Constructions Industry - Use of SO BOM

[Former Member]

Hi,

We are using ECC 6 and my client is a constuction company.

The company is using SAP material no - material type DIEN and this is entered during SO creation.

We dont keep any inventory as the nature of the business is construction/service.

For example - we have SO - Construction of 2Storey Building - Material No = C2S

There is a template that constitute the activity being done for C2S ( ie: Excavation, Pilling, BackPilling etc) which has its corresponding cost equivalent.

The sum up cost of the activity is the SO price which include some mark up.

At the moment, this activity is manually calculate and outside of SAP.

My client now want to incorporate the template/activity with cost to SAP - the intention is that- when a Sales Order coming in. The template will automatically captured for that order with the corresponding price et..

Not sure but it seems the concept is to activate the BOM.

Pls consider me as totally newbie on BOM, i understand its concept but i dont know how it will be done through SAP setting..

Appreciate if i got the right approach and value all the help of how to achieve it in SAP.

Thanks in advance.

She

[Former Member · Accepted solution]

Hi She,

The requirement detailed by you is a typical requirement, which most of the customer wants irrespective of industry. This requirement cannot be and should not be addressed in SAP logically. The reason being that the cost of procurement will vary. In the example of Construction industry, labour price will vary from place to place withing same city, other charges like electricity consumed will also differ based on service provider, if the site is not easily approachable by regular or large teucks / containers, the cost of transportation will vary, and so on..... This is a part of wish list a client will always have, but it is important to draw a line, beyond which even a development should not be proposed. The value will as it be required to be entered manually on most occasion, as there will be no standard price of procument.

Even if a thought is given for Development, the impact of development on the system, volume of added master data, time to be considered to trigger the event during transaction, feasiablity and system performance also require to be considered.

Regards,

Rajesh Banka

[Former Member]

Hi She,

I hope this can be done with the help of Milestone billing.

COnsider that In your example of constructing a 2 storey building we have project activities of Excavation, Pilling, BackPilling etc

what you can do is that you can create milestones saying

Excavation----

---

10%

Pilling----

---

15%

BAck Pilling -

---

25%

.

.

.

.

.

Since the material type is DIEN milestone billing can be done.

Hope this helps.

Regards,

Arun.S

[Former Member]

Dear Arun,

Thanks.. we are using the milestone billing at the moment... The requirement is more on capturing the cost at front - indiviidual activity cost in a sales order.. when the management see the SO - Construction of 2Storey Building .. they want to have immediate access as well what activity that include on that project and its equivalent cost.

At the moment, they only see it as short text description with the price in SAP.. clueless of whats behind and how they come up with the selling price.. unless they need to see the excel sheet to view the detail which is outside SAP and tedious to do...

Rgds,

She