I have experience in SAP ECC 6.0 with FICO and just started working with SAP Business One. I am working on an Inventory project and learning the Inventory and FAMe modules. In visiting with the warehouse personnel they have questions about many different processes. I’ll start with the first issue they are asking about and even though it’s a process question it relates back to how items should be created and recorded in SAP. I have other questions I’ll address separately but I would love feedback from others on how they address these situations or what is the best practices or learning recommendations.
You purchase a piece of equipment as one unit but it consists of other many individual parts that are tracked separately in inventory. For example, as a whole the unit consists of a (1) base component, (2) added on modem, (3) Pedestal, and a separate boxed item of (4) racks for attaching to structure. You’ve purchased all these items in the past separately and they are kept in inventory and properly categorized as inventory items.
This is not the only piece of equipment you work with and have many situations like this one.
You rent the equipment out and over a period of time a part goes out and needs to be replaced.
Question – Do you originally record the whole unit you purchased as one complete unit or categorize all the individual parts into inventory with allocated costs for tracking purposes? As parts on the unit are discarded/replaced they are thrown away (if not recorded to inventory previously) as being unusable and the new part pulled from shelf gets recorded as being in service and becomes part of the fixed asset. If part removed can be refurbished it will be treated as damaged goods, refurbished, and then brought into inventory at proper costs for refurbishment.
There are probably multiple ways this could be handled but I’m trying to find the best way to handle. Should an item be created and this be recorded like a kitting process or an Assy process? Is recording as unit and individual parts being ignored the easiest and possibly best process? Or, is it best to just record all the individual parts with some type of weighted and cost averaging?
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