power production design in sap

[Former Member]

Hi experts,

I have got the following requirement and i proposed the solution. But i am stuck with one thing,

Requirement:-

1) The power produced is consumed in the production of the main product say 'x'.

2) And the same power is consumed for the production of the power itself in various stages as follows,

     a) The 'water' is the input for the 'Water treatment plant' and 'power' also. They also incur the maintenance cost also.

     b) The water is distributed to the town ship and the remaining water is sent to the DP plant, where the waste water is treated and send to boilers, here also power is consumed.

     c) In the boiler the it is converted into steam and power is consumed.

     d) In the lasted the steam is used for the production of the power.

Solution proposed:-

     1) A separate plant is created for the power production, But it will not be a production plant.

     2) The power is taken as activity for material 'x' production.

     3) In the new plant power is created as service material and the power is taken to the production plant using SO-PO route.

     4) And the consumption of raw materials are posted to the cost center for the power production.

Here the problem is, The power is also sold out side.

My question is if we are creating power as service material do we get any problems for selling outside? if so what will be?

Is the proposed solution is correct or not? Is there any alternate solution., If so what is it?

Thanks & Regards

Dinakar sarma

[kamalkumar_biswas2 · Accepted solution]

Hi Sarma

This type of process is design Utility consumption in iteration means Power is produced for consumption to other departments (CCtrs) and also for producing departs(CCtrs).

  I will suggest to follow the steps to map your POWER cost:

  1. No need to create separate PLANT if you have Single plant concept for valuation area

  2. You can create separate Plant if you have multiple plant as valuation areas

  3. Do direct activity allocation process by which you can get power rate(V+F) and sender / receiver relation. Also this will facilitate iterative function of own consumption in between own departments

  4. Period end activities will be simple.

  best of luck

Kamal

[Former Member · Accepted solution]

HI Kamal,

Thank u for your reply, But still i am having one problem that is the power is also sold out side. In such case can we take power as service material in another plant (Mat Type: DEIMN).

Will it create any problems?

Regards

Dinakar

[kamalkumar_biswas2 · Accepted solution]

Dinakar

You can sale it as service through service order to customer...consult with your SD consultant to map it... I think no prob will come.

You have already rate per unit...so cost is available for this service..other sales parameters will come from service order.

When you distribute actual activity allocation in period end also enter the sales qty to outsider (CCtr)

to identify the sales qty for the period and service orders (Customers) will be adjusted from these qty (CCtr)

I don't think any Addl plant is required.

Kamal