SD New Scenario- customer free supplied material

[Former Member]

Hi Experts,

my client requirement is : Customer raise the sales order for one product, for that product customer is going to supply one specific spare part to co. with free of cost.

co. will use that part in making of finished product. So in this case what are the possibilities to deliver the finished product.

how to map from sales order to Invoice.

please help me to map the scenario.

Regards

Madhu

[jpfriends079]

> my client requirement is : Customer raise the sales order for one product, for that product customer is going to supply one specific spare part to co. with free of cost. co. will use that part in making of finished product. So in this case what are the possibilities to deliver the finished product. how to map from sales order to Invoice.

In my opinion, here your client is Subcontracting Vendor.

So the business process can follow as:

1) Create a non valuated material code, for the customer provide material with material type UNBW

2) Deliver the material to Servicing Plant against a PO raised from Servicing Plant

3) Do MIGO for in warding the material from servicing plant (You can also do a non PO GR).

4) 1st you have to create a material BOM with Processing at Component Level (LUMP) for that order product. Where the Item Cat for the material provided by your client's customer will be TAPN instead of TAP.

5) Accordingly, make relevant pricing procedure change. So that, at pricing, you can charge the customer accordingly, if any.

6) Finally, make sales order with client's customer ordered product through PGI and Billing.

Thanks & Regards,

J Prakash

[Former Member]

Hi,

I faced a smilar scenario some while back but the solution was not based in SD. It was based in MM and PP.

My solution is different from the previous one because if I understood correctly, the customer sends products to you. You don't send anything to the customer. If I am right, then you cannot use subcontrating process.

This was how we solved it:

-> Material Type - you need a material type non valuated to map this product. You can use a standard one but I would use a Z one so that I am free to adapt it in the future. Please use a separate number range so that you can distinguish easiliy the materials from the customer from your own materials.

-> You will map the deliver of your customer materials through a purchase order where your vendor is your customer. You need a new Account Assignment Category that is not relevant for billing. That is, one where pricing is not relevant and where the system does not expect to receive an invoice for it.

-> you need to set up the BOM's so that your customer material is used in production of your finished product. As the material type is non valuated there will not be any costs regarding this product when you produce it.

-> you sell your finished product to the customer with a normal sales order (OR). Probably because one of the components belong to your customer, the price will be lower.

Hope it helps. Regards,

[Former Member]

Dear Friends,

Flow suggested by Mr. jloureco is correct, we are also using same flow in some cases.

Thanks,

Santosh

[Former Member]

Hi there,

Try this. Since the customer raises the sales order 1st, define the main item as a CTO BOM item. Define your spare part as a 3rd party product. So the item will appear as lower level item for the main item. Define the item catg grp as LUMF so that lower level item will have importance in the BOM structure. Having LUMF will ensure that you can configure the main item only when your spare part is available.

Define your customer as a vendor. Since the spare part is a 3rd party item, a PR & PO will be raised to the customer. Customer supplies the product. There will be an inbound delivery & once you GR the inbound delivery, stock will be available. Since stock of that spare part is now available, you can start configuring the entire product. Make this process not relevant for billing.

Regards,

Sivanand