Repetitive manufacturing

[Former Member]

Hello SAP Gurus,

Could anyone please advise me of the following concerns that I require answering prior to repetitive manufacturing going live

1) Control of bookings

If a material has been booked incorrectly in one month it is important that if the month end process has ran that they are corrected in the current month and not back dated. I assume this will be the case?

2) Cost collectors

Looking at our cylinder manufacturing we have the same cost collector month in month out. Is this cost collector going to the same infinite?

3) Scrap

How will the scrapping process work from a finance point of view. If materials / rams are scrapped where will this be seen in the accounts and how can we identify the cost of this scrapping to the division.

5) WIP

With repetitive manufacturing this will not show any WIP in the Balance Sheet, in reality this is not the case. For general month to month management's accounts this is not a major issue, but at year and half year end we need to comply with ssap9 and therefore need to know the value added to any WIP.

Thanks,

Jimmy

[Former Member · Accepted solution]

Hi,

Good afternoon and greetings,

1. Yes the understanding is correct

2. The Cost Collectors can be settled infinite times and can re-costed infinite times. There is nothing like we have to settle only during month ends for PCC.

3. Already answered

5. For Product Cost Collectors you can still calculate the the WIP provided you are not doing a complete backflush. If you are going to do a reporting point backflush in your MFBF or separated backflush using MF70, then you can generate WIP using the normal configuration for the order type RM01 and ensure that in OKG9 you maintain the RA details and assign it to calculate the WIP.

As per best business practice, Repetitive Manufacturing would mean MTS (Made to Stock) Scenario and should be settled periodically to reduce the variance in the production process and that is the reason nobody uses the WIP concept for Repetitive Manufacturing. On the other hand, the Discrete Manufactuirng would mean MTO (Made to Order) Scenario will be having the WIP concept as it would be settled only once.

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Thanking you

With kindest regards

Ramesh Padmanabhan

[Former Member]

Hey,

1) yes.

2) Cost collectors are going to remain same. The settlement will be done on month end.

3) for scrap define a g/l account and cost element. Assign it to a cost cenetr in OKB9. When ever you are doing your scrap posting use this g/l account that way you can capture your costs.

5) not sure how to do it.

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