handling vendor's inventory

[former_member4887]

Dear All,

what could be the possible ways to handle this scenario in sap ??

there are following reason of tracking vendor's inventory

1) to keep record of the total cost of that raw material that he's  producing & providing us on the basis of that track we revise the raw material price that      we are procuring form that vendor.

2) there are some critical parts that he use in those raw material. we also check the no' of those parts he's procuring from some vendor & supplying to us      along with that raw material

      i.e if he have procured 10 of those critical parts from some vendor & let say one critical parts is used in one of the raw material that he's producing      for us . so we keep track no' of critical parts he procured  from some vendor =  no' of raw material he supplied to us.

3) to make sure timely delivery of his supplies as there are some material that he's using to manufacture our raw material .In case of shortage of those      material, his production is delayed which will effect his deliveries of raw material to us

     So we track all his inventory & notify him time to time for procurement of those critical parts that might effect production of raw material & deliveries

     This is not our inventory we basically keep track of quantity ( to make sure we receive our part on time) & costing (to revise that raw materials cost).

[Prasoon]

Hi,

   May I know how your company will come to know that your vendor is placing PO for a critical part with another vendor and when he receives material from the other vendor. Could you please explain.

Regards,

AKPT

[former_member4887]

we are in contact with that another vendor you can say ,

whenever our vendor open L/C  for the procurements of that critical parts, that 2nd (another ) vendor notify us, & we also get invoice of that material that he received for recording purpose

[Prasoon]

Hi,

   In that case, please check whether subcontracting scenario can suit for the business process. Create BOM for the material supplied by your vendor with component as the critical part. Your PO to your vendor should be a subcontracting PO with the material.

   Create a free of cost PO for the "critical part" for the the second vendor and maintain the SC vendor in Delivery tab as the 1st vendor. Once you get tracking invoice, do GR for this dummy PO, which will post the GR to the special stock of the 1st vendor. Alternatively, you can find other options to post the critical part as vendor special stock.

   Now, you can receive the main material against the first subcontract PO.

   You Check the option and revert back for clarification.

Regards,

AKPT

[former_member4887]

I guess this will solve the quantity tracking issue which means track of no' of material he procured from 2nd vendor will be equal to the material that we receive.

how will we calculate & revise the cost of our material. As we are getting 2nd vendor material in system as free of cost ??

[Prasoon]

MR21 would be an option?

[former_member4887]

Price change ?

these are not our materials we don't want them to hit our accounting entries/statements

[Prasoon]

Hi,

   You may adjust the PO price for the subcontracting PO and receive the material against the new price! You may even check the option of condition record for price and price determination at the time of GR (Price Date Category as 5 in PO- Condition Control tab), which can ultimately post GR with correct price.

Regards,

AKPT

[former_member4887]

again we have to calculate the the costing of our material manually. as we determine the cost that vendor incur in manufacturing, his total cost overheads etc. & leave his profit margin & after negotiating revise that material cost in system.

In case 2nd vendor  increase his good price the cost of our vendor would increase which we impact our material price as well , and as all the costing etc. for our vendor is done by us we need to know recalculate our material cost & price to determine new price.

is it possible to take the price of those components (critical paths) in system which will not effect our accounting entries through any material type or something ?