Refurbishment Order - MIGO and IW8W

[faisal_khan]

Hi,

Reference to my earlier thread on "Settlement of Refurbished Order - Error" which has been answered.

In addition to this answered discussion on, i have a query:

When we do GR using IW8W, the Reclaimed or Refurbished qty is increased by 1 ( or whatever delivered).

1. Now if an Order was made with the Defective material and few non-stock materials that were required for its refurbishment, then those materials were also send to Vendor (thus PR and PO against Order was made).

2. When the refurbished material was received back from Vendor by Warehouse then MIGO was done against the PO to pay the Vendor and settle the cost to Order, this resulted in increase of Refurbished material by the qty received.

3. I am confused as executing MIGO and IW8W would both double the qty received. Which tcode should be used or in what ways?

I hope i was able to explain my query.

Thanks

Faisal

[MTerence]

Hi Faisal,

Your scenario falls like External Refurbishment process / Sub-Contractcing. Refer below link for info

External Refurbishment Process | SCN

It will be good, if you discuss this with MM consultant, they can provide more visibility on this

Regards

Terence

[faisal_khan]

Reference to text below from the link above in message from Terence:

You could use Refurbishment order (standard order type PM04) for this purpose and and process it as an external service using Operations control key PM02. Here is the process

1. Create Refurbishment order for the material

2. Create operations (PM02) for external processing. PReq will be generated once the order is released

3. Send out the material to vendor for repair

4. GR/IR upon receipt of the material from vendor

5. Receive material back to storeroom (IW8W)

6. Order settlement to material

My query is regard to point 3,4,5 above. At point 3, when materials are send out to Vendor thus PO will be generated. Then at point 4,5 when Material received, what do we do, MIGO or IW8W, also what abt cost of PO, where is it settled?

[pardhreddyc]

Dear,

You need to receive material using transaction IW8W and settle teh cost to material.What settings made in your settlement profile?

Just have SAP help for subcontracting process:

http://help.sap.com/erp2005_ehp_03/helpdata/EN/f4/7d322744af11d182b40000e829fbfe/frameset.htm

Regards,

pardhu

[faisal_khan]

Settlement profile is set to Material for Refurbishment Orders.

Can you elaborate that when a PO is made and obviously there would be cost on it, thus payment will be made to vendor against this PO. Where that would be taken care of once material is received (which tcode etc?

[pardhreddyc]

Dear,

Is your maintenance order is not updating the cost?Settlement will be done by KO88 only.

Regards,

pardhu

[faisal_khan]

Cost is being updated on Order when GR done using MIGO (against PO)  but no IW8W was run at that time.

When KO88 was run, it throws error that 'Valuation type not set for material ###########'.

We had a detail discussion on this issue previously (http://scn.sap.com/thread/3845452)

The result of above discussion was that we need to run IW8W, we did that and then KO88 ran fine, issue resolved.

But then a question was raised that doing MIGO and then doing IW8W again raised the quantity by 1 (for instance that only 1 part was received)

[pardhreddyc]

Dear,

We have to use IW8W for the GRN of refurbished order.

Now is it possible to revers the documents done by MIGO and then perform by IW8W?

Regards

Pardhu

[faisal_khan]

These are old Orders against which GR done using MIGO and cost payments made to vendors. They are stuck at Settlement point (KO88)

As these are few, we may plan to close these Orders but in future, if using IW8W to receive material, the how to pay vendor as PO created and vendor send back the material?

[pardhreddyc]

Dear,

I got one doubt from your query, how you perform the process of sending the Non-Stock materials to vendor for refurbishment process?

Regards,

pardhu

[faisal_khan]

Using PR and PO

Faisal

[pardhreddyc]

Dear,

I know that, but if your stock is not available how can you send the material to your subcontractor?

I mean for non stock?

Regards,

pardhu