Item category group for Raw Materials

[Former Member]

Hello Gurus,

Goodmorning,

I have a client requirement,

Here my client is selling the Raw materials , i have some confusion in taking the category group , what is the item category group we have to use for determing for the sales categories ? I don't find any special item category group for raw material . in material master as well as in item category determination in in sales document types too .

looking for your inputs in this regard.

Thanks &Regards

Ravi.M

[jpfriends079 · Accepted solution]

Hello Ravi,

Sales of Raw material already being discussed some times back.

As I know, as per Central Excise law, you are not suppose to sell the raw material from a manufacturing unit.

Hence, you rename the ROH material code with suffix A. In tcode OSM2, activate sales view tab.

Apart from this, you need to maintain the renamed code in tcode J1ID with numeric value 1 under the tab Declared.

But, normal OR-LF-F2 process.

FYI - Choose of Material tyoe will be important than choose of general item category group. As I Cat group, Materials grouping that helps the system to determine item categories during sales document processing. If a group is configured specific to distribution channel, it has priority if the corresponding activity is distribution channel-dependent. In the standard system, there are normal items, items that signify services (and therefore need no delivery processing) and items that signify packing material, for example.

Thanks & Regards

JP

[Former Member · Accepted solution]

Hi JP,

Here these people are just buying and selling the material and they don't manufacture anything .

EX:Like SOYA, MAIZE,BEANS Etc

Only thing is can we use NORM-item category group for Raw material in determing Item category determination for Item category types.

Thanks&Regards

Ravi.M

[Former Member · Accepted solution]

Hi Ravi,

of course you can use NORM for the material, but one thing i dont understand why you want them maintain as raw material instead as the process says maintain them as HAWA, trading material

balu

[Former Member · Accepted solution]

Hi Balaji ,

Yes , what ever you are saying is correct ,

Note-It is a Poultry industry they buy these raw materials for their own Farms but some time these people will also sell the raw material but it is not their major business , depending upon the sistuation they will do selling.

That is reason we are taking it as Raw material than as a Trading materials,

Thanks&Regards

Ravi.M

Edited by: RAVIMSD on Jul 16, 2010 11:26 AM

[Former Member · Accepted solution]

Hi,

In that case you can maintain your material as NORM that should not be a problem

balu

[Former Member · Accepted solution]

Dear,

Yes this material which you use as raw material that use as finish product for you because you sell that material.

That's why you can use this material as a normal material.

Your incoming material is RAW and the outgoing in FERT (Finish Product) for you.

Regards,

Sandip

[Former Member]

Thank you all

its solved with your help.

regards

Ravi.M

Edited by: RAVIMSD on Aug 4, 2010 1:18 PM

[Former Member]

This message was moderated.

[Lakshmipathi]

Here my client is selling the Raw materials

If your client is not a manufacturer seller, then you can maintain as NORM. If they are a manufacturer seller, then as per Excise regulations, manufacturer are not suppose to sell ROH. For this, what normally manufacturer do is that they convert it into HALB with adding Packing as one more activity in their routing.

thanks

G. Lakshmipathi

[Former Member]

Hi Lakshmipathi.

This is what they are doing , they buy the materials like SOYA, MAIZE, BEANS,etc from market and sell the same materilas to other users, ( Customers).

Here they are not manufacturing anything .

Note-As per your suggestion i can use item category group -NORM for Raw material in determing the Item type( In item category determination).

Thanks&Regards

Ravi.M

[Former Member]

Hi,

If your client is buying items and selling it back as it is.why cant you maintain them as trading materials instead of raw material .

balu

[jpfriends079]

Great.

Then is a trading scenario. Right?

Regards

JP

[Former Member]

HI

You have to use the Item category group as NORM

and Material Type as FERT.

regards

SAP SD