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recommended approach for rebuild material tracking


Problem summary: Some of our materials can be rebuilt after they've been issued from the warehouse and used by the manufacturing area. We want to set up an SAP process to track the rebuild process.

Now for some of the ugly details: Our accounting department insists that a material should NOT be company valuated stock when we are taking it from our manufacturing area and returning it to the vendor, but it still needs to be tracked on SAP. When we receive the rebuilt material back from the vendor, its value needs to be kept separate from non-rebuilt parts (we're using moving average pricing). Our warehouse staff and end users don't care much for split valuation, and think it would be a great idea to make new material numbers for the rebuilt inventory (e.g. put an R suffix on the material number -- abc123R is the rebuilt version of abc123).

I'm trying to find the best solution that will satisfy these diverse requirements. One idea is to create a dummy zero dollar consignment vendor, and move abc123R materials into consignment stock while they're at the vendor being rebuilt. When the rebuilt abc123R material is received back from the vendor, remove abc123R from consignment stock.

An overview of the inventory flow:

abc123 mvt 101...initial receipt of material

abc123 mvt 201...issued to mfg area

abc123R mvt 501k...returned to vendor for rebuild

abc123R mvt 101...rebuilt received back from vendor

abc123R mvt 502k...removed from consignment invtry

abc123R mvt 201...rebuilt issued to mfg area

Now the questions:

1. Is there a better way to handle this than using the consignment approach I outlined above?

2. If we use multiple material numbers (abc123 and abc123R), is there a way in MRP to run planning only on 1 material number, but recognize inventory and open POs on both materials?

Thanks in advance for your suggestions!



Former Member

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