Material with Special Procurment

[Former Member]

Hi Experts

We have a materials that can produced In-house, Procured externally and Subcontracted too.

How ppds or snp plans for the above requirements.

We have Material XXX which had semi AAA and Component BBB.

BOM: 1 XXX<<<2 AAA <<<2 BBB

AAA can be produced in-house, Procured externally and subcontracted.

We have a Demand XXX for next month = 1000, if we release it to PPDS or SNP, how AAA gets planned?

Regards

RK

[Former Member · Accepted solution]

RK,

The Planner first decides how he wishes to have the system plan the various component's sources. Then he enters this decision in the form of a Quota Arrangement. The quota arrangement can be used in SNP, PP/DS, or CTM.

http://help.sap.com/saphelp_scm70/helpdata/EN/f8/a57539d49e3d35e10000000a114084/frameset.htm

Best Regards,

DB49

[Former Member · Accepted solution]

Hi Dogboy

Thanks for the reply.

Semi Product AAA can be procured externally and In-house and Subcontracted.

Externally we have two methods>>>

a) It can be imported from other country.

b) It can be procured from the Local Vendors with in the Country.

Raw Material BBB also can be procured externally (Either from local or Import)

We have some critical items such as Semi and Raw Materials which is regulated by the Government every year.

As per the Government, it has some regulations about Import of semi AAA & BBB Raw Materials from other country.

Example: Govt. will allow only 30% of Imports for Semi finished materials AAA, remaining 70% Semi need to be procured from Local or produce In-house or Subcontract for 2012 and 60% for Raw materials BBB for 2012 remaining 40% have to be procured from the Local Market.

This quota will change/renew every year.

Scenario:

FG XXX is in-house Production.

If I produce FG XXX with AAA Imported, production cost of FG would be 3 USD.

Produce XXX with AAA (In-house), production cost would be around 6 USD

If Produce XXX with AAA (Procured from local vender), production cost is around 6.5 USD.

If I produce XXX with AAA (Special Procurement from subcontracting), production cost of FG is 6.8 USD.(We supply raw materials to the subcontractors)

As per our scenario, Demand Plan and Allocation is same. Whatever we forecast at customer level is allocated quantity to the Customers (we commit to the customer).

In this regard our sales people want to generate Demand Plan and allocation at product XXX level since Sales does not care what semi and Raw Materials are used.

1XXX>>>2AAA>2BBB

Production guys want demand to track at Critical Items level:

They want the consumptions of these critical semi and raw materials since they have to show Government.

Different Tax code is used for different procurement type such as In-house, Local Procurement, Import and Subcontracting.

In this regard I have some Questions:

1) In SAP Material Master we have an option for Procurement type has E,F and X. In our case we have to maintain X and Special procumbent u201Csubcontractingu201D

Externally we have two methods>>>

a) It can be imported from other country.

b) It can be procured from the Local Vendors with in the Country.

How to manage above requirement in SAP with Quota Arrangements?

2) How can we track consumptions at critical semi and raw materials in SAP?

3) How about Tax Code determination of the product with different procurement types?

4) Which method is Advisable in my case?

a) Creating different FG material codes for different procurement types with different BOM for single Material?

Example: XXX_IMP (Import), XXX_IH (In-House), XXX_SUB (Subcontracting) & XXX_LOC (Procurement from Local).

b) Forecasting and Allocation at the level of XXX_IMP (Import), XXX_IH (In-House), XXX_SUB (Subcontracting) & XXX_LOC (Procurement from Local).

Please share your expertise opinion on my requirement.

regards

RK

Edited by: krk_99 on Jan 31, 2012 2:27 PM

[Former Member · Accepted solution]

RK,

My expert opinion is that a forum is not intended to provide turnkey solutions to business problems. if you have no-one locally who has the expertise to design your solution, you should consider engaging a consulting resource.

Best regards,

DB49

[Former Member · Accepted solution]

Dog boy

Actually what i need is not a turn key solution, but its a part of an Process wherein i have a an amount of ambiguity which i thought could be cleared at-least a bit, thru the discussion in the forum.

The reason for putting out my business in a high level, is to make the things clear so that all the intricacies of the problems can be clearly presented.

regards

RK

[Former Member · Accepted solution]

RK,

Let us therefore hope that members of the forum community are inclined to help you with your...ambiguity.

Best Regards & Good Luck

DB49