Budget Availability control and Assigned Value in Project

[Former Member]

Hi,

Project is so structured that it is similar to the product structure. Assume a simple case with two level BOM where a sub assembly M1 includes another sub assembly M2.

In project, these two sub assemblies are assigned under two different WBS elements W1 and W2 respectively where hierarchically W1 is assigned under W2.

After release we have two Production Order P1 and P2 account assigned to W1 and W2 respectively.

Assume M2 stnd price is 100 and M1 stnd Price is 150.

My process output ultimately is only M1 so I would prefer to give a Budget of 150 Rs. However, since P1 and P2 production Orders are accoun assigned, a total 100+150 =250 Rs is showing up under assigned value and error of Budget over run is being encountered.

One solution can be to give budget of 250 Rs, which not logical as I am producing only M1.

We tried by un flagging Additional and Assign funds in plan indicators for Order category 20 and 10 in OPSV. But that did not help.

Once P2 prod order is confirmed, the assigned value for W2 is becoming to actual cost of P2 and remains even after setting TECO and Settling P2. It becomes Zero only when W2 is removed from acct assignment of P2, which again can not be a solution as WBS and Prod Order will loose the linkage.

We desire avaialbility control to verify only against the actual cost Project. No assigned value should be considered.

Need your help to resolve it.

Thanks

Saikishore ganga.

[varshal_kachole3]

Hi,

This may help you,

Use the Network only for planning and do not include the plan cost in the assigned value by checking the field planning in OPSC.

Later Do the Budgeting as desired (In your case 150) to W1 for M1.

Once PP order is received for M2 and W2. The project stock shows for W2.

Later issue this M2 to the activity to the activity where M1 is assigned, this means that the Component M2 is consumed for the Production of the M1.

Hope it helps.

Thanks!!

[Former Member]

Hi,

Producing M1 Means, it should include the sub assembly M2 as well (M1 can not produced with our M2).

So the total cost of M1=250 Rs, cetainely you need to have 250 budget.

Once you confirm the production order P2, the actual costs will be flown to Production order not to the WBS element, as the Order is assigned to WBS you can see the costs and also have budget control in WBS.

If you GR for Prod Order then material comes to stock, again cost is valuating the inventory not the WBS, as being the special stock you can see the cost in WBS. If you consume the material or delivery the material and run settlement then only you can see the net balance as zero.

Assigned values=Actual costcommitmentsremaining order plan.

If you really don't want to have availability control other than consumption posting then:

1) goto tolerance limits in IMG and remove the tolerance group '02' and maintian the limits

or

2) exmpent the satistical cost element in OPTK exempt those cost elements.

or

3) donot create statistical cost elements for inventory (this is not adivisable as costs won't flow into PS reports).

Rgds

Sudhir reddy

[Former Member]

Hi Sudhir,

Thanks for the valuable input.

As you rightly said we can not produce M1 without M2. But budget has to be only 150 Rs. Because

Cost M1 = Cost M2 + other mat Cost in assly + Assly operations Cost.

Cost M1 = 100 + 10 (assume) + 40 = 150 Rs.

Physically I am Producing only M1. So my budget would be atmost the cost of the item that is 150 Rs.

But in project we had to assign M1 and M2 under two diff WBS elements because it takes considerable amount of time to completed entire qnty structure i.e BOM and Routing of M1 and then release. Till them M2 has to wait for M1 BOM and Routing to be completed. In order again time , M1 is assigned under W2 , W2 is released and in MRP W2-M1 BOM explodes and manufacturing begins.

When M1 bom gets ready, it is assigned under W1 and then W1 will be released. Duplication of Prod Orders are taken care.

However, by using exempt cost elements feature I think we can resolve the above.

Will update once I do my experiments on this.

Thanks for the input.

Saikishore. Ganga