Typical scenario- urgent reply,,,
Hi All,
I have a requirement-
we get damaged products into plant- and we do value addition to the damaged product and sent it as a finished product to the customers, also we dont want to valuate it at plabt level as its customer product. And to that finished product we consume some raw material on shop floor.
( as I recieve it as x-material code, and as I am doing some value addition to the same X-material( want to create a production order, can nn this case we maintain same material code?),
any explanation & suggestions on this? in SAP R/3
reply at the earliest,
regards
svrinsapscm
Hi Srinivas,
This is an MTO scenario.
You recieve material from customer as X and u do some value addition and return the material to customer as X again. Please confirm if this is right.
Assuming Yes as answer, Suggest you to create Recursive BOM for each of such Finished material. Do not worry about the raw material in BOM you can add this directly to production order when you get the material and finish analyzing what component must be used.
Create sales order and you will run MRP for it. Convert the plan order to production order and then add the raw material in the production order. I assume that you will be doing quality inspection or prilimanary analysis to find out what compoenent must be added. Maintain this step as oper. 10 in your routing so that inspection activity time is also captured.
Routing can be maintained as default for base Qty. and minor chnages can be taken care of later. Since this is MTO and repair for damage material will require different amount of time for each time the finished material arrives for repair, you will have to make manual changes in timing of production order after inspection of damage has been done. This will ensure the planned cost is captured as well. Making chnages in CO11N directly is not recommended because it will create the variance in month end process.
Please note that in MTO scenario settlement of cost is important. you need to sit with finance and SD and decide where will the Cost for GR against production order be settled (SDI or MAT). Based on this, you might have to create a new strategy type as well.
Do let me know if u need more
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