Commitment for project inventory

We've been researching Requisitions and Purchase Orders for Projects and how they flow through to show as a commitment and we are having problems with materials purchased as project inventory. I've read many Notes on this issue but haven't been able to get a clear answer on the question of commitments for Inventory items.
Can anyone let me know if a requisition for materials purchased as Inventory should be showing up as a commitment?
When a requisition is entered with Account Assignment P, to an expense GL account, the amount of the requisition appears as a commitment in CJI5. Once the PO is receipted the balance moved from commitment to actual. When the same requisition is entered as a Q, the system correctly automatically assigns to an inventory account, but no commitment is made. The only time the balance appears on the project is when the goods are issued, then the balance appears a Actual.

Thank you for the information.
For anyone that has a problem creating balance sheet cost elements in the future please refer to SAP Note 75980.
This Note provides guidance on error KS036 that stops a cost element from being created from a balance sheet account. The Note gives steps to remove error message KI098 which indirectly deactivates message KS036 to allow a cost element to be created.

Similar Messages

Standard capital commitment for projects possible?

Hello together,
is it possible, in the SAP-standard, to compute the capital commitment for projects alternatively PSP-elements?
Thanks in advance!
Greetings Peter
Edited by: Bernd Sollondz on Jun 5, 2009 9:34 AM

Hello AP,
it is activated....do you have information about the capital commitment?
Peter

Commitment for inventory purchase

Hello experts,
our customer it is requesting us to manage commitment not only with direct consumption purchases but also with inventory purcahses. I found that the inventory account can be set as "Cost Element Category" = 90 Statistical cost element for balance sheet.
It seems that with this category I can manage a statiscal cost for balance accounts (such as the inventory account). But the thing is that in order to get this statistical cost I need to assign an account assingment category and a cost allocation object in the purchase order so that I can allocat the statistical cost in the order (as this is the requirement from the customer).
My question is, for sure this is something I can get using account assignment category "Q" and projects. But is it possible to achieve the same result by using "F" and orders??
In thi end, the requirement from the customer is to manage commitment for inventory purchases.
Best regards

Thank you for the information.
For anyone that has a problem creating balance sheet cost elements in the future please refer to SAP Note 75980.
This Note provides guidance on error KS036 that stops a cost element from being created from a balance sheet account. The Note gives steps to remove error message KI098 which indirectly deactivates message KS036 to allow a cost element to be created.

Commitment cost of Purchase requisitions for Project

Dear All,
My requirement is like , I don't want Purchase requisitions cost to come under commitment cost for Project.
Is it possible to do so.?
If yes, then how.
Regards,
Vishal

>
mforman wrote:
> How did you finally solve this issue?
>
> Thanks
Question
>
Vishal Murmoo wrote:
> Dear All,
>
> My requirement is like , I don't want Purchase requisitions cost to come under commitment cost for Project.
>
> Is it possible to do so.?
>
> If yes, then how.
>
> Regards,
> Vishal
Answer
>
Nitin Patoliya wrote:
> As suggested by Virendra,
> you can deactivate the commitment menagment in OKKP txn ( Maintain Controlling area ) --> slect your CoAr --> (Double click ) Activate component /control indicator --> Commitmment management --> select drop down componenet not active.
>
> Make not that by doing this your are going to make inactive commitment management to entire controlling area. with referenct ot PS. i.e. all the project belongs to that controllling area.
>
> The SPRO node for the same is PS-->Cost --> Activate Project Management in Controlling Area.
>
> Please refer this post.
> http://help.sap.com/saphelp_470/helpdata/en/a9/ab7868414111d182b10000e829fbfe/frameset.htm
>
> Regards
> Nitin Patoliya
Correct answer already given by Virendra & Nitin, Please try the solution before posting further queries.

Inventory Count MVLS as 0 for Project & Visio

Hi,
I'm using CM2012 and asset intelligence is all setup and (seems) to be working fine. I have imported my MVLS and it is reporting back to me the inventory counts on Windows 7 and Server OS's...however, it isn't reporting back inventory counts for
Project, Visio, visual Studio, Exchange etc...
Am I missing something really simple in the inventory settings?
Any ideas would be very welcome as its driving me mad!
Thanks....

Yes, I know this is an old post, but I’m trying to clean them up. Did you solve this problem, if so what was the solution?
I hate to say it but if are not seeing everyt8ihg listed then you need to contact CSS or the MLVS team, they will work with you to solve this problem.
Garth Jones | My blogs: Enhansoft and
Old Blog site | Twitter:
@GarthMJ

How to creat commitment for PO PR but not creat statistical cost for GR

Hi,
Quantities and Values in Valuated Project Stock: Example - Material - SAP Library
Planning
Material FIN-M is assigned to network activity V10 and is managed in the project stock for WBS element P/4711.1.
The network type is flagged as appended and apportioned to the WBS.
Before the first MRP planning run or before the planned orders are converted into purchase requisitions or production orders, the following amounts appear in WBS element P/4711.1:
Planned costs of $500,00
Remaining order plan value of $300,00
The MRP controller begins by converting the planned orders. First, the planned order for the material RAW-M is converted into a purchase requisition and the planned order for the material SEMI-M is converted into production order A2.The order type is flagged as not appended and apportioned to the WBS.The remaining order plan value in the WBS element changes by the amount of the internal activities portion of production order A2 to $400,00 (300,00 + 100,00).After the purchase requisition is converted into a purchase order, a cost commitment of $50,00 also appears in WBS element P/4711.1.
External Procurement
Valuated goods are received for the purchase order, but the price is $10 different at $60. Assuming that material RAW-M is price-controlled, this gives rise to a debit posting of $60,00 in the stock account and credit posting of $60 in the GR/IR clearing account (Financial Accounting).If the inventory accounts was created as a cost element in CO, the following appear in WBS element P/4711.1:
Statistical actual costs of $60,00 in the stock cost element
A cost commitment of $0,00
If material RAW-M is price-controlled the standard price is $50,00, the postings in Financial Accounting are: $50,00 debit to a stock account $10,00 debit to a price difference $60,00 credit to the GR/IR clearing account
In this case, the only figure in the WBS element would be statistical actual costs of $50,00.
Above excerpt from SAP help, may I know how to do configuration to creat commitment for PO PR but not creat statistical cost for GR?
Thanks and regards,
Ray

Hello Jie,
if i right assuming your query then PR->PO= Commitment should be created.
but GRN by MIGO=Statistical cost should not create once MIGO if right then actual cost would be 0.
you can activate commitment by OKKP transaction.
And you want to cost should not be statistical after MIGO right?
here solution is cost never statistical type until account assignment object not statistical type this is my assumption.
if this is the issue then check G/L account from the PO. then check that G/L account, whether it is a B/S account or P&L account? I think you have wrongly assigned P&L account.
Regards,
Sanjeev

Account determination for project stock delivery (for movement type 281Q)

Hello
We are trying to carry out delivery for project stock (CNS0) using movement type 281Q.
We notice that there is no account modifier availalbe for this scenario resulting in error during PGI. However, we can do PGI after changing the config of account determination without account modifier.
Since working without an account modifier is not acceptable for various business reasons, we must have an account modifier defined. We are wondering why SAP has not provided a standard solution for dealing with project stock delivery.
Can any one please suggest how to deal this situation.
Thanks and warm regards,
Jagadeeesh

We have business requirement as stated below:
We need to procure materials for specific Projects but also want to track the stock for the Project by value in the invnetory. In other words, the encumbrance of the procurement needs to take place against the Project but we want to be able to take it into inventory as a valuated stock and issue to the WBS whenever it is required.
Is this possible? What we know is that as soon as we give reference of the WBS for the Procurement, it gets expensed to the Project and we cannot value manage in inventory.
The reason for this requirement is there is a long time between when the item is procured and when it is used for the project. Till such time we have to track the Project items in the inventory as any other stock but its still tagged for the project and encumbrance would need to have happened
Any ideas on how to deal with this will be appreciated
Thanks
Noornie

There is still a purchase order commitment for WBS

Hi All,
We need to close whole project while closing I am getting the attached error.
There is still a purchase order commitment for WBS
Additional Information or Comments: = I have checked and closed all purchases order commitment. But still the project shows the below error .
Edited by: nandhasapfi on Sep 22, 2011 10:52 AM

Hello,
This message is being output correctly as the AuC still has
values against it.
These values must be cleared before you can close the WBS element.
Please do a FUL settlement against the WBS element to clear
these values and then try to set the CLSD status again.
There are two ways to 'clean' the AuC, so that you can deactivate it
and close the wbs element:
1. Post a manual retirement of the AuC to clean it.
2. Create a new AuC and use it for all the differences in the final
settlement.
I hope this helps,
regards
Ray

Purchase Requisition commitment for WBS

Hi! PS Gurus!
There is one issue in my support project. While closing one WBS, the system gives an error that u201CThere is still Purchase Requisition commitment for WBSu2026.u201D
But when I checked ME5J, some cost exists at PR. Later on I came to know that Purchase requisition is missing from the system, it has been deleted from the system. The solution I find out from SAP note. Some report we need to upload from basis people, again later on I came to know that the data is not uploadable, the main thing abaper found out that there is no program exists for that particular report.
Plz tell me wht do I do to recover my PR.
The report ZKAOIDEO edits commitments for which there is no P.O or P.R (for this reason, you cannot use ME23N or ME53N to display a P.O or P.R for these commitments.
Plz give me ur suggestion. Need ur help.
Regards,
ANSAR.

As per abopve query,
In Production server the PR is Missing, that means it is deleted, it can be seen only in cji5, we see that commitment of Rsu2026. exists against PR no...., itself doesnot exist in system.
Plz let me know how it is possible that PR is non-existent (T-code-ME53N) inspite of commitment against it & how to reverse/clear the commitment in such case to close the WBS.
Report RKANBU01 is there in the system, but ZKAOIDE0 & ZKAOIDE2 doesnot exist in the system, then how to run RKACOR04 in the system.
plz need some help.

Subcontracting for Project

Dear SAP Guru,
In my organization, the business requirement is to use subcontracting process for project.
I maintain the movement type 311 Q for subcontracting process, but at the time of reconciliation of subcontracting Challan, the system does not refer the stock transfer material docuement.
Movement type 541 (for subcontracting) does refer the project stock.

Hi,
Subcontracting for Project Stock: -
Purpose: - Subcontracting is also possible in conjunction with Project stocks. The subcontracting orders are account-assigned to a Project. Thus, the components are not transferred (using a transfer posting) to the "stock of material provided to vendor" but are directly withdrawn from the Project stock the time of the goods receipt. The material manufactured is also posted to the Project stock.
The cost of subcontracting is then debited to the Project.
Since the components are not transferred to the "stock of material provided to vendor", it is recommend that you use a transfer posting to transfer the provided components to a new storage location (for example, 9999). This enables you to obtain an overview of those stocks that are physically located at the subcontractor. This information is particularly important when you carry out a physical inventory of the Project stocks.
Features: -
Withdrawal from Stock of Mat. Provided or Project: -
For components that are managed in Project stock, you can define whether the components are to be withdrawn directly from each Project or from the stock of material provided to vendor. You manage this via the dependent requirements indicator for individual customer requirements and collective requirements (MARC-SBDKZ).
You can maintain this indicator in the following places:
In the MRP view of the material master record (MRP 4)
In the explosion types for the BOM item (in Customizing for Production in the step Basic Data -> Bill of Material -> Item Data -> Define explosion types)
Configuring the explosion types has priority over the configuration in Inventory Management.
If the indicator is set at Collective requirements only (2), the materials are withdrawn from the stock of material provided to vendor. If this indicator is set any other way, the system withdraws materials from Project stock.
Here all the processes will remain same except; MB1B - Do Transfer Posting of material from RM Warehouse to this Storage Location via movement type "311 Q" (Instead of doing 541)

India Localization for Projects

We are planing to implement Projects for one of our Indian client.
Whether there are any India localization patch for Oracle Projects?
How are localization needs of the client are met if no Order Management is implemented in India.

India localization patches for Projects are available (FOr Costing and billing).
FOr costing it takes care of Getting all non recoverable taxes as commitment and cost. (Considers India taxes).
And in billing you can derive tax codes for a draft invoice, based on event type. So basically the setup for Project billing India localization is primarily driven by default setup at Event type level. And ofcourse you can over write these default tax codes from India Local, invoice review form.

Vendor purchase contracts as a commitment in project reporting

We are able to see all Purchase Requisitions and Purchase orders as a commitment in Project Systems reports such as S_ALR_87013588 or CJI5 but are not able to see vendor Purchase Contracts until a PO is written. Is this normal behavior?
When creating a purchase contract we enter an assignment of P for project and a WBS element in the account assignment which indicates to me this should show as a commitment much like a purchase requisition.
Any thoughts on vendor purchase contracts as a commitment item?
Thanks,
Jeff

As suggested by muzamil in PS you can find mainly three kind of commitment, which get recored based on value category, & you can check the same in CJI5. Commitments are exclusively generated from purchase orders, purchase requisitions, funds commitments and funds reservations.
Check out CJI5 for that particular WBS.
As I understand contract is business agreement between your company and vendor for the supply of Goods , Material / Service at specified rate for specified period.
Once PR / PO is created that is obligation that you want this goods on this date. As the time is fixed, So, you are going to pay for the same in near future.
It's correct behavior only.
With Regards
Nitin P.

Costing for Miscellaneous issue transaction for project

We have a different requirement from the business
ours is R&D and we are using Oracle projects to track our projects costing and billing
we procure some material from outside supplier and it will get costed to the project but when any engineer want to use the material they want to reduce the material from the inventory by they dont want the cost to get reduced from the project
usually engineers take the material by doing miscellaneous issue for some testing and they never get in to the project again it will be treated as samples
currently when i do the miscellaneous issue it reduces the inventory from project and also the cost will get reduced.
Can someone help me out since it is very critical for us to acheive this,
Regards
Lavanya

D
Dear Lavanya,
The material should be first reeived to Inventort then transferred to projects
Ex 100 Quantity is Received @ 10 Each - Inventory Material value will be 1000 Unit Price 10
Now 10 Quantity is Issued(Samples) @ 0 each - Inventory material Value will be 1000 Unit Price 11.11
Now Transfer the remaining quantity to Projects i,e 90 quantity, & inventory material value will be 1000, unit price will be 11.11 (Use Project related Misc Transaction for Project Issues)
Even though material is issued with 0 unit price A/c entries will be generated
Dr. Given A/c
Cr. Inventory material value A/c
Here first the material is directly received into Inventory (Not related to projects organization) Miscellaneous Issue (For samples) is done with 0 unit cost after that The material is transferred to projects (Project Issues)
For Miscellaneous Issue (Samples Issue) a Personalization is need to done such that the Unit price will be freeze to 0.
Regards
Shaan

Account Generator for Projects

I need to customize Account Generator for Documents (PO,REQ & Invoice) which are linked to Projects.
So we zeroed in on below Workflows
1. PO Account Generator
2. PO Requisition Account Generator
3. Project Supplier Invoice Account Generation
For 1, PO Account Generator, we found the node under Process "Generate Default Charge Account" where it's checking for Destination Type, & if it's Expense then it's checking if PO is Project Based. Now my question is
Q1.1 --> Can PO be of Inventory or Shop floor & still have Project associated with it. If yes, then how can we do the customization of Charge account for PO's based on Project.
For 2,we found the node "Build Expense Project Charge Account" under Process "Build Expense Charge Account".
Q2.1 --> Is it where we need to Put the customization for Project related requisitions. Again this process is for Destination Type of Expense. So again same question under 1.1 will answer the second part of question for PO Requisition Account Generator
For 3, as of now I am very much confused on this workflow where to put the customization for Project related Invoices.
Any help is appreciated.
Thanks Much
Sachin

We were able to finally confirm that we are doing the customization on right node.
Now we are stuck as we are being asked that we only need to call standard packages for customization, now if Account is setup as Lookup Set on Oracle Projects, then we have found that by calling PA_ACC_GEN_WF_PKG.PA_SEG_LOOKUP_SET_VALUE we'll be able to derive the value for the segment. But what will happen to Rules & Functions defined in Oracle Projects. How they can play the role for customizing Account Generator.
Any help. Let me know if I can explain in more detail.
Thanks

Projects Inventory Destination PO Charge Account

Hi,
Can anyone tell me, where does the PO Charge Account defaults from in case of a Project related PO with Inventory Destination.
Does it default from the Cost Group attached to the Project using PJM ?
Or does it default from the Inv Org Level ?
Regards,

Charge Account comes from Inventory Org setup and for receiving as well, In case of projects
for Inventory Items - -> It comes from inventory org setup , if you define project mfg setups as cost group as Project and Inventory and transfer of accounting to Gl (from projects or Inventory) based on the options you set the accounting is derived
for Non Inventory Items @ PO - Charge account, generally you customize the workflow PO:Default Account generator to derive the accounts
same in case on REQ as well
hope this answers
Best Regards
Krishna

Commitment for project inventory

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