Byproduct from subcontracting process

[former_member317095]

Hi Gurus,

My scenario is like I am receiving two materials from a raw material during subcontracting material, so I have gone through this discussion from scn (

And I have setup the process like the other material as a by product. But I am having difficulties in price reflecting in the by product.

How I setup the procedure in SAP

1. Created Subcontracting Info-record with price 20 for both materials

2. Created subcontracting PO with BOM maintained inside.

3. Main product = 50 kg, Raw material= 100 kg (Price= 500), by product = -50kg

4. Good Issued to vendor

And when I received the material as 40 kg and by product as 40 kg. But when i check the price in MR21 the price is 1320 for main and no price for the byproduct.

I need the price of the raw material to be equally distributed to the main material and the byproduct with the subcontracting charges

Can you please explain if I have done something wrong in this.

Regards,

BiTa

[JL23 · Accepted solution]

A by-product is either a UNBW (not valuated at all) or is standard price valuated and takes the price from the material master, or is moving average price valuated and you need to enter a value manually while receiving.

The service costs for the subcontracting effort of your vendor (PO price) is not distributed among the finished and the by-product, it goes to a 100% to the finished material,

[former_member317095 · Accepted solution]

Hi Jurgen,

Is there any possibility to equally distribute them. Also my Byproduct is maintained in moving average price, so you mean to say that like I have to add the price manually for both in mr21.

Regards,

BiTa

[JL23 · Accepted solution]

I do not see a way to automatically distribute the costs between main product and by-product.

Instead of considering price changes in MR21 I would go for a standard price of the by product.

Can you give a real-world example, this often makes an explanation much easier.

Is it really just a by-product, or do you get actually 2 finished materials?

Often by-products are not salable, usually waste which even costs money for disposal.

[former_member317095 · Accepted solution]

Hi Jurgen,

I am getting two finished products. My example is like this that I have a batch of raw fish (Emperor), which have medium size and large size. When I give a 100 kg of fish batch to subcontracting they will differentiate the large size and medium size. Since the price of the batch is one, we want to equally differentiate the price to this two finished materials.

We cannot go with standard price, since the price will keep on changing we have to go with the MAP.

Regards,

BiTa

[JL23 · Accepted solution]

Can't you create a PO with 2 items, one item for large fish and another item for medium size fish? both items with the same price.

Then you would need a BOM for both items, and in both BOMs you would have the same unsorted fish as component.

Shipping the unsorted fish to the subcontractor has no direct relation to PO number and PO item number.

When the sorted fish comes back, you do a receipt with the exact quantity for both items and SAP will reduce the quantity from the provided unsorted fishes, and you have the exact costs distributed by quantity

[former_member317095 · Accepted solution]

Hi Jurgen,

We thought of the same and we thought there will be easier simple method than this. Also in this scenario we may have subcontracting cost comes twice as well right, so for example if i wanna give 20, i should manually change them in subcontracting info record as 10 and 10 respectively or the same in the time of PO creation.

Thanks again for your valuable answer. I may just have to discuss the same with the client and we can close the thread if they agrees. Otherwise we can wait for a better answer, until then the same workaround.

Regards,

BiTa

[JL23 · Accepted solution]

I don't see that my described scenario would have any impact on the price. 

the price is the same, you just order half quantity of each item.

[madhava_hn]

Hi BiTa

Raw materials provided = Finished product + Byproduct (or scrap) --------> Subcontracting process.

But subcontracting  purchasing info record (for main product) will have the amount to be paid for assembling the main product. This price is not related to raw material or byproduct.

I don’t think we can link this amount to byproduct or scrap generated during the process.

Say vendor service charge is Rs.1000 for assembling the main product. You are receiving the main product (101) and also you are receiving byproduct/scrap (545). Now if you divide Rs.1000 which is service charge, how this can be justified ?, because vendor is returning byproduct/scrap to you back…!! You should pay complete Rs.1000 to vendor for his work on main product.

After GR, how you are valuating the byproduct/scrap is left to your business.

Regards,

Madhava

[JL23]

The value of the by-product reduces the value of the main material, see http://help.sap.com/saphelp_46c/helpdata/en/4d/2b90a343ad11d189410000e829fbbd/content.htm

[former_member317095]

Hi Madhava,

In my case I am getting two finished materials and scrap.

Raw material= finished product 1 + Finished product 2 + Scrap

Regards,

BiTa

[madhava_hn]

Thanks Jurgen, noted it.

But in 3rd point it says "In the material document, you can identify the by-product items from their movement type 544.".  But byproducts are posted with 545 right ?

Regards,

Madhava

[JL23]

looks like a typo in this documentation, 545 is right, also described in Inventory Management: New Movement Types for 3.0B

[BijayKumarBarik]

Hi,

You have maintained the BOM(CS01) for Main product = 50 kg where you have Raw material= 100 kg and by product = 50kg.

Your  Raw material= 100 kg , the Price is  500) but what about price for Main product = 50 kg

But how is your byproduct is valuated - did the byproduct with material code created with a material type and how is OMS2 screen for plant of that material type.

Can you share screens of CS03 for Main product and Raw material with byproduct!

Regards,

Biju K

[former_member317095]

Hi,

To add this is coming in batches, we have maintain this in batch

Regards,

BiTa