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BOM Sales Scenario

Hello Gurus

I have the following sales scenario:

Group of materials is sold as a Spares Kit. The header material code is a assortment of various sub-components. The sub-components are produced in-house with their respective costs( Got thru costing run for them).

Please clarify the following:

1. If I use a sales BOM for this scenario with item category group ERLA for main item:

a. Will the system calculate the Products total cost ( Total of the costs of sub-components) to hit COGS?

b. when I tried creating a sale order for this item ( item category TAQ for header item and TAE for Sub-Components), the result of availability check for the main item was showing as zero items available for delivery. But when i tried creating the delivery, the system allowed me to create delivery for the sub-components( without reflecting the header material code). After delivery, when i tried creating Invoice, the same was not relevent for billing. Thisnaturally is not the correct process to be mapped. Can you please guide me how to map this process?( without having to run product costing run for the main item)

Warm Regards

Pra

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2 Answers

  • Posted on May 24, 2009 at 02:09 PM

    ( without having to run product costing run for the main item)

    If you dont want to run product costing at main item level, then perform the Goods Issue for sub components instead for main item.

    as per BOM scenario, you can follow the 2 procedures ( as we know):-

    1- BOM @ Main item level:-

    which will be followed when we charge for the sold items for the main item & COGS for the main item will be triggered which means product cost will happen @ main item level.

    if you want to run product costing at sub components level, follow the 2 nd option, which is BOM @ sub item level.- in which Pricing(Invoice)/Delivery will happen at component level & COGS will be triggered, then you can run product costing @ sub component level. NO need to run @ main item level.

    you can decide the above on certain parameters such as,

    Pricing & Delivery. Costing will be run only for those items which is delivered.

    try n revert

    lets wait others opinion too.

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    • I said the same thing above,

      if you want to run product costing at sub components, then pricing / delivery should happen at sub component level only.

      which means, you cant run product costing without delivering the product either its main or sub component.

      if your pricing/delivery is at main item level,means you are delivering main item & costing will happen only at main item which you delivered, but not at the sub component level.

      for your scenario,

      your pricing/delivery should be at sub component level to run the product costing for sub components.

      to do this,as said above- use Item cat group for main item should be LUMF.

      hope it helps,

  • author's profile photo Former Member
    Former Member
    Posted on May 25, 2009 at 01:45 AM

    hello, friend.

    if the relevance for costs/pricing and inventory is at sub-component level, i will suggest the use of item categroy group LUMF in the material master for the main item.

    using LUMF, your components will have item category TAN; therefore, the prices for the components will be determined in the sales order, and requirements will show up in MRP. inventory sourcing will also be at component level, and not the main item.

    regards.

    p.s.

    if everything above is OK with you, except that you want sales pricing at main item level, you could take a look at the settings of item categories TAP and TAN. in standard, TAP is not price-relevant while TAN is. you could change the settings, but i would suggest you define your own item categories and make the settings there. please look at existing threads that explain these in detail.

    Edited by: jonathan y on May 25, 2009 9:46 AM

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