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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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
AnmushaAll 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 -
Assign Source of supply is not working for contract with material group
Dear Experts,
I have searched all the threads and gone through before posting my query. So i would ask moderators to go through the thread properly before rejecting this.
We have value contracts with respect to a particular material group without material and with item category W in the contract item, Please note that for the materials with this material group, the source determination is not set and source list is also not maintained.
When we create PR for the material with this contract, and when we click on assign source of supply contracts used to get popped up, but recently from few days, when we click on assign source of supply we are getting an error " no source found for this item ".
Can anybody help on this.
Regards@ Biju,
As mentioned earlier, we are not creating PR with reference to contract.
first we are creating contract with item category W (material group), without material and plant details.
we create PR with or without material with account assignment K and with the material group in the transaction ME51N, and after inputting all the fields, we click on assign source of supply, it was proposing the existing contracts with respect to material group earlier, but it is not happening for particular material group(it is working for all other material groups)
Hope it is clear.
@ Dev Patra,
we are using DIEN-Service material types and we assign that particular material group to only service material type.
we have not ticked, source list in the material master, we donot have any source list for the materials under that material group.( please check the note 457110- question number 14.)
Regards -
Creation of material in material type "hers"
Can anybody please tell me in detail how to create a material in material type "hers"
Hi Keerthi,
you can take eg: of Manufacturer Part Profile for this scenario.
Create External No ranges for Vendor Account Group MNFR and save.
Now Create Each Make like ABB as one Vendor in XK01 Trxn code.
Create Material Code original in mm01 with ROH material type. (for eg Transistor which is available with ABB & Seimens make)
Create material code with Material type HERS which contain only two views (Basic Data & Purchasing) and give Make, Original material No & Material group and other details and save.
Create a Purchase order with original Material, then it will ask for mnfg part profile then select the material and click F4 on it it will show you the created mfg part nos like ABb 7 seimes and select one and save.
Before this you have to Activate MFg part profile in OMPN trxn code.
And in Material master Purchasing View Select the mfg part profile and save.
Reg,
Ashok -
Use of different material types
Hi Experts ,
My client is thinking of expansion of its plant . This new plant would be copy of their already existing plant at another location . Now some of materials for manufacturing finish materials are same in both plants but they both use different material types . That is here there is only one mat type where there they use 4 mat types .
Now do I need to create new plant here or I can use the same existing plant for creation of new materials ? If I want to use the same plant then would be the effect on valuation of mat. Can these mat with different mat types be transported successfully ?Hi Neal,
So you did enjoy your weekend!!! Good good; well you go to IMG ( SPRO ) and on to ENTERPRISE STRUCTURE >> ASSIGNMENT >> LOGISTICS EXECUTION; and just in case you miss out the warehouse number, ENTERPRISE STRUCTURE >> DEFINITION >> LOGISTICS EXECUTION . You will find the links there. Unfortunately I created a screenshot for you but I just do not know how to attach it.
The list I was talking about was MRP List or Stock overview list ( MD05 / MD04 ). There are two more transactions that I think might come in handy. Check them out:
LS26 - stock overview of warehouse.
LL01 - warehouse activity monitor.
Since the plant and warehouse will be linked, I guess there would be no discrimination on checking stock but I am pretty sure system checks warehouse stock first. That is the entire procedure. I hope it helps. Do reward points if I was able to answer your query.
Regards,
Sreekant. -
How to change material type and industrial sector of the exsisting material
Hi,
There is an issue where user wants to change material type and industrial sector of the exsisting material .Is it posible to do so??
IF not ,how can we delete that material from material master so that another material with same number and required material type and industrial sector can be created.
Points will be definitely rewarded.
Thanks
RohitHi Rohit,
You can change the material type in MMAM trxn code if the material dosenot conatain any open purchase requisitions, open reservations & open purchase orders. Also material stock should be zero.
Remember the new material type should have same attributes same as old material type.
OLD Material New Material
1) Standard Price 1) Standard Price
2) Manufacture part 2) Manufacture part
profile actvated profile actvated
3) Quantity & Value 3) Quantity & Value
Updation in all areas Updation in all areas
4) should have same GL 4) Should have same GL acs
acs
It is not possible to change Industry sector once created.
If you want to delete the Material, you can flag it in MM06 trxn code.
Reg,
Ashok
Dont forget to Assign points if useful. -
Material types in material master
Hi ,
What is the material type do we require in handling CS scenario?
Is it necessary to create BOM's for all the equipment?
Please respond
Thanks and Regards
Ashishhi
1) A grouping together of materials with the same basic attributes such as raw materials, semifinished products, or finished products.
All materials must be assigned to a material type which determines:
Whether the material is intended for a specific purpose such as a configurable material or process material
Whether the material number can be assigned internally or externally
The number range from which the material number is drawn
Which screens appear and in what sequence
Which user department data you may enter
What procurement type the material has; that is, whether it is manufactured in-house or procured externally, or both. -
Material type for capital goods
Dear SAP Experts,
To Assign material with chapter ID in J1ID for CAPITAL GOODS , Which material type should use to create material code for capital goods, please suggest,
with regards,
ARABBASHi Arabbas,
Based on your asset you can copy any of the following standard material type to create your own Asset Material type
1. EPA - Equipment Package
2. ERSA - Spare parts
3. HERS - Manufacturer parts
Krishna -
What would be an appropriate material type for sellable software? Dien? Fert? thx
A material type is nothing than a description plus some customized attributes. for one company the predefined material types work right away while others may have to tweak them to their needs.
what is a spare part ERSA for one company, may be a FERT for an other company, it depends on your business.
I am working in a chemical company, a Pipe or an ellbow is just a spare part for us. A company that manufactures pipes and ellbows has those items as FERTs, a company that builds tankfarms has these items as raw materials.
what is a software, probably a FERT for the company that developes it. But the predefined nature of a FERT is quantity and value managed. Which would make sense for software too, if the software is on a CD and the CD in carton.
For a company that buys the software - if it is so expensive like SAP software - it is probably an asset.
you said you do not store software, this means you would need to customize the FERT material type to your personal needs or create an own material type.What other views do you not need in case of software? if you dont store materials, then the MRP views can become obsolete, storage location view is certainly obsolete, WM views are not needed, work scheduling view probably not needed.
Can you manage the material only by value? to my knowledge value only materials are only possible in a retail system.
It is not really possible to give you a recommendation what material type you should use, as this is pretty much dependend to your business and local requirements. -
Material type for Project related
Hi ,
When creteing the material master we have which take "Material Type" if it related to project , i am perticular about construction and instaltion related business topic . Normally we take Raw material , semi finished material and finished material in case of manufactureing industry , in construction inHi
In projects also maximum Raw material is used. Usage of semifinished and finished material is minimum.
i am particular about construction and instaltion related business topic .
In construction industry raw material type is used.
Ex:
Cement, bricks etc...
Cement and bricks is a finished product for production industry, but this as RAW material for construction industry.
THanks
S.murali -
MATERIAL TYPE : Production resource/Tool...
Hi...
MATERIAL TYPE : PRODUCTION RESOURCE/TOOL.
Friends..i want to know about the above material .and its uses..generally i heared that this type of materials mostly used in manufacturing industries...if i want to configure this in which way i can configure..and let me know brief about material (production resource/tool..)
(or)
plz share with me your experience about this type of material and its configurations..
It will be verry helpfull to me..
Regards,
SirishHello,
Please go through this documentation:
http://help.sap.com/printdocu/core/print46c/en/data/pdf/PSPRT/PSPRT.pdf
Prase -
Could you please explain/ help with the below queries.. with some practical example, if possible.... differehnce between FHMI (production resources/tools) and HIBE (operating supplies) and ROH (raw materials)?
Actually for all above mentioned types.. it is written as procured externally for processing.... so i have doubts why three diff material types as all are procured for same purposes.... like use for production...
Regards,
Krupesh Kothari.Hi ,
FHMI (production resources/tools)
Production resources/tools are procured externally and used in the manufacture of products. A material master record of this material type can contain purchasing data, but no sales data. It is managed on a quantity basis. Examples of production resources/tools are apparatus, equipment, and measuring and testing devices.
HIBE (operating supplies)
Operating supplies are procured externally and required for the manufacture of other products. A material master record of this material type can contain purchasing data but no sales data.
ROH (raw materials)
Raw materials are always procured externally and then processed. Since raw materials cannot be sold, a material master record of this material type contains no sales data.
Regards,
Anupam -
Part interchangeability with FFF class and FFFC - HERB material type
Experts-
Have you worked with Part interchangeability with FFF class and FFFC or HERB material type?
I am looking for cross-reference functionality for interchangeable materials from maintenance/service perspective. We have users changing manufacturer's part number as and when needed and maintaining cross-reference via classification. Maintaining SAP part number and HERS is too much data maintenance, so we are looking for simple solution.
We are in standard ECC 6.0. (No APO). I checked OSS 181764, but it doesn't help us in instructions for enhancement.
If this needs activation for DIMP or A&D, do you know enhancement for this?
Thanks for your help.
RPHi
I have been involved with a client who is interested to know the implementation of FFF functionality. Can you share your experience in a bit more details.
The client is interested in using parts where multiple models are available in the market and few of them are interchangeable. They would like to purchase it as an asset and then manage the inventory as non valued material. How does it work throuh the APO for forecasting and demand planning functionalities.
Thanks in advance. -
Material type & material group
Dear All,
what is the different between material type & material groupHi,
Material type:
Materials with the same basic attributes are grouped together and assigned to a material type. This allows you to manage different materials in a uniform manner in accordance with your company's requirements
The material type identifies the characteristics of a material that are important with regard to Accounting and Inventory Management. A material is assigned a type when you create the material master record.
"Raw materials" and "finished products" are examples of material types. In the standard MM module, the material type for the former (ROH) denotes an externally procured (bought-in) material, whereas the material type for the latter (FERT) indicates that the relevant material is produced in-house.
Material type you choose determines:
u2022 Whether the material is intended for a specific purpose, for example, as a configurable material or process material
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:
u2022 Whether changes in quantity are updated in the material master record
u2022 Whether changes in value are also updated in the stock accounts in financial accounting
In addition, the accounts affected by a material entering or leaving the warehouse depend on the material type.
Material Group:
Key that you use to group together several materials or services with the same attributes, and to assign them to a particular material group.
You can use material groups to:
u2022 Restrict the scope of analyses
u2022 Search specifically for material master records via search helps
It can be assigned in material master in Basic Data1 (Client level) and Purchasing (Pur org level) views.
Regards.
Chinna
Edited by: Chinna Veerappa on Jan 21, 2009 5:29 AM -
Handling Contract MAnufacturing Process
Hi Friends,
We have a scenario wherein we are going to handle contract manufacturing process in our company.
The party will provide us the input materials and we have to process it to finished products and provide back to them.
In my opinion, this is the reversal cycle of process handled by subcontracting(outsourcing).
How can I incorporate this business process in SAP?
Kindly provide your expert inputs to handle this business scenario.
Regards,
JigneshHi
This scenario can be handled in following way
1) Create a Free goods PO to recieve the Input material .( since it it the customers material you cannot account the material in your books)
2) Perform GR against free goods PO-If you are taking input credit then perform J1IH -Additional excise
3) Perform Inhouse PP process
4) Raise a sales order ,Delivery ,PGI,Billing and sell the output material
Regards
Sandeep
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