.So whenever you do any material document posting
the system asks on which value it has to consider.Because in this case for Inhouse it may be having a value of 10 $ and for a
externally procured/sub-contracted may be having a value less than or greater than 10 $.
2.During costing for such materials,you can use a different costing variant which will be linked to a costing variant where you can
give the priority to the values that the system should consider,goto OKKN and check.
Check and revert back.
Regards
Mangalraj.S

Procurement type X both for kanban

Hi Friends,
If procurement type X both is maintained in the mateiral master & in kanban cycle pkmc if I maintain qty contract which I create through ME31K.
Will I able to set up process for kanban if If procurement type X both is set up in mateiral master.
Thanks,
Kiran

First you need to extend your material to a storage location(same location you have used while creating your Prod supply area). Then copy all external procurement strategies available from the standard plant 0001 to your 0902 plant. (Tcode-OM12).
This 0001 strategy (with purchase orders) is what is referred to as non-mrp strategy. For the material you are using in PKMC ensure that the material master mrp4 view field sloc indicator is NE Blank. That is it has storage location excluded from planning or planned separately. When you have this setting you should see 0001 available to setup your control cycle.

REM with Procurement type "X"

Hi experts,
In repetitive mfg, we want to plan a component which is sometimes made in-house or procured from vednor.
Hence, for the component, we want to get planned oder for total requirement.
The same planned order can be convertable to Pur request or can be used for REM GR posting.
Request to guide.
Regards
Nitin

Hi Nitin,
you cannot convert planned order to Pur req/ Prod .order in REM , since it has PE order Type. In your case, u want to use same planned order for Both inhouse and external, it is also not possible.
if you know, how much percentage in total requirement , to be produced in Inhouse and External , u can create two production versions and use quota Arrangement.
u can assign procurement type and percentage for each production version.
MRP run create both planned order and pur requistion as per percentage has given.
other wise u have to create Pur req manullay.
please come back if required more details.
regards
pradeep

Triggering Repetitive manufacturing inspection lot - insp type 13

Dear Expert,
I have activated 13 insp type for my semi-finish material,
in the routing also for the last operation control key has maintained.
Finally in the production version also we have selected the the same routing.
I am not able to create Inspection lot for repetitive manufacturing.
Please tell me what settings need to be done.
Thanks
DON

Dear DON,
Before posting thread please refer to earlier created theards you may find some thing which you were looking for related to your query.
you will definatly find the solution,If the threads are not there then post the new thread with your query.Our great Gurus will help the needy.
please refer to
[In Process Inspection of Repetitive Manufacturing;
for your repetitive manufacturing
if this is not enough,follow this as given below.
MM01/MM02
Activate inspection type 09 at the time of material creation. AND enter the number of days in the field "Inspection interval" in QM view.
This field indicates at what frequency in days you need to trigger the recurring inspection lot.
QA05
Define a variant for recurring inspection lot generation. Refer the below pasted link for the same.
Related Thread
It will trigger the inspection lots according to the date of next inspection date in he Batch.
QP01
You need to keep a inspection plan ready to record results for this lot.
QA32
Record Results for the inspection lot.
Perform UD for the lot.
To create variant through QA05 will not enough. You need to schedule the job, and release them also.
To check whether you have successfully scheduled the job or not.
Run QA05, here you will be able to see a line item for the variant you have created. correct?
1}
So select that line and click on the button "DISPLAY SCHEDULING", if the scheduling is not carried out, it will through the "Message no. 38001 - No jobs found in the display client" else will show the it will show "Recurring insp: job planning: list of scheduled requests."
2}
To schedule the job, select the variant line, and click on the button Schedule, it will lead you to the screen Recurring insp: job planning scheduling; start time.
here you need to define "Job start date" and "Batch job start time", then click on "Schedule Periodically" and enter the at what frequency you want to replete the job run.
At the this frequency (e.g. if you select day 1) then it will run the job daily at the time you have entered at "Batch job start time".
3}
Then replete the 1} to view your scheduling details. And the job is not released then release them else it will again not run and you will not have the lot.
Edited by: vijaysap123 on Jan 25, 2010 11:33 AM

WIP FOR REPETITIVE MANUFACTURING WITH VALUATED SALES ORDER

Dear All,
We are in the process of implementing Repetitive manufacturing with valuated sales order(MTO). I want to clarify whether in this scenario WIP will be generated.
Since, at the time of final backflushing, what ever GR done for finished goods, the GI for its components will be done automatically. The components will be issued based on the BOM. I think in this scenario WIP will not be there.
Please tell me whether i am correct.
regards
ranga

Thanks. I have another scenario. My client wants to transfer all cost of HR,Admin, finance etc and other indirect production cost center cost to production cost center. I mean they want to charge on the product. I have to production cost center. Client will give me the basis for allocating the cost. I have to do assessment and distribution for cost allocation
But, I want to clarify how do i include the admin, hr or finance and indirect production cost center cost in cost component structure if i do the above process.
How to do the cost splitting.
regards
ranga

Considering stocks of both plants in special procure. type scenario.-urgent

Hi dudes,
Our client is using special procurement type 80(prod.in alternative plant), he is getting planned order in delivering plant as requirement generated by planning plant. while running MRP in both plants, it would consider only the stock of planning plant but not the stock of delivering plant suppose stock is made in delivering plant individually(say manual orders). As the requirement generated by planning plant, the planned order will be generated in delivering plant irrespective of its individual stock.
can we make the system to consider what ever the stock in delivering plant and create no planned order if stock is there.
thanks in advance
Robert

Robert,
If that was your requirement why not use Special Procurement key 70 (Withdraw from alternate plant). In this case system only creates reservation and Planning at Supplying plant will be based on the Net requirement calculation considering all recipets, Stock and Issues.
Regards,
Prasobh

CS13 ----- will it show only parts with procurement type F ?

Hi,
I have a basc issue
when we execute CS13 it summarises teh BOm and show the Bom component and quantity .
will it show only parts with procurement type F ?
when we execute CS13 for a finished product , its not displaying all the BOM components , the list is displaying only few
what might be the reason
will it show the parts only directly linked to it at the first level ?
regards,
madhu kiran.

Hi,
CS13 shows summarize BOM that mean it leaves out all the intermediate BOMs(sub assemblies) and displays on the end components. End component need not have procurement type F.
It will display End components in the any level.
To simply cross check, in CS12 add colum Assembly indicator and filter only those components having blank value. You will get report displayed as that of CS13.
Regards,
Krishna Mohan

Procurement type X in SAP R/3

Hello Gurus,
We have an FG with Proc type X because it may be procured in both ways. (Repetitive manufacturing)
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Requirement situation is 10pcs on Jan 31st and 20 pcs on feb 19th. Stock is ZERO
Expectation is that If I run MRP today system should create Schedule lines for the Jan 31st requirement and create a Planned order for Jan 19th requiremnt............Which is not happening.
Instead system is creating planned orders for both requiremnts . No schedule lines were created for Jan 31st requirement.
Gurus, Is there any customizing setting to allow system to behave as an F and E type simultaneosly based on the SOurce list Valid-To date and production version Valid from date
THNX HKR

Hi,
please check below link from
Re: REM with Procurement type "X"
Regards,
Ram

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

Both procurement types with repetitive manufacturing

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