Summer/Winter variant handling of oil products
We are having a scenario where we manufacture a summer and winter variant of the same product. The additives that are used to manufacture these variants are different and the valuation is different as well. In business what happens is that let's say there is winter variant stored in a tank which is needed for sales at that point in time, it is taken out of the tank and replaced with equivalent volume of summer variant. Now what we want is that the stock valuation should also decrease as cost wise the summer variant is cheaper than the winter variant.
Do we need to have two separate material numbers for this scenario or we can still work with one single material number having two alternative BOMs? Is there a standard IS-OIL functionality to handle this scenario?
Rahul Nayak replied
As mentioned by you, since the the additives used to manufacture these variants are different, although the material is same, but it is suggested to created 2 different material codes for summer & winter variants.
In this way i believe you will get more clarity than using a single material code with 2 alternative BOMs.
Standard IS-OIL inventory will not be able to distinguish the different BOMs. It will only be able to valuate differently.