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Apr 10, 2014 at 12:07 PM

Lot size decimal places - issue with material valuation .

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Hi ,

We are facing following issue .

My client buys low value items(Raw materials) say for ex:- Rs 10 for Qty 10000 and the value per qty will be .001.

In SAP standard we have 2 decimal places and procurement team due to decimal issue have decided to create an info record say Rs 10 for Qty 10000, similarly Finance have taken call that costing lot size in the material master will be always equalled to info record unit in order to ensure costing My customer will do GR (MIGO) for full PO Qty and post invoice(MIRO) for PO Qty.

Issues:-

  • If the Low value material is maintained in BOM for top level SFG material there is implication in cost estimate for Ex:- in BOM if we maintain Qty 1 (10/1000=0.001) required for top level material then in CK11N value of lower level material .001 rounded up as 0. It has an impact since when we have big BOM which has value worth of Rs 20 will possibly be rolled as 0.
  • Once we do GR against a PO the low value items will be inventoried. Once we do back flush for a production order (Production order materials copied from BOM) the low value items will be consumed for production order. If the material(Low value material) Qty to be consumed in production order is 1 then during back flush material document will be generated but no Accounting document Due to value .001 per Qty. It has impact since when we do reconciliation between inventory and stock value in the balance sheet we will be struggling.

Customer has implemented COPA, ML, Actual costing so that any changes need to carefully consider the impact .


Friend please suggest a solution so that the value in cost estimate to roll up to top level material and the production order to book the actual cost.


Decimal place cannot be increased as it impacts everywhere . Any other suggestion ?


Regards


Sunaina