Contract Manufacturing Material Type

All,
I need help in determining what material type to use for contract manufacturing.  We will be building a product for a customer who will supply the material to us.  We want to set up the parts in the material master so that we can track the parts in inventory and be able to produse production orders against the inventory.  What I need to make sure of is that the parts will not show any value in our inventory as we will not take ownership of the parts.  Please advise the material type to use and how to configure the set up.  As always thanks for the help and support.
Thanks,
Sean

Dear Maniyar,
Like every son has his own father, likewise every material has his own identity i.e is material type.
Material types Determines
When you create a material master record, the material type you choose determines:
configurable material or process material
internally or externally
The number range
Which screens appear and in what sequence
Which departmental data you may enter
What procurement type the material has i.e. in-house/external
Together with plants it determines either quantity related update in Material Master/Stocks Account
Moreover, Account effected by entering or leaving warehouse totally dependent on material types.
Best Regards
Mohsin Abbasi

Similar Messages

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  • Assign Source of supply is not working for contract with material group

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    Dont forget to Assign points if useful.

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    hi
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  • Different material types

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  • Part interchangeability with FFF class and FFFC - HERB material type

    Experts-
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  • Material type & material group

    Dear All,
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    Hi,
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    u2022     Whether the material number can be assigned internally or externally
    u2022     The number range from which the material number is taken
    u2022     Which screens appear and in what sequence
    u2022     Which departmental data you may enter
    u2022     What procurement type the material has; that is, whether it is manufactured in-house or procured externally, or both
    Together with the plant, the material type determines the material's inventory management requirement; that is:
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    Chinna
    Edited by: Chinna Veerappa on Jan 21, 2009 5:29 AM

  • Handling Contract MAnufacturing Process

    Hi Friends,
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    Hi
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