How to define Material Steam & Power

[Former Member]

Hi,

I am implementing for a big project. There main product is steel. They are having Steam and power generation plant also. How to define this power and steam. Some people are saying that it can be defined as Activity type and some people are saying that it can be defined as material in descrete manufacture. What is the pro's and co's of activity type and material?

advance thanxs,

[Former Member · Accepted solution]

Hi Sree.

In your case Power is used to produce steel, steam is input material to produce Power. If my assumption is correct, defining power/steam as material or activity is depends on your client requirement..

Hence they produce power, separate material code would have created, stock to be maintained. If the stock (power) to be consumed to produce steel u have to define power as material in BOM of steel , otherwise stock will not be reduced.

Is your furnace consume same amount of power for each and every lot of steel, if not u can issue extra amount of power during order confirmation.

If u define power as activity, stock of power will not reduced & not involved in planning.

Plz comeback more discussion

Regards

pradeep

[Former Member]

Hi There is two solution for steam & power.

1. Define as activity with cost element and G/L for cost element if this falls under Primary cost element.

2. Define as activity with cost element without G/L for cost element if this falls under secoundary cost element.

Solution for consuming the steam and power : work centers

define under six parameter for work center these two activity & define the formula to calculate the standard consumtion & for actual consumtion you post in order the actual consumtion.

If you want more detail you pl send me your company business scenarios & also let me know if staem consumer wc is steam producer also in case of colling of furnace produced the superheated steam & captive power plant produces the power .

Thanks

Rajiv Pandey

rajivkpandey@gmail.com

[Former Member]

Power & steam can be created by material type PIPE

If power is required to sell u have to activate sale view in oms2..

[Former Member]

Dear,

Pl come back

[Former Member]

dear vittal,

Still debate is going on the implications of costing. We have yet decided which is to be opted as material / activity.

What could be the implication of costing?

Is it possible to post quality checks, if it defined as an activity?

regards,

[Former Member]

Dear,

Please be aware of ome thing.

If you are producing steam / power in your company and consuming it it steel production, you must create it as MATERIAL only you donot have choise. Then Quality check can be done-aditional benifit if you go for material number. This option is a must from costing side too. By creating production order/REM order cost can be booked in the order. Can issue the same material in steam and update the cost.

Power and Stem if you are getting it from outside, i.e if you are purchasing it, then usually we create it as activity type. we will credit the cost to a cost centre. Plan this activity type in a cost centre where the power/stem cost is booked and debited to production order as sson as you confirm the order alonge with activity. You cannot have quality check in this case.

I hope now you are clear

[Former Member]

Hi Srinu..,

create steam and power as material. for your case steam is a semifinished and power is finished product.

regards.

[Former Member]

All depends on what you want to acieve?

Since you are producing the power and do all the costing perfectly then it is better to create it as material and do all the production and costing cycle.

But if you are considering it is a activity, then how you want to represent the production? I think it is deficult. If you are not producing and donot want to represent this in SAP, then activity is the correct solution.

I think material is the correct solution if you want to represent production/consumption and cost

Edited by: Rajesha Vittal on Dec 31, 2007 9:37 PM