Cement Sales

[Former Member]

Hello Gurus,

I am currently involved in an Implementation project for Cement company.

_PP module is not a part of the implementation and shall be implemented later on.*

The finished goods: 3 different kinds of cement as of now, those are

a) Ordinary port land cement (OPC)

b) Sulphate Resistant Cement (SRC)

c) Oil well Cement (OWC).

Which are sold in Domestic and Exported either in 50 Kg bags, Jumbo Bags (1.5 Tonne) or Loose Cement (Bulk).

The finished product is stored in Cylos (capacity of 4000 tonnes each). Different cylos are used to store different types of cement.

Cement is packed and loaded on to the trucks directly (Automated Process. No separate storage locations exist and there is NO godown to store the packed cement.

Kindly suggest whether to

1) Create separate material master for each kind of cement? How do we account the sales for these separate material masters created?

2) Packing material (Packing requirement varies for Domestic sale and Export sales) to be brought into Sales process.

Kindly provide if any reference material is available on SAP SD implementation for Cement Company.

Thanks in Advance

[Former Member]

ok..

[former_member232834]

Dear, IRSAP

If your question has been answered please close this thread.

Regards

[former_member232834]

Dear, IRsapsd

1)Maintain different material masters for those 3 diff cement types. Your base unit of measure can be in KGs and your selling unit of measure can be in tonnes for example. Pricing should be no problem.

2)Maintain the packaging material as a packaging material type in material master. When you create a sales order that packaging material can be used on item line 20. So in Sales order you have item line 10 as That unique cement type with qty. And in packaging material in item line 20 with qty.

[Former Member]

Hi

You can create different material master for all these materials. I have worked in implementation for a leading cement Manufacturer and they had various kinds of finished goods.

The material master naming was designed with 18 characters which includes Type of Cement(PPC, OPC, SRC u2026.) followed by Brand name, followed by the Packing done(Loose, 50kg-HP, Jumbo etc), plant code, etc. It was extremely easy for the Users to identify the material looking at the code.

As you said there will be no storage of packed material, based on the orders packing is done from the Silou2019s. You can maintain different storage locations for different materials like loose cement, Clinker, .etc, since usually we may have to do STO of clinker for Grinding units.(In case you have STO process for clinker for Grinding units).

The price of the material also includes the cost of Packing and freight. No separate packing is done in Delivery.

Regards

Vamsi.

[Former Member]

Hi,

First of thankyou for the prompt reply.

For the same product example OPC - 50 Kgs bags, when I sell in Domestic and Export markets the packing requirement is different (For Domestic sales , X-material is used for packing and for Export sales, Y-material is used for packing).

How do we account the usage of packing material ?

As explained in my Question: PP Module is not being implemented. Then,

1. How would the Cement come in Finished goods storage location ?

2. How is sales of cement is accounted when stock is not avaiIable ?

Kindly clarify the above points.

Regards

[Former Member]

Hi,

1: Represent each Cylo as a storage location. ex: Cylo 1=X1, Cylo2=X2 & so on

2: Maintain 3 different materials for

a) Ordinary port land cement (OPC)

b) Sulphate Resistant Cement (SRC)

c) Oil well Cement (OWC)

use any convenient naming convention but measure it in KG

3: Use MB1C to put stock(finished product) in Cylo

Ex: MB1C, Mov Type 561, Storage Loc=X1(Cylo 1) then enter the Qty like 4000000 KG

4: Create 2 distribution channel

a: domestic b: export

5: Define 2 packing Materials a: 50 Kg bag b: Jumbo bag. U can define what wt each can carry ie 50 ka & 1500 kg

6: If a domestic customer requires 1000 Kg cement OPC then create sales order as below:

use distribution channel= domestic, Enter material=OPC, qty=1000 kg

7: In the delivery goto Pack & select pack material 50 kg bag & pack

8: Now PGI. stock=1000 kg will reduce from Storage loc X1

regards