Question on handling a business process

[Former Member]

Hi Group,

We have a current business scenario as follows:

There are 2 materials say A & B. Material B is made from material A by mixing water to it. Say 100 tonnes of material B is produced by mixing 80 tonnes of material A and 20 tonnes of water. Currently the process is being handled in SAP by creating a transfer posting from A to B for 80 tonnes and then the remaining weight of material B produced viz. 20 tonnes, is brought into inventory by doing a 501 movement.

Business is not happy with the process that we are valuating the material B for the 20 tonnes. Is there any way to handle this scenario in SAP? You may propose a different process too. Both the materials A & B have moving price average as price control.

Please let me know if you need further clarification. Points will be awarded.

Thanks

[BijayKumarBarik]

Hi,

There are 2 materials say A & B but which one is raw material and which one is finished product.Let me beleive that materials A is raw material & B is finished product (price control- S, generally) OR is Semi-finished product(price control-V).And WATER , u r using,hope its not free, you may be PUMP, its need curent consumption and hope for one matric tone , the cost will be Rs.100 to Rs.150.So all thses cost will be added.

You can maintaion BOM and keep material B as finished product and components are materials A & material WATER.

Receive the material A from Vendor and sale the material B to your customer.In sales Order, you can get all the components with final product.

Note:

Generally Moving average price (price control u201CVu201D) is used for raw material & for semi finished and finished goods for Standard price procedure (price control u201CSu201D) as moving average price in case of external procurement and standard price for in house production. But its all depends on business requirements.

Regards,

Biju K

[Former Member]

Hi

Try this

Create a PO document type with allowed item category only "L" - remove all other. i.e, a subcontracting document type!

Maintain the field 'Free indicator' as mandatory for this doc type.

Now create a dummy vendor for this process.

Do a subcontracting PO by manually maintaining the components.

After this go ahead with GR via MIGO. Check the postings (will happen accordinly if u have maintained valuation price and V price control). No Invoice! since material is procured for free.

As Mr. Kishore pointed out you are missing material "C" being used!

So your product B will be a mixture of A+C(Water)

This should give the solution for your requiremnt.

regards,

MRao

[Former Member]

Hi

You have mentioned material A& B , but where is the Material C - Water in the Picture, are you getting this free of cost.....

If you are making material B inhouse , do you have Production Planning module involved. If you have then you make a simple Operation & maintain a BOM & get the process completed.

A 80 tons + C 20 tons = B 100 tons....

If you are not having any PP module in the system .... then you can do a Transfer posting in this way

A 80 tons -> B 80 tons

C 20 tons -> B 20 tons

If MAP is there for all the Materials then MAP of B will get apportioned by A & C Prices....check the account postings....

Thanks & Regards

Kishore