WM-PP Interface with consignment stock

[Former Member]

Hi WM experts,

We have the following requirements in WM,Could you please give inputs for the requirment?

1) We have consignment vendors A, B & C and we are procuring raw material M from all the three vendors and stiring in a ware house.My requirment is whenever there is an issue from consignment it should use the FIFO strategy to pick the material which received first among 3 vendors.How we can set up the soncfiguration in the system.?

2) Can we receive the (JIT) raw material directly to the production supply area without bringing into the normal storage bin.?

3) Issuing of consignment stock directly from warehouse to Production supply area?

4) We have 2 plants 1000 & 3000 and both the plants have warehouse 001 & 003 respectively.Client wants to merge the plant 3000 into 1000.so in future there is no more 3000 plant in the system.How we can handle the warehouse ? an suggestions.

Thanks / karthik

[csaba_szommer · Accepted solution]

Hi Karthik,

1.

You can use batch determination in IM or WM-FIFO scenario (suggested by Prashant).

2.

Answered by Prashant.

3.

Stock determination. Please check OSS notes 560638, 365570

4.

If WH 001 & 003 are physically and organisationally not the same, you have to create a SLoc under plant 1000, assign WH 003 to plant 1000 & newly created SLoc and do plant-to-plant stock transfer. If WH 003 under plant 3000 physically is the same as WH 001 under plant 1000 you can do a directly a stock transfer between the plants.

More detail would be necessery to decide what and how to do exactly

Regards,

Csaba

[Former Member · Accepted solution]

Hi Prashant /Csaba

First of all thanks for your inputs.

1.As per prashant's input we can not issue the consignment stock directly to the consumption either for prodcution or cost center.We have to transfer to our own stock and then we can issue from there.Is that correct?. Because in MM we can issue the consignment stock directly to the consumption. Why can't we do it in WM? Please explain in detail.

2.Prahsant : Could you please explain the step by step process for Kanban card system to achieve my requirement?

3.Csaba : Give me some time to review and test the scenario based on the SAP Notes.Mean time I am expectin the explanation for the point 1.

4.Csaba: Yes WH 001 & 003 are physically and organisationally different.They are merging the plants ie 3000 to 1000. Almost similar materials are used in the Plant/WH 3000/003 as that os 1000/001.

Can we suggest to use the same WH 003 linked with new storage location and plant 1000?

Or We can go with stock up load as you suggested earlier?.

What are all the factors to be consdered apart from the stock transfer?

Thanks & Regards

Karthik

[csaba_szommer · Accepted solution]

Hi,

As per prashant's input we can not issue the consignment stock directly to the consumption either for prodcution or cost center

It's not correct, you can.

Csaba: Yes WH 001 & 003 are physically and organisationally different.They are merging the plants ie 3000 to 1000. Almost similar materials are used in the Plant/WH 3000/003 as that os 1000/001.
Can we suggest to use the same WH 003 linked with new storage location and plant 1000?
Or We can go with stock up load as you suggested earlier?.
What are all the factors to be consdered apart from the stock transfer?

If you merge two plants there are several thing to be considered... From WM point of view it's enough to attach Plant1000 / suitable SLoc to WH 003 and transfer the stock.

But you mentioned that sometimes the material numbers are not the same...you have to take care of this...

But it's difficult to answer this question since we know nothing about the real situation.

Regards,

Csaba

Edited by: Csaba Szommer on Jan 8, 2009 10:28 AM

[former_member536836 · Accepted solution]

Hi,

1.How you are issuing consignment stock directly for consumption in MM? As per my understanding unless & until you take consignment stock to your own stock(411 movement) valuation won't happen. You can not pay to vendor.

2.You mentioned about external procurement ,so please do customisation under production in Kanban.

SPRO-Production-Kanban

Regards,

Prashant

[Former Member · Accepted solution]

Hi Csaba

Could you please explain me the steps in detail for the direct issue of consignment stock?

May be we can set up in the the movement type level but I am not sure.

I got some idea what i have to do for plant merge. I think I can manage.

Thanks / karthik

[Former Member · Accepted solution]

Hi Prashant

Sorry prashant. You may not aware that consignement stock can be consumed directly by using special stock type with movement type ( 201+K) in MM.It is very much possible and it will generate liabilities automatically.

Csaba is correct.If MM is allowing then WM should.Anyhow thanks a lot for your input.

Thanks / Karthik

[Former Member · Accepted solution]

Stock Determination at WM Level, assigning the rule to WM Movement type can help in transferring K Stock to Production Supply Area.

As a batch job (probably every 5 min), you can execute LQ02 by selecting the quants with K at Production Supply Area and doing a Posting change (initiated at WM level 309, then at IM level 411) can resolve your requirement, I guess.

Thanks & Regards,

Ramkumar

[csaba_szommer · Accepted solution]

Hi,

Please do the following, I tested it and it works in my sandbox system:

1. Set up stock determination

- SPRO > MM > IM > Stock Determination > Define Strategies for Stock Determiantion (a. Define stock determination group for your plant b. Stock determination rule c. Assign the plant&group to the rule - here define 3 for V_T434K-WMHDL d. Create determiantion item table where consignment has priority)

- SPRO > MM > IM > Stock Determination > Assigne Stock Determination Rule in the Applications (a. IM > assign the rule to IM-mvt 261 b. PrdOrd > assign the rule to the suitable plant&order type combination c. WM > assign the rule to WM-mvt 261 and WM-mvt 319 under your warehouse)

2. MM02 + material number of the component > assign the stock determiantion group to the material in Plant data/ Storag 2 view (MARC-EPRIO)

Please also check OSS note 365570 and the other notes suggested by me.

Regards,

Csaba

[Former Member · Accepted solution]

Hi Csaba

Could you please advise the following.

FIFO with consignment stock is possible with WM?

If possible what could be the placement strategy?

What are all the disadvantages by using FIFO in WM without Batch Management.

Currently WM is runnning with Fixed bins in both Placement & Picking strategies. Client wants to intorduce the FIFO with new plant merge ( Legacy) with old ( SAP).

In this case we need to change all the Fixed bin strategy right?

Thanks a lot for your help.

Thanks / Karthik

[former_member536836]

Hi,

Please refer below for your anwers.

1) We have consignment vendors A, B & C and we are procuring raw material M from all the three vendors and stiring in a ware house.My requirment is whenever there is an issue from consignment it should use the FIFO strategy to pick the material which received first among 3 vendors.How we can set up the soncfiguration in the system.?----

---

*Select FIFO strategy for the storage type from where your going to pick material. I would like to clear you here we have to transfer consignment stock to normal stock first & then from normal stock we can issue material.*

2) Can we receive the (JIT) raw material directly to the production supply area without bringing into the normal storage bin.?:..... Yes. By using Kanban card system you can do this.

3) Issuing of consignment stock directly from warehouse to Production supply area?:..... I would like to clear you here we have to transfer consignment stock to normal stock first & then from normal stock we can issue material.

4) We have 2 plants 1000 & 3000 and both the plants have warehouse 001 & 003 respectively.Client wants to merge the plant 3000 into 1000.so in future there is no more 3000 plant in the system.How we can handle the warehouse ? an suggestions.: ---By 561 (in new warehouse) & 562 in (old warehouse )movement you can upload & remove stock respectively.

Hope this help you .

Regards,

PRashant