Manufacturing finished products from other finished product(co11n)

Hiii all,
Please can any body tell me how to avoid or block 261 movement type for some material..? we have some products which are manufactured with finished product then when we use CO11N to report the consumption: automatically that finished product used for manufacturing is s reported as if the raw material (261 mov)
THANKS!!!

Hello Abelo,
First I would Like to understand in which country you / your client is. This is very important as in India there are Excise Tax Rules those ask you to submit the status of FG materials at the end of every month end. Now if you are consuming one FG material to produce another FG this is in general not applicable in Indian Scenario. (I am not aware about other countries).
Now your requirement is "Not to consume 1 FG material while posting the production of another FG" (Correct me if I am wrong).
In std. SAP this is possible as well as not possible.
Possible:
1.In the Bill of Material of FG2 (Header material for FG1), you can mark the component (FG1) as Engineering relevant and not Production and Costing Relevant. In this case, system will not propose the material for Back Flush.
2. Mark Component (FG1) as Bulk Material in MRP2 view. System will not propose this material for Order Release as well as Backflushing (261 movement type).
Not Possible:
This is more of a discipline issue. If you are converting the One FG to another FG without consumption, How you are going to match the Stocks of Component. There will always be mis match in Physical and System Inventory. How you are going to address this? There will be Financial Impact of Inventory in this case.
I suggest, please check the feasibility of stocks verification and then try solution given above.
Please check and confirm whether you succeed or not.
Rahul.

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