difference between client requirement and SAP Standard

[sunil_yadav2]

Dear SAP Experts,

If any client demand a process which is not a SAP Standard Practice. like In investment project they will manufacture any material and this same material is to be made as asset. ex: if company want a machinery (which will be used for manufacturing) and this is also developed inhouse or purchased from other vendor. finally this becomes AUC. which is not a standard process as per SAP so can we do this in SAP.

is it possible and feasible?

thanks

Sunil

[former_member610739]

Hi sunil

if the client do the external procurement of material and he wanted the same material to be became asset at the time of pr and p.o. this scenario is became possible. i will give you the config settings tomorrow. and also you can able to create the auc of the wbs element on which material is assigned......

[former_member610739]

hi sunil,

For this first you need to define a new document type for pr and po and name it asset. then go to sparo >> project system >> material >> define procurement indicator  for materials componenet. here you will define the procurement indiactor. afetr that go to check account assignment categories and document type for purchase requisition. here you will give the document type (asset) here. now when you create a purchase requisition you can make it asset and also you can assign auc to that wbs element.

[sunil_yadav2]

Hi Sulabh,

Our client requirement is as below:

actually they are in manufacturing, but in R&D they develop new product and for this new product they purchase machinery from vendor. During this machine development they want sample from vendor and till approval of sample R&D continues at vendor end (sample receive in parts and this will be assembled inhouse for approval). Raw material for sample manufacture is given by organization or his customer. finally after approval machine is purchased from vendor and this will become asset for this manufacturing unit. in this we have to consume this machine and settle all cost to auc or we have to make this machine as asset. please check below scenario.

Investment Project:

1. Assign Budget CJ30
2. Release Budget CJ32
3. Release WBS this will create AUC (Select WBS in CJ20N & Click Ctrl+F2)
4. Internal Activity is used for internal work and machining work using Work center & Activity type: Assign FG material (Machine & Sample material)
5. External Activity is used for third party work
6. General Cost activity is used for direct cost plan and actual posting by FI
7. Release WBS CJ20N
8. BOM Creation CS01, CS74 (BOM is created for Sample material & BOM for Subcontracting PO)
9. Create Routing CA01
10. MRP MD02 & MD04/ manual plan order creation
11. Subcontracting process while RM will be given and SFG is taken
12. Receive SFG in Project Stock, than this will be consumed by Production order.
13. Convert plan order to production order
14. Confirm Production order CO11
15. FG (Sample Material) will come in Project stock MMBE, MBBS
16. This sample Material should be transferred to Customer location from Project Stock MB1B
17. Here 2 issues raise in Approval process. If not approved material should be transferred to Scrap storage Location & if approved this will be consumed at customer location.
18. After approval of sample material we will purchase the machine from vendor. (Machine as material) here how we have to deal with this material like consume this or make this as asset.
    
19. As cost of Sample Material will be given by customer than this should be reconciled by FI person to settle this.
20. After all actual cost occurrence this will be transfer/settle to AUC created while release of WBS
21. Create Fixed Asset and Settle this AUC cost to this fixed Asset
22. Confirm all activities Cj20N
23. TECO status set
24. Project closure process

Now this process is not a standard SAP but we have to configure and make this scenario. How can we achieve this.

thanks

Sunil

[Former Member]

Hi Sunil,

You can map your requirement in sap.

Your process seemes OK.

Please run a test cycle on the basis of your process.

Post error messages here if occured.

SAP has a similar process flow and it has enough flexibility.

Just try it. Go ahead.

Good luck.

Regards,

Pranav

[Former Member]

Hi Sunil.

I am not sure why you are saying your process is not a standard SAP. Pretty sure that this standard SAP.

You are buying machinary from external vendor (Knocked down condition) and assembling in your work shop.

1. For buying macinary you need a component and which would be placed on project builder > PR > PO. (not envisaged new document type. you can use existing doc type NB with AA - Q)

2. Make GR and IR.

3. Let your production guy create production order (here you will not have planned order) and account assign the WBS element.

4. Assemble the parts and cost will be shown in WBS element.

rest of the process as usual and nothing unusal here.

Regards,

Sudhakar

[sunil_yadav2]

Dear Sudhakar,

when we purchase any material from vendor and this material comes in project stock. lets say we have paid 100000 for this to vendor tha this will become actual cost. now settle this cost to AUC. what about material showing presence in project stock. where to post this while closing project.

thanks

Sunil

[Former Member]

Hi Sunil,

per your earlier statement goods receipt in loose pieces (knocked down condition) and those are required to assembled in your production shop or where ever.

For you assemlby you need an production order (create manually without planned order) and then goods issue to production order.

After you complete the production order and making it in FG. I guess that would be your asset am I right.

Regards,

Sudhakar

[sunil_yadav2]

Dear Sudhakar,

the machine which we are going to purchase after approval of sample will become asset.

and the production order is used for assembling sample material which comes in parts.

Now my query is :

machine which is to be purchased from vendor will come in project stock via PO GR IR.

than how we will manage this machine or will become asset.

thanks

Sunil

[Former Member]

Hi Sunil.

Tell me what is process being adopted for buying an asset in your organization. you can also follow the same principles.

Generally we buy asset either FG level which brought in and positioned in customers location (no assembly work) or buy in loose pieces which would be assembled in work location.

In your case, if you are buying a generator for back up of power outage then vendor will ship the goods in parts which will be inspected at work location and clearance would be given to go ahead for assemlby.

Once assembly completed generator would be delcared an asset and transferred to respective requisitioned cost center. FI team will take care depreication part and maintenance team will take care for better upkeepment in the form of maintenance. the cost incurred for maintenance would be credited to the respective cost center.

Please go through my posts and analyse you will get correct answer here.

Regards,

Sudhakar

Message was edited by: Sudhakar Pappu

[sunil_yadav2]

dear sudhakar,

actually my client is manufacturer of fuel tanks and they receive new requirement from his customer with new design of fuel tank. for the manufactuing of fuel tank my client need a machine which will be purchased from vendor. for this purchasing they are raising PR & PO.

on behalf of this PO vendor is developing machine. than my client send Raw material for manufacturing some sample of fuel tanks so that they can check and approve this sample and purchase the machine from vendor. finally this machine is treated as asset for my client. and this will be handover to Production department.

in this machine is to be purchased directly and for Raw material and sample in coming we have to raise subcontracting PO in which RW material goes out and sample will be received in parts than this will be assembled using production order for approval.

one more point is cost of Raw material upto sample creation is beared by customer who is ordering this new requirement.

please guide me now how to make any machine purchased from vendor as asset.

thanks

Sunil

[sunil_yadav2]

Please guide me for this scenario

[sunil_yadav2]

Dear All,

My client purchasing multiple material (Machine or tools) in same project. they want to capitalize same quantity as assets.

In SAP we are able to create only one Asset for one WBS using Investment Profile. So how can we create Asset for this.

thanks

Sunil

[Former Member]

This reply is against your last post only(havn't seen previous posts)-

You can create more than one asset from one WBS(AUC).

for this-

1. select WBS and create completed asset(Ctrl+shift+F3) for that.

2. Enter list of asset codes in settlement rule. take care of proportion.

3. Do full settlement of that WBS.

Do it dummy server for your satisfaction.

[Former Member]

Hi Sunil,

Sorry for the belated reply.

What I understand from your posts, your client buying bending machine (just my guess) which required to rolling of plates thus enable to make fuel tank.

Is this my understand is correct?. Your client sending raw material to vendor to check and analyse the finish product or you can ask vendor to arrange the sample finish product for sample checking.

Then place an order an for buying an equipment from vendor who manufature these machines either using PR for WBS or Network.

If you are procuring for WBS > after receipt of goods issue to production cost center (responsibile cost center to initiate procurement).

If you are procuring for NWA > after receipt of goods issue to producion cost center (responsibile cost center to intiate procurement)

Hope above make sense.

Regards,

Sudhakar