Custom Production

[Former Member]

Dear Experts,

We have the following business scenario of export custom production. The details process of this scenario is given below for your understanding:

Steps:

1. Order received from customer for finished goods

2. Raw material (input material) received from customer with free of cost for production of finished goods.

3. Inventory should be tracked for the raw material received with ZERO value as customer order stock

4. We do the sub-contracting with vendor by selling raw material which is received from customer with nominal value.

5. Raw material will be issued to vendor (sales to vendor) with nominal value.

6. Vendor does the production of finished good

7. Finished good receipt from vendor after production

8. Inventory of finished good should be of customer special stock

9. Sale of finished goods to the respective customer from whom we received the raw material as per the agreed pricing terms

Example:

Customer order for output of u201CYu201D material

Customer will send u201CXu201D (Input material) material from which we get u201CYu201D material (Output material) after production

u201CXu201D material sent by customer with free of cost

Inventory of u201CXu201D should be traced with NIL value

u201CXu201D material will be sold to Vendor with nominal value

Vendor will do the production with input material u201CXu201D and get the u201CYu201D material as an output

u201CYu201D (output material) is received from vendor. This has value

After receipt of u201CYu201D material (output material), we do the dispatch against the order to the export customer with applicable pricing.

Can any one guide me how we can take-up this scenario with the above requirements in SAP.

Thanks & Regards

Murthy

[Former Member]

Dear Mr.Srinath,

First of all I must thank you for your reply.

I will explain below my exact requirement.

1. Customer place an order for output material.

2. Customer will send the input material with free of cost to us

3. We create an order for the output material

4. We need to take the input material w.r.t sales order (but in sales order the material will be output material)

5. After receipt of the input material (PGR) the stock will show as customer order stock.

6. We issue this sales order stock (input material) against the Sub-contracting P.O.

7. Input material will be given to vendor for getting output material

8. We take receipt against the Sub-contracting P.O. for output material (Then the output material will appear as customer sales order stock at our inventory)

9. Once the output material is available in our inventory, we do the post goods issue against the customer sales order

10. Billing will be done after doing the PGI to the customer.

When we take the sub-contracting from the customer, then how to map the same in SAP.

You are requested to please guide us how we can map this in SAP.

Thanks & Regards

Murthy

[Lakshmipathi]

Try with the following

1) Create the customer supplied component with material type UNBW. Say the material code is ABC so that your inventory value will not get updated in SAP

2) Do MIGO for the same

3) Create PO on Vendor and send the component

4) Once vendor completes the operation, inward the component as ABC1 (material type should be ROH or HALB and should not be a FERT)

5) Assign the component ABC1 in CS01 to the FERT material code which should be different

6) Create a sale order in VA01 and do the normal sales process.

7) Meanwhile, pay to vendor for the service rendered

😎 As you would be aware you cannot maintain the same material code for input material which involves some manufacturing process. So you should have a different material code when it is despatched.

thanks

G. Lakshmipathi

[Former Member]

Hello Lakshmipathi,

I agree with the business process listed out by you. However, I would know while receiving material from the vendor why should it be taken as ROH or HALB. As per Murthy, no further processing happens on the material after receiving from the vendor.

Please clarify.

Regards,

Vishesh

[former_member217082]

Hi Murthy

You have to use Third Party sales configuration for your requirement.

So , If the customer is sending X material then you will be accepting that X material and sending that X material to the vendor and you will be receiving a confirmation the Y material stock has been finshed and , vendor will be delivering the Y material stock to the customer. So you wont be dispatching the Y material , vendor will dispatch the material to the customer.

Regards

Srinath