Procurement and Withdrawal to Cost Center (SAP Library

Procurement and Withdrawal to Cost Center

Use

You also have the possibility of procuring bulk material, which is not backflushed, via KANBAN. This bulk material is not contained in the assembly bill of material and cannot, therefore, be assigned to an assembly. For this reason you must post the costs for this bulk material to cost center as material overhead costs .

If you use grease in your production, for example, you do not usually assign a certain consumption of grease to every assembly. In this case, grease is a bulk material and is posted to cost center.

You have two options for this KANBAN process.

Procurement to Cost Center
Withdrawal to Cost Center.

Prerequisites

You have set the bulk material indicator for your material in the material master. In this way you ensure that this material will not be backflushed.

You have created a replenishment strategy in Customizing for KANBAN that plans the procurement or the withdrawal to cost center. If applicable you have defined the transaction type for the withdrawal to cost center yourself.

On creating the control cycle you have entered this replenishment strategy for the bulk material.

You have entered the cost center in the control cycle on the tabstrip Sequential control.

Note

With procurement to cost center via scheduling agreement or contract you do not have to enter a cost center on this tabstrip, as the scheduling agreement or contract is already assigned to an account. The field Cost center is not ready for input in this case.

With all other types of replenishment, however, you must enter a cost center here.

Features

Procurement to Cost Center

You can consume the material directly to cost center. In this case the system posts the material to cost center on setting a kanban to FULL. The material is not, therefore, available in the storage location.

You can procure bulk material via KANBAN using external procurement and stock transfer (except with the replenishment strategy 'Replenishment from a WM warehouse with transfer requirements').

The advantage of this procedure is that the posting expenditure is minimized.

Withdrawal to Cost Center

Here, on setting the kanban to FULL, the system posts the material initially to the storage location of the demand source. On setting the kanban to EMPTY the quantity available is then posted to cost center.

The advantage of this procedure is that the warehouse stock in the production is available in the storage location and that the bulk material can also be procured by means of in-house production.

Through double posting the expenditure is larger, however, than with procurement to cost center.