Skip to Content
0
Former Member
Jun 29, 2012 at 10:33 PM

PM06 Capital Work Order - Consuming 'Stock' Material from Warehouse

876 Views

Hi all,

We use Order Type 'PM06' for Capital Work Orders in our SAP system which are subsequently settled to an 'Asset Under Construction' (AUC).

In most cases when Materials (Components) are required for these Work Orders, they are procured directly via the Work Order itself. So at Goods Receipt, the cost of the Material is allocated to the Work Order and subsequently transferred to the 'AUC' at settlement.

In some cases, we find that we may already stock the Material required for the Capital Work Order in our Warehouse. In these cases, it is easier for us to consume the Material from our Warehouse rather than going through the process of procuring the Material externally again. I have verified that this process works correctly and also that the value flow is correctly reflected from our Inventory accounts to the 'AUC' at settlement.

My question - within the context of 'PM06' Work Orders, is anyone aware of any reasons why you would choose not to consume the Material from your Warehouse (in the second scenario) and procure it externally instead - as a business rule?

All help and advice is greatly appreciated.

Best wishes,

Ravelle