Scenario : 1 SC Vendor; 1 Finished Good; Multiple BoM

Hi Experts .... Client have a situation where they have multiple BOMs for 1 Item and they send the different Raw Materials to One Subcontracting vendor for Job-Work processing.
Is there any way to enable the selection of BoM at the time of creating Sub-Contracting PO ???

Thx for your valuable comments Prashant, but the problem is how to choose which BOM to select ... is there any setting/ configuration
I tried Product Version concept ... but that too is not consistent .. info record gets updated somehow and the choice for Product version also doesn't come after making 1 PO

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Subcontrac vendor delivers finished goods to customer. (Third party?)

The business process is as follow:
We provide components to the subcontract vendor and they will delivery the finished goods directly to the customer. How to acheive this scenario in SAP?
Can there be a statistical GR like third party processing? (and statistical PGI?)
Detail explanation will be appreciated. Thanks a lot.

You can have an intransit storage location which does not have a physical presence.
You can perform GR against PO in that storage location, and then dispatch the material by picking from that storage location.
Regards,
Aroop

Finished goods in BOM

We have products that after manufacturing are either sold or undergo further processing before being sold. Can finished goods be included in a Bill of Materials for other finished goods, or is there a better way to implement the master data in SAP?

Hi,
If there is uncertainty for the Finished Product to be part of any further processing or selling directly, then the action to be taken is a policy matter.
Here is an example:
Say suppose you have one finished product and depending upon the customer requirement you will pack or do some different processing then:
the Finished Product can be created as HALB and FERT can be created with as per customer requirement.
Hope this helps..
Regards,
Siva

How to handle finished goods without PP module

Hi
I am a MM consultant and i have been placed in an implementation project where there is no PP module. But client wants to dispatch Finished goods without BOM and PP module but it needs to be captured through MM module.
Request your help and how to resolve this kind of scenario?
Expecting a favourable reply at the earliest.
Thanks & Regards
DVP

Hi Dusthakar,
Its not uncommon to have such a requirement to handle finished products in MM without using Production Planning module. You will maintain FG material#s as well as Raw Material#s. Create BOM for those FG materials. Create a vendor for your company on its own name. Create a Subcontracting Purchase Order for FG on to this vendor. It brings in BOM to PO,..,you may verify at material data tab of item. You can receive it to your plant. You may mark Free or charge on item. This will make it nothing to be paid to this vendor. FG comes to your plant. How do you like this approach We have been doing this for the past couple of years!
Reward points only if you are thrilled with this solution!
Regards

Finished goods procurement - Not htrough Third party order

Hi
The scenario:
The client purchases some Finished goods,which they are not manufacturing, directly from vendor, (i.e.) the sale sorder requirement for some Finished goods are directly procured from vendor and they require those items to be receipted back from vendor in sales order stock.Then they will deliver to customer.
In normal third party order , i think the Sales order triggers back to back PR with Account Assignment for statistical delivery and Item category 'S', third party. In these cases can we have the physical stock of the material in our Storage location in sales order stock and delivery can happen from thereon.
Please inform me the configuration for the same and any solution to map the process.
Thanks very much in advance
regards
arvind

hi ,
this is individual purchase order scenario....
while creating sales order you have to change item category from TAN to TAB.
then automatically PR created in sales order...
that you can see in VA02 ---scheduline category view.
then you create PO.
goods receipt.
create outbound delivery in VL01N.( with reference to order).
Create Billing to customer
otherwise you create material master as follows.
material type --- Trading goods.
General item category--- BANC.
item category-- TAB.
rewarws if helpful

RG23A Part I for Finished Goods?

Hi All,
Has anybody noticed if you select an excisable item as Finished Goods under excisable on item master data screen and having raised an outgoing excise invoice and if you run a report either RG23A Part I OR RG23A Part II from Excel Reporter you will not be getting any report whatsoever.
then what is the purpose of providing "Finished Goods" option when it is not generating any reports? but it is working fine with Raw Material and Capital Goods item types.
Can anybody explain the scenario on how to use finished goods option and generating excise reports for those kind of items?
Thanks
SV Reddy

Hi Datta, thanks for the reply
according to SAP Note 1062872 (2005B version) it reads as
"The excise register for excisable items of type raw materials/finished goods is currently set to RG32A Part I. When you create an out going excise invoice with these type of items, the accumulator for RG32A Part I will be increased."
I thought the same is applicable with SAP Business One 2007B version. However what you said might be correct. But the problem with one of my manufacturing client is whenever they raising an Outgoing Excise invoice they have registered numbers automatically be created on the pre printed invoice paper. where the invoice will be printed only with the qty, rate , price and register numbers rest of the information on the document is pre-printed. So they have a column called RG23C Part I / II where register numbers are automatically printed. But RG23C Part I & II are for "Capital Goods"
If I consider these manufactured items as "capital goods" then it will raise register numbers automatically. but this will not acceptable. correct me if i am wrong. so all of these items should be cosidered as Finished Goods in the item master data. if i do that again there is a conflict with their RG23C Part I / II on the pre-printed column and i wont be raising any register numbers.
Please update me on how should I deal with this issue
SV Reddy

Moving average price for finished goods

Hi All
I am using moving average price for finished goods. My question is, Does the price on the material master record adjusts, when we do goods receipt on a production order( If there are variances)?
here is a scenario:
Moving avrage price of finished goods=2$ and total stock =1
it has two components in the Bom
Raw1-3$
Raw2-3$
Now when I am producing 1 qy of finished goods with 6 $ of Raw materials, moving average price of fert should be 6+2/2=4 $. But I noticed the moving average price in the material master record is not changing.
My question is, Does the MVP changes with production order goods receipt, If so, what setting should I change to acheive that functionality.
Thanks
Steve

Hi Guys
Thanks for responding
I am aware that sap does not recommend MAP for finished goods. But we have a weird requirement. And I am doing a demo on this. My thought on MAP is, It changes for every goods receipt. But when I am doing goods receipt on production order, It is not changing the MAP, Even though there is variance on production order. So, My question is, Did I miss any configuration ?

How to get unit cost for finished goods in prod order

HI all,
IN a production order of type PP04, there is cost analysis you can get from CO03. This shows the cost for finished goods and BOM components. Would anyone know how the cost for finished goods are calculated ? The issue i have is that the unit cost of the finished goods is not correct. It is higher than what it should be. I looked at the moving avg price at material master but the cost used in calculation is different than in material master. Can anyone shed light how finished goods are calculated and why it is picking up a higher unit cost ? Where is the higher cost coming from for finished goods material as shown in CO03 ? The BOM materials are picking unit cost correctly. Would this have anything to do with cost settlement ?
thank you.
joyce

Hi,
Finished goods price will depend on BOM componenet price, activity price and overhead price. Check whether this prices are picking correctly or not.
Regards,
Sreekanth

Allocation of overhead cost to finished goods through vendors and raw mat.

We are trying to allocate a cost base in our purchasing department of around 200 mio dkk to our finished products. These products we manufacture ourselves. The cost represents salaries and external services
The outcome of an ABC study has been to allocate these costs, first on vendor level based on the total spent on each vendor and subsequently to the raw materials from each vendor based on value. The cost of purchasing should then be included in cost estimate of the raw material and hence in the cost of the finished goods through the bill of materials.
Our challenge now is to implement this algorithm into our product costing system in SAP.
The easy solution from the point of view of the SAP department is to have cost controllers doing the math of calculating the cost per material number in Excel and then allocate this rate through a costing sheet or a template.
But this solution on the other hand leaves the users with an extra manual task which again leaves room for error and it reduces transparency.
So has anyone tried implementing such a calculation scheme in product costing?

Hi
As far as I know, SAP does not support this... What you can do is
1. Calculate this price outside the system and include this overhead in the Plan Price of raw material (Costing 2 View).. So, this gets included in raw mat price itself
or
2. if you want to see it as an overhead, you need to arrive at an overhead% which you may calculate as Amount of these Expenses / Total raw material cost and apply this % across
Study the historic data of past 3-4 years to see if the % remains more or less stable
br, Ajay M

Mapping of Inspection of finished goods by third party vendor

Hi Gurus,
Greetings!!!
I have a senario to be mapped into SAP.
After finished goods inspection by our internal quality team, we are requesting the external vendor for inspecting the same finished goods before delivery to the customer.This is because based on the external vendor inspection certificate the customer approves the qulaity of the product.
Kindly help to map this senario into SAP.Currently we are doing finished good inspection by 04 inspection type.
Thanks inn advance,
Naveen.

Hi,
Your requirement is: to create an additional inspection lot - for which there will be a third party inspection.
It is NOT stock relevant. It probably is: Certificate relevant.
That's the reason why: I suggested you to use Physical Sample (Inspn type 15).
By this inspection: you can ask the Third party to come and draw a sample. After that, you can assign the sample number to it. Hence, it becomes traceable to the Batch/lot/material/date and sample number.
Once sample is drawn and tested, the Third Party sends you the results.
Now, you can record the same results in SAP and print a Quality Certificate for the same.
So, it is NOT relevant whether you are using it in your organisation or not. It becomes a necessity because of your requirement. By using 89 inspection also, you can accomplish the same. However, drawing a physical sample and noting the details of it (who, when, where etc) can only be mapped in Physical sample drawing.
Hope it helps you. Regards, KrishnaM

Multiple BoMs for Same FG and Subcontracting Vendor

Hello Gurus, I have a situation where client get job-work done for a finished good with multiple BoMs .... It is only decided at the time of creating PO when they decide which components/ child items to be used (Product Version). Even if the check for update info record is unchecked, the system don't ask for the choice 2nd time the subcontracting PO is drafted. Please guide what can be done under such circumstances.

Hi,
Please check how the alternative BOM can be determined (automatically):
http://help.sap.com/erp2005_ehp_04/helpdata/EN/b2/fa1ed4d51d11d1a69e0000e83235d4/frameset.htm
(assign the BOM to production version (C223) >> assign the production version to info record (ME12))
http://help.sap.com/erp2005_ehp_04/helpdata/EN/f4/7d2aea44af11d182b40000e829fbfe/frameset.htm
(lot size; selection date; production version)
Please check OSS note 458606:
1. Question
You work with production versions for selecting bill of material alternatives. How are they determined for SC purchase requisitions or SC purchase orders?
Answer:
Purchase Orders:
In purchasing, the production versions are assigned in the subcontracting purchasing info record. When you create an SC purchase order, the system determines the SC purchasing info record from the combination of vendor and material, and reads the production version. This is then included in the document. It is not possible to manually change the production version in the SC purchase order.
If you create the SC purchase order with reference to an SC purchase requisition, the system checks whether the production version from the SC purchase requisition matches the version determined from the SC purchase order.
If the production verions differ, the system displays a dialog box and the user can decide whether the production version from the SC purchase requisition is to be transferred or whether the BOM is exploded using the newly determined production version from the SC purchasing info record.
A selection of the production versions by date or similar is not available in purchasing.
Regards,
Csaba

Reversing subcontracted finished goods that came from customer returns.

Dear Gurus,
I have a scenario where the finished goods that came from subcontracting needs to be reversed back to its components without reversing the subcontracting charges. How to process this scenario in SAP.
The subcontracting job is packing. The individual materials will be sent to vendor and vendor will return the packed finished product. The packed material will then be sold. The materials that came back as customer returns due to quality reasons is unpacked and reverted back to its components.
How to process this reverting of the packed finished goods back to its components in SAP.
I understand one thing that reversal of subcontracting GR without reversing the subcontracting charges is not possible and it is not a proper procedure. I am unable to trace a way to process this using other indivdual movement types too.
Kindly suggest and Thanks in advance.
Thanks & Regards,
Pradeep Kumar . S
Edited by: pradeep.spk on Oct 24, 2011 7:14 AM

Thanks for your reply Nishant but the problem is subcontracting charges should not be cancelled. The packing job done by vendor was paid and it is irrevokable.
The Finished goods returned from customer should be reduced from inventory and its components should be added back so that we can scrap the defective components and do our further processing using the good components.
The requirement is how to process the reduction of the finished goods from inventory and add the components back to inventory in SAP.
Thanks in advance.
Edited by: pradeep.spk on Oct 24, 2011 10:51 AM

RG1 register entries during GR for Finished goods- in tarde business

Hello Experts,
I have to configure trading business scenario, in which my client externally procures the finished good from his vendor and sale the same one with added overheads. I have configured Sales order that reflects item cataory TAB so auto PR generetes during sales order. Base on PR i can do PO followed by MIGO. But during MIGO system omittes error as: Excise Invoice cannot be captured for RG1(Finished Goods) material now here i have to change the material type in j1id from finished good to raw material.Then system allows the transaction.
Please enlight the issue, am i doing the right step or it needs to be corrected, if so please help me out with, how can i handle excise related entries in this transaction (specially for RG1 updation during initial GR)
Thank you in advance..

Hi,
When FG trading is involved, RG1 should not be updated. In trading there cannot be CENVAT credit. It is for manufacturing activity only.
You need to update RG23D so that you can pass the exact Excise duty to the customer.
The process is receive Goods, Capture excsie invoice and create excsie invoice from depot for sales to the customer.
Hope this helps.
Regards,
Sharan

Create Handling unit after receiving finished goods from production

Hello,
My client's requirement is that they do not want a TR or TO to get created at the time of Production order confirmation and neither they want to create the Handling unit at the time of confirmation.
They want to move the material from production to warehouse as one Handling unit after multiple confirmations. They want to create Handling unit manually after the receipt of materials.
What is the process of creating Handling unit after we have FG (multiple batches).
After creation of Handling units, my client wants to ship the same Handling unit out to customer.
How to create Handling unit
Regards
Prabhjot Singh

Hi,
If I understand right - customer wants a simple transfer of finished goods from production to warehouse, and latter pack into handling units.
Possible scenario:
1) Assign production order to non-WM and non-HU storage location. Post GR for production order using transaction MIGO (mvmt. type 101) for a whole quantity produced for production order.
2) Setup packing table in IMG (Logistic General > Handling Units > General > Setup packing table> ...) --> packing table is a functionality for packing goods into HU - it takes goods from predefined source non-WM/non-HU location, packs them into HU and places them in target WM-HUM location.
2) Maintain packaging instruction (trans. POP1 and POF1) to automate the packaging quantities.
3) Run packaging table by HUPAST, select your table and pack.
4) Packed HU ends up on WM-HUM location.
This process can be done either in SAP GUI (HUPAST) or you can build it in RF transaction and run it with mobile RF scanner (ABAP development required).
Hopefully this will be of any help.
Regards, Primoz

Actual Cost of finished goods in MIGO

Hi,
The value of Finished material in FI Document generated in MIGO takes the (Goods Receipt Quantity) X (Planned/Moving average Price from material master), Where as it should take the Total Actual Price calculated after Order Confirmation Based on Actual Material Purchase Price & Actual Activity Posting Value.
For example:
Present scenario
Material-> MIGO QTY>Moving Avg Price -->MIGO FI Document Value
Finished> 1000 EA> Rs. 10/ EA--
>Rs. 10,000=00
Required Scenario:
MIGO FI Document value= (Purchase Value of Raw Material)+ ((Activity Posted while Confirmation)X(Activity price))
Thanks.

Hi,
What u said is right Mr Kapil.. See when u do GR From Production Order System Calculate Moving Price or Planned Price from
material Matser .
As per ur Reuirement u told it should calculate (Raw Material Price + activity+OVHD).
it is possible only when order quantity is less , suppose say your order qty is 150 mt per day and your Plant capacity is 500mt
per day production will be done in a half day, sale can be done on same day after Production with the formula what u told.
If suppose say , Your order is 2000 ton of Oil , it will take u to complete 4 days for your Total production as you told, GR should
be done on (Raw Material Price + activity+OVHD) formula, you dont know exact activity price for 2000 ton until u finish your total
production, at the same time until u do GR sales cannot be done. So in SAP Gr is intially done on Moving Average Or Planned
(Standard Price) , After totla Prodcution GR is Compared with Actual Cost(Raw Material Price + activity+OVHD)= :"Variance".
Plus are MInus is Reduced or added to Finished Goods Account or PP account during Settlement.
If any wrong Pls Correct me Experts,
Pavan

Scenario : 1 SC Vendor; 1 Finished Good; Multiple BoM

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