Rejection and Regrinding cost of material

Dear Experts,
I have query on regrinding of plastic. Pl find below the scenario
1. I produced 10 nos of Finished goods 
    Cost of Each FG is $10
    (FG Cost Break up  -RM Cost $7 and Labour $3)
2. After production , quality has rejected 2 nos of FG and passed 8 nos of FG
3.  Rejected stock of 2 nos are moved to rejected location
4. Subsequently Rejected FG stock, was regrinded and additional labour cost of 2$ incurred
5. Now this Regrinded material will be used as part of raw material to produce the FG.
6. Subsequently client has produced the FG using the regrinding material, during this process he incurred Labour cost of $3
   Pl let me have your inputs, as to how costing will be captured in this scenario.
Thanks
Sanjai

I assume when you produce 10 you do a goods receipt of 10 at full standard cost of FG. Therefore no scrap or QA cost recorded on the order for FG. 2 units rejected by QA sent to a separate location at full FG cost - 20. Following should be the next steps -
1. Create a separate material with a cost of 0.01 / unit to represnt the rejected material say RFG.
2. Do a material to material transfer from FG to RFG for 2 rejected units. At this time the price difference of 19.98 (9.99 / unit) will be booked to record the loss.
3. Create a separate material for reground material.as semi finished item with BOM component as RFG and routing containing labor. Let's call this material as RGRM. The cost of this material should be 3.01/unit (3 Labor + 0.01 cost of RFG). In this example cost of 2 units will be 6.02.
4. FG should have an alternative BOM with RGRM as component. Let's say you manufacture 2 units back, out of reground material. Your actual cost for the work order will be 6.02 (cost of 2 RGRM) + 6 labor = 12.02 against the standard of 20 for 2 units - a favorable variance of 7.98.
Net loss is 19.98 (incurred in step 2) reduced by a gain of 7.98 (in step 4) is because of extra labor (6 in step 3 and 6 in step 4).
If you record the rejected 2 units as manufacturing scrap or QM inspection write off and thereby recorded on order then this may change. But creating parallel materials probably will stay. This sure will have to be vetted by your PP, IM folks.
Hope this helps.
Regards
Subodh

Similar Messages

  • Group and legal costs without Material Ledger

    I was wondering is there a way we could have both the group cost and the legal cost in the system without having to configure material ledger. Currently we have Group cost in the system and no legal cost.
    Any help would be greatly appreciated.

    Hi NIK83,
    There is no other way to have multiple valuations w/o having ML in SAP
    ML is the only solution... If you want to upload the legal values, you can use the tax price or commercial price fields and take out a report comparing the 2 values using T code MRN9
    but, you will have to uplaod these values.. these cant be calculated w/o ML
    Regards
    Ajay M

  • Batch wise actual material consumption and activity cost

    hi
    my client is steel industry, client requirement is heat wise actual material and machine cost. Heat is a batch number, how i can check batch wise actual material consumption and machine cost.
    regards
    imdad

    Hi Imdad
    Whats the batch definition in your case?? have you designed One batch per Prod order or One batch per GR?
    If its one batch per Prod order - you can directly see the prod order.. however, chances are less for this as Steel company might be using PCC i.e. repetitive mfg
    If its one batch per GR - Then you will have to track using the Confirmation no because each Confirmation will trigger the Goods Issue and Activity Confirmations...
    Using Table AFRU - You can track the individual Confirmation no and also the Activity Qty confirmed....COSS / COSSD will have the Activity Cost
    If any goods mvt are posted during the Confirmation, you would see a Mat Doc No populated in the field "Mat Doc"
    Br, Ajay M

  • Product costing configuration material   and study material

    Hi all,
    Can any one pass me the Product costing configuration material and study material email id is [email protected]
    thanks in advance
    Regards
    vijay
    Edited by: vijay matlani on May 11, 2008 11:17 AM

    hi
    Product costing documentation
    http://www.sap-topjobs.com/SpecialPP/746.html
    nagesh

  • Material rejection and invoice verification

    hi all,
    I have take goods reciept for 100nos for a material,after GR material goes to quaity.but after quality inspection it was found that 50 nos quantity has been rejected.
    now i want to post invoice forremaining 50 material.
    my query is that how invoice is posted for remaining 50nos material?we HAVE GR BASED INVOICE VERIFICATION.
    QM procurement key is active in material master.how finance department will know that 50nos are rejected and how invoce verification will taken place for 50nos material?
    thanks in advance

    my query is that how invoice is posted for remaining 50nos material?
    After quality usage decision,only 50 nos is available in unrestricted stock which can be subsequently invoiced.
    how finance department will know that 50nos are rejected and
    how invoce verification will taken place for 50nos material?
    Ask FI dept to check reports - MMBE or MB52,rejected material can be in stock type - blocked or it
    may be moved to separate storage location for scrap.
    Otherwise if you want return rejected material to vendor,do return delivery in quality decision itself.
    You can identify material using 122 movement type in MB51 or ask FI person to check po history.

  • Split the material cost into labor and overhead costs

    Hello Experts,
    We get Finished Goods from another plant and that plant is not on SAP. So we load these materials as Finished Goods and enter the price in the costing tab and we do run cost estimates. In the cost estimate we see this price as material cost. How can we split this material cost into material + labor + over head costs? Is there anywhere we can enter the percentages that would split the total price into material and labor and overhead prices? I appreciate your time and response.
    Thanks In Advance

    HI Venkat,
    You can only split material cost using origin groups and not into material, labour & OH as you may know the cost components are grouping of cost elements (with an option to use origin groups).
    If this is too important for you to maintain that cost component split, then I see the only way is to consider maintaining quantity structure in SAP for the finished product, so that cost roll up happens with cost components.
    Hope this helps.

  • Posting Actual Costs at Material Level

    Hi All
    For our standard costs we will have BOM Components, Activities from Routings and additive costs. We also have activated Material Ledger and will use it for Actual Costing, the objective being that each and every actual cost will be brought to the SKU level. For BOM components and activities that is no problem since it will be done through settlement.
    However for cost components that have additive costs how do we settle them to the material ledger? Do we need to do MR22 for difference between standard and actual? Is there a way to do this through a template allocation or some other allocation method?
    Thank you

    Hi
    Lets assume, you have Std cost of 100 USD involving Material + Labor and an additive cost of 10 USD entered manually from CK74N...
    During production order processing - You would issue material components and confirm Labor hrs... Say, this amounts to 120 USD as against the std cost of 100 USD...
    However, in prod orders, there will be nothing posted against the additive std cost of 10 USD... If you wish, you need to post it either through template allocation from some cost centers or use some assessment cycle or transfer manually from KB11N or use a costing sheet
    Regards
    Ajay M

  • How to get report for cost estimates material cost only

    Hi Gurus,
    We have requirement in sales order costing that we need to develope report which shows only Material cost for all BOM levels.
    Normally at lower levels cost of Material and activity cost will be treated as Material cost for next level. Here I want to consider only material cost not activity cost at lower levels
    Pls suggest the logic and tables for exploding BOM and fetching material cost only.
    Thanks
    Sneha

    Sneha
    If you tick the "Roll up" indicatorfor each cost component  in Cost Comp Str OKTZ, then overheads do  not get added to the material cost... This is my understanding about it.. Is it behaving some thing different in your case??
    br, Ajay M

  • Inventory Report-Replacement path for Base UOM to Case and Standrad Cost

    Hi, We have a Scenario as below:
    Question1:
    We have a multiprovider contains 4 infocubes and 2 Master Data objects
    a.Demand
    b.Inventory
    c.Sales Orders
    d.In Transit
    Master Data objects
    a. Material (contains Base UOM to Case as Key Figure Attribute and also Base UOM as an attribute)
    b. Material Location (Contains material as an attribute and also Standard Cost as a Key Figure attribute)
    At the report level two formula variables are defined with replacement path for showing the Base UOM to Case and Standard Cost in columns.
    We have 4 reports on this multiprovider. There is a dialy sales report which gives the following details
    Material, Location, MRP Controller, CalDay, Base UOM, Actual Sales(AS), Dependent Demand(DD), Consumption Qyt(CQ), Base to Case UOM, Standard Cost
    In this report for all the records the Base to UOM and Standard Cost column is coming with values which is nothing but the replacement path on the material master key figure attribute. Though this report is on the multiprovider all the major keyfigures (AS, DD and CQ) are coming from a single cube( this is an observation from myside).
    We have another report which is the Inventory Report with the following details:
    Material, Location, MRP Controllder, Calday, Base UOM,      Unrestricted Inventory(UI), committed Inventory(CI), Back Order Qty(BOQ), In Transit by Sh/Rec(ITS), In Transit Pipeline(ITP), On Order Qty (OOQ), Current Inventory Position (CIP), Quality Inspection Stock(QIS), Block Stock(BS), Base to Case UOM, Standard Cost
    Now in this report for all the records the Base to Case UOM and standrad cost is not showing up. Is there anything which needs to be done in order to get the Base to Case UOM and standard cost for all the records.
    Question2:
    When Non-Cumulative and Cumulative key figures are combined at the multi provider and also at the report level, will there be any problem?
    Regards
    Vijay

    Hi,
    I think you can proceed with virtual characteristics for this.In the code you can truncate the time and you can display on the date:
    Regards
    Prasad

  • ERS and delivery costs

    Hi guys,
    We have following two problems in case of ERS vendors.
    1) We have certain delivery costs also in purchase order.  The same vendor will receive material payment and freight related payments.  In MRRL transaction, we select "Selected goods items + Planned del costs"  and run MRRL.  But after this also, amount excluding freight amount is posted in the invoice and delivery cost is not being picked for invoice.  How to get material cost + delivery cost also in one invoice
    2) In another scenario, we have different freight vendor.  For this we are configuring ERS for delivery costs also.  But the problem is in configuration we have to mention the vendor code in "Specify Automatic Settlement of Planned Delivery Costs".  Can we give vendor code as "  *  " here?  Or is there any other way of doing configuration without mentioning vendor code and it is applicable for all vendors ?
    Please suggest the solution for the above two problems.

    Hi Pankaj,
    Thanks for ur reply.  This will work.  But my problem is with this, we have to include all the freight vendors in configuration.  But we do not know how many vendors are there for the company.  If any new vendor is created, who has to enter this in the configuration..
    Is there any other way of making this functionality applicable for all vendors.
    Other problem is in our PO we have basic rate and 3 to 4 delivery costs,.  We have made 103 and then 105 and run ERS run and arranged payment to material vendor (it is same for both material and freight)
    But for some reason we are making return delivery against material document with 105 movement.  When we run MRRL for this, it will generate credit memo for the quantity returned to vendor.  But delivery costs are also added.  We want to avoid delivery costs in credit memo and it should only take material cost
    How to acheive this?  Please help me out

  • How to include Freight charges and unloading charges in Material price.

    Hi All,
    Can you pls. advice how we can include freight charges & unloading charges in Material price (MAP) when receive in system.
    Current Situation :
    We buy Switchgears from vendor, which transported with special vehicle arrangement from different service provider and gets unloaded at warehouse by another service provider. Currently business create seperate PO for Material vendor, Freight Vendor and for unloading service provider. But MAP is only updated with Material cost only. How can I include delivery cost and unloading cost in MAP thro standard SAP process.
    Your solution will help business heaps.
    Regards,

    Hi,
    Create three condition types namely basic material price, freight charges & unloading charges.
    For  basic material price , you can copy PB00 and rename your basic material price condition type.Now freight charges & unloading charges condition type in M/06 , do not maintain condition category ( keep it blank ), so that it will added to inventory cost .For freight charges & unloading charges do not maintain account key & accrual key in Pricing procedure.
    Cretae PO , now you will see all cost added to NET price in PO and you can for doing GR where all cost are inventoried as materisl cost.
    Regards,
    Biju K

  • Reducing the Freight cost on material value for undelivered material

    Hi Experts,
    Summary :  The material supplier vendor needs to be paid for full quantity of material. The freight transport is allowed an under tolearance of 0.5% on the material to be supplied. If the delivered material quantity breaches the 0.5% under tolerance then amount at 1.5 times the cost of material for the shortage is to be deducted from the transporter. A dummy GR will have to be prepared for the undelivered quantity for which we do not want the freight cost to be loaded. The details scenario is mentioned below :-
    We have to make a Purchase Order with material code say ABC for procured of some material. Suppose we make a Purchase Order for 100 nos. at a Unit Price of Say Rs. 10/- for Material Code ABC on say Vendor M/s XYZ. A freight condition is maintained in the Conditions Tab and suppose the Freight is Rs. 10 per unit of the material.
    While preparing the Goods Receipt through MIGO, in the Freight Tab we select say freight vendor say M/s PQR against the freight condition and post the goods receipt.
    While doing Invoice Processing in MIRO, when we enter the combination of Purchase Order and Planned Delivery Cost the system will populate the vendor codes of both the supplier of material and the transporter. On selecting the transporter the freight amount will populate against which the invoice of the tranporter can be processed.
    In the Vendor Master of M/s XYZ GR-Based Invoice Verification is activated.
    The vendor is allowed an under tolerance of 0.5% (i.e. the vendor should deliver at least 99.50 nos. of the Purchase Order). If the vendor delivers 99.50 or more then there will be no deduction in the freight charges.
    But suppose the vendor delivers only 99.4 nos. of the quantity. Then we will prepare the GRIR for 99.4 nos.only. But while processing the MIRO we need to deduct 1.5 times the value of the material from the freight amount for the shortshipped quantity, i.e.
    0.1     no (99.5 u2013 99.4) X Rs. 10/- * 1.5 = Rs. 1.5 are to be deducted from the final payment from the freight amount of the transporter.
    The material supplier will have to be paid in full 100 nos. of quantity and will raise an invoice for 100 nos. A dummy GRIR for the 0.6 nos. of undelivered material will have to be prepared for processing the invoice for the 100 nos. of the material supplier and a dummy issue for 0.6 nos. of undelivered material will be prepared to remove them from the system.
    Hence the freight cost for this 0.6 nos. of undelivered material will also go into the cost of the material and increase the MAP by that amount. Also the goods issue Cost will also have the effect of the freight cost.
    We do not want to load the freight cost for the undelivered material in the value of the material.
    Can any one please suggest a solution for the same.
    Thanks in advance.
    AJ.

    Hi
    A PO Will be raised for full quantity of material say 100 nos.
    The material supplier vendor needs to be paid for full quantity of material.
    A freight vendor is maintained at the time of GR for material against the freight condition maintained in the Po.
    The freight vendor facilitates the delivery of the material from the vendor to the purchaser for which he is given an under tolerance limit of 0.5%. Any delivery below this tolerance limit, freight amount to the effect of 1.5 times the per unit rate of material x short fall below 0.5% tolerance will be deducted from the freight amount.
    A dummy grir will have to be prepared for the short delivered quantity for processing the invoice for the full quantity of the purchase order, as the vendor is going to raise the invoice for full purchase order quantity. The client does not want to load the freight cost of the undelivered quantity on the material value as it will wrongly show the MAP of the material. This shortshipped material will be issued to remove it from the system and the stock will remain for the delivered quantity only. The vendor is subject to gr based invoice verification.
    Please suggest a solution.
    Thanks in advance.
    AJ
    The freight transport is allowed an under tolearance of 0.5% on the material to be supplied. If the delivered material quantity breaches the 0.5% under tolerance then amount at 1.5 times the cost of material for the shortage is to be deducted from the transporter. A dummy GR will have to be prepared for the undelivered quantity for which we do not want the freight cost to be loaded.

  • Actual cost of material in COPA

    Hi Team,
    We have implemented PP, CO & COPA  our client has the requirement to see the actual cost of material in COPA as per their requirement we designed the KE30 report as product wise profitability report in that report we used the record types B( direct postings from FI), C(Order settlement), D(over head cost) from the copa assessment cycle & F ( SD billing).
    1) Is it possible to see the actual cost of material( Including activity cost) in copa.
    2) If it is possible please advise.

    Hello
    It is not possible to get the actual cost of the material in COPA. Actual cost can only be derived if you implement material ledger.
    However in COPA we may come close to actual cost to some extent. The following configuration needs to be done:
    1. Run standard cost estimate every month so that the price reflects the most recent material prices.
    2. Define assessment cycles for auxiliary cost centers (whose cost should form part of inventory cost) to production cost centers.
    3. Configure for splitting and revaluation at actual price.
    4. Take the production variances to COPA.
    5. Create a report to show the standard cost and variances.
    One of the difference is that the total standard cost is for the quantities sold during the period however the variances will be for the quantities produced during the period.
    Another difference is that the unabsorbed overheads could not be allocated to individual materials.
    Hope this helps.
    Sangram

  • Cost of material charged to project but qty remains in stock

    Dear Gurus,
    I have a scenario, we have project systems PS. We have valuated projects and valuated project stock. Once project is over and if we have material left over, then my client want to charge the cost of the material to the project but he want to keep the stock at zero value in inventory, and issues it next time on zero value.
    I have tried to transfer material using 415 Q, but system does not allow to transfer materaial from valuated project to non-valuated project.
    kindly suggest any solution.

    Dear,
    my client wants to charge the leftover material cost to project but want to keep the qty in stock, so this is why we have a nonvalauted project. otherwise my client projects are valuated. i have not find any solution to charge the cost of material to project from project stock and keep the stock in inventory on zero value. and next time when this leftover is issued it will be issued on zero value.
    hope u have a solution.
    Edited by: Johi Kapoor on Nov 10, 2011 11:57 AM

  • In which table production order planned cost and actual cost i can see?

    Dear PP Guru,s,
    from which table i can see productuion order planned and actaul cost. i checked following tables AUFK, AFVC, AFVV, CAUFV, AFRU, AFKO, AFPO. but i did not found planned cost and actual cost field. is there any other way to get this data with respect production order?
    Regards,
    sree

    Dear,
    Planned and actual costs of prod order from COEP, COSS, COSP  S027 tables
    production order shows the planned cost based on the quantity structure.
    Please refer my reply in this thread for details,
    Re: Actual Halb Material Cost
    Regards,
    R.Brahmankar

Maybe you are looking for