How to reduce the sub components by creating main component in another plant

[Former Member]

Hi all,

According to the requirement their are three types of materials. Raw material, semi finished and finished. Both raw material and semi finished are stored in one plant in different storage locations. Now the finished component has to be created in new plant using both raw material and semi finished material. I have created BOM for finished product and extended the Finished component in both plants. But main issue is that when I transferred the finished material in new plant in new store, the raw material and semi finished components are not getting reduced. Is it possible through creating production order or any other method?

Regards,

Diptanshu Gupta

[JL23]

how can you transfer a material that is not yet produced?

[former_member183424]

Diptanshu wrote:

when I transferred the finished material in new plant in new store,

What do you mean by that ? Are you transferring the finish material from one plant to another ?

Do you know about the subcontracting process ? How the raw or semi-finished material got consumed when you procure the finished material ?

[Former Member]

Yes i know about the sub con. method. But sub. contracting method they have told not to use. Initially i created all the materials in one plant. But later i removed finished component from first plant. Now it has to be created using both sub components. during this the quantity of raw material and semi finished material should decrease as per the qty of finished product made. how can i do that?

[JL23]

Is this really only a MM scenario? Don't you use PP and create production or process orders?

Honestly, I never heard about a real implementation of SAP which was only done for the MM module.  In MM you would receive the finished good, you would issue the raw materials, this will just adjust the stock and its value, but this is not really real. You have labor and machine costs to produce something, and these costs make usually a part of the valuation of the finished material.

A bill of material is used in subcontracting process in MM, thats it, it is usually a template for production orders. If you do that with production orders, then the cost will flow from the components to the finished material. If you do it in MM, then individual movements are only valuated to the price in material master. But the components costs do not go directly into your finished material, there is no document that ties finished goods and components together.