PTRODUCT COSTING - SUBCONTRACTING - INHOUSE

Dear friends,
One product is produced Inhouse as well as by Subcotracting.
I have marked it with sp. procurement type X/30.
Now in Product costing , system caculates Subcontracting cost( Without operation cost).
If we remove sp. procurement type then system calculates Inhouse prod. cost properly (With operation cost.)
My requirement is - with sp. procurement type X/30 , system should calculate Inhouse production cost (With op. cost). How to solve this issue?
Please help.

Hi Sandeep
you maintain the following entries while costing
while creating the STD costEstimate (CK11N) enter the BOM and Routing details in the Quantity structure Tab.
OR
create a Production version for the material with X/30 with valid BOM and Routing,
then in the MRP4 view selection method field enter 2- Procution version only,
then as above said enter the production version while creating the costing in the Quantity structure tab of costing screen.
Now the system will pick the values from the ROuting and BOM for costing!!
Hope this Helps
BR
SK

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How to capture cost of Inhouse Production Scrap to the Product?

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[http://help.sap.com/saphelp_erp60_sp/helpdata/en/5f/1faba54aee11d189740000e8322d00/frameset.htm]

In house mfgd. raw materials for a production order- Cost capturing

Hello Experts,
The scenario is as below:
Client wants to manufacture in house some of the raw materials for a production order of sub assembly. These raw materials are made from scrap, with some manhours spent on it. After making them in house, these are handed over to stores for kit preparation.
The planner wants to create a stock of these materials (without making individual prod. orders since there are many of these). One option is, planner can do the cost centre issue reversal (202 movement). But the raw material cost is also getting captured in it from the material master.
From costing point of view, the cost of raw material should not be included since it is made from scrap. Only the cost of man hours spent is to be accounted for.
Please help as to how to map this scenario. For capturing cost of man hours spent, we can include a routing for it in the production order of the sub assembly. But how to eliminate or exclude the material cost. All inputs from your side are appreciated. Thanks in advance
Regards,
Chetan.

Hi Chetan,
Your scenario has some major issue.
1. You cannot produce RAW material in SAP.
2. The cost of material produced inhouse will be different than that of original RAW material.
3. There will be some cost effect in the final finished product if you consider this inhouse produced material for product costing of finished goods.
We have similar scenario with my client and here is what I have implemented.
1. Create a new HALB type part number for the inhouse manufactured RAW material. This will ensure that you assign Routing and BOM to same and can capture the COST for the same.
2. Creating new material will enure that the product costing for inhouse produced RAW material is done.
3. You can create single Production order for the same as you only have to capture cost. This depends on your Business scenario.
4. Once you have inhouse produced raw material, you can create alternate BOM for the FINISHED Material with this new Part number in BOM.
5. Create Production Version for the two BOM and ask Planner to select the Version 2 if he requires new part number in Production Order. I assume that this case would genrally appear in very small numbers.
6. Now coming to product costing for final assembly. Since we are going to reuse scrap material to create the new part number, only activity cost and component cost will be used to determine cost. This cost will be less than that of RAW material cost.
So we always suggest our customer to consider OLD part number to determine the PRODUCT COST of final material. BUT business will have to take a call on this.
Do let me know if u need any thing else.

Getting Blend materials from Raw Materials in RMWB transaction technically.

Hi,
I am working on a PDM report having requirement for determining all unit and case UPC that contain a chemical represented by a CAS.
I have a requirement for getting Blends using Raw materials.I am able to find the raw materials from pure substance but not able to get a logic for getting the Blends from this raw materials.
Is there any Function Module to find the Blends from raw materials or any logic which I can put in my program to find this.If anybody could help me in this.
Then I have to get the Finished Goods using the Blends.
And Finally Finished Goods comprised of Finished Goods.
There is no time to debug the Standard RMWB transaction.
<removed_by_moderator> .Kindly all PDM-ABAP users please help me on this issue.
Thanking you in advance.
Sudip
Edited by: Juan Reyes on Aug 14, 2009 2:49 PM

Hi Chetan,
Your scenario has some major issue.
1. You cannot produce RAW material in SAP.
2. The cost of material produced inhouse will be different than that of original RAW material.
3. There will be some cost effect in the final finished product if you consider this inhouse produced material for product costing of finished goods.
We have similar scenario with my client and here is what I have implemented.
1. Create a new HALB type part number for the inhouse manufactured RAW material. This will ensure that you assign Routing and BOM to same and can capture the COST for the same.
2. Creating new material will enure that the product costing for inhouse produced RAW material is done.
3. You can create single Production order for the same as you only have to capture cost. This depends on your Business scenario.
4. Once you have inhouse produced raw material, you can create alternate BOM for the FINISHED Material with this new Part number in BOM.
5. Create Production Version for the two BOM and ask Planner to select the Version 2 if he requires new part number in Production Order. I assume that this case would genrally appear in very small numbers.
6. Now coming to product costing for final assembly. Since we are going to reuse scrap material to create the new part number, only activity cost and component cost will be used to determine cost. This cost will be less than that of RAW material cost.
So we always suggest our customer to consider OLD part number to determine the PRODUCT COST of final material. BUT business will have to take a call on this.
Do let me know if u need any thing else.

Need help regarding QM Reports

Hi Experts
I am currently working on QM & PM queries ,
i am unable to map some feild in R3 ,
1) Cost:- External service cost,Internal Labour cost,Internal Material Cost,subcontract cost;(its a Pm module report requiremnt)
Cust Rejection
Cust Return Rework
Cust.Complaint visit
Warranty/Field Return cost
Cust line return qty
Field return qty
Cst line return rejectn qty
Dispatch qty
Can any one suggest me relevant feilds in R/3, so that i can extract them to BI . I am new to this module , Kindly update me ASAP.
Thanks in Advance
Regards,
Gane

Hi,
1)Goto SE16-->Tablename: RSOSFIELDMAP -->Table contents(F7)
2) Enter you DataSource name in OLTPSOURCE filed -->Execute
3)you can see the Infoobjects for the corresponding fields in your Datasource

Standard Cost Estimate for Subcontracting

Dear Sir / Madam,
We are in the process of migrating from our normal R/3 operations for Production Planning to Execution inclusive of Costing of materials by using iPPE functionality for repetitive scenario. We have our BOMs for painted body currently in R/3. The painted body falls under subcontracting scenario.
In this scenario the body in white produced from our bodyshop is sent out to the subcontractor along with certain paint items and is received as painted body and consumption of the body in white and the paint items sent needs to be shown during the goods receipt of painted body.
For this we have maintained the BOM for the painted body in iPPE. Also in the costing variant "ZD01" in order to arrive at Standard cost (CK11N) for the painted body we have maintained the following settings for Valuation variant for subcontracting :
Priority     Strategy Sequence
1          Net Quotation Price
2          Effective Price from Purchase Order
While running CK11N for the material (painted body) we are receiving the following message
Message no. 28501 : Error in dependency processing: condition 0000062388 is empty
We wanted to verify whether the message raised is normal or would it have any adverse impact.
Your assistance would be highly appreciated.
Regards,
Bhavika
Edited by: Bhavika Goyal on Feb 7, 2009 12:20 PM

Dear All,
Control Key is important for inhouse producrtion and Sub Contract. Check it once and when ever u have given the Product (semi fisished) to Sub Contractor, along with Paint.
Here one thing is important what is your process? how much portionis involced in Sub contracting. why because
Paint issue to the sub con is captured by the way for migo or miro
Payment to sub contract is capture all the cost of the Sub Con., then is there any cost is missed for this process. Let me know the remain things?
thanqu
raj

Cost element error while processing GR of Subcontracting sch.agreement

Hello All,
While processing GR for a Subcontracting Sch. Agreement, the system gives the following error:
Cost element 50050002 is not assigned to a cost component in CostCompStruct M1
Message no. MLCCS010
Diagnosis
You have activated the actual cost component split.
No cost component has been assigned to cost element 50050002 origin group in cost component structure M1 for chart of accounts MMC. The system is unable to assign the value to a cost component.
System Response
You cannot carry out posting.
Procedure
Check whether for this operation the value to be posted is to be assigned to this cost element.
If the value has been assigned to the wrong cost element, you should change the account assignment for this operation.
If the value has been assigned to the right cost element, then maintain an assignment of the cost element and origin group in Customizing of Product Cost Planning.
The Sch.agr contains the parent material and the child part is maintained in the Component overview for that material in Maintaining the sch.line.
What should be looked into.
Please help.
Regards,
Manoj

Hi,
Check on it;-
http://www.sapfans.com/forums/viewtopic.php?f=6&t=300552
Cost element not assignment to Cost component structure when activated M.L
pherasath

Moving average price of subcontracted material not picked for Cost estimation

Hi Experts
I have the below scenario:
Finshed Product A has components B, C.
C is a subcontacted material and it has its own BOM with components D & E.
We are maintaining moving average price for the subcontracted material C, (because the subcontracter is adding X & Y in addtion to the components D and E, which are sent from us).
In the mateial maste of C, Procurement type is F and Spl. procurement type 30 are maintained.
When i do costing for the Finished product A, moving average price of C is not picked up (where as system calculates the std cost for C by adding the values of D & E and purchase info record price).
Is there any way to Calculate Price of A by using the mvg avg price of C.
I maintained the below valuation variant settings.
If i remove the spl. procurement type 30 in the material master of C, it picks up the mvg. avg price. but it affects the MRP planning of items D & E.
Please advice.
Thanks in advance.
Regards
Bala

Hi Big choi
Thanks for your response.
I understand.
1. if we maintain spl. procureent key 30, system calculates standard cost based on raw material and service charges.
2. If we don't maintain spl. proc key, it considers the material as purchased and picks the mvg avg price from material.
But, is there any way to pick the moving avg price from material master eventhough i maintained the spl. procurement type 30?
Thanks
Bala

Subcontracting Purchase Order with Delivery Cost

Hello Experts,
I am facing issue during Goods Receipt against Subcontracting Purchase Order.
Note:
a) Subcontracting PO has delivery cost given 200 /pc.
b) Condition type Z001 for Delivery has Condition Category "B" with accrual checked.
c) Pricing Procedure has Accrual Key FR1 with condition type Z001
d) Condition Z001 is common for Standard Item Category PO and Subcontracting PO for delivery cost.
During Goods receipt, system generates following accounting.
BSX     Inventory-SemiFinish     M     S     521.12
WRX     GRIR Clrg-Mat A/c     S     H     100.00-
BSV     Inc/Dec. in Semi-F     S     H     521.12-
FRL     Job Work                          S     S     100
FRN     Freight Clearing A/c     S     S     100
FR1     Freight Clearing A/c     S     H     100.00-
BSX     Inventory-RM(Domest)     M     H     321.12-
GBB     RM Consumed-Domestic     S     S     321.12
As shown above FRN is the account which is the resultant of Devliery cost during Subcontracting. Entry of this Key is not completely knocked off in this transaction and next transaction for invoice verification MIRO.
My query:
A) Can we stop account posting for FRN.
B) If not How will FRN entry be knocked off, (Entry for FR1 gets set off during MIRO- Invoice verification.)
C) In case B is not possible, Posting in account assigned to FRN Key will always show values.
Can any one help me to confirm that Entries above during Goods Receipt are ok, If not what sort of changes are required.
Can we use same condition types for Delivery cost for Standard Item category PO and Subcontracting PO .
Awaiting reply,
Regards,
Manish

Hi Vaibhav,
a) I am not able to understand why do you think the above entries are not correct.The entries are perfect.
My Reply: Ok I do agree for a movement that entries are ok, No Issues
b) If you want that freight entries should not go to separate account then you can include the freight charges in the same condition as basic price condition so that charges will go to FRL and WRX.
My Reply: How can I include Freight Charges in the same condition as basic price condition, so that charges will to go FRL & WRX, Can you please explore this,
Regards
Manish

Cost of subcontracting

dear all:
I have a problem about subcontracting need help.
before, these is no any material need subcontracting in our company,but now our
company will produce new product whick its a component material need subcontracting.
We will:
    1.we will send the component material (we can call it a001) to vendor (movement type 541) using t-code mb1b.
then we recieve the material b001 from vendor(movement type 101),and recieve the
material a001 (movement type 543) using tcode migo.
I have already setted:
1.i have already maintained the costing variant for the subcontracing using tcode okkn.
2.i have already created purchasing information record for the material b001 using t-code me11.
3.i have already created a balance sheet account 12320198 to collect the cost of subcontracting .(but i don't kown whether the account 12320198 should be the p&l statement acc. if yes is it necessary to create cost element for it,and assign a cost center to the cost element.)
4. i have already assigned the account 12320198 to the type FRL using tcode obyc.
5. i have already successfully make the standard cost calculate for b001 using tcode ck11n.but i don't kown is it correct.
my problems:
1. what should i do to collect the cost for subcontracing?
    can any friend tell me the full flow about it,or give me some detail documents about it.
2.what the account documents the system will create when i recieve the material b001 from vendor using tcode migo,and when i verify the invoice using tcode miro.i.e what should i setting for the tcode migo&miro in this case.
3.i don't kown wheher it's accurately that i have already setted.
i really need your help.
thank you a lot.
best regards!
Message was edited by:
        zhao gang
null

Please help me!!
I have an error!
Fld selectn for mvmt type 543 / acct 2026800 differs for Cost center (010)
Message no. M7093
Diagnosis
Comparison of the field selection strings from movement type 543 and G/L
     account 2026800 has revealed that there is an incompatible field
     selection combination at one or more points.
Field for which the field selection is different: Cost center
Example
On the movement type screen, a given field is a mandatory-entry field,
     whereas on the G/L account screen, the same field is suppressed.
System response
You cannot post this transaction, unless you have changed the field
     selection adequately.
Procedure
Contact your system administrator.
Action to be taken by the system administrator
Check whether any postings resulting from this movement type are to be
     made to the G/L account determined automatically. If you find that the
     G/L account is not correct, check the automatic account determination in
     the Customizing system for valuation.
     Proceed
If the G/L account is correct, use the report RM07CUFA to compare the
     field selection for the movement type with the field selection for the
     G/L account and change the incorrect settings or the field status group
     of the G/L account.
     Proceed
Do you know what to do??
Thanks!!

Inhouse production / Subcontracting mapping in SAP PP

Hi,
I have a scenario for inhouse and subcon. My FG is canbe manufactured inhouse and as well as can send for subcontracting for operation.
for this I have maintained X (both procurement type) in Material master and also created a MRP group and assigned in Material Master, in that MRP group I have maintained order type for my Prd.Ord and in external procurement I have maitained a subcontracting PR doc type.
When I run MRP it is giving me planned order and allowing me to convert in to either prd.ord or PR, till this point its fine but when I try to convert in to PR its getting converted but it is not a subcontract PR, but I want to convert into subcontract PR.
Can anybody tell me what more I need to do to achieve this scenario.
Regards
Ramana

Dear Clifford and Brahmankar,
I have tried to maintain as you said special procurement type in MRP 2 view as 30 (subcontract) after maintaining this and running the mrp its giving me only PR in the md04 screen, but when I run MRP with the processing indicator as 3 i.e. planned orders it will give me planned order where I can convert into either prd.ord or sub con PR.
But If I give processing indicator as 3 (planned order) while running MRP for all other external procurements also mrp giving planned orders, which again they have to convert in to PR which is extending one step of work which is not desirable.
To overcome this I maintained the conversion indicator in MRP group to planned order (3), but still its giving me PR when I run MD02 with processing indicator (3).
So how do I Over come this situation, so that only for this material I'll get Pl.Ord and for all other F procurement its PR. Please help me.
Regards
Ramana

Subcontracting in sales order costing

Dear Sapfans,
We are having make to order with sales order process (sales order as cost object).
We are having a scenario where we are sending the goods for an external processing (subcontracting) .
After the MRP run, we are converting the purchase requisition to purchase order with account assignment E.
At the time of doing GR of finished goods from subcon vendor, the system withdraws components from the sales order stock. Which means the subcontracting charges should be debited to the sales order
However, I am getting an error for assigning cost object for GL account for subcontracting charges.
Why is the sales order not being considered as cost object here?
I have done sales order costing and saved the cost estimate.
Any suggestions please?
Thanks In Advance

Hi Anulekha,
Please see below scenarios
1. Subcontract to inventory
At the time of GR against subcontract Purchase order we have the following three entries
A:
Dr: Consumption account
Cr: Raw material Inventory account
B:
Dr: Finished material Inventory account
Cr: Change in Inventory account
C:
Dr: Change in Inventory account
Cr: GR/IR account
2. Subcontract to PP/SD order
At the time of GR against subcontract Purchase order we have the following two entries
A:
Dr: Consumption account PP/SD order
Cr: Raw material Inventory account
B:
Dr: Finished material Inventory account PP/SD order
Cr: GR/IR account
We are using both scenarios and working correctly.sales order is cost object in my scenario also.
Hopefully this helps you.
Thanks,
Rau

Subcontract Process:Transport/Freight Cost should not be added to Inventory

Hi,
I am following subcontract process; the involvement of transport/freight cost should not be added to the inventory account during Goods Receipt (MIG0).
Regards,
Biju K

Hi BIjay,
You may try this
1. New condition type to be created by copying the standard condition type FRA1/FRB1/FRC1
New condition type ZFR1 created by copying FRA1 - M/06.Accrual flagged in this condition type same as FRA1 and Condition category of the new condition type should be Blank and maintain X-Negative value in the plus/minus field. Accrual must be flagged.
2. New account key ZR1 created
OLME -- >conditions -- >Define pricing Determination process -- >Define Transaction/Event keys
3. Assign this condition type to pricing procedure - M/08 .Also assign transaction key ZR1 .
80 1 FRA1 Freight % 70 X FR1
80 2 ZRA1 Freight in spl GL 70 X FRE ZR1
4.GL account maintained in OBYC for this new account key -ZR1
Maintain same conditions for FRA1 and ZFR1.
5. Goods receipt debits freight amount to separate account
Hope Help U !
Regards,
Pardeep Malik

Inhouse production vs. subcontracting

Dear All,
What are the proper settings for materials that are produced inhouse and procured externally as subcontracting goods at the same time? (maybe inhouse production will be ceased)
The material was produced inhouse (proc. type 'E' [so it has got BOM]) but we plan to outsource this activity.
Thank you for your help.
Csaba

Hi Csaba,
There is no problem it the material has a BOM.
Still you can got ahead with 'X' both procurement.
There are two methods.
Method 1.
During MRP Run, a planned order will be generated.
Convert this partially into PR for the required qty from subcontractor. Then tick the closed indicator.
For the remaining qty you can convert the pl order into Prod order for in-house prodn.
Method 2
Use quota arrangement.
Given
1.E - inhouse prodn 50%
2.F-External procurment with L-sub-contracting - 50%
Also, In the lot-size T.code OMIE tick the splitting qutoa.
During MRP run, a pl order & PR will be created.
Pl.reward if useful.
Regards,
Senthilkumar SD

Subcontracting scrap, component consumption and service cost booked to vendor

Hi,
Our client is issuing 100 pieces of component "A" to subcontracting vendor to manufacture finished product "B". In MIGO, we are receiving finished product B and consumption is booked for 100 pieces of component A . Invoice is paid to the subcontracting vendor for the service cost.
Later, we realized finished product did not met the quality standards and decided to scrap out the finished product B. This is scrapped and stocked out using std. SAP using 551 mov type. But the client want to charge scrap cost of finished product B, service cost (Job work cost) and the consumed components (A) of 100 pieces to subcontracting vendor. How to map this challenging scenario in Std. SAP.
Regards,
Sat

No need to create subcontracting PO.
Just create a standard PO, use material as FG (Material B as per your scenario)
Enter the vendor (whom you want to charge for it)
Let me explain the scenario:
1. You have created a subcontracting PO for vendor X, FG material B and component A.
Subcontracting service charge = Rs. 10.
Price for Material B = Rs. 50
Price for material A = 30.
2. You have done GR.
Now the FG material B is in your stock. (Here, you have done 551 movement type). Right ?
Now just do not do 551 movement type. Leave the stock as it is.
3. Then create a standard PO for material B and vendor X, give the price = (10+50+30) 90 and tick the return option in PO line item.
4. Then do goods receipt. Movement type 161 will be automatic posted in system and stock will be consumed from your storage location.
Then accounting entry will be
Stock account Credit
GR/IR account Debit.
5. Then you can do credit memo to vendor from MIRO with the reference of this PO. Then the accounting entry will be
GR/IR account Credit
Vendor Account Debit.

PTRODUCT COSTING - SUBCONTRACTING - INHOUSE

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