Budget Against a WBS-ELEMENT

[former_member143179]

Dear Sir,

We have a following business scenario :

We have got an Order to manufacture a Turbine . For this we opened a Project TB-101 and created a WBS-Element TB-101-3 labeled as "Manufacturing Turbine 10MW" . Under the WBS-Element TB-101-3 , we created following 2 Network Activities .....

Advance Procurement of Material (1st Network Activity) : The purpose of this Network Acitivity is to generate Purchase Requisition for Advance Procurement of Items even before the BOM is ready .Against this Network Activity , we define various Items which need to be procured in Advance .

Main Assembly of Press (2nd Network Activity) : Against this Network activity we define the FERT material (in this case TB-101) . This FERT Material has completly defined BOM .

For the Budget , we define the Budget against the WBS Element TB-101-3 .

Subsequently , we run the MRP (MD51) against the WBS-Element TB-101-3 and Purchase Requisition / Production Order gets generated .

Our problem is that all my Material Procurement Cost and Conversion Cost is getting adjusted against this common defined Budget . We want that we should be able to define seperate budget for Material Cost and seperate Budget for Conversion Cost .

We request SAP Gurus to kindly guide us , as what steps we should follow to resolve the above issue pl .

Rgds

B Mittal

[Former Member · Accepted solution]

Hi Mittal !

If here Conversion Cost is here Installtaion Charges you can consider this as a service activity(if you are taking a Service ) then you can define the Budget used by this activity and rest of amount will be for procured material ..........

but at planning level you have to put budget compositly in particular WBS....

Regards

RAMA

[Former Member]

Hi,

I think by conversion cost you mean Production cost of the turbine.

Since you do both the actvities Material procurement and production under the same WBS. The budget cannot be tracked separelty.

Have 2 different WBS strucute one for procurement and one for production. However you can add the existing Nwk activities to these WBS.

Regards,

Ramesh-

[former_member143179]

Dear Mr Ramesh

Thanks for reply . In the project the FERT is assigned at WBS Element TB-101-3 and hence during the MRP run the generated production Order & purchase requisitions have account assignment as TB-101-3 .

Pl guide us as how can we have differnt account assignment for the generated Material PR and Production Order .

Rgds

B Mittal