on 06-03-2009 12:18 PM
Hi Gurus,
I have a scenario where the job is completely outsourced to third party (Contractor). Before starting execution, the Contractor will supply materials to the Project site. As these materials are not directly procured by the parent company, how to track these ordered materials, materials consumed and still available.
Regards,
Vinodh
This can be handled as 'Project Stock' non-valuated scenario under "Managing Special Stocks" in MM-IM.
Refer the following link for useful information on the subject and how it can be implemented for your project requirements.
[http://help.sap.com/saphelp_erp60_sp/helpdata/en/4d/4b9036dfe4b703e10000009b38f889/frameset.htm]
Material management> Inventory Management > Managing special stocks> project stock.
Hope this is useful.
Venu
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Hi Vinod,
Can you please explain the scenario more clearly..here some confusion with contractor and parent company..
Correct Me if iam wrong ?
you mean contractor supply material to parent company directly at site location and parent company will receive invoice from the third party and contractor is supplying material to site on behalf of third party?
Regards,
Hari
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Hi Hari,
Let me explain the issue... The parent company 'A' has outsourced a complete Project to Contractor 'B'. The scope of work consists of Supply of Materials, Erection & Commissioning. 'B' may procure the materials from the vendors which they prefer. The materials ordered by 'B' has reached the Project site identified by 'A'. 'A' wants to carry out the inspection (based on the agreed BOQ) of the received goods and thereafter wants to track the consumption of materials and available stock (note - material not procured by 'A'). As 'A' has given a complete end to end project PO to Contractor 'B' and no material purchase was done by 'A', how to facilitate this tracking ?
Regards,
Vinodh
Dear,
In the case of third party sale as the sales order is raised PR is generated and with refrence to that PR, PO is raised this PO should be invoice based coz this is the funda of third party sales that this procedure is used to save sales tax.And material has not come to stock.
When the material is dilevered to site E1 is booked and then after E1 billing could be done.
Now you want to track that material to site or inspect the material,but its not possible if you take material in store sale tax will applicable and now it is not E1 sale.
If u do't want to do E1 sale then go for GRN then Dilevery.This is tracking.
Regards,
Sukhveer.
Hi Vinvidh,
Thanks for explaning the scenario clearly.....
See..in this case..you are no where supplying materials to contractor..Parent company is least bothored about the materials used by the contractor as per the Commertial aggrement between parent company and contractor. Only you have to measure the quantity of work that has been executed by contractor and as per BOQ or work order quantity and accepts the invoice against the work order placed to contractor.
If the parent company want to monitor the material consumption for specific work, you can use activities for maintaining information related to Quality check and quantity meansurements. you can use user fields for more inputs as per parent company requirement and will be monitored accordingly.
Remember there is no leagal terms and conditions to treat the materials used by the contractor with project stock or managing inventory !!!
But still Parent company wants to monitor material consumption by contractor for each work order line item, you can use one the cost planning method (Unit Costing) in a seperate CO Plan Version to plan quantities and develop some Z-Transaction to post actual consumptions for monitoring purpose !!
Hope this clears you....
Regards,
hari krishna.K
Hi all,
Thanks to you all for your replies..
Hi Hari,
Thanks for your detailed reply. What you had mentioned in your reply holds true that as the complete project is outsourced the parent company should not be bothered much but my client wants to track this... I will take up your suggestion of doing the cost planning in a different version for actual consumption & stock availability.. i need to do something
Regards,
Vinodh
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