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Raw material value adding to Finished product

In normal business, for making one Finished product there may b n number of Rawmaterials & Manpower involved. In SAP what is the best way to bring all those factors automated.....Like for Eg

Rm1 - 1 qty - 100RS

RM2 - 1qty - 200 Rs

for making 1 Finished product we need RM1 & RM2.......now the value of RM1 & RM2 should come automatically to Finished product.....

how is it possible...

Edited by: Jeyakanthan A on Dec 10, 2011 12:21 AM

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6 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Dec 09, 2011 at 09:13 AM

    Hi

    This process map PP module along with controlling

    better to post in PP forum

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  • Posted on Dec 09, 2011 at 09:40 AM

    Dear

    Please Create a BOM for FG and assign these raw material 1 & 2 create a work center will all the capacities like machine labor and assign this to routing when u create a production order for fg the complete master data is copied and give u the cost of that particular fg

    1. create BOM

    2.Create Workcenter

    3.Create Routing

    4.Create Production order

    With Regards

    Pushpalas

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  • Posted on Dec 09, 2011 at 10:37 AM

    this is integrated to CO module . config needed for product cost controlling apart from BOM routing etc

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  • Posted on Dec 09, 2011 at 11:31 AM

    Hi,

    You have to do the following:

    1. Define BOM for the FG consisiting of RM1 & RM2.

    This will take care of component requirements for producing the FG.

    2. Define workcentre, operations and routing. This will take care of operation costs/labour costs.

    3. Run product costing - this is pure CO module activity - by doing so, the material cost of RM1 & RM2 plus the labour costs

    defined in operations/routing will be rolled up and brought as FG cost. This will be shown as the standard cost in material master.

    Please check with CO consultant for further details.

    4. Thereafter, you have to follow the regular production planning & execution process to produce the FG and consume the components.

    Hope this clarifies your question.

    Regards

    Prabhu

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  • Posted on Dec 09, 2011 at 06:57 PM

    Moving this thread from ERP MM to ERP Manufacturing(PP) forum.

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 10, 2011 at 04:26 AM

    Hi,

    To get cost for the Finish component,CO consultant make necessary setting,

    pl. refer following in brief,

    1.Activate controlling into the Plant

    2.Create primary & secondary cost components revenue cost element assign to revenue G/L Accounts,All primary cost elements assign to expense G/L cost elements.

    3.Assign serialwise combination for Raw materials ,semifinish,Finish materials,activities,overheads with respective G/L accounts & cost elements,so that during cost run into CK11N cost is updated for the raw material,sfg.fg also activity cost for the operations is updated.

    4.Create cost variant with option for cost type,date control & valuation variant,--it describes how the materrials value should pick up during cost run such standard price ,,moving price .purchase order price.

    raw material price is automatically updated during Good receipt at moving average price tab.

    SFG/FG updated after cost run.

    Hope this will useful for u.

    Devendra

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