Subcontracting using split valuation

[Former Member]

Hi Experts,

We are implementing the SAP in Textile Industries, based on discussion i have one question about subcontracting using split valuation.

Client having Semi finished material which they do in-house production, Procurement and Subcontracting. so in material master MRP2 its mentioned procurement type X (Both procurement types) and splitt valuation activated.

In Valuation variant strategy define for All tabs.. like Material/ACtivity/Subcontracting/Ext proc/Misc/OHead etc. for subcontracting strategy define as Net PO price, Gross PO Price and Effective price from purchase order.

when we are doing the costing using CK11n we are unable to getting the subcontracting prices for same product which subcontracting from outside.

1. 1. do we need to define special procurement key in MRP2 if yes then what will happened same product in house production.
2. 2. Is there any BOM/Routing setting need to complete.
3. 3. how i can do the costing using both type (In-house and Subcontracting).

Thanks in Advance.

Thanks

Akesh Agrawal

[ajaycwa1981]

Hi Akesh

1. You will need to maintain Spl Proc Key as 30, together with X.. 30 indicates Sub Contracting

2. Ideally. in this case, you should go for Mixed Costing

3. Define a Qty Structure Type in IMG and assign it to Costing Version 1

4. Create Proc Alternatives in CK91N

     a) Proc Alt 1 using PRODUCTION as the Process Catg

     b) Proc Alt 2 using SUBCON as the Process Catg

5. you can also select the respective Valuation type for each Proc Alt, incase you are using Split Val

6. Now Maintain Mix Ratio in CK94, depending on what portion of the time you make it in house and cub-contract it

7. Now do CK11N

System will calculate individual Std cost for each option as well as the Wegihted Avg cost

Br, Ajay M