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Former Member
Jan 22, 2011 at 08:27 PM

Cost center problem


Dear Expert,

I'am new to this forum, so just let me know if I'am posting in the right place or if there is already a post like mine. Also, my english may not be 100% accurate, this is not my first language.

This is a simplified explanation of the problem we have with a company that we are working with :

This company is a manufacturer that sell many recondioned products, but we will only focus on two of them :

1 - Deodorant

2 - Shower gel

Here's an overview of the business processes :

- The company receives the raw materials in bulk at their warehouse.

- The company receives customized package (bottle, tube, ...).

- The company receives labels and ink.

- On their workcenter they fill the packages.

- After the stickers are printed and affixed on the product package.

- The products are placed in a box.

- The boxes are placed on a pallet

- The pallet is wrapped and stocked in the warehouse.

The company is using a product costing accounting, so both finish product must reflect the real cost of each the raw, packaging and printing materials that they are using in the reconditioning process.

The problem is that they are using the same packaging material and printing material for most of their products. In this simplified case, we would like to have a packaging material (eg : box) to be associated with both cost center of the products.

When we create a new raw material in SAP we can only select one the cost center that we have created.

Our approach may not be right but here's something that would work for them :

The company order 10000 boxes but in SAP these boxes would be automatically separated between two diffenrents packaging material number :

PB-1 associated with the cost center of the deodorant

PB-2 associated with the cost center of the shower gel

When the quantity of PB-1 is depleted it would automaticaly transfert the right amount of PB-2 to PB-1 until the stock of boxes is empty.

Awaiting your replies.

Thank you.