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How to show raw material consumption ?

Apr 24, 2017 at 08:23 AM

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Dear All,

Currently we are facing an issue, currently am in post go-live and we are in support...Client is manufacturing gaskets regularly,so they make invoice daily (Physically). In SAP invoice is not done,because before doing production order we need to do cost estimate first for all FGs. Due to various corrections in BOM and Routing it is taking time for cost estimate and also creation of production orders. On the other side the no of invoices is increasing daily.

So inorder to cover the 400 invoices as per today,management has suggested a temporary solution. Consider there are 6 operations(SFG/WIP) between raw material issue and Final product. So we've decided to put WIP stock directly in the last 6th operation just to show like production has happened and create just a production order for FG and thereby updating the FG stock. Because if i run MRP and go with that,in this current situation i cannot cover the entire invoices. But on other side raw purchase is happening and inventory is getting updated. But no consumption or RM goods issue takes place as we directly upload stock in last WIP operation..

This is just a temporary way we are following to cover the huge invoice numbers. Once we've almost matched with the number of invoices then we'll go with usual MRP Run,planned to prdn etc. So now in such case kindly suggest what should i do with raw material consumption,how to show it,whether it'll affect finance??

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