MTO Process issue

[Former Member]

Dear All,

Please clear my doubt

I refer below link and many other links but not able to clear my issue

http://scn.sap.com/thread/2127694

Case1

In house Production in MTO Process

In Requirement class, Valuation is M

Kindly let me know process is correct or not in relation to
Costing

   1.Sales order is created for Material X

2 We created PO based on Sales order from

RM A Rs 100

RM B Rs 50

3 Issue RM to Production order created with ref to Sales
order

Con of RM A&B   150

    To Inv of RM A&B  150

4 Production of Material X

  Inv of Mat X  150

    To Change in Stock  150

   So it mean there is no STD. Cost of Material  X in material master as it is based on sales order and price will be determine based on Good
Received cost. (We done CK51N of Material X )

  So if we create other sales order of Same material X after 15 days  in which RM cost increased to Rs
250 so at the time of Production of Material X  entry will be

Inv of Mat X 250

      To Change in stock 250.

I AM CORRECT?

Case2.

When we do sub contracting for our customer and they  supply 90% RM to us and 10% we add.

In this case entry will be

1. When we received RM from Customer – NO FI entery
2. When we issue RM 90%(Customer Stock) and 10% our material to Production order  entry will be

Consumption Ac Dr 10 Rs ( our Material cost only)

      To inv of RM  Cr   10Rs

1. At the time of production  of FG – NO FI entry
2. At the time of PGI no FI entry
3. At the time of Billing

Customer   30

  To sale        30 ( Revenue Amount)

Please let me konw above entries and my concept is correct

Regards

Shayam

[venkatasatyakrishna_achan · Accepted solution]

hi

i think in case 1

the entry will happen with 150 only not 250. for the same material it will store price in ebew table and for any further GR's t will pick up 150 only and not 250

case 2 is right!!

krishna

[Former Member · Accepted solution]

Dear  Venkata,

Thanks a lot for your reply

I am now clear in case 2

But in case of Case 1 ; - It is make to order so there is no storage of standard price in material master and production of Material X is totally based on new Sales order every time. So i belive there will be no standard cost for X material and system will make standard cost for every order when we do CK51N and system will derive the cost of Material X based on the price at which RM pruchased (BOM Component) against sales order.

Please correct me if i am wrong and please tell me which setting i missed if my concept is not correct.

Regards

Shayam

[venkatasatyakrishna_achan · Accepted solution]

hi

yes it will not store any standard price. but only for the first sales order of the product it will follow the strategy sequence that is only for first goods receipt and that price will be updated in the ebew table in sap. further for any goods receipt it will pick up the same price from EBEW table is it happening the same with your scenario or something different

krishna

[Former Member · Accepted solution]

Hi,

In my case system keep on changing price of Finish good based on GR done of raw material against sales order.

If the price of RM is same in both sales order then Cost of prodution is same but if the price changed of raw material system change the cost of production according to RM cost hence there is no variances.

We are not doing CK11N and CK24 but we do CK51N when we do billing because COPA is Implemented hence asking for std cost based on sales order.

but before doing that also in production order if we analysis the cost of production is equal to the material consumed (system not caring about price change of RM, system take RM cost and activity cost and derive finish cost value. FG material is maintain on Standard price and RM on moving)

Shayam

[Former Member · Accepted solution]

Dear All,

Any input on this issue

Regards

Shayam