Unit of Material against BOM

[former_member527255]

Hi. I would like to ask about the setting of Unit and BOM.

I have a material that has base unit of "KG" and its price is about $3. This material is used only like 0.2g to its parents in the BOM.

SAP could only have 3 digits below 0 in BOM and if its unit is KG, I could not express actual quantity that parents require.

If I change base unit to "G", I could express in BOM but it is hard to express standard unit price because amount in USD would be very small.

What is the basic solution for SAP? It seems BOM Base Quantity or Price Unit could be used to express but I am not sure which should be used.

Thank you for your Attention.

A. Tono

[JL23 · Accepted solution]

The smallest unit when using this material should be the base unit, otherwise you get all kind of rounding issues.

If you purchase in kg and issue in gram then use gram as base unit.

The valuation is anyway in your company code currency, which is probably USD , so you either enter here 3 $ per 1000 g

or 0.03 $ per 10 gr

And if you followed the example until here, then you can already imagine that 0.2 gram is 0.006 $, a value that cannot be booked as it rounds to zero since a dollar has only 2 decimals.

Such low value items should be non-stock items or at least non-valuated items, it costs a multiple of the value to only post the consumption individually.

Is your example real? when a material is used in such low quantities in a production then it is usually extremely expensive like platinum in some of our productions.

[maheshkumar_komatineni]

Hi Atsushi,

if possible you can maintain separate costing BOM with reasonble base quantity for Costing.

BR,

Mahesh.

[former_member527255]

Thank you very much for your answer. Costing BOM could solve this issue. I will try to check. Thank you very much.

[former_member527255]

Thank you very much for your answer. It helps me a lot.

Example is real. Example is Bond for wood.

We are connecting to BOM to place purchase order by MRP and include calculation to basic cost of FG even though it is small value.

As you say, we probably should think about controlling with other way.

Thank you for giving me a chance to think it over.

By the way just for information, do you use or know someone using BOM base quantity function to change base quantity to 10, 100 or 1000 and so on?

[former_member183424]

What about using unit of issue in material master?

[former_member527255]

Thank you for you answer.

This could solve problem for purchase price but material standard price still could have problem.

But, it is a good notice for me. Thank you very much.