Multiple Line Items - PS/SD/ PP - Scenario

[Former Member]

Dear Experts,

Please advise on the following:-

There are two products, like Product A - 2 Nos, and Product B - 3 Nos, will be manufactured for a project order.

Finished product will be attached in the project structure and will be manufactured in house through PP module. Material planning will be done thorugh project MRP.

A sales order will be created with two line items, Product A - 2 Nos, and Product B - 3 Nos.

Root level WBS element will be linked with sales order header level for milestone billing.

Is it possible to see the cost and selling price comparison of product A and product B through this settings, as they are different type of product and their selling price are different.

Can the system apportioned the cost of sales based on the selling price of the product A and Product B.

Looking forward to hearing from you.

Thanking you.

Best Regards,

Abdul.

[former_member203108 · Accepted solution]

You can use two different parent WBSE for two product. Mark this as Billing element, assign these two WBSE to the sales order line item. So that you can track cost and Revenue separately for these products.

[Former Member · Accepted solution]

Dear Refaee,

Thank you very much for the reply.

One more doubt.

There will be some common cost for both product A and Product B, such as Design and Engineering , Project Management etc. If I keep these cost in the same level of Product A and Product B WBS element (suppose all on the level 2) is the system apportion these cost while running RA / Settlement.

Thanking you.

Best Regards,

Abdul.

[Former Member · Accepted solution]

Hi,

This you can do it in two ways:

1. Make three header under top level....one Product A, 2nd Product B ( as Billing element) and third as Common expense ( only cost). Now 1st & 2 nd WBS, you have to have sales order linking with individual lint item, for third you will accumulate all the common expense till the period end then make a reposting of the same in desired proportion to both products WBS hierarchy

(This is if you want to have a track on the common expense as well.......like planning, budgeting & control)

After this reposting, run RA for individual billing element and hence you will all the complement detailing and control over Revenue and expense with respect to Product A and Product B individually.

2. If you don't want to maintain that kind of detailing the common expense and keep track of it through project, then have cost centers accordingly and make an assesment/ distribution with respect to expenses accumulated at those cost centers for the period to the respective WBS under each product. Then execute the period end processes for the project.

Or

You can try with have two more line items in the costing sheet as an overhead against common expenses with respect each product.

I hope this should help you.

Regards

Avisek Bhardwaj

[Former Member]

You can also use assembly processing for this purpose. It gives you very tight integration between SD and PS. It is easy process to follow with minimum loopholes.

Regards,

Mahendra

[Former Member]

Dear Mahendra,

Thanks for the reply.

Could you kindly explain how the WBS structure should look like.

Thanking you.

Best Regards,

Abdul.

[Former Member]

You can also use assembly processing for this purpose. It gives you very tight integration between SD and PS. It is easy process to follow with minimum loopholes.
Regards,
Mahendra

Dear Experts,

Please advise on my understating on assembly processing :-

1. we will not ge a production order for the final assembly..

2. We can get production orders only for sub-assembly.

3. We can not make a delivery note for final assembly...

Tnx.

Abdul.

[Former Member]

Dear Experts,

Any input..

Tnx.

Abdul.