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Material on loan from vendor

I have a situation in which I use a material (copper) as a tool in production. We buy the material in coils, and during the production process it gets cut into pieces. Nothing is actually consumed. We "purchase" the coils paying a fee for the service and then return the pieces to the supplier. At the end, the cost is only of the service of loaning the copper.However, I have to control existing stock in both statuses.

I have been toying with unvaluated materials and consignment, but I've yet to find a solution for this. Any ideas?

Thank you!

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2 Answers

  • Jan 30, 2018 at 01:21 PM

    what does toying with unvaluated materials and consignment actually mean, what problems did you have with this approach and why did you decide against it?

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  • Feb 08, 2018 at 02:02 PM

    Hi Ana,

    I dont think so the Non-valuvated material in Consignment will suits in SAP. whether you are paying it or not but you need to keep this a valuvated and no need to pay for it - I mean no need to run consignment settlement.

    Best thing i will recommend is - not to bring this in SAP (i mean copper as tool in your manufacturing...)

    one important thing here is as you know the consignment hold good for valuavated stock material - why you need to bring it in Consignment..

    I hope you can just book it under services rendered.. otherwise if you have necessity to book under consignment.. then..

    We can check in SPRO- SAP IMG- Material Management- Purchasing - Define external represenation of item categories.

    In this consignment Check the "IR indicaore firm" - " Firm in PO"

    If this attribute is selected, the indicator is binding in the purchase order and cannot be changed there.

    so Consignment settlements can not be made for non valuated.

    I would recommend to use Account assignment K can be defined for NLAG-non stock materials and LEIH-returnable packing as you said you are returing back to vendor and you not consuming it.

    For UNBW Account assighment we can define A-Asset .UNBW- Non valuated material. In which material is managed only on quanity basis and not on value basis. not sure how much extent it is usable.

    I am seeing many threads on it and if you are more interested then please go through the link..



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