Procurement

[abhishekjena]

Dear Experts,

We have a scenario which has to be mapped in S/4HANA Public Cloud.

Requirement - Is to procure a material which have multiple components. Example: I need to procure a computer full set for which I created a PO for MAT A (Computer Full Set) with "A" amount price. As supplier need PO for MAT A with the price (sum of individual components). This amount "A" is the total price (sum of individual price of these components).

Supplier delivers components like MAT 1 (Desktop), MAT 2 (CPU), MAT 3 (Keyboard), etc. which I will assemble.

Question - How to map this process. How to do GR for components as PO don't have any information of components.

[JulianoRomanato]

Hello abhishekjena.

How are you? I have included the Tag "SAP S/4HANA Cloud for Sourcing and Procurement" for this question, as Purchase Order is an Object of Sourcing and Procurement Line of Business.

Regards.

Juliano Romanato.

[OwenLiu]

We helped you to accept the answer, since there were no updates after 7 days.

You can unaccept it anytime if you have further questions.

[Tony_Yan · Accepted solution]

Hi Jena,

I have questions regarding the requirement.

Do these components need to be managed(stock/value) in S4C? Do they need a specified material number?

If we cannot get the components info in PO creation stage, when will we get to know that?

If the full set material cannot be consumed separately, Why not post GR for the MAT A rather than components?

[abhishekjena · Accepted solution]

Hello Tony,

Please find the below answer

Yes these components are managed both stock/value and have own material number.

Currently business is specifying the components as a text in PO and supplier understand this. Based on this, supplier sends the components and business assemble this. So business will know when they receives the goods physically.

We cannot post GR for MAT A as this has to be assembled consuming the components. So we want to do GR for components (have serial numbers) then consume this to assemble the final product MAT A

I hope I was able to answer your questions. Please let me know if you need further details.

[Tony_Yan · Accepted solution]

Thanks for the clarification.

Would you also explain the reason why the business cannot create PO with the specific component number? Only because they pay the supplier by a set?

[abhishekjena · Accepted solution]

Thanks for quick turnaround. Yes they pay supplier by set and business is not aware about the price of indiviual components.

[Tony_Yan · Accepted solution]

OK, Jena. Thanks for the patience. Now I understand.

I think the matter is, for those components, we need to manage the quantity and value in the system, but we don't know the prices or costs for each item. Normally, the externally purchased goods will be handled by moving average price (V). The price should be determined in the PO for each component. Otherwise, the stock of the components cannot be evaluated. It's not a solution issue but a business decision, please align with the procurement and finance stakeholders to discuss the impact.

In addition, there is a new feature "Multi-level hierarchy item" which will be enabled in the near future release. In this new function, you can add an item set into PO, to bundle several materials or services with a multi-level hierarchy. You can keep an eye on that and see if it works for your requirement. But the components evaluation issue still needs to be figured out in your situation.Hope it helps.Tony.