Pre-blend Material

[Former Member]

Hi,

This issue is related with pre-blend material .We are currently using Sales BOM concept.

We have a finished product_" Au201D, which has the components X, Y and Z materials_.

The material "X" has 2 components "S and T ".

So In Create Material BOM (CS01), I used BOM usage 5 . For material "A u201C, I assigned X,Y, and Z .

When you mix X,Y and Z materials , you will get the finished product "A ".

Again for " X " material, i assigned S and T in CS01.

When you mix S and T materials, you will get finished product "X ".

My requirement is that the components costs should be rolled -up to the higher material.

If VPRS is

S = 10

T = 20 then X = 30

Again

X = 30

Y = 20

Z = 10 then A = 60.

This 60 should be posted to Cost of goods account after Post goods issue and again in Invoice (COPA).

This is a proposed solution. For material X we may use Phantom BOM material or non-stock item.

Now we are using this function in the following way:

Material A has the components Y, Z, S and T in CS01. In Delivery the components only posts the Goods issue. The system picks the cost price from the respective components material masters.

Material A is assigned Higher-level material Item category (ZHBM) that is relevant for Price, cost. In schedule line category, no movement type is maintained. So material A Will not issue the goods.

Materials Y, Z,S and T are assigned lower level material Item category ( ZLBM ) which is not relevant for Price , cost. In schedule line category, movement type 601is maintained.

In Delivery document in VL01N, the components only posts the Goods issue. The system picks the cost price from the respective components material masters.

In Invoice, the system calculates the VPRS cost for material "A ". This VPRS is the sum up of the components Y, Z, S, T.

It works fine.

I need a solution for Pre blend material concept,

If you need any clarifications, please let me know

Regards

M. Lakshmi Narasimhan

[madlercm · Accepted solution]

Hi,

It looks like the "pre blend" situation could be solved via a production scenario, meaning instead of sales BOM, production BOM, and production orders.

Is this something that you would consider doing?

[Former Member · Accepted solution]

Dear Mario Adler ,

Thanks for your reply.

Initially i was suggested the Production scenario. I ran the costing in CK11N and released the costing in CK24. It worked very well. The costs were rolled up to Material u201CA u201C. But my client did not prefer to this solution.

Because these materials are only relevant for sales. There will be no production activities. They are only comfortable for Sales BOM. Thatu2019s why I am finding the other solutions.

Regards

M. Lakshmi Narasimhan

[Former Member · Accepted solution]

Hi ,

Our current process is similar like the below thread :

It is working fine .

But i need a solution for the Pre-blend material .

Regards

M. Lakshmi Narasimhan

[Former Member]

Dear Chandrasekhar Mantravadi,

Sorry for my late reply. What i did is

I donu2019t create the separate BOM master in CS01 for material X. I have assigned material X in Fini product A BOM master in CS01.

Now Material X is a Non-stock item and Non- value material.

The below details explains the Fini material "A "BOM master structure:

Bom header material A

Components: X, Y, Z, S and T.

Now except Material X, the components costs are rolled up to Material A during PGI and in Invoice.

If you need any information, please let me know.

Regards

M. Lakshmi Narasimhan

[Former Member]

Dear all,

I have solved this issue. I added the pre-blend material (Material X) to FINI Material A in CS02. This Pre-blend material is a non-value and non-stock item.

For material A, we have previously assigned materials Y, Z, S and T in CS01. Now i have assigned Material X in CS02.

Except Material X, the components costs are rolled up to Material A during PGI and in Invoice.

I am very much thankful to Mr. Chandrasekhar Mantravadi, Mario Adler for their response .

Regards

M. Lakshmi Narasimhan

[Former Member]

Hello Lakshmi Narasimhan

Happy to hear it all worked out. So are the costs of S and T ( Components of X) rolling up to A? Please clarify. We also learnt from this post and thank you for that!

[Former Member]

Hello Lakshmi Narasimhan

You discussed the scenario very well till the end, but at the end just came up with the word ' Pre blend material' without describing what is. I am guessing you need a solution if X appears as a component in stead of S &T, i.e., S and T are pre-blended to produce X and the same is used in the final Product A. Right?

I would set up a BOM for A with X, Y and Z as components. Then I would set up a BOM for X the same way (as you did for A) with S&T as components. Maintain X with item cat group ERLA and A with LUMF. In the item cat assignment for ERLA, add TAQ ( or a Z copy) as the Default when the Higher level item cat is TAP. So when the product ordered is A, you will be delivering X, Y and Z. And X is made up of S and T.

Proceed this way and come back with any issues.

[Former Member]

Dear Chandrasekhar Mantravadi ,

Thanks a lot for your reply.

My Client is a Mining Industry.

They are using material A, which is a Fini material. Material A has the components Y, Z, S, T in CS01.

Now it is working fine. The Components Cost is rolled up to the higher material "A "

But when you mix Materials S and T, you will get a new product "X ". This material is called Pre-blend material.

Why did we use Pre-blend material?

When Printing the BOL, we need to print the material X also in BOL. But you donu2019t see the material S & T physically. Because of

the pre-blend scenario, the delivery documents are no longer accurate or legal for transport. In order to work around this, the

sites are utilizing manual Bills of Lading (BOL).To avoid manual BOL we will go for this solution .

As i mentioned earlier material X has the components S & T. The cost of S & T should be rolled up to X.

Then material A has the components X, Y and Z. The cost of X, Y and Z should be rolled up to A.

I have also suggested the Phantom BOM concept. For material X, i created the Material master record as a Phantom material (In MRP 2 view --> Special procurement 50).

Then i maintained the BOM assignment for X in CS01. But the cost is not rolled up.

If you need more clarifications, please let me know.

Regards

M. Lakshmi Narasimhan