2 Replies Latest reply on Jan 22, 2010 2:20 PM by 676522



      I have a below scenario at my client

      Similar products are manuufatured in different locations. The cost of the finished product varies by location.
      Currently, similar products have the same part number in the ITEM Master, so plant/raw production and cost differences are lost. Average costing is applied, but doesn't provide a complete
      picture, nor allow tracking or fullfillment introduced, by local variations in RAWS and mfg cost.

      Which solution you would recommend, in order to make the business process easy. I have some of my ideas below. Please let me know in case you have better ideas

      1 - Need and internal unique part.
      2 - Need a generic customer part.
      3 - Need to book order based on customer part.
      4 - Need to fulfill order on internal part.

        • 1. Re: ITEM MASTER
          Sandeep Gandhi, Consultant
          I would strongly advise against a unique internal item number. If the form/fit/function of the part is same, the item number should be the same.
          If the manufacturing processes / costs / assembly process differs from plant to plant, then you should have different BOM/routings / alternates in those plants.
          The end item number should remain same.
          That will ensure that you get the correct picture of your FG onhand. It will allow you to transfer material between plants using internal reqs/internal sales orders. (Make sure you loop the cost accountants in to handle cost differeneces when processing internal sales orders).
          In regards to cost: Costs are by plants (orgs) anyways. So it should be easy to understand the cost structure differences for the same item in different plants.
          You can then attach one or many customer part numbers to this unique internal item number and take orders based on the customer part number.

          Hope this helps
          Sandeep Gandhi
          Independent Consultant
          1 person found this helpful
          • 2. Re: ITEM MASTER
            Hey Sandeep,

            I gone through your earlier posts in the procurement as well as other categories.

            Your quick reply is really appreciated, and thanks for the valuable inputs.

            Please continue the same :)