production at subcontractor site with customer stock

[former_member256446]

Hi,

we have 2 plants, plant1 is ordering only the assembly work of a product, and provide all the components, the stock belong to plant1. plant 2 should receive the components from plant1 with zero value, and produce the product. at the end plant 2 charge plant1 only for the assembly work.

1) how this process is done?

2) the same component in plant 2 can belong to the customer, but also can belong to the plant for its own production processes, do we need split valuation? or there other solutions.

[former_member185450 · Accepted solution]

Hello Yossi,

Hope for your requirement can be achieved through Toll Processing in standard SAP

please have a look in to the below threads for better understanding

https://scn.sap.com/thread/1927139

https://scn.sap.com/thread/3704371

Regards,

Venkatesh..

[former_member256446 · Accepted solution]

Hi Venkatesh,

toll processing is not relevant to our process, because in our case the entire product will be manufacture at plant2 therefore production should be managed and exist only in plant2.

we can implement the following solution:

1. Use MTO scenario where Sales Order is the CO object...

2. IMG Settings

a. Create a requirement class in IMG > CO > Prod Cost Contr > Cost Obj Contr > Product cost by Sales order > Control of Sales-Order-Related Production/Product Cost by Sales Order > Check Req Class

Assign Account Assignment Catg = E; Valuation Field = Blank; And a Settlement Profile

b. Assign this requirement class to your requirement type and hand it over to your SD guy... The SD guy needs to assign this Req Type to his item category and always determine this Item category in the Inter Company Sub contracting Sales order...

Its advisable you create a separate sales order type for it

3. Process

a. Create a Sales order in Company A (Company B is the Sister Concern)

It may have 2 materials i.e. One material will be the FG and another will be service material for Sub contracting charges

b. Receive the raw material supplied by Company B against the sales order... Mvt Type 501 E.... (This would receive the stock in your books as Non valuated i.e. @ Zero value)

c. Create a Production order for the FG associated with the Sales order.. (CO08)

d. Issue the goods to the prod order / Confirm the operations

e. Do the GR from prod order... The GR will be Non valuated in Company A.... Only Qty will be updated in the stock.. No Value

f At period end, settle the Prod order upon sales order.... With this, the total cost of 1000 will be settled to Sales order

g. Do the billing, which will also post to the Sales order....

h. Settle the sales order from VA88... This will settle the total cost of 1000 CNT to COPA....

4. Ensure that the Item Category / Req Class you use in this process for Company A, should not be used for Company B.. Else, it would also be treated as Non valuated GR in Company B as well

in this case the main problem will be that we use the same raw materials in plant2 for its own process with valuation, and for subcontracting with zero value.

[former_member185450 · Accepted solution]

Hello Yossi,

This is also a work around solution for your requirement..

but you have to maintain different order type for this kind of sales orders

other wise it will impact your regular process also..

Regards,

Venkatesh..

[former_member256446 · Accepted solution]

Hi Venkatesh,

you are saying this is a work around, what do you think is the right way?