Trading material procurement process

hi,
how do I configure Trading material procurement process and what would be the process of Trading material procurement in case of excise.
thank u.
regards,
Aniruddha

Hello,
Hello,
Procurement of Excisable Material from a 2nd Stage Dealer ( Trading ).
Data Used :
Material : TEST101
Vendor : 6
Assumptions : Material price (inclusive of ED & Ecess) : 100
VAT (Deductible) @ 4% : 4
Amount Payable to Vendor : 104.00
Actual Excise Invoice received for amount : 25
Actual Ecess amount : 00.50
Total Cenvat Recd. : 25.50
Amount to be loaded on Inventory : 74.50
1. While creation of PO for such cases maintain the u201CZerou201D tax code u2013 usually V0.and GR based IV is ticked.
2. While doing GR through MIGO, enter the actual Excise duty & Education Cess in the respective cells of Excise Tab in Item details. Also ensure to change the Base value to PO value u2013 (BED+Ecess)
3. In the Excise Header Tab maintain Excise Invoice No. and Date & click on the icon for MRP tick.
Check on MRP Indicator. This check ensures that the value going on inventory is after deducting the Excise Duty & ECess.
4.In MIRO Screen, change the Amount to the Base Amount.
Ensure that the Calculate tax Indicator is checked and the value populated in Tax Amount is = ED maintained in GR + Ecess maintained in GR + Vat maintained in PO(thru Condition record)
Regards,
Shailesh

Similar Messages

Trading material procurement with CIN

Hi Friends,
Can any one explain how the trading materials can be purchased? what registers will update?
Regards,
Anand

hi
     create material master with HAWA material type..
     maintain material chapter id combination in J1ID
    create tax code with zero excise and some vat/cst in FTXP
    maintain condition records for tax code in FV11
    Assign tax code to company code in tax on goods movement
   create PO in ME21N with the tax code created.
During MIGO change the base amount
             Base amount = Base amount(PO) - Excise(bed, ecess, secess)
             enter the bed ecess secess in excise item details
            In excise header tab click on additional data (pencil icon) there in miscellaneous tab check mrp indicator
post the document.
         in MIRO change the base amount to base amount - excise.
During Purchase the RG23 A reg will Update..
During Sales RG1 willl update..

IMPORT MATERIAL PROCUREMENT

hello,
can eny bodt explain the import material procurement process in sap system
ie; iwant import a material from another country
explain material master onwards pls give step by step process
good answer will be awarded
regards
kiran

Hi Kiran,
Kindly check the first thread of this forum before posting any thread
kindly go thru following threads
import procurement
Import Po procudure
Thanks
suresh

Trading material -Transfer

Dear all,
Po has been created for AAA Trading material and GR done for a storage location 100.
AAA Trading material is transferred to another storage location 200 and GI done to make the fabrication material.
Accounting entry passed for the GI of this trading material.
After fabrication-sales order created, Outbound delivery created, Goods moved to storge location 200 and PGI done from Storage location.
Upto above process the material is treated as AAA atpresent.
Accounting doc created during PGI posted to same GL account as Trading material.
But our Customer want a different GL account as Fabrication is done on that Trading material and also moved to storage location 200.
Kindly advice whether Material to Material transfer can be done or through Split valuation the requirement can be met.
Kindly advice the process too for the above and if any other mode is there to meet the requirement.
Regards

HI,
Trading material means you are procuring this material from trader ,correct?
NO you got this material and this is row material for you as you have to do some process on it before sale it.
once you issue material to production,then its consume
now production department process it( means fabricate it) and create new form of material which,for that you have to create material code for material FERT type ,means FG material you have to take in stock by with help of production order ,
for that you have to create new material code with new identification ,with new valuation class ,so g/l will get change
Regards
Kailas Ugale

Budgeting at the time of material procurement.

Dear friends,
Any one can guide me how to handle budgetary control to procure inventory? At the time of inventory procure system has to check for availiablity. If I'm using internal order or project the material will go into consumtion accounts. stock postion will be zero.
As per accounting standard I have to show the materials in inventory balance till I issue for consumption. Please guide me with some suitbale functionality where my procurement will raise commitment and also check for the avialiability of budget at p.o. level.
thanks and regards
satya

Hi,
The process is to implement FM. You can read the info here:
http://help.sap.com/saphelp_erp60_sp/helpdata/en/f0/ca5716260211d28a430000e829fbbd/frameset.htm
You will be able to define budget for your inventory and control it during procurement process.
Regards,
Eli

Trading material importing

Hi Everybody.
My client have a scenario that, they want to make import for a trading materials,(Pricing control is Standard Price) The customs duties like CVD, ECess & Addnl Duty will be Non Modvat. Since it is a Non modvat it will add to the Material cost in actual process. But for my client it should not add to the Material cost and Exchange rate in PO Header level it should not fixed while making PO and posting GR, since exchange diff. rate will add to another account because of STD price.
Please let me know the solution for this scenrio if anybody experienced.
regds,
Dhanu

I really thankful for this suggestion.
But in our scenario we are importing a Trading Material for this we will pay the excise duties. In this case in SAP the process will be
MIRO - Customs Clearance
MIGO - Goods receipt (Here the account document will get generate and the delivery cost like CVD & Cess will add to the material cost.)
J1IG - We capture the excise duty this will get update to the register when I make sale same duty will remove.
In normal case for Raw Material - After making MIRO, the J1IEX will be done here we will capture the duties which was paid. Then we will make MIGO here the accounting document will not generate for CVD and Ecess.
I am using the version 4.6 C & price control is Standard price, I dont want to create the accounting document which I will take the a credit.
Please give the solution for this. I have clarified which I want to do, for more clarification if is required kindly let me know.
thanks
regards,
Dhanu

MRP Procurement process

Hello Team ,
I am looking for the correct SAP business practice of MRP procurement process for existing setup.
Current setup : Demand is based on the sales / market demand based on which material is planned . Sales order / Production order are posted which created demand and the daily run MRP creates PR which goes for Release strategy . Once PR is released , then PO is created . As the demand fluctuates , some of the PR's get deleted by the new MRP run. Release strategy exist for MRP PR's greater than $X i.e.PR created more than X $ only will go for Release strategy .
Current Issues : PR created with MRP less than X has no release strategy , and buyer converts the PR into PO . With the new MRP run , PR gets changed and has $ value more X value which now has Release strategy determined in PR . So now the issue is that the PR is unreleased & PO is already created .
Business wants to keep changing the existing PR after MRP run as they don't want to overstock parts for which the demand did not exist .
I am sure there are lot of other companies who will have this constraints from business demands and wanted to confirm how the MRP settings are maintained for PR .I am open to have new process also to fix this issue.
Appreciate your help in this
Lawrei

Well it sounds like the demand plans (independent requirements) are not credible to the raw material planners/buyers. They think its unrealistically high and are balking at buying the raw material quantities that MRP calculating.
MRP will automatically control stock levels through the safety stock.
There is no point in rejecting P reqs generated from MRP without addressing the safety stock and /or demand. MRP will just replace the requisition quantity on the next run. This will cause purchase requisition quantities to 'stack up' at the start of the time horizon.
To have a bit cleaner process, you could try introducing a planning time fence. Requisitions within the fence are fixed. New requisitions are scheduled after the time fence. MRP will suggest cancelling requisitions if demand drops. The planner can adjust requisitions within the time fence manually if needed. Planners need to be able to do this - it's a big part of their jobs!
Another thing you can do is keep the replenishment proposal as planned orders for as long as possible (via the opening period). Only have requisitions created for a short horizon during which purchasing will quickly turn these into POs.

TRADING MATERIAL

hi all,
we do the depot sales. in that the trading material is maintained with the MRP views.
and client do the mrp run for the material . since they woundnot maintain the plnn strategy .how we capture the requirement from the customer oder for the material.
as like md61 for the indt reqmt , did any t.code is there for capture the cust reqmt.
what is the necessity of the mrp run for the trading material.
it is required for hawa materials.
Can we capture the requirement of the material (sales order) and purchase the material for the order.
how we can do without mrp run for materials?
thanks and regards
vraj
Edited by: raj on Dec 11, 2008 8:34 AM

Dear,
In ur case u are using materail type - HAWA that is Trading Goods, U can plant it using MRP.
Ony set the MRP type as PD in Material master MRP1 View
& Set procurement type to F in MRP2 View
Set strategy group - 20 in MRP3 View.
Then run the MRP & u will be able to plan the material.
I recommend u to use MRP
If u want to plan with out using MRP
Then
Use T Code -VA05 to see the Sales Oeder List for a material.
Use the T Code ME58 & Select the Sales Orders for which u want to make Purchase order in the selection screen.
Regards
Samunder singh

Raw material as Traded material

Dear All,
I am working for a client which is into manufacturing of Generators.
One of the raw material which is used to manufacture the Generators, is also sold to vendor.
For FG material, it is Make to Order scenario.
For the raw material, its Make to Stock.
Is it advisable to create a new material type HAWA and create a new material master of the same raw material or to extend the sale view of the raw material itself.
When PGI is done without with the same material type ROH, system is asking for a Cost object.
Pls advise me on how to map this scenario.
Thanks.

Dear Ajay,
1. I have tested the scenario with the requirement Class Y40 and Req type YKE.
In the Req Class: I have maintained account assingment category M, Valuation as A and also Settlement profile as Sale order LIne item becomes cost object.
As u said Consumption posting field is E.
Wiith the above settings I have tested the selling of Raw material directly to vendor, where in at PGI it does not asked any /cost object as i think Sale order item will b cost obect to which the consumption entry will be posted to.
Now on Settlement of the Sale order, Cost of the trading material is settled to COPA.
This has fullfilled the requirement.
But still I have a doubt whether the above said process is correct thought it has full filled my requirement.
2. I have used another requirement class 31: order requirement which doent have any AAC, and also consumption posting field is blank, when tried with this requirement class and req type, it has stilll asked cost object. I think the reason could be as the consumption account is a cost element.
Pls can u advise on this.
Thanks

Procurment process

Hi buddy,
can anybody help me out to know the full process of procurement and how GL,AP,& AR are integrated with eachother plz explain me elobrately with examples.
Thanks & regards,
GB prasad

Hi Arun
Please find below the procurment process in SAP
SAP Procurement Process Flow
Determination of Requirements
Source Determination
Vendor Selection
Purchase Order Processing
Purchase Order Follow-up
Goods Receiving and Inventory Management
Invoice Verification
Determination of Requirements: This phase comprises of identification of Material Requirements. This can be based on the user or MRP proper/Demand based approach to inventory control. Purchase Requisitions can be created manually (ME51N) Release (ME54) or can be generated using the System.
Source Determination: This Phase comprises of identification of potential sources of supply. This can be based on past orders, and existing agreements.
Vendor Selection: This Phase comprises of comparison of quotations received from Vendors. The system can check different quotations received from vendors.
Purchase Order Processing: In this phase information is acquired from the Requisition and the Quotation. Purchase Orders can be generated by the system or they can be created manually (ME21N).
Goods Receiving and Inventory Management: The goods receipts number can be obtained by entering the Purchase Order number.
Invoice Verification: Here Invoices are matched
Regards
Vikrant

Standard Price for a Traded material?

Hi,
What are the pitfalls/disadvantages of defining the traded material at a Standard Price and not a moving average price. Details will be appreciated.
any relevant information will be usefull.
Thanks

Hi
If you are maintainnig a Standard price for the Trading material , then the Pricediffernce between the Material & the Purchase ptrice will be put into a different account.
When you sell the same material the profit will be calculated based on the Price of the material.
So if you are procuring the material at a higher price than the material price, in such case the material price is not updated & the Profit & loss calculations of the material will not be appropriate.
So it is better to alway use Moving average.
Thanks & regards
Kishore

Acconting doc. for move ment type-501 & trading material

Dear cons
If we receive the material through 501 Which accounting document will hit. Also pl. give process for trading material ( hawa). which accounting will hit for HAWA material type.
nrk

Hi
It entirely depends on whether the material type is maintained as value update in OMS2
If the material type has a value update then follwoing accounting entries are passed during 501
Stock acc Dr
Clearing account Cr
The material will be valuated at Price maintained in Material master
If the material type doesnot have a value update then accounting documnets will not be generated.
Regards
Sandeep

Conversio of trading material to assets

hi gurus
Can u tell me the procedure of converting trading material to asset & then capitalization.
regards
Roc

I think you have not read my post properly.
i am not asking to create Trading materials in MM01
I am asking you to create Asset Masters so that you can issue trading materials stock against this.
And follow the process I have suggested in earlier post.
Better take help of FI Consultant for creation of Asset master.

Trading material Price Control

Hi expert
I would like to know for price Control must be kept for Trading material, the same time we are procuring and selling the same.....i doesn't want MAP keep change most of time.
Regard
Nabil

Hi,
SAP Note 81682 - Pr.contr.V for semi-finished and finished
products;- Read this sap note
SAP strongly recommends that you do not select price control V for+
+semi-finished products and finished products, because doing so will very+
+easily cause the calculation of unrealistic valuation prices. SAP+
+recommends: Price control V for raw materials and trading goods; price+
+control S for semi-finished products and products.+
+If you nevertheless select price control V, take care in the following+
+situations:
Regards
Kailas Ugale

Third party Procurement process

Hi all,
Can anyone explain me the third party procurement process steps involved in MM .
Thanks ,
Srinivas Nomula .

Dear Srinivas,
Do you think of third party process or subcontracting?
In both cases you can use (and please use) the search function of the forum and SAP online help before opening your own thread.
E.g.
http://help.sap.com/saphelp_erp2005/helpdata/en/4d/2b91be43ad11d189410000e829fbbd/frameset.htm
http://help.sap.com/saphelp_erp2005/helpdata/en/dd/560287545a11d1a7020000e829fd11/frameset.htm
Third party process in MM
Third party process - error
Regards,
Csaba

Trading material procurement process

Similar Messages

Maybe you are looking for