Trading

[Former Member]

Hi,

our client is having 2 mfg plant & 1 trading plant.

In trading plant,where material purchased from outside in a bulk quantity & assemble it, packed it with diff packing material.& sell it.they are maintaining each stage inventry How to map it?

[Former Member · Accepted solution]

Hi,

Not sure what kind of input you're looking for, but a few things based on my understanding.

Create mtl master for all materials which you procure from your vendors. If the mtl master exists in the mfg plant, then extend the same to your trading plant. Maintain a BOM for the material which you sell, let the BOM contain all the components & the packing material. For the materials which you procure from vendors maintain F in MRP-2 view, along with purchasing view, PLDT & GRPT times, Vendor, Quta arrangment if any, info record for material - vendor combination. For the finished material maintain E in MRP 2 with in-house production times, work scheduling view, valid routing.

Hope the above gives you a little more clarity.

Regards,

Vivek

[Former Member · Accepted solution]

I will create Material master of amterial which iam going to procure from outside is of material type HALB or HAWA.?

then, they are doing assembly then packing for this convesion shall I create production order?

Regards

[Former Member · Accepted solution]

The material type - HAWA is normally used if you're purely into trading, but in your case you say you procure them & also do some in-house processing, so better to go with HALB. As HAWA does not allow any production orders to be created.

If the process is assembly & then packing, yes you should create a production order to manage the same. As it would help you to manage the assembly process & also to capture costs.

[Former Member · Accepted solution]

Thank you Vivek for immediate response

lastly I want to ask you that the material which I am going to sell is of material HAWA Or FERT

Regards,

Abhay

[Former Member · Accepted solution]

Use of HAWA is normally preferred when you buy & sell the same, as it is purely trading. But in your case your doing some value add, so better to use FERT. Also would suggest, discuss with your FI-CO personnel as they would also have a say in this matter.

Hope the above was helpful.

Regards,

Vivek