Assembly Cost

[Former Member]

I am working on a Trading client.There is no PP module includes here.

After Goods receipt, they do the assembling of spare parts and makes a final product. Now they want to add the Assembling cost to the final product Inventory. How can we add assembling cost on final product in SAP?

Waiting for the reply.

Points will be awarded.

[former_member529134 · Accepted solution]

Hello

You cam try internal subcontracting.

Maintain your own company or your specific assembling unit as a sub-contracting vendor and provide the material for assembling.The assembling cost can be thus made into the final product value as it will be mentioned in the subcontracting PO.]

Hope this helps

Regards

[Former Member]

Thanks a lot Mathews

[former_member529134]

Hello Neraj

You create your assembling unit as a vendor and make sure to give the vendor name correctly as to identify it. Then block that vendor for payment in the vendor master.

So in the case of subcontracting, the assembling charges will go to the vendor a/c given for the assembling unit vendor.

Hope it is clear till now.

Now the most important thing is that you have to transfer the entries in that particular vendor a/c to a P/L account at every period ending. This is a must as the assembling cost expense should come in the P/L statement. Make sure that you document the transfer to P/L properly and you make it a point somehow to go this action at every period end along with other period ending activities.

Hope this helps

Regards

Gregory Mathews

[Former Member]

Dear Gregory Mathews ,

Thanks for ur reply. Could you please give me step to step procedure for the internal subcontracting. How to make our company or assembly unit as the vendor??

In case if i make the assembling unit as a vendor then the same same cycle will run in the system, but how we will do the final settlement???

points will be awarded

Thanks and Regrads,

Neeraj

Edited by: Neeraj Saini on Oct 6, 2008 6:54 AM

Edited by: Neeraj Saini on Oct 6, 2008 8:47 AM