Capital Spares procurement processns

[raghavendra_praveen]

Hi  Can somebody throw light on capital spares procurement through Projects....  Scenario is as below: A project will be created  and budgeted for capital investment and spares. The capital investment should be the asset to the organization and capital spares then (once Asset is created) should be transferred to regular inventory. When there is inventory transfer (capital spares) then the consumed budget should not be affected (when we use 411 mvt type to transfer the project stock to regular plant stock system reverses the consumed budget)..Pls suggest

Thanks

[Former Member]

Hi Raghav,

then (once Asset is created) should be transferred to regular inventory.

Why do you want to transfer to inventory after creation of asset?

Standard flow is-

Define Project->Assign budget->Raise PR(Budget consumed after release of PR)->Make PO->Make GRN(Here material comes under project stock Q)->Transfer to normal stock...and so on.

What is the issue dear.

This suffice your requirement almost.

If not then repost here.

Regards,

Pranav

[raghavendra_praveen]

Well guys,

Thanks for your responses...

Define Project->Assign budget->Raise PR(Budget consumed after release of PR)->Make PO->Make GRN (Here material comes under project stock Q)->Transfer to normal stock...and so on.

When you transfer the project stock to normal stock, the budget spent for the stock will be released to project.

Lets come to the initiation of the project...when I am investing huge amount in the company in terms of capital, which is going to yield an asset or group of assets, I need to maintain those assets down the line. For the maintenance of assets, I need to have the spares (materials) which will be issued when the asset is under repair in future.

So my project will be proposed with my capital investment, certain overheads (like training, contingencies etc.) and spares for maintaining the asset in its useful life span. I get the budget approval for entire spend not only for my capital spend (which is going to be capitalized). As far as the project is concerned I need to look at my total budget sanctioned vs my total spend (capital/ overhead or contingencies/ spares) in one place, so I will create a single project with different settlement rules to settle the cost to asset or other cost receivers.

In this process, when I procure the capital spares, those will not be consumed immediately or before the project closes. When the main asset is established/ charged then these project specific spares will be routed to main stores for future maintenance purpose of the main asset.  Once the spares are transferred then the project is closed.

When I transfer the project stock to regular inventory, it releases the spent budget on the project, its the standard behaviour of PS module. We don't have Investment management or Funds Management in our landscape. Please bear in mind that if I capital the spares also (as a sub asset) I believe that we cant issue an asset for repair activities and I cannot show the asset as inventory.

I am surprised to see that SAP doesn't have a direct solution to this and afraid to say that could not able to find a work around.

Thanks

[Former Member]

Hi Raghavendra,

Now I got it. Please note that whenever you buy an equipment you order maintenance spares also which would be part of equipment total capital cost which is normal practice in the industry.

If Q stock spares are coming in the way of project close, then you will transfer the stock to inventory. that means to general stock and any one can consume.  Once you transfer these material then you will loose the track of availability for this equipment

I suggest you to discuss with MM/WM team how to maintain/track of these spares even after transfer from project stock.

Regards,

Sudhakar

[raghavendra_praveen]

Hi

We do have specific storage locations identified for such projects...and what ever is the capital spare procured for the project will be transferred to that project storage location. And also the spares are unique in nature and cannot be used for some other purpose...

ex: condensate extraction pumps, boiler feed pumps parts in power plant...

Thanks

[Former Member]

Hi

Whatever it is, equipment spares are differently tagged and stored in warehouse in Non-SAP scenario and orders will be closed.

Though I have dealt these kind of things in the past, it would be better to contact MM/WM cnsultants to how to store them and more importantly how it is being identified.

Though these part comes with part numbers generated by vendors (supplies), however you need to have develop your own part numbers to store in which referenced the capital equipment.

Regards,

Sudhakar

[Former Member]

Hi Raghav,

I agree with Sudhakar - keep assets and spares seperate. Use projects to manage asset construction and purchasing against plant stock for managing spares.

Regards

Shrikant

[sanjeevc]

as far as i know material procure with the account assignment Q is represent project stock in customer project or capital project.

After that you can manage or transfer as regular inventory.

budget affected only in those condition when we good issue to any project object with movement type 281/221

Regards,

Sanjeev

[Former Member]

Hi,

Whether it is capital or customer project, we have an option to procure material using Q only. That means its categorised as project stock.

Moreover why want to buy against an asset and transfer to regular inventory. you are going round and round instead of straight cut.

You better procure the material as inventory items and consume it to Asset. This would be more easy and convenient way.

Regards,

Sudhakar