tolling production order.

[former_member223028]

Dear Techies,

I came across a scenario like below,pls share some input to map in the system.

Need to do some Assembly/production process for our sister concern

sister concern will send the materials for assembly with some component with a subcontracting po

Assembly need to happen in the plant and need to capture the manufacturing cost and any other additional raw material used other than subcontracting po.

So is it possible to map this scenario by MTO? then how the cost will be send back to sister concern

request some details explanation from expert

Regards,

Abu.

[ShekharDamale · Accepted solution]

Hello

This is called job work in SAP. As the material belongs to your sister concern company (Separate company code) it should not be valuated in system so all those material are created as non- valuated articles.

Create Sales Order for Job work quantity with expected finish material,(e.g. JOBFERT) the suppled material by customer will be inward in system through 501-E with reference to sales order. This material stock will appear in system as special stock.

Production order is created for JOBFERT. The supplied material is consumed along with your own material in addition of production activities. In this case the cost of your own material and activities will get booked for this production order and further to sales order. 

The manufactured material will be dispatched to customer against created sales order. You can maintain the gross price in condition record as per your cost calculations. 

Regards,

Shekhar

[former_member223028 · Accepted solution]

Thank you shekhar for your reply,

There is any difference with Job work and production order?, This can be achieved by creating a normal production order?

thanks in advance

Abu

[ShekharDamale · Accepted solution]

Hello,

Yes it is same like normal production order. For reporting purpose you can configure separate Order type by copying standard production order PP01. The change is only in material cost everything else is same.

Regards,

Shekhar

[former_member223028 · Accepted solution]

Thank you sir again for your help,

one more query pls

Once the GR is done what are the other transaction need to carry out in CO side( need to any settlement for this order)

For the PP configuration part is only order type is required?

Thanks

Abu

[ShekharDamale · Accepted solution]

Hello,

Yes Settlement is up course required to settle cost of manufacturing. From PP configuration side all the standard configurations same like normal order is required for job work order. You can easily get the step wise configurations on earlier SCN posts. 

Regards,

Shekhar

[former_member223028 · Accepted solution]

Sir,So as we are creating a production order for non valuated material, is it possible to do the settlement?

Abu

[ShekharDamale · Accepted solution]

Yes, Why not. you have to settle the order to cost center and not on material.

Regards,

Shekhar

[taromiyanishi · Accepted solution]

Hi Shekhar,

We are having the same situation as to supplied materials from sister company must be non-valuated. is your solution by means of Sales order costing with Controlling and Without valuated inventory?

Could you share your insight?

Regards

[ShekharDamale · Accepted solution]

Hello Taro,

The sales order costing is optional in this case. If you want to Sales order based costing then Sales order BOM is required with non-valuated components. Routing will be as per your job charges.

Regards,

Shekhar