selling ROH material

[Former Member]

Hi,

In this scenario we have to work with different material types. When I am processing sales order to HALB, FERT, HAWA and ERSA I have no issues. Today I have this new requirement some times we may also sell raw materials to our customers as these raw materials cannot be manufactured by any external vendors. for some other scenarios, the same raw materials are components for Bill of material Items. my requirement is I have to sell raw material (which is a component of bill of material) and also some times just a raw material. for this I have to maintain sales views for both material types HALB and ROH. How to handle the process of selling raw materials as I have doubt on configuring Item-cat-group in material master with respective Item-Category. Need some help on this.

Thanks,

KP

[Lakshmipathi]

As you said, just extend sales views with item category as NORM.

thanks

G. Lakshmipathi

[Former Member]

Hi,

If I enter the material A123 (BOM Item) in order type OR , This A123 contains the component material XYZ(ROH) and its priced (item level pricing).

If I enter the material XYZ(ROH) as line item , it also should be priced as individual raw-material in same order type OR.

Since we have only one sales view (which already maintained as LUMF), where we can maintain Item category group NORM, How to achieve this?

Thanks,

KP.

..

[Former Member]

One idea is to allow TAN as an alternate item category for:

OR LUMF

User could then manually change the item category when adding the raw material to a sales order.

You could create a separate sales order type for selling raw materials - and adjust the item category determination.

Edited by: Joshua Albert on Mar 17, 2011 11:35 PM

[Former Member]

Hi Josh,

Thanks for your reply. Just for information.

One order type cannot accommodate an item which behaves as ROH and also component in BOM (HALB) or 100% we have to go with a different Order type for ROH material type? Just need confirmation from you experts. or any configuration can help?

Thank you,

KP.

..

.

[Former Member]

You can override the item category manually.

If this is an exception that does not occur too frequently - and - you expect that users can handle changing the item category manually as needed - this is likely the way to go.

If this is more frequent - or you think the users will have difficulty - I would go with a different order type.

You also need to consider the accounting requirements. Sales of raw materials are often considered cost recoveries - rather the top line revenue. If this is the case, having a separate order type 'Raw material sales' may be useful to ensure that the sales are not accounted for as 'Revenue'.