Subcontracting components-based invoice

[anlro]

Hello,

We have a special requirement linked to a subcontracting process. We want to accrue subcontracting service costs based on components consumed at MIGO time and not material received.

Here is the scenario :

1- We create a subcontracting purchase order for an alcohol distillation service. We have a finished product FP1 and a BOM of one component C1. The service price of 50€ per HL is set on a condition on the main PO item.

2- We issue bulk components to our subcontractor out of the subcontracting purchase order (ME2O) : Exemple Qty 100 HL of component C1.

3- The subcontractor processes the components and produces 70 HL of finished product FP1. Then they shipped the finished products to our plant.

4- We receive the finished products FP1 and post the goods receipt with MIGO out of the subcontracting PO.

5- We receive the vendor invoice for the subcontracting service with a rate based on the quantity of processed components. So the invoice is something like 50€ per HL of components, so 100HL * 50€ = 5000€

But with the standard subcontracting process we have an accrual of 50€ * 70HL = 3500€ because it's based on the received goods.

In the standard subcontracting PO the price is based on the ordered producted (finished product received). Is there a possibility to accrue the amount based on the quantity of components consumed at MIGO time (100HL * 50€ = 5000€) ?

Thank you.

Regards,

Anthony

[former_member615571]

manualy change the child component quantity in migo to 100 hl. then the consumption will be of 100hl.

[anlro]

It doesn't solve the issue. The accrual will still be based on the received goods so 70 HL.

[Prasoon]

Hi,

I would suggest you to check whether you can set the PO price considering the quantity consumption as well. For example, if the PO price is 71.42, the total price will come as 71.42 * 70 = 5000 EUR. You may set the additional amount as part of PB00 itself or an additional price component in the pricing procedure.

Regards,

Prasoon

[anlro]

Hi,

Thank you. Sorry but I don't see how I could update the PO price at time of goods receipt. And what if I have to do several consecutives goods receipts on one PO item.

[Prasoon]

Hi,

In that case, check whether you can get the invoice along with goods and book the invoice with actual price immediately after GRN. System will automatically adjust the stock account if stock is available.

Regards,

Prasoon

[lingaiahvanam]

Hi,

In your case, goods receipt quantity is FP1 100 HL and consumption of 100 HL component C1 then invoice to be raised for 100 HL that means 5000 EUR. If you receive only 70 HL and component consumption 70 HL then it is not possible to raise an invoice for 5000 EUR and it should be 3500 EUR because of SAP best practice based on goods receipt qty price to settle.

Best Regards,

Lingaiah

[anlro]

Hi,

Thank you.

During step 4, the idea is to post the goods receipt with MIGO for 70HL of FP1 and to force the consumption of 100HL of component C1 in the BOM explosion.