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Material Master SPARE PARTS

Hi Brains trust,

We would like to rebuild a "pump" which is a sap material, but would like all our consumed sap materials that were used to rebuild the pump to expense all cost to the newly rebuilt "pump".

Is there a way to do this without affecting the budget, as we will still be retaining all the multiple consumed materials but now as rebuilt single material?

For example:

x2 bearings, x1 sleeves, x4 seals & x1 housing = x1 rebuilt pump.

I was thinking maybe tcode MB1B might help might help but not sure what movement type?

Kind regards,

J.Batman

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1 Answer

  • Mar 07 at 01:38 AM

    Jonathan,

    The Refurbishment Order in EAM (PM) can be used for this. Refurbishment Orders are similar to PP orders, in that you create a Material numbered result in inventory (with a 101 GR from the Order). You consume components in the Order and may consume a broken item ("pump" in your example). (Consuming the broken one requires split valuation.) All of the components are expensed into the Refurb Order (Mvmt 261), along with labor costs and purchased goods and services. The Order settles to the Material number in inventory, like a PP Order.

    TRE

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    • Jonathan,

      The Help article uses the term "repairable spares" to mean the items that are getting repaired and put back into storage. In your example, they are the "pumps". This Blog by NAVEEN Sharma spells out the steps. Sounds like you will use the Internal Repair scenario in section 5.2. Both Split Valuation and tracking the broken spares are optional.

      Your monthly report is likely based on expense charges to a cost center, like when you consume items from inventory while performing maintenance. I assume that the materials in storage have a value "in Inventory" (from an accounting perspective). That is, there is a Balance Sheet Account for the value of the items in the inventory.

      Following the process of Refurb Orders, the value of the consumed materials goes into the Order, then is settled to the value of the "pump" material in inventory. Through settlement, all of the repair costs will become the value in inventory, if using Moving Average Price. Some difference (variance) will occur if you use Standard Cost in inventory.

      TRE