captive consumption and captive sales

[Former Member]

Hi

Can any one explain what is captive consumption and captive sales

is both are same

regards

[Former Member]

what are the configuration settings to be done in SD for Captive consumption?

regards

[Lakshmipathi]

Dear Rithvika

It will not come under SD but will come under MM/PP

thanks

G. Lakshmipathi

[Former Member]

Hi laxmipathi

my clients practice is that it is accompanied with excise invoice

its a finished product used by another department

how about rg1

regards

Edited by: rithvika on Dec 15, 2008 3:08 PM

[Lakshmipathi]

Dear Rithvika

Captive Consumption means the consumption of goods manufactured by one division or unit and consumed by another division or unit of the same organization or related undertaking for manufacturing another product(s). In short, Captive consumption means goods are not sold but consumed within the factory.

thanks

G. Lakshmipathi

[Former Member]

HI

what are the configuration settings to be done in SD for Captive consumption?

regards

[Former Member]

Hi rithvika

Captive consumption refers to the use of the manufactured product in the same company maybe by different unit or plant where in it might be used to produce another product

captive sales is when unit produced in one plant is sold within the same company to another plant maybe , for specific business reasons

the process maybe mapped through a STO , or sales purchase as per the business requireemnts

the difference could be , in consumption no sales takes place , but unit produced might be directly issued to cost center or consumed

hope this helps

thanks

Akasha