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Sub-Contracting PO with Account Assignment K but with Stock Update

sp0123
Participant
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Dear Expert,

We are designing a scenario for our client where the damaged spare parts (In Plant maintenance) are sent to the vendors for repair. The cost that would be incurred for repair should be on Cost Center.

This is done for few of the Spares which are of high value. Spares are not sent individually but rather as a group of faulty spares which could get accumulated in a month or two. The idea is to send them together to save cost on transportation.

We are creating a Sub-Contracting PO with account assignment category K. When we receive the material from Vendor, GR 101 is carried out which results in immediate consumption. So the next step is Mvt type 202 which will reverse the consumption and update the stock.

Is this a right approach? Can you suggest a better way of handling this scenario from your experience.

Regards,

S. Kumar

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Answers (3)

Answers (3)

saurabh_nigade
Participant
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Hi Shiv,

Understood. We had a similar requirement and we mapped in the following way:

  • Create a non-valuated material for Spares/Machine which needs to be sent out for repairing and add stock of the same using 501 mvt type.
  • Create a subcontracting PO with account assignment category. Component material in subcontracting PO will be same as main material.
  • Sent material to out of factory using 541 mvt type.
  • Once repairing is done, receive material back to factory using 101 mvt type. Expense account will be posted at the time of GR.
  • Post invoice
  • Remove stock of non valuated material using mvt type 502.

Please let me know if this helps.

Thanks,

Saurabh Nigade

saurabh_nigade
Participant
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Hi Shiv,

Process seems to be correct but why are you reversing consumption and updating stock using mvt type 202?

Thanks,

Saurabh Nigade

sp0123
Participant
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Hi Saurabh,

The damaged spare parts were sent to stock initially. We are issuing these to Vendor from that stock itself.

So the expectation is when we receive the repaired spare parts from the vendor, it should be received in the storage location and update the stock.

With Account Assignment Category K, it doesn't update the stock. So we are using 202 Mvt to reverse the consumption and update the stock.

Regards,

S. Kumar

BijayKumarBarik
Active Contributor
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You are using plant maintenance module hence use plant maintenance order instead of cost center. Can use split valuation and create valuation types as ZVTN,ZVTR and ZVTU for new material, repaired material and used material respectively. Can use 262 and 261 movement types for plant maintenance material/equipment movements from vendor. Send material with valuation type ZVTN and received with ZVTR from vendor

Else follow sub-contract process without cost center in sub-contract PO.