Little help in scenario!

[Former Member]

Hello SAP friends,

In my client I have the following scenario:

I have a steel board to be cutted in little pieces and I want to control the consumption of the steel board and the goods issue of the little pieces!

I am working in a solution but I have some doughts!

What I have designed in SAP so far is:

Materials:

- Steel Board - Raw Material

- Piece A - Semi Finished Material

- Piece B - Semi Finished Material

- Cut Plan - Phantom Material

BOM:

Cut Plan

- Steel Board 1 UN

- Piece A -4 UN

- Piece B -3 UN

Routing:

Cut Plan

- 10 Cut Piece A 1 Hour Machine Time > Material Assigment (Steel Board, Piece A)

- 20 Cut Piece A 2 Hour Machine Time > Material Assigment (Piece B)

What I am saying is: With a steel board I can produce 4 piece A and 3 piece B but I have to use 1 steel board!!! The material Cut Plan doesn't exists, I only need it to create the production order...

I think this will work! My only concern is, how does the cost works? The materials Piece A and Piece B have a price, but when I do a goods issue from production order, I want the price o these materials to be is price plus the cost of the machine time of the operation on the routing! Is this possible, how?

I am sorry for the bad English.

Thanks in advance,

Adelmo Silva

Edited by: Adelmo Silva on Sep 1, 2008 3:44 PM

Edited by: Adelmo Silva on Sep 1, 2008 3:45 PM

[Former Member]

I am not getting what do you mean by your sentence

"With a steel board I can produce 4 piece A and 3 piece B but I have to use 1 steel board!!!"

As I understood Cut plan is the BOM header...and steel board is a component, but the above sentence mean that 1 seetl board give raise to 4 pieces of A and 3 of B.

Can you more clear?

[Former Member]

Hello Rajesha Vittal,

Yes, is true, Cut plan is the BOM header and is a phantom material that doesn't exist, ok?

With 1 Steel Board I am able to produce 4 pieces of A and 3 of B, so that I have to use the "-" sign in the BOM component.

I just don't know how does the costing works, or if its possible that the pieace A and B enter in warehouse with is price plus the transformation cost. The transformation cost is the cost of the activitie in the routing!

Thanks in advance,

Adelmo Silva

[Former Member]

Dear,

Now I am clear what is your plan. You can use Co-product concept of SAP. Here the cost of production(steel borad cost and transfermation cost) can be shared be between A and B as per the ratio i.e ( for A - 4/7 and for B 3/7).

You need not create a cut plan as a BOM header.

Say A will be the BOm header and B will be a co-product in BOM of A...the structure is as below

BOM header A And base qty= 4

BOM item 1 Steel Board qty =1

BOM item 2 Part B and qty = -3(with Coproduct tick in BOM item detailed screen)

Requirements for this are

1. Material master for A and B

2. In MRP 2 view of A and B CO-product tick

3. In material master of A(MRP2 view) You need to create a apritionment structure and sourse structure where you need to define the ratio of cost shareing between A and B.

Please come back if you need more information.

check the following link

http://help.sap.com/saphelp_erp60_sp/helpdata/en/ea/e9b39d4c7211d189520000e829fbbd/frameset.htm

Coproduct costing

http://help.sap.com/erp2005_ehp_03/helpdata/EN/b1/c04fed439a11d189410000e829fbbd/frameset.htm

[Former Member]

Hello Rajesha Vittal,

Thank you for the idea but I am a PP consultant... I am not so good with costing...

Can you provide me more help?

Thanks in advance,

Adelmo

[Former Member]

Dear,

I can guide you through the steps, but it is better to have CO consultant with you.

You start preparing the master data as I mentioned in the earlier communication.

Product say X and CO-product say Y

In X and Y in MRP 2 view activate the check co-product

For BOM of X, in item details of Y activate the check co-product and the qty with -ve.

In SPRO

Create a source structure as below

Define Source Structure

You only need a source structure for costing co-products if you want to distribute the costs to the co-products using cost elements.

If you don't want to distribute the costs using cost elements, the costs will be distributed on the basis of the apportionment structure in the material master record. In this case you do not have to process this step.

Source structure

In this step you define the source structures used when settling and costing joint products.

A source structure contains several original assignments, each of which contains the individual cost elements or cost element intervals to be settled using the same distribution rules.

In the settlement rule for the sender you can define one distribution rule, in which you specify the distribution and receivers for the costs for each original assignment.

Example

The object in question has incurred both direct and overhead costs. The direct costs are to be divided 50% each between a fixed asset and a cost center, while the overhead is to be settled in full to an administration cost center in CO.

To do this, you would create a source structure with two original assignments:

1. Direct cost elements

2. Overhead cost elements

Activities

Check whether you need to use source structures in your settlement procedures. If you are settling to cost elements, you do not need an source structure. Otherwise, to create a source structure:

1. Choose New entries, then enter a key and an explanatory text. Save your structure and choose "Back".

2. Select the structure you have just created and choose Detail.

3. Choose New entries and create an original assignment. Save the assignment and choose Back .

4. Place the cursor on the entry you have just created, choose Origin and enter the appropriate cost elements, cost element intervals, or cost element groups.

Save your entries.

5. Repeat steps (3) and (4) to create further original assignments.

Assign in the material master in joint production push button.

Here enter the % cost for each co-product example

Enter apportionment structure as say 01. and assign the source structure in structure field.

Click on Equivalence number push button

select the

assignment and enter the Coproduct - X,validity and %- say 70

assignment and enter the Coproduct - Y, validity and % say 30.

Save.

Assign this source structure in the settlement profile also.

pl come back if you are stuck

[Former Member]

Hello Rajesha Vittal,

Thank you very much!

I am going to try do it myself because I dont have the CO consultant with me at this moment.

If I have any trouble I will post again.

Thanks,

Adelmo Silva

[Former Member]

Dear,

pl follow the steps given in my communication, come back if are stuck

[Former Member]

Hello Again,

Another problem...

When I create the BOM for the CUT PLAN, I am using the transaction CO10 because I need to make the reference to a PEP Element. If I use this I can't use CO-PRODUCTS!!!

Any help here?

Thanks in advance,

Adelmo Silva

Edited by: Adelmo Silva on Sep 8, 2008 6:13 PM