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Former Member
Oct 04, 2011 at 08:47 AM

Input for Organization Structure finilization.


Hello Experts

I have to implement the organization structure of company for that I need some input from experts.

In plant A


Process 1 in plant A

Raw Material = RM1

Raw Material = RM2

From this we produce

Semi Finish Good = SFG1

Process 2 in plant A

Adding Raw Material = RM3

& Semi Finish Good(of process1) = SFG1

We produce

Semi finish = SFG2

We sell some quantity of SFG1 and SFG2 from Plant A itself and transfer balance to Plant B for further processing

In plant B

We receive SFG2 from plant A for further processing.

SFG2(of plant A) + RM4 = FG1

And then we transfer part of FG1 to Plant C (Depot) for sale and balance we sale from plant B itself

Client wants are:

1.Plant wise balance sheet

2 Process wise cost (Process in each plant E.g Process A & Process B)

3. Process wise Revenue if we sale SFG or FG form that plant itself

What i find the solution to above case

1. 1 Company Code

2. 3 Plants

3. Plant will be equal to Segment

4. Process in each plant equal to Profit Center

But in that case one problem will arise that which profit center will we assign in Which Material as material will move form one Profit center to another in one plant itself.

Kindly suggest me, We will implement Product Costing and we are on EHP5.

Kindly share if you have better idea for above issue.