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Former Member

Pallets - BOM or as Handling Unit?

Hi all,

We are using a production process to make a finished product. These products are shipped on pallets.

My question is, how do we typically handle these pallets? Do we include them in the BOM in production or use them as Handling Units on the delivery?

If we include them on the BOM, then pallets are immediately consumed (as they are in real life). However using them on the delivery as a HU just makes more sense, but SAP will only remove the pallets from the stock on PGI. Since there is a delay between PGI and production, the stock levels won't be accurate.

Please provide insight into how this is normally handled.

Thanks

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2 Answers

  • Posted on Nov 09, 2011 at 04:20 AM

    Pallets/Cartons and so on are best modeled as Handling units in Packaging as HUs are flexible as to what materials they are packaging, you can pack a single material or a several of them on a single HU (unlike a BOM that is fixed) and also they can carry EAN/UPC labeling or RFID and can be efficiently used for tracking the shipments. We implemented WMS for a Customer where the UPS/Fedex traciking is directly integrated into packing functionality of delivery, allowing the customer to report where, when and whether the shipment reached the customer, in real time

    The fact that Handling units are deducted from stock at PGI time is correct behavior as PGI is the only step in SAP that indicates that goods have moved out of warehouse.

    So modeling pallets and cartons in packaging is future proof and has much more benefits that far outweigh other options.

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    • Former Member

      Thanks Vishnu - great explanation.

      I am curious though, is it possible to put the pallets in a 'blocked stock' category (or any other) after production so that it cannot be used by other materials?

      Thanks,

  • author's profile photo Former Member
    Former Member
    Posted on Nov 09, 2011 at 05:22 AM

    Hi,

    If it is necessary that One Pallet is consumed for each material while comming out of production, then I think you are addressing the issue in the right way.

    Regards,

    Sharan

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