Material Valuation for Finished Product in Production Scenario

Dear SAP Gurus,
Kindly recommend appropriate Material Valuation Control for Finished Product in manufacturing scenario. SAP recommends pricing control 'S' (Standard), but my client's buying nature is not periodic(varies), they buy material on requirement basis (On actual material consumption ) which is very frequent. Pricing for each buy also changes due to the market conditions. You are requested to suggest me appropriate Material Valuation Control (either S / V) for Finished Product along with reasons, advantages & disadvantages for the same.
Thanks,
Shantanu

Hi Alll
Well one disavantage in material with 2/V for production consumption is in case of incorrect goods receipt, incorrect price for example, all your consumption will be wrong.
For correction you would have to reverse all production posting, correct the goods receipt and repost the production confirmation.
If you were using 3/S configuration, all consumption would be done in standard price and at month end material ledger would calculate the actual price for price revaluation. People from MM would have time to correct the entries during the month.
Regards.

Similar Messages

Split valuation for Finished Goods - Target cost was not updated

Hi,
We are following split valuation for 'Finished goods'.
Valuation typte 1 is for 'manufacture' and
Valuation type 2 is for 'External procurement'
For production orders with this material, we are not getting target costs. It is showing zero.
We have done release of standard cost estimate before creation of production orders and goods receipt for these orders. But still it is not updating.
Pls guide me.
Regards
MadhuSekhar Gupta

Hi,
Thanks for your reply.
At the time of variance calculation only the credit part of target cost will update and at the time of goods receipt debit part of the target cost will update.
Our client has done goods receipt but debit part of the target cost was not updated. and the order status is DLV.
I simulated the scenario in QAS by creating new finished goods materials (Industry-Construction) one is with split valuation and another is without split valuation, then the debit part of target cost was updated at the time of goods receipt and credit part was updated at the time of variance calculation for both the materials. So this problem was not arised because of split valuation.
Was this problem arising because of the material master data, because for one material it is updating and for another it is not for the same configuration?
Regards
MadhuSekhar Gupta
Edited by: gms gupta on Oct 22, 2011 3:39 PM
Edited by: gms gupta on Oct 22, 2011 3:41 PM

MATERIAL TO MATERIAL TRANSFER FOR FINISHED GOOD

In case of material to material transer for Finished Good Which TCode and Movement Type is used?

go to the transaction MB1B WITH THE mvmt 309
for material to material tranfer.
else go to MIGO and give the option transfer mode and mvmt for 309.

Split valuation for Finished goods.

Hello All,
I have an FG which is produced inhouse and also subcontracted.
While implementation the subcontracting scenario was never considered.
Now we have stocks and production orders for that FG and hence split valuation cannot be activated.
Is there any other way out so that I can value the stock seperately for inhouse production and subcontracting in the current situation.
Regards
Vijay Singh.

hi
Split valuation is used for maintaining two different price for same material.
ex:-if you are manufacturing a material, ur manufacturing "X" price is Rs.100/-> But you got order of 100T. But you plant manufactruing capacity is 50T,But you do not want to lose the order,so you procure material "X" from vendor at Rs.110/- to meet customer demand.In this case you have use Split valuation ie.....same material but maintaining two different prices.
The Split Valuation settings are as follows:
1.SPRO> MM>VALN AND ACC ASSIGNMENT> SPLIT VALUATION> Acitvate Split Valuation
2.SPRO> MM>VALN AND ACC ASSIGNMENT> SPLIT VALUATION> Configure Split Valuation
Click on Golbal type: create your own valuation types as Type 1, Type 2 etc
Click on Global categories:create your own Valuation Category as Type(T) and
Activate all valuation types(Type1, Type2 ) for your category(T)
regards
kunal
award if helpful

Control for manual Reservation with production order

Dear PP Guru,
In my business, I have more than 356 semi finished material and each material have at least 30 item in BOM. We issue material from Raw material store to shop floor store from where these are consumed on production orders and I have 5 level Material BOM for Finished materials. Due to having a number of production orders it becomes impossible to check for which material reservation have made or not.
Give a wayout from which I can easily traced out by an application. when production orders is being created, system made automatic reservation according to BOM whether stock is available or not. just like automatic reservation, is it possible to make manual reservation without having stock of any material. so that reservation remain open till recieving new stock for material.

Dear Muhammad,
Do you mean to say you want to do a transfer posting?
You can do using 311 movement with respect to the BOM in T code MB1B or else with respect to a
production order in MF60,if you are going to do in MF60,then in global settings remove the indicator for
stock transfer so that it moves from one production storage location to another.
Generally once the production are in created statuis itself,reservations are generated for 261 movement
for its components.
Either you can do MB1A for good issue or else use even CO27 or else backflush while doing
confirmation.
Now check and revert back.
Regards
Mangalraj.S

CK11N, not using PIR for material valuation.

Hi,
I am trying to run CK11N, material valuation for purchased part using PIR strategy.
My valuation variant has the following strategy:
1. standard price.
2. price from purchase info record.
and I've also configured the sub-strategy for #2 above.
Then, I created PIR for the material.
but for some strange reason, the material cost estimate is not picking up the PIR to valuate the material. Any idea what to check?!

Hi,
As per my understanding PIR means planned independent requirement. Normally CK11N has to run for getting the in house manufactured material cost. The system will explode the BOM components of the material and it will copy costs in to the cost roll up. The system will pick up the price from material master accounting view.
CK11N is to identify the material cost, if you are procuring the material means you can very well aware of the material cost.
Regards,
V. Suresh

Material Document for Scrap consumption not Found

Dear Friends
During order confirmation, molten material / raw material is consumed by 261 MT and dross SH100002 is generated by MT 531 along with the finished product with MT 102. I reversed finished product through 102 MT and Raw material through MT 262. Thus do I need to reverse dross through MT 532, against order?
When I went to MB51, I found the material document for finished Material production with MT 101 and raw material consumption with MT 261. But in MB51when I tried to find out dross generation with MT 531, I did not get any material document for that particular order no.
In the production order though total quantity: 88000 and delivered quantity is only 26000. When user is trying to confirm the production order only for 200 units, system is giving the following error message:
Overdelivery is not permitted (Check entry)
Message no. RU139
Diagnosis
The total yield and scrap confirmed exceeds the overdelivery tolerance defined in the order header.
Procedure
You can either
u2022 reduce the confirmed quantity
u2022 deactivate the tolerance check during confirmations (customizing),
u2022 increase the overdelivery tolerance in the order header and then enter the confirmation again
Please tell me why Material movement of dross/ scrap is not visible and why production order is not getting confirmed
Thanks
Chandra

Chandra,
When you say te movement is with order confirmation then I assume that it is backflush of the components & byroduct.
If you do not find the material document in MB51 then it is not posted yet.
In that case excute T code COGI & process the same.
Regarding the order confirmation error, kindly check the 'Goods receipt' tab page in the order header.
The delivery completed indicator must be marked. Unmark the same & save.
Now try to process the confirmation.
Anyhthing else please let me know.
Hope this helps you.
SmanS

Plant/material valuation at any key date

Hi all,
Requirement- I should get material valuation at a plant on any key date.This date may be at start, middle,end of the month.
Report MB52 will give material valuation at current date not for any previous date.
Report MC.9 will give material valuation for a week period.

Hi,
You cannot get this requirement fulfilled from Standard SAP.
Try fetching the values from table MSEG, fields SALK3 and LBKUM
Warm regards.
Osayed Rehman
Siemens

Material Type for By product??

hii
What is the material type has to be followed while creating material master for By products.
In subcontracting scenario ??
In real time , those who r having this type of scenrio can confidently tel , how we can go abt ???

The main point in deciding the material type to use is the materials characteristics, including whether you valuate it. The scenario that produced it is of less importance. We value our bi-products as they have commercial value to us and they have the same characteristics as HALBs, therefore we create as HALBs.
If we chose not to value, then it would just be a case of creating a copy of HALB material type and setting as unvaluated, which would also have the advantage of creating easily distinguishable bi-products but there are very few in any event.
Regards,
Nick

Creation of Production order for FInished Product through Project

Hi,
Pls clear me on how we can create a Production Order for finished product.
If we confirm the production orders in PP, cant the same be confirmed in PS.. Should we consider the same activity types in both PS and PP
Pls clarify

hi srikanth,
your answer has been very helpful... but could u clarify why MRP is run in MD51 for WBS element and in MD02 for network..
Pls clarify... My scenario is like this ...
A
                        B                                                                                C
                D E F G H I                                                                                J K L M N O
I have a Assemblies B and C which are always delivered in sets.. under assemblies B and C, we have 6 sub assemblies which has its own components. I am assigning sub assemblies to differenet WBS elements 01 and 02. so, initially these sub-assemblies are produced to stock. this should happen in PP i.e., through production orders generated in MRP run ( MD51 ). In the next phase i will assign Assemblies B and C to another WBS element. Again system should generate two Production orders thru MRP for this. Here the 6 sub-assemblies produced earlier will be consumed in confirmation of the production order...
What i am doing is this correct...
and the procurement for the components is happening thru the purchase requisition generated via MRP. the components themselves are not directly assigned to the project..
Pls advise and clarify?

Uploading Production Requirements For Finished Goods From External System To Run MRP For Components in SAP.

Hello Production Planning experts,
I'm looking to solve the current business problem:
The company bought a third party software (JD Edwards) to calculate production requirements instead of using SAP's standard Production Planning or a tool like SAP's APO. They run a batch job to query Sales Orders, Deliveries, available stock, stock in transit, etc. from sap and feed/upload it to the third party software so it can calculate the Finished Goods Production Requirements for them. They love the third party software, so replacing it is not an option. Since the third party software is already taking into account Sales Orders, Deliveries, available stock, stock in transit, etc. from SAP, it just outputs a "Finished Goods Production Schedule" by week.
My questions are:
1) What's the best way to upload something like that in SAP in the form of Planned Orders or something of that nature?
After i get that schedule in SAP:
2) Is there any way to calculate components' requirements for that "Finished Goods Production Schedule" alone? The company would like to IGNORE existing stock AND expected-goods-issues in the future (sales orders, deliveries, etc) for Finished Goods ONLY. The components calculations would work the standard MRP way, taking into account existing stock and AND expected-goods-issues in the future (sales orders, deliveries, etc)
I started looking into Master Production Schedule (MPS), but I don't know if that's the right approach since I'm not very familiar with it.
Thanks in Advance! I will gladly reward points for helpful/correct answers.

Hello Oscar
I suggest you to upload your production plan in the for of "Planned Independent Requirements" using BAPI BAPI_REQUIREMENTS_CREATE. Later, MRP will create planned orders to cover the PIRs.
If you don't want to consider the existing stock of the finished product, you should use the planning strategy 11 to create your PIRs. Take a look on the following link for more details about this planning strategy:
Gross Requirements Planning (11) - Demand Management (PP-MP-DEM) - SAP Library
Here you will find the following information:
The make-to-stock strategy gross requirements planning is particularly useful in mass production environments; it is often combined with repetitive manufacturing. This strategy is particularly useful if you need to produce, regardless of whether you have stock or not. For instance, steel or cement producers might want to use this strategy because they cannot shut down production; a blast furnace or a cement factory must continue to produce, even if this means having to produce to stock.
This strategy is also frequently used if there is a Material Requirements Planning system in a legacy system that needs to be linked to an SAP system which serves as a production execution system. The legacy system calculates a specific production plan, which has to be executed, regardless of the stock situation in the SAP system
It looks like this planning strategy is exactly what you are looking for.
BR
Caetano

Material Staging for Production

Hi,
When WM is implemented, is it really necessary to use Production supply area and Control Cycle? or only Interim storage area 100 is sufficient? We are not using any KANBAN features,,
Regards
Shrinivas

When WM is implemented, is it really necessary to use Production supply area and Control Cycle? or only Interim storage area 100 is sufficient? We are not using any KANBAN features,,
1.
If you use WM/PP interface, you use interim storage type 100 for material staging. In this case production supply area is a must.
In this scenario you move the pick parts to the interim storage type (100) by processing the TR that is created at the time of PrdOrd release (e.g.).
Please notice that no IM movement is posted at that time. When you get the parts in interim storage type you post IM-mvt 261 and consume the components (so, first WM movements and after that comes IM movmement). Storage type 100 behaves like an interim storage type.
2.
If you don't use WM/PP interface you use interim storage type 914. First you post IM-mvt 261 and after that processing the TR (that is created as a consequence of IM booking) you will get the TO and move the parts from normal storage type to 914.
So, in this case WM movements come after IM movement.
Regards,
Csaba

Product valuation for Sales order with itemizations

Hi experts,
   I'm trying to find a data source which extracts Product valuation for sales order, and which is important, with itemizations. This is for the KMAT material. I tried 0CO_ACT_* and 0CO_PC_PCP_* but found no proper one.
   The closest one is 0CO_PC_PCP_03 but which only extracts normal material instead of KMAT.
   Points will awarded.
B'R
Aaron

I found it.
0CO_PC_01
Cost Object Controlling: Plan/Actual Data

Error Message :Valuation area 1000 not yet productive with material ledger

Dear Floks,
I need some clarification to get rid of this error message and move further.
While saving the PGI I am facing the follwoing error message: "Valuation area 1000 not yet productive with material ledger----
The material ledger has been activated for the valuation area but
material data has not yet been converted in theis valuation area."
Plese respond with the solutions ASAP.
Thanks in advance.
Regards
ANGKS

Hello Padmaja,
You will to check the following before activation the Val.area
1) OMX1: Check if ML is active against the plant IF NOT
2) Use tcode CKMSTART - Enter Val area - EXECUTE.
Regards,
Manoj Reddy

Raw / semi finished material consumed in Finished products

Hi ,
I tried to find the material consumed by mov type - 261 for finished goods in t/c MCRE. It does not show any details.
Any other t/c which can be used or any thing missing the MCRE does not show any details
Regards
ShankarR

Dear
If you have material consumption for production purpose and you want analsyie the actual consumption collectively , then goto
COOIS-Select Documents Goods Movement -Standrad Profile -Eentre Order Type and Plant -Execute -It will display order wise all the compoenets with movement types and consumption qty.U can also select the Change Layout option to drag and drop the filed which you want to look into
Try this and come back
regards
JH

Material Valuation for Finished Product in Production Scenario

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