Trading Goods & Finished Products

Hi
While creating new material we have to give the the material type and as per this the screen will display.I want to know what is the difference between Finished Product and Trading goods in material type.Can anyone give some example of materials/ products which will come under these two material types?
regards
jyoti

Hi Jyothi,
Difference between Trading goods and Finished products.
Trading goods:- Trading goods means company will not manufacture those goods they will purchase the goode from the vedor then they will supply to the cistomer.(thses also can be finished products but not manufactured by the company).
Here production will not takes place so no need to maintain production planning data in the material master.
Supply will happen in two ways,
1.First Company will take the delivery from vendor after that company will deliver the goods to the customer(Individual purcahse order).
2.Company will instuct the vendor to supply the goods directly to the customer.(Third party process).
Finished products :- Which are the products produced or manfacured in the company premises itself.
Here production will takes place so need to maintain production planning data in the material master.
So according to that system will allow the fields in the material master.
I hope it will clear for you,
Regards,
Murali.

Similar Messages

RE: Difference between Trading Goods and Finished Goods

What is the difference between a trading good and a finished good?
My business contracts the manufacturing of surfboard to third party manufacturers. We then distribute the surfboards out as our product to customers. Would you describe our surfboards as a trading good or a finished good?
Thanks

First of all, I am not sure which is the right forum for this question
Coming to your query, a trading goods can be a finished goods or semi finished goods but not all finished goods can be treated as a trading goods. Hope you got the difference.
From manufacturers point of view, whatever they produce and sell, it can be treated as a finished goods. Whatever they procure and sell, that can be treated as a trading goods.
thanks
G. Lakshmipathi

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

Unable To Receive Finished Goods in production module

Hi Experts,
I am unable to receive some finished goods in production module through Receipt from production form and it will not through any exception. The problem occurs only for few production rest of production is received with out any problem.
Regards

hi parminder
there has to be ceratin message as somethimes we overlook and there is the message being displayed that is hidden below the status bar .
One thing is are u able to add the document receipt from production . is there a message " done successfully"
Regards,
Manish
Edited by: manish.malik on Apr 30, 2010 4:53 PM

To know the Finish Good or FInish Product name

i am developing an Batch wise consumption report, in that i want to know the finish product name, is there any FM or a table where we can find the name of the Finish Goods or Product name,,,
Regards
Mukesh Kumar M

Usually, it depends on your business requirements.
Bare minimum fields will be MARA-MATNR, MARD-LGORT (storage location), MARC-WERKS (plant), MARA-NETPR (Price), qty, shel-life expiration date, batch number, vendor, etc.
Please refer to these links for step-by-step details.
https://forums.sdn.sap.com/click.jspa?searchID=1680871&messageID=3147313
https://forums.sdn.sap.com/click.jspa?searchID=1680871&messageID=2727595
Material Replication filtering problem
https://forums.sdn.sap.com/click.jspa?searchID=1680871&messageID=939819
https://forums.sdn.sap.com/click.jspa?searchID=1680871&messageID=3051093
https://forums.sdn.sap.com/click.jspa?searchID=1680871&messageID=1446371
https://forums.sdn.sap.com/click.jspa?searchID=1680871&messageID=2906955
https://forums.sdn.sap.com/click.jspa?searchID=1680963&messageID=2906855
https://forums.sdn.sap.com/click.jspa?searchID=1680963&messageID=3107068
https://forums.sdn.sap.com/click.jspa?searchID=1680963&messageID=2987071
https://forums.sdn.sap.com/click.jspa?searchID=1680963&messageID=3171466
Hope this will help.
Please reward suitable points, incase it suits your requirements.

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

How the Trading Goods mapped in to Product costing and COPA in Controlling

Dear Experts,
I have a trading goods scenario in my client. How the mapping into Product Costing and COPA.
They just purchase FG products from Vendors and Sell to their Customers, they received FG Products to Main Plant from Vendors and then sends to Branches from Main Plant, In between some expenses accured like Transport, Fright etc. this is my scenario.
How the settings to be made in Product costing and COPA.
I am waiting for your favorable reply.
Thanks,
KBR.

Hi Bhaskar
I believe branches are also created as Plants
You have 2 choices....
Choice 1: If the Freight amount is known @ the time of Transfer from Main plant to Branches, include the same in STO so that inventory value in Branch = Purchase Value + Freight amount
CHoice 2: If thats not possible, then inventory value in Branch will be same as the Main plant... The expenses incurred on freight needs to be posted to a cost center... Then allocate them @ month end based on revenue / Quantity sold etc using KEU5
Whichever choice you make, Product Costing is not relevant and required as well... You dont need to do any CK11N
If you want to see in COPA Purchase value separate and the Freight, etc separate - Then choice 2 is the route for you
br, Ajay M

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

Error in KE27 - run for trading goods

Dear gurus!
i have a error when i run KE27.
Current, my customer don't have production activity. In SAP system, we activated Material Ledger. in period, i wanna run Periodic valuation (KE27) for all trading goods. (Note that we don't have finished good because not have production, customer just sell trading goods)
I configured some steps follow:
1. Define and Assign Valuation Strategy (in this step, i wonder that which valuation strategy is user for valuation for trading goods)
- valuation trategy : 001
- sequence     material costing       quantity field
       10                        x                            VV099
- assignment of valuation strategy
point of valuation                   record type              valuation strategy
    02                                              F                               001
2. Define Access to Actual Costing/Material Ledger
   Costing key - 01
0 legal valuation
1. only trasfer total cost
   periodic a/c line item
3. Assign Costing Keys to Material Types
point of valuation           record type    Material type        Valid to         costing key 1
        02                                   F                 HAWA              31.12.9999       01
Then, after run period closing in Material ledger, i run KE27 to periodic valuation , but system get error:
" Message no. KE435 - Costing key 01 does not exist
In Profitability Analysis, the system tried to valuate by reading a product cost estimate. The Customizing settings in CO-PA call for valuation using costing key 01.
This costing key is not defined "
explicitly, i maintained costing key and assigned this to trading goods - material type.
Please, help to fix it!
any idea is appreciated.

Activating ML is necessary because in my customer's company sell goods at planed price then revaluate value of inventories and COGS at actual price in the end of each of period. So we decide to use standard price control for trading goods and active Material ledger.
end of period, we run period procedure of ML for trading goods, we expect allocation different amount, revaluate inventories and consumption. Run revaluation step of costing run in ML, we revaluate all   ending inventories and consumption transaction except billing transaction. So, we think that we need to run Ke27 to revaluate all line item document in COPA from billing.
so anybody to help me revaluate consumption amount from billing at actual price in end of period?
thanks in advance!

Third Party for finished product

normally I sell a product and it is maintained as a Finished product.
But now I dont have the enough Inventory for that product.
So I have asked my Vendor to supply that material to the customer.
In this case I cant maintain this product as the Trading good.
how should i configure this scenario.
regards,
sheetal

Hi
there is no need to maintain a thirdparty material as trading goods. you just maintain as a standard finished product.
and in VOV4 maintain a TAS(thisrd party) as manual item category for your standard item combination (lets say ORNORM-+- = TAN TAS)....
<b>when processing a sales order just change the item category to TAS whenever you need a thisrd party order,.............</b>
Hope this will resolve your problem
Reward points if helpfull
Muthupandiyan

Creating finished-product with necessary semi-finished product with BAPI

Hi,
I really need help to be able to save materials made up of several parts with BAPI.
Let me show you the idea by using the example of car (finished product):
Car is built from a lot of components, for instance:
- 1 engine
- 4 tires
- 2 front lights
etc.
My task is to implement a method responsible for creating a finished product and all necessary semi-finished products which are connected with ready prod and save them in SAP. Furthermore I've got to create a bill of materials.
Has somebody faced such a problem? How have you solved it?
Looking forward your answers.
BR,
Rafal

ok....but do u know which option I am supposed to enable to create BOM?
According to my best knowledge there is no BAPI to create BOM...i tried to find.
I found out that I have to create material master record for trading goods(type: HAWA ) and create Semifinished products (HALB) by using BAPI_MATERIAL_SAVEDATA (hopefully I'm right), but I still don't know how to connect them with each other and then use to create BOM.
Every help will be warmly appreciated.
If somebody may provide me an example it will be great.
BR,
Rafal

Using FERT as trading good....

Hi,
Plz tell me is it possible to use material of FERT type as trading good i.e. for sales.
The scenario is a material (FERT)is produced in house and after it become finished good it transfer to different plants and than consider as trading product for sales. MRP 2 view is maintained as X, Price Ctrl=S, sales view also maintained. The problem is in price valuation, what will be the logic for material valuation. Is this a good practice to maintain sales view of FERT type and use same mat. for sales and distribution or we should create another material with HAWA type.
If 2nd option is valid, than it means if company has 100 finished matrl. than there must be 100 HAWA trading goods.
I want to use FERT for the in house stock transfer as well as for Sales purpose, how...
regards,
Man

See normally trading goods means we will procure and sell, in this case how you can have the standard price. Depends upon the market this rates will be changed frequently. If you have standard price any price hike is there it will go and hit in the price difference GL.
thats the reason i told you go for split valuation. For trading goods you will have separte val class and GL and price indicator will be V. so whenever any price changes is there it will get inventorized.
For finished goods you will have standard price. for this you can have a Price indicatore S.
Normally this is based on the client it will varry.If the client is dont want to create too many materials you can go for this one. Otherwise you can go for trading goods material type.

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.

COPA : Cost of sales for trading goods

Dear friends
We activated cost based accounting and made setting in "Define Access to Standard Cost Estimates" to transafer standard cost of material to copa. We have to transfer Variable and fixed part of the standard cost to COPA, to two diffrenct Value fields
And it is woking fine
But when we sell, any purchased goods (having price control V) system asking for standard cost of the purchased goods. Then we are running Standard cost run for that material and we are able to sell the goods.
Please speciy the above procedure is correct, any other procedure is available.
The problem I am facing is suppor today I run standrd cost run for a trading goods and sold the same, today for that material MAP and standard cost is same.
After some time the MAP of that same material is changed and if we sell the that goods, old standard cost of that material will go to copa
How to solve this probelm.
Regards
Bala

For the purchased products, you may perhaps use the condition type VPRS to bring in the material price from the material master.

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

Trading Goods & Finished Products

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