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Former Member

Co-Pack Business Functionality

Hi Friends,

Currently I am working on a requirement called u201CCo-Packu201D. Before I seek assistance from you I would like to explain the u201CCo-Packu201D business functionality.

Suppose Customer raises order for 20,000 (Apple) Juice to the manufacturer, Customer delivers 20,000 empty bottles with caps and labels to the client as Raw Materials at the time he places an order. Client would consider those specific raw materials in the process of making the Finished Product.

Sales perspective:

u2022 Customer made the advance payment for the 20,000 bottles as an advance payment at the time he places an order.

u2022 Customer is not willing to accept the 20,000 bottles (Sales order quantity) to deliver at a time.

u2022 Customer wants manufacturer to deliver partially as per his requirement.

u2022 Since the customer made advance payment for 20,000 bottles at the time of order placement that inventory would be treated customer as an owner but not the manufacturer.

u2022 After doing u201CPGIu201D for the delivery (20,000 bottles) inventory records update.

u2022 As per the records ownership of those 20,000 bottles changes from manufacturer to Customer however Customer wants to hold the stock at manufactureru2019s premises.

This is a common business process happens with most of the companies in US. However how to configure this functionality in SAP? How manufacturer holds the undelivered stock at his premises? Since manufacturer is not the owner and PGI was done and donu2019t ask me to STOP PGI because customer made an advance payment, customer is the owner.

How and where to hold the undelivered stock at manufactureru2019s premises though he is not the owner. How we should show this stock in our inventory records?

Thanks in advance.

Regards,

Vamsi

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2 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Nov 10, 2008 at 08:09 PM

    hi victor

    i am just throwing my view dont know as how far it is possible.please correct me if iam wrong.

    For example lets imagine that a bottle occupies 1 litre of apple juice .instead of creating a sales order. we will raise a PO for 20000litres of apples juice(i.e 20000 bottles) so accordingly we can calculate as how many bottles we have sent and how many are received and how many are yet to receive.

    PO -MIGO ---MIRO

    This gives the totalinventory of the bottles.

    The rest we can play like lessening the amount or adding amount can be done in the pricing procedure.

    Thanks

    ASK

    Edited by: ASK on Nov 10, 2008 3:11 PM

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    • Former Member

      Hello Ask,

      Thanks for taking time to answer my query.

      In this case customer itself provides sufficient raw materials at the time he places an order. He is making advance payment too.

      Now you tell me how your solution is going to help because I was not clear what you have posted.

      Here the only challenge is how to hold customeru2019s stock in the manufactureru2019s place though the manufacturer is not the owner because customer made an advance payment but nothing required to adjust the amount anywhere.

      Hope you come with some more ideas.

      Thanks,

      Vamsi

      Edited by: Victor Collins on Nov 10, 2008 10:01 PM

  • author's profile photo Former Member
    Former Member
    Posted on Nov 11, 2008 at 06:05 AM

    Hi Victor !

    Create a storage location for the manufacturer under the plant code for the customer.I guess this would suffice .

    Rgds,

    Shamik.

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    • Former Member Former Member

      Hello ASK,

      No my friend I think you have not analyzed the issue properly. Here customer raised an order for 20,000 apple juice bottles. At the time customer places an order he delivers 20,000 empty bottles to the manufactures and asks him to fill the juice in those bottles. He made an advance payment for the total order.

      As he made an advance payment, manufacturer should delivers the goods to the customer completely when the juice is ready.

      Now at the time of delivery customer does not wants to take the 20,000 at a time he wants to take for example only 10,000 now and asks manufacturer to hold the remaining 10,000 stock at his premises.

      Since manufacturer receives the total amount he has to update the inventory records by doing PGI so that material and accounting entries generated. After doing the PGI ownership changes once the ownership changes how manufacturer can holds the stock in his premises? Holding the stock is not a problem. We can maintain a vendor storage location and place the stock in that location.

      To my knowledge this functionality can be achieved by a special movement type. That movement type would generates both accounting and material entries however accounting entry should be generated with ZERO Cost because customer has already made an advance payment just the owner ship should change.

      Please pass your inputs on this process.

      Thanks & Regards,

      Vamsi

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