Maintenance of Material Master Data 

Purpose

This process describes how you create the material master data and the info records for the materials involved in Subcontracting with Chargeable Components.

Various components are required to make a subcontracting product. After you have created a separate material master record for the subcontracting product and each of its components, you create a bill of materials for the subcontracting product, which specifies which components you provide to the subcontractor.

Process Flow

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       1.      You create a material master record for the subcontracting product.

       2.      You create an info record for the subcontracting product. The info record contains the price that the subcontractor charges to assemble the product.

       3.      You create a material master record for each of the components that belong to the subcontracting product.

       4.      You create an info record for each chargeable component.

       5.      You create a bill of material for the subcontracting product that includes the components.

Example

Your company produces a range of motorcycles. You subcontract the assembly of the engines used in them to another company, Redware Co. Furthermore, you have recently developed a new type of engine, which Redware Co. is to assemble, and now have to maintain the master data in the system.

First, you create a material master record for the engine, and then a purchasing info record for it, which specifies how much Redware Co. charges for the assembly of each engine – JPY 2,000.

You then create separate records for each component involved in the engine’s assembly, for example, the crankcases, cylinders, and crankshafts. You create an info record for each of the components, specifying how much you will charge the subcontractor for each.

Finally, you create a bill of material for the engine. The bill of material specifies which – and how many – components are required for the assembly of each engine.