on 08-04-2014 11:44 AM
Dear Friends,
Need your help for the below case.
our client is importing and selling to the domestic and exports. This is typically a trading plant.
The issue is when we unpack and repack using the HU, the material will be changed or not.
As per some of the inputs, i heard it will change. Please confirm.
If it changes how to avoid it.
Thanks in advance.
Regards
Prabhu
Depends on your design and how you want it to be, you can go either way.
usually if you repack material ( e.g. 200 kg drum repacked to 4 x 50 kg ) you have some labor costs and costs for the other packaging material.
you can design your case with 2 materials , the trading good with 200kg and a second material master for the trading good in 50 kg.
here you would use a production order to produce the 50kg material, you would issue the 200kg material and issue 4 smaller empty drums and get 200 kg of the material in 50 kg drums
This new material would then cost more than the 200 kg material since you added labor and empty drums.
If you want only work with one material number, then you issue the 4 empty 50kg drums to a cost center and use the packing function in delivery.
You will never be able to know how much material you have in 200kg drums and 50kg drums in stock this way, as this process is for transport packaging
If you want show the accurate stock and value situation then I recommend to go with 2 materials
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Hi Jurgen,
Thanks for the reply.
I understand the processes.
But the client requirement is not like the volume of material. It is just finished materials. Recieve Material A 500 numbers and sell as 100 X 5 to customers.
And this is in india and where CIN comes into picture where if it is different material we cannot name it as trading process.
So material is same and no value added process in this.
Regards
Prabhu
There is no need for the material to change during packing / unpacking.
What you have on your non HU managed location, and what you choose to pack, will be packed.
And when you unpack, the exact contents of your HU will be put to non HUM storage location.
So by default, your material won't change.
If you wanted to implement material change in WH you'd need VAS - Value Added Services, but since you don't need this as it is not wanted in your scenario, you're good with this.
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