Consumption of finished goods

Hi All,
I notice the posting of co11n is dr consumption finished goods cr finished goods account.
May I know why there is such an accounting posting?
Thanks

Unlike many other systems, SAP moves all production activity through the P&L during the month - WIP is only moved back to the balance sheet during month-end processing.
So, the production value flow (items before the slash are FI accounts, items after the slash are cost objects)
1. Consume materials
Dr consumption / order
Cr Inventory       / -
2. Absorb costs (activity confirmations)
Dr -                   / Order
Cr -                   / CCtr
( no postings in FI, secondary cost postings in CO only )
3. Place finished items in inventory
Dr Inv                  / -
Cr Prod. clearing / order
4. Month-end (settlement):
If the order is complete, then:
Dr Variances            / -
Cr Variances offset / order
If the order isn't complete, then:
( also, the prior month's WIP settlement posting is reversed )
Dr WIP                     / -
Cr WIP clearing       / order
...at the end of each month, all orders should have a zero balance. This is the basic value flow for production, very grossly oversimplified.
The orders pool up costs, and the confirmation clears them back to the balance sheet as inventory. That's why the credit booked to the order.

Similar Messages

Vendor wise consumption in finish good

R/All
SAP expert,
The scenario is we are selling one component to 2 customer and ther are 10 to 80 child part in it's BOM and all child parts having more than 3 vendors.
Suppose we have sale 1000 nos to each customer. Now management want to know, how much we have used same child parts supplied by vendor1, vendor2 and vendor3.
I think question is clear.
So pl. let me know which scenario I should apply and how.
Thanx in advance

Dear LBY,
First you have to define/set the batch management level,then indicator in the material master for mentioning the material is
relevant to batch management.
I would suggest you to give a simple serach in PP forums on the same topic and you can find plenty of threads related to this
batch management settings and batch determination etc.
http://www.sap-img.com/materials/config-setting-in-batch-management.htm
http://www.sap-img.com/mm030.htm
Regards
Mangalraj.S

Finished goods transaction

Hi All,
1) May I know what kind of transaction that will create document type WA goods issue, WE goods receipt, WL goods issue/delivery, WI inventory document.
finished goods is balance sheet account and the rest are p&l.
2) if it is a consumption, debit finished goods credit consumption, what transaction is this?
3) if it is a transaction, credit finished goods debit goods issue, what transaction is this?
4) if it is a transaction, debit finished goods credit goods receipt, what transaction is this?
thanks

Hi,
Thanks for you replay, Below are the points.
1) Related to your fiest question, Transaction happend through MIGO with movement type 261.Incase it is reversal ie move type 262.
2) Please tell me your second point i didn't under stand.Good issue done through MB1B transaction with movement type 453.At this time your cogs cr and inve debit. Incase it is not the case please revert.
3) Kindly tell me the 3rd point clearely. As per your poing inv debti and GR Credit Means, it is happening through MIGO through movement type 101 ie regular good reciept.
Above all points are based on document type specified in PO.
As per your last point, Cogs would be a part using movement type 601 and 453. For consumption related cogs it won't come.Becuase inventory consumed so accounting entry shouldbe consumption a/c debit and inventory cr.
I hope you understand clearely, Incase any issue please revert back to me.
Regards
Maruthi.
Edited by: kumar yaparthi on Sep 14, 2008 2:48 PM

How can I get the material consumption of the month for each specific Finished Good?

(Sorry, I first opened this discussion in another space. I guess here's where it belongs).
Dear Experts,
This is the first time I open a discussion. I'm new at this. I've been reading for a couple of months your forums and certainly you've helped me a lot. Thanks for that. Keep it up! ^_^
Now on business. Let me explain a bit about what I'm looking for.
I've been looking for a report that shows me the material consumption of the month in quantities. Raw Material and Packaging Material to be more specific. Also I need to see the consumption of those materials by each specific Finished Good.
For example, I know the consumption of Flour of all the month, but we use it for all our Finished Goods or SKU's as we call them, since we make cookies. How can I know how much Flour each Finished Good actually used?
I've been trying with different T-Codes, reports, etc. The last thing I've got is using transaction MB51 and filtering movements type from 261 to 262. The beauty of this report is that shows me the Process Order number, since I can match the PO number to a Finished Good with another report from BI (or BEX, however you call it).
Everything was fine until I found that there are some PO's that are not directly related to a Finished Good, but to a Semi Finished Good. In some cases I'm able to match the Finished Good, since the majority of Semi Finished Goods are uniques to a Finished Good. But there are three specific cases that are my problem right now:
Cream X: We use it for three Finished Goods.
X Syrup: We use it for all the Finished Goods.
Refined X Sugar: We use it for three Finished Goods.
So those three are Semi Finished Goods which are related to certain numbers of PO's I have on the report.
In the end, with the report from MB51 I have all the list of materials (filtering only Raw and Packaging), I have the consumption of the month (filtering movements 261 and 262) and I have the PO number related to each material. Of course one material is listed many times on the report, but with different PO number.
Then, like I said, I can match the PO number to a Finished Good, except in the cases where the PO is not matched to a Finished Good, but to a Semi Finished Good like the three examples I gave you.
I don't know if there's another way to track the Finished Good having the PO number. I've tried T-Code COR3, but couldn't get too far.
I hope I explained myself a bit clear and also sorry if my English is not so good.
Thanks in advance. ^_^
Warm regards,
Rol

Hi Rolando,
If the purpose is to find the consumption of a material, you can get it from report "MC.9". Plz let me know if it's useful.
Rgds,
Sudheer.

To get Actual Materail Consumption for a Finished Good

Hello Experts,
I would like to know, how we can find the actual materials consumed to make a finished good. The FM "CS_BOM_EXPL_MAT_V2" gives the standard consumption, means the one which was planned but not actual.
This is urgent for me, as I should know what are the materials ACTUALLY consumed to finish a good and also, from which PLANT those materials were supplied.
Thanks in advance.

Thanks for the immediate reply.
But are they the actual consumed ones? The problem is, I am not finding the PLANT from which they are transferred.
The field "Issuing Plant" is blank from STPO.
And about MAST-WERKS for that SFG, I am finding the plant same as the one of FG. But I need the plant from which it was transferred.

Consumption of Semi-Finished Goods is showing more

Hi,
Consumption of Semi-Finished Goods is showing 1,671,226,661.14 which is very very HUGE. Our yearly turnover itself 200 Crores. But for April month alone it is showing 1,671,226,661.14.
I am not able to findout the cause for this issue. Can anyone please provide me the reason and where to check for this?
Thanks
Sundar

HI,
Check if anybody has passed the journal entry into this account by mistake and also check the currency of all the documents posted in April.
Regards,
AZeem

Procurement of finished goods

All,
We have a scenario of procuring finished goods into Finished S location and from there directly do the PGI to customers in SD .
This scenario we are not treating as a third party scenario , which shud be actually .
In this case what will be the accounting implications .?
Means while doing GR , it will go to inventory account . Now how this can be consumed from here .?
Kindly advise better way to tackle this scenario .
regards

Hi,
I am not sure why you think there would be a problem.
When you purchase the stock, the auto account assignment settings will place it in nthe "finished stock" account and when you post the goods issue you will be removing it from that same account.
When you say that there will be no consumption, surely you are issuing the stock via a delivery and goods issue? this consumes the stock from the finished stock account.
Buying finished products is not unique, many people / organisations do this and it all works fine. (But most of them use a different material type such as HAWA - trading goods, but this in NOT essential)
Steve B

Material backflush in production order after finished goods GR

Dear all,
I once started similiar topic several months ago, but didn't recieved any response. I'm gonna give it another try, so maybe you'll be able to support me after all.
So, the situation is like this. We have a production order, in which MC team maintained the materials to consume. The problem is, that very often it comes that we have to use same material part, but under 2-3 different partnumbers. E.G.:
Production order target: 1000 finished goods
Required materials: Part A 1000 pcs, Part B1 700 pcs, Part B2 300 pcs, Part C 1000 pcs, Part D1 150 pcs, Part D2 450 pcs, Part D3 400 pcs.
So yes, in case when it is Part B1, B2 and etc. it means that we're using physically the same part, but under different partnumbers. The problem is, that those material are all coming in pieces, not in meters or anything, and we can't allow to have, for example, 0.7 pcs of any of those materials (cause obviously you can't have 0.7 pcs of LCD panels stored in the warehouse).
It wouldn't be a problem if we could just confirm all operations in production order in 1 batch, but production order is being confirmed partially, every time the pallet with finished goods is being released from production line (we have integrated system, that sends requests to SAP to confirm specific quantity of finished goods in production order). So, as an example, if 1 pallet contains 15 pcs of finished goods, you have 67 confirmations for production order [(66*15)+(1*10)]. And, since all those materials come in PCS, SAP is rounding up consumption if it has decimal, which leads to wrong materials consumption.
Initially, I had an idea of adding 1 more operation in production order, which was supposed to be a manual use only, after finished goods GR, and MC team supposed to assign those B1\B2 and etc. material to this operation E.G.:
Operation 0010 - consume material from work center A
Operation 0020 - consume material from work center B
Operation 0030 - finished goods GR (milestone)
Operation 0040 - consume material from work center C
My idead was rejected, since I was told that after GR for finished goods is done and you continue consuming materials in production order - it will not be shown in financial reporting (don't know the details, it was quite a straight reject, without much explanation).
So, question is - is there a way to consume materials after finished goods GR without creating mess in financial reporting, or if not - what other options do I have?
thank you in advance

Hi Valentin,
After GR also you can do goods issue. Till the order status is CLSD (Closed) you can book cost on to the order.
Two ways to consume materials on order.
In order component overview maintain the required part number with quantity. GI as can done with reference to order MB1A 261 movement type.
Directly do GI with MB1A -261 movement type - Input the order number, material number and qty.
Refer to the below discussion on unplanned GI which was discussed yesterday,
http://scn.sap.com/message/14850196#14850196
Thank & Regards,
Ramagiri

To know the Finish Good or FInish Product name

i am developing an Batch wise consumption report, in that i want to know the finish product name, is there any FM or a table where we can find the name of the Finish Goods or Product name,,,
Regards
Mukesh Kumar M

Usually, it depends on your business requirements.
Bare minimum fields will be MARA-MATNR, MARD-LGORT (storage location), MARC-WERKS (plant), MARA-NETPR (Price), qty, shel-life expiration date, batch number, vendor, etc.
Please refer to these links for step-by-step details.
https://forums.sdn.sap.com/click.jspa?searchID=1680871&messageID=3147313
https://forums.sdn.sap.com/click.jspa?searchID=1680871&messageID=2727595
Material Replication filtering problem
https://forums.sdn.sap.com/click.jspa?searchID=1680871&messageID=939819
https://forums.sdn.sap.com/click.jspa?searchID=1680871&messageID=3051093
https://forums.sdn.sap.com/click.jspa?searchID=1680871&messageID=1446371
https://forums.sdn.sap.com/click.jspa?searchID=1680871&messageID=2906955
https://forums.sdn.sap.com/click.jspa?searchID=1680963&messageID=2906855
https://forums.sdn.sap.com/click.jspa?searchID=1680963&messageID=3107068
https://forums.sdn.sap.com/click.jspa?searchID=1680963&messageID=2987071
https://forums.sdn.sap.com/click.jspa?searchID=1680963&messageID=3171466
Hope this will help.
Please reward suitable points, incase it suits your requirements.

How to including the finished goods as raw material to the other FG?

Hi Gurus,
Have a nice day!
We would like to create production order for our semi finished goods and then we will doing confirmation. After we have produced our semi finished goods, we would like to include it in the bom as raw materials for our final FG. But how to handle this situation? Any suggestion on how the procedure to do it that the cost will not be double..when confirming the semi FG production it will generate cost for the usages of it raw materials. The semi FG is valuated then when i included it as raw material into Final FG it will generate cost for consumption in doing confirmation. I dont know the correct term for this scenario. In other word or semi FG will be part as a raw material to the next production.
Please advise if you have been encountered the same scenario with me.
Thanks ,
Weldin

Hello Gurus,
Thanks julian for contributing your idea. I really appreciated it.
Right now all activity in manufacturing FG is combine in one production order. Let say we have two activity one is the extrusion and the other one is bagging and printing. From our current set up, we would like to separate the activity. The idea is one production order for extrusion serve as semi-finished good. Then this semi-FG will be added in the component of our final FG which is the bagging and printing because in actual transaction that would be the procedure. Theoritically, we would like to separate the cost of extrusion activity to bagging activity. That is why we will be trying to figure out how to do it right for the analysis purposes.
Other of my idea is when i will set the semi FG to non valuated material. So that when i add the semi FG as component to our Final FG no double costing happen. But when we will run the costing run it will compute low cost in terms of standard price for our final product.
Thanks and best regards,
Weldin angelo

Finished Goods at Moving average Price.

Hi Experts,
In my company FG maintained at Moving average price, during the Go-live they fed the value manually in material master of FG.
Now at the time of production conformation system considering BOM for consumption, but for cost of production system just taking the value fed in FG material master.
Please explain what is the impact if i maintain my FG at moving average, whether we can change that to standard price.
Please explain me briefly.
Regards
Sreenivas.P

Hi,
Ideally Raw Material, packing material should be maintained on Mvg Avg Price for your CO-PC (product Costing). Finished Goods / Semifinished goods should be maintained on Standard price only.
Actually once you maintain the same on Std price, So after your costing run the system will pick Std. price of that FG / SFG based following :
1. price of RM / PM from material components defined in BOM
2.Activity prices defined in KP26
3. Based on routing / master recipe, system will calculate activity defined for your resource / work center
4. Overheads from costing sheet
So, in Std. price of your FG / SFG, system will give all these details. While you go for your process Order / Production order, system will book actual cost of FG / SFG on production order. So, at month end when you run variance cycle, system will also give you variance between plan and actual.
Hope it will help a lot.
Thanks & Regards,
Taral Patel

Subcontracting-moving average price update in finished good

Dear all,
We are having make to order scenario in which we are sending raw material or semifinished goods to subcontractor through purchase order .The price control is v in material master ,when processing is done at subcontractors end we are doing goods receipt with movement type 101 it takes price from purchasing info record .When i am analysing sales order it shows material/semifinished costs+processing charges,but in material master of finished product it does not update material master stock and value. kindly provide me solution as to how moving price gets updated in material master of finished product.
Thanks and regards
vijay

hi.
ya I am doing against sales order as we are having make to order scenario,we are sending raw material to subcontractor from our own stock and then my movement type 912 e we are sending to subcontractor ,I am receiving finished goods after processing charges for which migo transaction is done .After seeing sales order cost in tcode kkac i am able to see raw material cost+consumption charge.But as we are having mto scenario it remains as sales order stock and nothing gets updated in material master.My problem is if customer does not takes delivery of my finished product then i have to detach finished goods from that sales order through movement type 411 e and through movement type 412 e attached to another sales order,but since price have not been updated in material master of finished goods it picks up original price which was maintained as re.1 .Kindly provide me solution in above scenario
Thanks and regards
vijay

Planing statergy - make to order- finished goods

Dear Guys,
The scenario is as follows
Finished Goods - Make to order
Raw Material and Semi must be procured or produced before sales order arrives for Fert
we are using APO with discrete manufacturing
which planning statergy can we use for this scenario in the material master in R/3 and APO
shall we use 52 and 40
or is there any other right planing statergy is available
Thanks in advance
Raj

Dear Raj,
Planning statergy both 52 and 40 are used in make to stock .
For your requirement u can use planning stg 50 (Planning with out final assembly.) in R/3. i am not sure with APO.
Do to the following settings in the material master in R/3,
1.Set planning statergy - 50 for FERT in MRP view.
2. Maitiain consumption parameters.
3. since u have to make a stock for SEMI before sale order receives u have set set The Individual/coll. indicator = 2 in MRP View for SEMI AND RAW MATERIALS not for FERT.
regards
pradeep

Re: Automatic Reorder point Planning for Finished Goods

Hi All,
I have some doubts regrading the Automatic Reorder point Planning for Finished Goods.
For testing purpose I have entered the consumption values for two month.
Say :
Nov-08=13
Dec-08=20
ROL level=5
Safety stock =4
Model =constant
Now when I execute the forecasting,The system gives me the forcast for the next two month jan & Feb.
But when I run the MRP I see planned order for 5.So how to fulfill my forecast for jan?
Please Advice.
Regards,
Vivek

Hi Brahamakar,
Can you please help me.
Regards
Vivek

Overhead key for Finished goods

Hi all,
Guide on the following.....Depending upon the Costing Overhead Grp the Overhead will be applied , in our case Overhead % applied depending upon the Raw material consumption . So we have incorporated Over head key in all Semifinished material .
Now , in all assembly all HALB material have Over head Key , but whether we should have Overhead Key to Finished material also?
Do revert
Regards

Hi,
It depends how you are arriving at the cost of Finished goods. If all the consumption, activity and overheads are
taken into account upto the top most level of the component, there there is no necessity of assigning a seperate
overhead key. If the company requires packaging charges of the finished goods in batches, bar coding activities are to be added after the production, you can use an overhead key on FG.
Regards,
Sadashivan

Consumption of finished goods

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