We are an electric utility and not a manufacturing facility, and we fabricate our own electrical & switching cabinets.
We are looking for information regarding how other companies Fabrication Processes are setup in SAP.
We are expanding our process and are currently having issues with how the costs are captured and distributed once the fabricated materials are brought into inventory. When we issue the items out of stock for the fabrication process - and receive into stock the new fabricated material - the accounts are not reversing properly.
We use WBS numbers to capture charges for the raw materials, In house labor, etc. Once the fabricated material(s) are brought back into inventory the proper accounts are not cleared out.
Any information would be helpful Thanks
You need have PP enabled to carry out this activity successfuly. A BOM should exist, then you do the Goods Issue of the parts to fabrication process which can be identified by a prodcution order and then do the Fabricated part (Finished Good) against the production order.
In this way the necessary accounting entries will happen correctly.
Since you refer to using WBS element, can you explain more on how you are carrying out the Goods Issue and finished Goods Receipt