Mm- valuation of finished product

dear gurus,
i have a problem...
a production process is going on as such :
               rejection
A>B>C>D>E (final finished product)
           Quality Check
at stage D we get finished product but after this step the product is going for Quality Check and thus after this we get rejection as well as the final finished product.
i want to have the valuation of this final finished product only and not of the QA and rejection material.
please help me out response me soon.
thanks:
piyush singh

Hi,
TO change the valuation class there should not be any stock, Produciton order, Purchaser order or PR. If stock is there then issue to some cost center then change the valuation class  then bring back the stock.
regards
ramakant

Similar Messages

  • 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.

  • Valuated Sales Order stock for Semi-Finished Products

    Dear Gurus,
    One of my client faced the issue that the semi-finished products is valuated-sales order.  We are in Mill Industries, downstream (steel processing).  The situation is:
    1.  We use configuration material for both finished and semi-finished products. Both are valuated at standard costs with valuated sales order stock.
    2.  Once the sales order is created, the cost estimates are created for both Finished, and semi-finished products.
    3.  The production orders is created for the semi-finished products.  During production, several semi-fg and fg can be manufactured at the same time.   We are using the co-products feature to cover that.
    4.  During the goods receipt of semi-finished products, instead of using the standard costs in sales order cost estimate, it use the planned costs in production orders which against our design.
    I tried to use the user exit COPC002 and influence the standard costs.  But it seems that the routine is not called for semi-fg at all.  Anyone has any light on this?
    Regards,

    Hi
    I think you are talking about Special Stock "E"...ie) Sale Order Stock...
    If my understanding is correct then,
    If you go and see the Table T156....For the
    Movement Type: 101,
    Special stock Indicator : E,
    Qty. Updation Checked,
    Val. Updation Checked,
    Movement Indicator : Against PO,
    Consumption Indicator: Sales Order Stock.....combination....the transaction Event Key....GBB only has been Assigned....these  settings you cannot change...
    This linkage you can view in OLMW-----> Account Determination -
    > Acc. Determination W/O Wizard -
    >Account Grouping....also
    Reward if useful
    Regards
    S.Baskaran
    Edited by: baskaran srinivasan on Dec 20, 2007 12:18 PM

  • With what value finish product as come when we do goods recipt from prd

    Hi,
    With what value finish product as come when we do goods recipt for oa prodution order in make to order scenerio.
    The material is not talking standard price form th e material master when we are doing goods recipt.
    Regards,
    somiraghu

    If you use non-valuated sales order stock (account assignment E) there will ne no value posting at all during GR, thus also no accounting document. The full actual costs (that Pankaj listed) will be posted during settlement of the production order.
    Regards,
    Kay

  • Change in finished product inventories / cost components

    Hello,
    We are in the process of implementing SAP and couldn't get an answer to the following.
    Our understanding is that the production cost of each finished product is calculated by SAP based on cost components. After manufacturing, the finished products are transferred to the finished product inventory. The change in finished product inventory account (say 713000) is credited with the production cost of the product.
    Instead of having this single 713000 account impacted, we would like to have the change in finished product inventory broken down into several, say 713001 raw material component in finished product, 713002 labour cost component in finished product, 713003 subcontracting cost component etc. Can we get SAP to credit automatically each of these accounts based on the cost component (or group of cost components) information in the system ? How should we configure it ? (is there a link between the cost component or group of cost component and the account)
    Many thanks for your help
    Best regards

    Hi Vincent,
    In my understanding you are not clear with the requirement and therefore you are struggling with SAP. Please understand the following:
    1. The posting of GL accounts are determined by valuation class in material master. So if you want to post on different GLs please define those many valuation class in MM and assign the correct Valuation class to FG goods.
    2. When you confirm the production, SAP post the goods issue (i.e. material you define in BOM) by debiting the Material consumption account and credit  the invertory accounts. And also post the goods receipt posting by debiting the FG inventory account and credit the Factory output a/c.
    3. Here you have to convience your client that it is best pratice to have one inventory account for one material type, like RM inventory, SFG inventory and FG inventory. Normally we classify the consumption posting in different GLs like Material consumption, Labour consuption, Overhead utilization etc. and that you can define in your cost component structure by grouping the relevent GLs in given cost component items.
    4. You have to explain them how SAP works in product costing and how GL documents are posted. You have to also explain them the posting impact in P&L and BS.
    I will suggest that you should rediscuss the requirement and explain them the SAP way of valuation and posting. It is a big change management issue and as a CO consultant it is most challenging task.
    Thanks and all the best,
    Vivek

  • Raw mat and procured finish product cost

    we need to run cost run for both raw material and product, we want have the following scenario:
    first mark the raw mat. cost run,  then our finished product will get the future price of raw mat and base on BOM to update the future price of finished product.
    after we mark finished product, we then release raw mat standard price and subsequently release finished product.
    is any solution we can define  costing variant for above scenario?
    we have another scenario, we need to run costing run for finished good A, but this product A 's BOM contain only one procured finished product B, B doesn't have BOM and purchase info record, how can we change product B 's price, so finally finished product A 's standard price will be updated upon costing run?

    Hi ,
    In Costing Variant .. we have a Tab for valuation variant . In the valuation variant type , we have seperate valuations for raw Materials , activities, subcontracting etc .
    Cost Estimate with Quanity Structure will refer to the Costing Variant and compute costs .. Hence , maintain Costing Variant and Valuation Variant properly..
    This will solve both your issues..
    Kindly revert back for any further questions..
    Regards
    Sarada

  • Revaluate Finish product GI

    Hi,
    We have Production order with settlement rule as follow:
    Sender:production Order
    reciever : material (Finish product)
    Type:Full
    and also we assign this Finish product to network and during month posting GI of following material to related network,when I make settle in current period according to settlement rule I expected  that production cost  transferred to material price but after settle only balance of order was zero and material price did not change,
    I have a doubt why material price did not change and  how actual price of Finish product will  transfer to network  that I assign this material ,
    with tracking project actual cost via CJI3 ,finish product price is standard price of previous period and because of at the first period we considering standard price of finish product  as 1 $ therefore all unit price of finish product in project is 1 and I dont have actual cost of project .
    The worst side of my problem is that because of business problem I could not settle production orders for 3 month and during following periods all  GI posting  with unit price 1 $ and  we dont have actual price in network,
    How I can revaluate all GI of previous periods to have real cost of project up to know?
    It would be my pleasure if you help me as soon as possible,
    Regards,
    Azam

    Hi
    1. GI revaluation is ruled out w/o Material Ledger in place, as said above.... However, I wont recommend Price Control V for SFG/FG either
    2. In a similar scenario, what I have seen a possble workaround is this
    a. The scenario was project driven MTO... .i.e. Production order was tagged to WBS element.. This scenario is called Production Lot scenario in SAP
    b. Each time you create a Production order, you create a project 1st and then create the Prod order...
    c. The Price control of the material was kept as V
    d. No partial GR was done from Prod order as a matter of policy to avoid unfav situations
    e. After GR, the prod order was settled so that any variance would be inventorized.... Even if not settled, and the stock is consumed, the variance will be booked on the WBS element... It wont tamper the entire FG valuation
    However, this workaround might not help you because you wish to revaluate the GI, which is not possible w/o ML
    br, Ajay M

  • 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

  • Selling semi-finished as finished product

    Dear Experts,
    A finished material FINMAT has a component COMPMAT which is procured externally . The production order is dummy production order which should not incurred any cost for activity or overheads. The GR of the finished production order should have the same value as the COMPMAT that procured outside.
    So we use a control key without costing for the dummy operation . How to prevent system from calculating material overheads other overhead costs. Actually both the finished material and the component are same , i.e we are procuring th semifinished component in different base unit of measure and selling the same material as finished product in different unit of measure.
    How to carryout this in system.

    Dear,
    Dont assign Costing sheet to the valuation variant(OPN2) used in the costing variant which is used in the default order type dependent paramenters in OPL8(Controlling Tab) and also which is used for standard cost estimation.
    Regards,
    Prasobh

  • Offseting entry to inven posting for finished product in sub  contracting

    When we post goods receipt in subcontracting inventory account is debited with finished product.What is the account name to which offsetting entry is made & how to configure this in automatic account determination.
    1) Same question was already asked and moved to T&P form.
    2) Basic question.
    3) Points will be unassigned.
    Edited by: Csaba Szommer on Apr 16, 2011 7:58 AM

    Hi,
    If Material has Price Control as "V" (MAP)
    (BSX) Stock A/c of Assembly - Dr
    (BSV) Change in Subcon Stock - Cr
    (FRL) Subcontracting Charges - Dr
    (WRX) GR/IR Clearing A/c - Cr
    (BSX) Stock A/c of Components - Cr
    (GBB-VBO) Consumption A/c of Components - Dr
    If Material has Price Control as "S" (Std. Price)
    If Material is having Price Control as "S" then Price Difference A/c will also in picture.
    This depends on configuration; SPRO > MM > Inventory Management and Physical Inventory > Goods Receipt > Price Differences for Subcontract Orders at Goods Receipt
    Price Differences for Subcontract Orders at Goods Receipt
    In this step, you configure for each valuation area whether price differences are generated for a Subcontract order at the time of a goods receipt if the manufactured material is managed at standard price and the standard price varies from the receipt value (externally performed service + value of components + delivery costs).
    Example
    Finished product: $400 (value at standard price)
    Subcontract order:
    o Ext. service : $250
    o Components : $100
    Posting schema without price differences:
    Stock account FERT : 400 +
    Stock change : 400 -
    GR/IR clearing acct : 250 -
    External service acct : 250 +
    Compon. stock account : 100 -
    Consumption account : 100 +
    Posting schema with price differences:
    Stock account FERT : 400 +
    Stock change : 350 -
    Price difference : 50 -
    GR/IR clearing acct : 250 -
    External service acct : 250 +
    Compon. stock account : 100 -
    Consumption account : 100 +
    And cost center is mandatory for subcontracting process
    the accounts for the BSX FRL and GBB-VOB needs the cost elements
    Thanks
    Diwakar

  • Avoid posting of Goods receipt of finished product without consumption of components in Subcontracting process

    I have one requirement:
    I provide components using movement type 541 to the subcontracting vendor.
    Now system will allow the goods receipt of the finished product using movement type 101.
    If the components which are to be consumed using movement type 543 O are unchecked when doing goods receipt of the finished product then system will allow to do the goods receipt.
    As a result of which the component consumption will not be done.
    Subsequent adjustment can be done but,
    I want to have a check that without consuming the components the system will throw an error message when tried to do goods receipt using movement 101.
    Please advice if it can be done, if so how to achieve it.

    Hi,
    It depends on what you want your subcontractor to do with the faulty raw material stock - if you want them to scrap it you can scrap stock from subcontractor stock using movement type 551 and special stock "O" (the system should prompt you to enter the vendor code). If you want it returned for you to scrap it - movement 542 to return it then scrap it from your own stock.
    You shouldn't receive an additional 20 of the finished parts - as you only received 80 not 100. Close the purchase order off to close off the balance of 20 remaining.
    Thanks

  • 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?

  • Cost  of finished product repetitive manufacturing

    Hi,
    My clients produces 5 different finshed products always. I want to map the scenario in Repetitive manufacturing.
    Is it possible in REM to get the actual cost of production of 5 products separately?? fir example can i get cost of finished product 1 as Rs200, in the month of Jan2009 for 10 quantity, cost of finished product 2 in the month of Jan2009 for 5 quantity etc etc .
    Regards.

    Thanks to all for their valuable inputs.
    Dear Mangalraj: Its really a challenge for me to decide whether to go for REM or not. The reason why I am not going for discrete is :
    1. Client doesnt know how much of ( for example) fertilizers it issues for finished 1 or finished 2 . client says he  knows that in a month how much he has used  for example 100 kg of fertilizers in total, not on basis of finished goods. So, i think i will have problem during BOM creation and goods issue in particular.
    2. Since finished products are rose plants, jasmine plants etc, client says i dont how much to do Goods reciept. few plants may still be not ready to be able to do goods reciept.Client says its very difficult for me to count flower plants everyday and then say out of 1000, 10 are ready to be done Goods reciept and 15 are dead so these should be scrapped etc.
    These are the resons why i thought it to map to REM. But client also wants to know price of each plant , means whats the price of rose plant(per plant), price of jasmine plant( per plant).
    Request you all to throw some light on this..
    Regards.

  • Year end Valuation of Finished Goods

    Hi
    We have an issue with respect to valuation of Finished Goods. As of fiscal year, there is some stock of Finished Goods, which is valuated at a certain price. On the first day of the next financial year, we run the standard cost estimate, release it, which would change the price in the material master. however, the stock declared at the end of financial year, cannot be changed in the next financial year. The change should be applicable only for the stock produced in the next financial year. How can we account for it?
    Regards
    Sanil Bhandari

    Dear Sanil,
                Try to use MR21. This revaluate the material based on the closing stock as on date, irrespective of produced date.
                 Hope this could help you out.
    Regards
    Ashok kumar

  • Automatic creation of purchase requisition for semi-finished product HALB

    Hi Gurus,
    We want the MRP to generate automatically a purchase requisition, instead of a planned order, for a semi-finished product.  Of course, we still want to be able to convert it to a planned order.
    thanks
    Jean-Francois Millaire

    Hi Jean-Francois Millaire,
    You want a purchase requisition after MRP run & you should also able to convert that purchase requisition to planned order,If i understood correctly, hope this is your requirement
    First one is possible -in MD01/MD02 maintain create purchase requisition as "1"
    Second is not possible,its not possibel to conver a PR(purchase requisition to Planned order where as vice versa is possible
    confirm my understanding,pls revert if you differ
    Regards,
    SVP

Maybe you are looking for