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How to stop a WIP from being created when a PO is issued since we dont own the WIP?

We have a location within our company that is a co-packer – we provide raw materials to this facility and the inventory control team manages their production through a PO system in the inventory control cockpit/through SAP. This is how they get paid. They issue the PO, the co-packer produces it. They send us an invoice – we receive on the PO, they get paid. The goods that are processed through this PO / Inventory cockpit system somehow was set up incorrectly and a WIP is now being created each time we issue a PO. This is not correct as we don’t own the WIP on this – we pay them for finished goods at the completion. Something was set up wrong but the result is we get a monthly WIP from this plant code that we have to add to the balance sheet. How do we stop the WIP from being created when we do not own the WIP.

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2 Answers

  • Aug 15, 2017 at 04:37 AM

    it would be helpful to use at least once the long term before you start using abbreviations. Also helpful would be to mention for example transactions that you use in this process.

    PO could be purchase order, production or process order and WIP is probably work in process.

    you talk about an "Inventory cockpit system set up incorrectly" . What is this? What transaction code has it?

    If that is a homemade application (transaction starts with Z or Y) then nobody else than your companies own support desk can help you .

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  • Aug 15, 2017 at 05:21 PM

    Hello ,

    what is the inventory cockpit , I havnt heard of it in SAP ( please help me understand if its really available in SAP).

    if it is Z transaction then you need to see it yourself with help of technical person.

    your case seems to be simple Subcontracting scenario , please provide some more details on process and the step at which you don't want the WIP.

    thanks

    kUnal

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