How to show Loss - Steam generation

[Former Member]

Dear All,

We are into process industry.

In many production section we are using steam.

Boiler department is creating process order for Steam (SFG material) and show daily generation of steam.

Production section will show consumption of steam in relevant process order.

Now there are some in-process loss of steam. How can we show this loss in system.

Thanks in advance,

Nirav

[Anupam1143]

Hi

Generally these are non stockable items Gas, power for which stock cannot be kept.If you are using steam as material then assign in BOM and need to capture loss you can use component scrap for the steam so that system will consider it,and to adjust the actual qty to produced/consumed qty.

you need to customised movement type of 261 which depends upon your reuirement whether it is only loss of qty or qty and value both.

Regards

Anupam Sharma

[Former Member]

Hi Nirav,

R u using any custiomizing process in ur scenario? becasue earlier i have worked on same scenario.

If you are using custiomizing process & ur all values comming from power meters then u should u use

one common meter for ur Losses u can maitain it in that Meter.

But steam is utility so how can u measure losses ? Untill & unless u can make changes in ur customizaing process it will create many complexity in ur process.

As better u can Fix loss % so every time system not consider that amount into ur costing.

Hope ur getting my points.

In case any issue pls revert back.

[Former Member]

Thanks for your reply Ravindra.

We have meter to measure steam.

I have also replied Krishna's post.

Request you to pl. suggest for the same

Thanks,

Nirav

[krishna_chandra5]

Hi,

     Generally steam, power, water and other utilities are shown as overheads but i am not sure why you are using process order for this.

In your case,

• If the loss happened during generation of steam, keep the loss in scrap field when you are doing the steam process order confirmation and confirm.

• If the loss happened during consumption of steam in production, manually increase the lost quantity of steam during goods issue to the main process order..

Revert back in case of any queries.

Regards,

Krishna Chandra

[Former Member]

Thanks krishna

I am new to PP & CO and we are configuring new process.

We are using CNG GAS, Water, Power, Steam etc.

Is it advisable to shown above materials as overheads ?

If we want production section wise costing then how can we show this materials ?

Thanking you once again

Nirav

[Former Member]

Hi Nirav,

Steam,GAS & water are the utilities u cant stock it.

Let say product A is ur main product & these utilities are the part of ur BOM & Master recipe.

If your into std process then pls check Mr. Anupum's Reply u can achieve through component scrap also.

Proposed PP configuration for this scenario :

1.BOM u use the item category as "N" for this components(GAS,Steam & Water )

2.In Master recipe u can assign this to ur Main operation.

3.If your maintained st.locations for these utilities then u need to refer STO process.

4.You need to create new order type for this scenario for reporting purpose.

5. During the Confirmation C015/hCor6n,all utilities stock will get consume(M.type 261)

Proposed CO configuration :

1.You need to create seperate profit center & cost center.

2.I think you need to create new activity type for ur utilites (using KL01)

3.Make proper cost center to work center /resource assignment (CR01/CRC1)

4.Price planning for activites KP26

5.You can maintained ur Losses % against ur profit center.

If your using any custom process then u should make many changes.

check & revert.

TnX

[krishna_chandra5]

Hi,

     Yes, it is advisable to map gas, power and steam as overheads. There are 2 options you can follow.

1. I am not sure regarding the setting of cost elements, ask your CO consultant to create cost elements for the and give the percentage cost required for these overheads in the costing sheet. Assign this costing sheet to the costing variant which should be assigned to the order type in COR4. If you configure the above scenario, you will be able to see the Steam/Gas/Power consumed for that process order in the cost analysis of the process order.
2. Create new standard values and activity types for Steam/Gas/Power and assign them to work center, in turn these work centers to routing. Maintain the cost for these activity types in KP26. These costs are also visible in the costs analysis screen of FG process order.

Revert back in case of further queries.

Regards,

Krishna Chandra