Budget assignment for Procurement and Production WBS with considering as Child WBS Element.

[former_member595790]

When project created through transaction code CJ20N. As per scenario of MRP run against project create a WBS element and assign FG material code to that WBS element as well as assign budget to that particular WBS element.From this run MRP through transaction code MD51 so purchase requisition as well as planned orders created with assignment of that particular WBS element. After confirmation of Production order from planned order consumption of budget captured against only that particular WBS element including Material purchase cost and production cost.

But my requirement is i want to assign budget for Material procurement and for Production at different level that is we want to create one Parent WBS element as FG material and Child WBS as Material Procurement and Production as well as Design. From this we control material purchasing and production cost as well as design cost for project.

Please recommend solution on it as well as costing impact in different ways,for achieve this type of control on budget against only one Parent WBS element with creating Child WBS elements?

[kenmelching]

It all depends on where you draw the line between PS and MM. If you attach the Finished Good to the project then the material costing for that material determines what budget is consumed. If you want to capture/control more detail in PS then you don't use the Finished Good material you would attach the components and use Network orders for the labor and there you can include design costs as well.

[former_member595790]

Thank you Ken.

Another one is how to define different WBS element for Material Procurement as well as Production through project?

How it will work for budget consumption as a separate WBS element ?