Stock transfer with minimum rounding quantity

[former_member198492]

Hi All

I have a requirement where i need to restrict a bin to bin stock transfer to a particular rounding value. Is there a material master setting/config that I can use to do this?

As an example:

Material A is supplied from a vendor in rolls of 40m. We receipt it into our warehaouse and putaway in bin. We then move the roll of 40m from a warehouse bin to a production line side bin using either LT01/LT10 or stage using LP12.

Once the production have finished using the roll it is returned from the production bin to the warehouse bin using LT01 due to storage issues on the production line. However, some of the rolls only have a small quantity of 5m or 3m.

We have a situation now where IM stock shows 40m but warehouse stocks are multiple rolls of small quantities. (3m, 5m, 4.5m etc). The small rolls are of no practical use as the production guys need to cut large templates from the roll of fabric. They cannot do this from 3m or 5m of fabric from the rolls. IM stock level will not suggest re-ordering as the total quantity is matching the new demand.

Therefore, how can I restrict the production to warehouse bin transfer to only consider stocks with a minimum roll size of say 20m? I had suggested that any small lengths of surplus stock returned from production should not be returned but scrapped. I was told that there may be a rare instance where they could use up some of the small rolls of material.

Thanks in advance

Regards

Darren

[JL23 · Accepted solution]

You could transfer the status to blocked stock, then MRP would create new requirments.

Alternative would be storing it in a storage location which is excluded from MRP, then this tock would not be taken into account for planning.

[former_member198492 · Accepted solution]

Thank you Jurgen.

Yes I had thought of the option of blocked stock. However, I was looking for an automated process rather than get the warehouse operator to make the decision based on non SAP driven rules.

There is also the issue of when would the user issue the blocked stock? It would require communication from warehouse asking if they could supply any of the smaller rolls instead of a larger roll to use up the blocked stock.

Maybe I'm asking too much. Maybe I have too many variables and the easiest way to deal with the stock is to block or scrap it.

I was hoping to use some kind of 'minimum rounding' quantity to move stock at WM level.

So nothing in the material master or a production order can state a minimum qty?

Regards

Darren

[JL23 · Accepted solution]

Scrapping seems to be the all-purpose weapon, I was already astound how often I heard this  from external consultant in my first implementation. I am working in a chemical company. Scrapping is certainly a bigger process and not just 551 like some consultants explain.

Hence scrapping is never my first choice, not a choice at all, because scrapping can only be decided by the business, as the have to pay for to get the material scrapped.

We manage our packaged materials in drums, drums a 200 kg or drums á 100 kg for example.The unit of measure is DRM.  We cannot have broken drums, this is not logical, this would only be logical if we managed the material in KG. of course some materials in drums is used as intermediate in other materials and is no longer full when the first KG is removed. Hence it does no longer match with its material description and material characteristic at all.

In such cases the material needs to be removed completely from its original material number and is posted to another material number for such opened quantities. This is done with a production order to get the values flowing to the new material number. For sure this is not done manually. We built an own ABAP with a nice interface, and this creates in background the production order and creates the movements.

Back to the rounding, I cannot imagine to use any rounding for inventory. We are dealing with physical sizes, how can there be a rounding?  You can round planned sizes, order quantities, requirements, reservations,but not physical quantities.

[former_member198492 · Accepted solution]

Thank you for the detailed response Jurgen.

I agree regarding your point on scrapping. I have actually removed the 551 to 558 movement types from all job roles and created a stand alone job rols which only a select few have access to (and they are only added to user list if finance agree user) in order for it not to be misused.

I see your point regarding the 'DR' process that you use. Our scenario would be to have a part number for a ROL and then another part number for M but both for the same material. Therefore, all new production order demand would call for a ROL and the returned surplus would be under the M part number. However, without ABAP development (whcih we are trying not to use) the best process that we can use is to BLOCK surplus stocks and educate warehouse/production users on how to deal with the manual process.

Your rounding value statement makes sense. Thank you for clarity.

Regards

Darren