Knowledge Management

Question:
I am wondering if anyone can assist in working out a technical design for the above proposal from our business.
Currently we have a bespoke despatch process which was put into place so that RF scanners could be used to identify which Storage Units had been despatched as part of a specific shipment.
The business would like to pay our suppliers on the basis of our consumption rather than on the basis of our GR. Since we are an engineering company we will have consumed these goods in the process of creating our finished goods and therefore we will need to be able to identify what materials had been consumed in the manufacturing process.
Therefore my question is:
Is this possible to configure in standard SAP (I couldn't work out what SAP would call it, and therefore couldn't suss out where is was in the Help files ). If it cannot, can anyone suggest how this might be achieved (bearing in mind that our company will want - as much as possible - to use the standard reporting in SAP to monitor this activity).
Any / all help gratefully accepted.
_________________
Kind Regards
Rosie Brent
Please remember to search the forum and check the FAQ before posting questions, thank you.
Tuly Idiot most of the time, part-time Guru
Answer:
Hi Rosie Brent,
From what you have briefly explained, I would be convinced that the standard customizing and process can be well used to handle your specific requirement. Yet, to enable me to come up to some sort of appropriate recommendations, additional clarifications are needed -
1) What kind of actual procurement items that you are going to pay to the vendor? was it material or services?
2) Was the costs of external procurement fixed for a certain period of time or fluctuating from time to time subject to the actual market situation?
3) Am I correct to say that you would get the actual quantity of finished product being receipted from production order as the basic receipted quantity based upon which the confirmation of externally procured item was made against that payment is to be made?.
4) Was there any consumption ratio between your externally procured item with the quantity of finished product produced and receipted?.
If possible, I would prefer to get as much information regarding to your business process as possible which can help fine-tune my suggestion.
Cheers,
HT
_________________
Moderator:

Answer:
1) What kind of actual procurement items that you are going to pay to the vendor? was it material or services?
The items to be paid for will be materials.
[quote+"Ha Tran"]2) Was the costs of external procurement fixed for a certain period of time or fluctuating from time to time subject to the actual market situation? [/quote]
The price is the material's standard price per 1000.
3) Am I correct to say that you would get the actual quantity of finished product being receipted from production order as the basic receipted quantity based upon which the confirmation of externally procured item was made against that payment is to be made?.
The quantity should be the quantity of material used within the quantity of finished goods despatched (Therefore Post Goods Issued) from our factory.
4) Was there any consumption ratio between your externally procured item with the quantity of finished product produced and receipted?.
Scrap will be monitored separately to the process and handled using a combination of writing off quantity of goods within the system and manual invoicing (apparently)
Hope the extra info helps.
_________________
Kind Regards
Rosie Brent
Please remember to search the forum and check the FAQ before posting questions, thank you.
Tuly Idiot most of the time, part-time Guru
Answer:
Hi Rosie Brent,
Two last questions for you -
The quantity should be the quantity of material used within the quantity of finished goods despatched (Therefore Post Goods Issued) from our factory.
Am I right to say that this externally procured material will constitute as part of the finished product that you will sell to your customer ie. was it set as Sales BOM component for your finished product? If yes, then are you going to charge your customers for this externally procured item?.
The price is the material's standard price per 1000.
Since the price of the procured item is managed on the 'S' price control basis and if this item will be back-charged to the customer, am I correct to say that you will set up the specific sales condition type to cover this difference?.
Cheers,
HT
_________________
Moderator:

Answer:
These are externally procured parts which form part of a Production BoM . We are charging customers on the basis of the price of the finished goods, we are attempting to pay our suppliers on the basis of the number of externally procured components used during our production process (calculated as the quantity used in the finished goods shipped from our plant).
There is no charge to the customer for the externally procured components. They pay purely on the basis of the finished goods sent.
_________________
Kind Regards
Rosie Brent
Please remember to search the forum and check the FAQ before posting questions, thank you.
Tuly Idiot most of the time, part-time Guru
Answer:
Hi Rosie Brent,
I would think that I can be able to provide you with the solution now -
1) Set up the Production BOM for your finished product of which the externally procured item shall be integrated as one of BOM Component;
2) Set up the Sales Order for your customer which will triggered the Make-To-Order (MTO) planned order that will be converted into production order for your finished product;
3) Since it is mutually agreed with the vendor that the payment for your externally procured item is to be made in accordance with the actual consumption of finished product by the customer (through dispatching system) as per Sales Order, the consignment process is introduced and set up in your system.
4) Use the Stock Determination (with the proper setting in Transaction OSPX and OPJ2) to ensure that the backflush of your procured item will be from consignment stock.
5) Maintain the Consignment Info Record for your procured item where the price shall be the compliant with your mutual agreement with the vendor for the supply of your related material.
Once you confirm the production order for MTO stock, then the procured material will be automatically backflushed (with movement type 261K) directly from the consignment stock against which payment can be made to the vendor after running the consignment liabilities settlement via Transaction MRKO. Check it out and let me know if this recommendation is suitable to your business process.
Cheers,
HT
_________________
Moderator: