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NLAG type is the right solution?

Hello,

Our company have materials which are directly consumed, we call them as Kanban parts. Our suppliers have responsiblity to follow stock level of their products and app. on weekly basis.

Our purchasing follows prices on excel files and accounting books the invoices by looking those excel files. There is no stock keeping needed and no booking for incoimg materials of this concept.

I'd like to change this process. We should use SAP. We're talking about app. 1.000 differenet item and planing to create them as NLAG type materials. So that we'll be able to follow the price on SAP and accounting will not look item prices one by one to the excel to check them.

Therefore, i wanted to take your advices if this is the right way to do this. Is there any disadvantages of NLAG type? Will we book incoming materials to SAP?

Thanks

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3 Answers

  • Posted on Jan 30, 2012 at 02:42 PM

    i wanted to take your advices if this is the right way to do this. Is there any disadvantages of NLAG type? Will we book incoming materials to SAP?

    Hi, No disadvantage of NLAG type, you can follow your proposal, Using NLAG: Non-stock materials you can track the accounting, other alternate solution is you can also use Account assigned cost center 'K' PO for this purpose, it will also act in same fashion,

    You can refer below link for some more understanding,

    [NLAG Material|nlag]

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 30, 2012 at 03:22 PM

    In account assinged POs for ROH materials, It's directly expensed when you receive the stock and you dont see the stock .

    but if you use NLAG, you can directly expense the material and also you can track the stock. i.e. When you post the GR, it's expensed but still you receive the stock in storage location. Later when you issue this stock to any cost center, system wont create any account postings. This is an advantage of using NLAG.

    So both ways are correct it depends on your scenario.

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  • Posted on Jan 30, 2012 at 03:23 PM

    Hi,

    NLAGs are limited when it comes to planning, and since they are not stocked, you can't either track them internally to see how much you have got, and if there's a need to initiate replenishment.

    On the other hand, you don't want to do all these things, so besides that there's no problem with NLAGs.

    I don't know your business, but if it is a bit looking for having an organized, yet simple, materials procurement and replenishment procedure, you can implement KANBAN with external procurement in SAP. It is for sure more complex than doing nothing (like today), but will give you back the control over the entire process, something that you don't have today.

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