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Stock transport of Milk through Tankers and its costs transfer in toto

Former Member
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Hi Experts, We have a peculiar situation of goods transport in the Milk industry. The Chilled Milk is being sent in the Milk Tankers to the Dairies where the Milk Products are manufactured. The tankers have compartments and there is lot of chance that there will be mixing of milk two chilling centers since the Dairy wants to minimise the cost of transport. When the tanker arrives at the Dairies, it is being weighed and stored in one Silo. Here, there shall be excess or shortage of Milk when compared to the Milk sent by the Chilling Centers. This scenario has to be mapped first through Stock transfer. Further, the cost incurred at the Chilling centers should be transferred alongwith the stock transfer to the Dairies. Over and above, Material Ledger with actual costing has been activated in this case. Experts in big Dairy Industry like Fonterra, Amul , Vijaya, Heritage, etc and other Industry like OIl and Gas, can pitch in with their experience of how they tackled and mapped in SAP. Split valuation based on batch shall be there to carry the costs batchwise upto its mixing in Silo at Dairy. Regards,  

Edited by: Ashok Singh on Sep 19, 2010 5:11 PM

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Answers (3)

Answers (3)

Former Member
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Thanks for the support

ajaycwa1981
Active Contributor
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Hi Ashok

To address your 1st requirement - any shortage or excess receipt at Dairy will have to recorded as a miscellaneous goods receipt... Note that in the case of excess stock, the extra stock that you generate will be valued at the Material master price only.. You wont be able to valuate it @ any other price or @ the price of the chilling centers..

Now, coming to transfer of costs from chilling centers to Dairies @ STO - I dont think there is any feature in SAP to address this.. SInce you have ML in place, transfer the stock @ a std price... And @ period end when you execute CKMLCP, the variance in chilling centers over and above the std cost will get adjusted to the stocks/consumption @ Dairies...

Now coming to split valuation based on batches, this would complicate the system to a great extent.. Anyone who wishes to activate split valuation, I ask them only one question... Will the people at shop floor be able to identify the goods separately and punch the Valuation type (in your case batch no) at every goods movement...

Also, do you really want to have costing at such a detailed level as batch? Differentiate between nice-to-have and must-to-have and make your choice accordingly...

Regards

Ajay M

Former Member
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Hi Ashok ,

I do have some knowledge with a Choclate Manufacturing Company .. but there were lots of customization involved in that ..

Following are my ovservations from the limited informations from your question :-

1. Milk should be a material for which back flushing functionality should be used .

2. Transfer Pricing is to be used . In my company they had done a customization table where ( Cost + MarkUp) is maintained and enchancement in CK11N which gives us cost component split of source plant.

3. In case of mixing of milk.. the purity of milk reduces.. so the output reduces. Split Valuatiion can be used.

4. Loss during stock transfer is taken as normal loss.. and adjusted as a loss entry when GR is done in buying plant.

5. Normal ML functionality was used but with lot of customization and i am not very much familiar with the same..

If can you any further specific questions.. kindy get back to me..