Block Deal Purchase Process in SAP MM

[former_member1256834]

Dear Gurus,

I have a scenario, where in the Business does a Bulk/Block Purchase. For e.g. let's say the government has raised a tender to sale scraps worth 1 Crore. My client buys this scrap from the government and as soon as the process is completed, my client will have to make the complete payment of 1 Crore without even receiving the goods. On making the payment, my client can deploy it's team to start the process of salvaging the materials from this scrap. The process to salvage this can take upto 6 months and different items with different values can be salvaged. For E.g. 500 tonnes of Aluminium can be salvaged where aluminium is worth 1000 per ton. Similarly copper can be salvaged 200 tonnes at 3000 per ton.

How to capture this process via the purchase route. My client is sceptical about changing the PO everytime the goods are received. Also since the payment was made against line item 10 of PO, adding these quantities in line 20 onwards does not help as only GR is done against these line items. Hence technically, these items are open.

Please help.

[andreas_k]

Hello Ritesh,

did I understand the process correctly, that at the point of placing the bulk (salvaging) PO it is unknown, which materials could be salvaged?

So it basically means, you create a PO with one free text line item "Salvaging XYZ", for 1 Crore and will post the IR against that. Is a GR also done for that item line? Then during salvage processing it might be, that they get 500 tons of aluminium, 200 tons copper, ...? Do you have the requirement/is it a must to post the GR with reference to that PO?
Otherwise a GR without ref. to PO via 50X mvt. type could be an option - although not the best way, since GR is then valuated at current valuation price.

Best

Andreas

[former_member1256834]

Hi Andreas,

Thanks for your reponse. Yes you have understood the scenario clearly. While placing the Bulk order, the business will not know which material can be salvaged. There is a need to do the GR against a PO.