Raw material as Traded material

[Former Member]

Dear All,

I am working for a client which is into manufacturing of Generators.

One of the raw material which is used to manufacture the Generators, is also sold to vendor.

For FG material, it is Make to Order scenario.

For the raw material, its Make to Stock.

Is it advisable to create a new material type HAWA and create a new material master of the same raw material or to extend the sale view of the raw material itself.

When PGI is done without with the same material type ROH, system is asking for a Cost object.

Pls advise me on how to map this scenario.

Thanks.

[ajaycwa1981 · Accepted solution]

Hi

Use the same material (Raw material) even if you wanna sell this to someone.. NO need to create new materail under a new mat type

During PGI it is asking for CO object because your Requirement type / Req Class settings are not correct.... It seems you are referring to Account Assgn Category (AAC) E in your Req Class

1. Go to sale order, procurement tab

2. Check whats the req type

3. Go to OVZH and check whats the req class assigned to this req type

4. Go to OVZG and check whats the acount assignment cateory in req class

5. The account assignment catg must be having consumption posting field as E or V

You need to use proper req class which does not have any reference to any AAC in Step 4 above (For an MTS scenario)

br, Ajay M

[Former Member · Accepted solution]

Dear Ajay,

1. I have tested the scenario with the requirement Class Y40 and Req type YKE.

In the Req Class: I have maintained account assingment category M, Valuation as A and also Settlement profile as Sale order LIne item becomes cost object.

As u said Consumption posting field is E.

Wiith the above settings I have tested the selling of Raw material directly to vendor, where in at PGI it does not asked any /cost object as i think Sale order item will b cost obect to which the consumption entry will be posted to.

Now on Settlement of the Sale order, Cost of the trading material is settled to COPA.

This has fullfilled the requirement.

But still I have a doubt whether the above said process is correct thought it has full filled my requirement.

2. I have used another requirement class 31: order requirement which doent have any AAC, and also consumption posting field is blank, when tried with this requirement class and req type, it has stilll asked cost object. I think the reason could be as the consumption account is a cost element.

Pls can u advise on this.

Thanks

[ajaycwa1981 · Accepted solution]

Hi

Check the account assigned in OBYC (GBB-VAX)... Is that a cost element?

This account for COGS should not be cost element.. you need to create and assign a GL which is not cost element

br, Ajay M

[Former Member · Accepted solution]

Hi Ajay,

Once again thanks for the reply.

The COGS account as you said should not be created as cost element. This is right, but this holds good in FG sale.

But in my scenario, raw material is being sold which will also a part of BOM of FG.

In this scenario, in OBYC - VAX for the raw material, consumption accout is assigned which is a cost element. So when the PGI is done, this cost element is getting triggerd as consumption and asking for a cost object.

Is my understanding of the scenario and the config which is shown above is correct.

Thanks

[ajaycwa1981 · Accepted solution]

Hi

What you did is wrong... The sale of raw material can not be designated as Consumption 1st of all as per any accounting standards

Secondly, you should not assign a cost element in GBB-VAX... thats the reason you are facing this problem... You need to assign a COGS Account which is not a cost element in GBB VAX

br, Ajay M

[Former Member · Accepted solution]

Dear Ajay,

Thanks for the useful solution. It has answered my question.

Hav awarded full point to you sir.

Thanks