7 Replies Latest reply: Aug 17, 2013 8:43 AM by Dina Rotem RSS

    Two Different Project to handle Project Manufacturing Cost ?

    877741
      Hello Guys,


      Can any One Help me on this Question,

      Sales Company - > Attaching their Project/Task to Sales Order.(Different OU,LE,Set of Books).
      Manufacturing Plant - > Imports the Sales-Order of Sales Company(Different OU,LE,Set of Books).
      Current Flow - > Sales Company Project/Task -> Planning -> Work Orders ->Transfer Cost to Projects.
      And Manufacturing Unit will create their Internal Project.

      Questions :-

      Now Manufacturing Unit wants to know their Manufacturing Cost(Material Cost,Resource Cost and Overhead Cost) ?How to track cost for Manufacturing Plant ?
      How we can transfer the cost from Sales Company Project to Manufacturing Project ?
      Do we need to Transfer from Cost from Sales Company OU to Manufacturing Internal Project OU ?

      Is their any other way to do the setups ?

      Iam only concened about How to use Sales Company Project and Manufacturing Internal Project ?

      Regards,
      Satish
        • 1. Re: Two Different Project to handle Project Manufacturing Cost ?
          Dina Rotem
          Hi

          In the Manufacturing plant you could implement Project Manufacturing, that will enable the manufacturing plan to track costs by project.
          Without Project Manufacturing you could track costs of manufactured items in Inventory using the regular reports of Inventory and WIP.

          Assuming you do have PJM in the plant, there are two options -
          Use in the plant the same project as setup in the sales company. The sales company should allow the other OU to charge their projects, and you would be able to process cross charge inter company billing. The plant would see their costs in Projects Costing for their OU. The sales company sees both, their own costs and the manufacturing costs on the same project.

          Second alternative would be to use two separate projects, one for the sales and another for the plan. You could link the plant project as a provider project of the receiver sales project. For that you use the Inter Project Billing functionality. The plan tracks their costs on their provider project in their Projects Costing application. The internal billing will interface the billing transactions from the plant OU AR to the Sales OU AP, and from their into the receiver Projects.

          Dina
          • 2. Re: Two Different Project to handle Project Manufacturing Cost ?
            877741
            Hi Dina,

            We are planing for option 1 :-

            Sales Company will create the project and attach to the Sales-order,Later through IR/ISO the manufacturing plant will use their projects and link to Work -Orders and PO and collect cost against their Project.

            My Question is,

            1) Manufacturing Plant does not want Sales-Company to view their Manufacturing Cost ?
            2) Is their any way we can do the security setup for Project by restricting Sales-Company to view the incurred cost in Manufacturing Plant ?

            Is their any way,We can achive this,

            Regards,
            Satish
            • 3. Re: Two Different Project to handle Project Manufacturing Cost ?
              Dina Rotem
              Hi

              Since the sales and manufacturing are in two different operating units you can use the usual security by responsibility. Users from OU A will get responsibilities in that OU, and will not get responsibility in the other OUs.

              Dina
              • 4. Re: Two Different Project to handle Project Manufacturing Cost ?
                877741
                Hi Dina,

                Do sales company needs PJM for to create project and attach to Sales order ?

                Manufacturing plant is planning to charge Cost-Plus(Selling -price) to Sales company,In that case we cannot use the sales company project ? How manufacturing plant as to do their setups ?

                How the billing of invoice to sales company should be ?

                can we transfer the cost from sales company project to manufacturing plant internal project in Manufacturing OU ?Since project is created in Sales company OU ? Is it Possible ?

                Regards,
                Satish
                • 5. Re: Two Different Project to handle Project Manufacturing Cost ?
                  Dina Rotem
                  Hi

                  Sales company does not need to implement PJM if the delivery if goods is done directly from the manufacturing plant to the customers. However if the goods are transfered to the sales company, and stored by sales company, then the sales company would need Inventory organization using PJM.

                  Manufacturing plant may use the same project as setup by the sales company. They could setup the transfer price rules for cross charge. Then run the Intercompany billing process which generates a sales invoice in the manufacturing OU AR, and interface that as internal supplier invoice to the AP of the Sales OU. To implement the Intercompany billing you need to follow the required setups in both OUs.

                  Assuming both OU's are charging the same project you will have the sales organization costs on that project in their OU, and the manufacturing costs on the same project in the manufacturing OU. You should not transfer the costs of Sales organization to the other OU since it will double account for the same costs.

                  Dina
                  • 6. Re: Two Different Project to handle Project Manufacturing Cost ?
                    User519069-OC

                    Hi Dina,

                     

                    We are in a process to implement flow of information between Sales Order from two different LEs.

                     

                    Our Order originates from Sales Service Org(Project Owning Org) ----> Trading Hub------- > MFG Plant. The equipment is shipped directly to customer.

                     

                    We would like to know more on the solution which you have explained : -

                     

                    "Manufacturing plant may use the same project as setup by the sales company. They could setup the transfer price rules for cross charge. Then run the Inter-company billing process which generates a sales invoice in the manufacturing OU AR, and interface that as internal supplier invoice to the AP of the Sales OU. To implement the Inter-company billing you need to follow the required setups in both OUs."

                     

                    We have been following steps and found not working

                     

                    (1) Created Project under Sales & Service Operating Unit (OU)
                    (2) Created Sales Order against this Project in Sales & Service OU, the shipping org on this sales order is MFG which belongs to different entity &  OU.
                    (3) Pick and Ship from shipping org MFG OU
                    (4) Run Cost Collection Manager for Inventory Cost Transfer for the Shipping Org MFG
                    (5) There is no transaction pending for this cost under Sales & Service OU, however this is pending under MFG OU (shipping Org)
                    (6) Ran the "Transaction Import" program from MFG OU and the transaction got rejected as the Project belongs to Sales & Service OU.

                    Thanks,

                    Sachin Salvi

                    • 7. Re: Two Different Project to handle Project Manufacturing Cost ?
                      Dina Rotem

                      Hi

                       

                      Verify the project is setup on the Sales OU to allow cross charge from other OU.

                      This should allow cost transaction to be imported into PJC of the MFG OU.

                       

                      Later, on the MFG OU Projects you should run the cost charge - that will genenrate inter-company billing.

                       

                      Dina