Skip to Content
Personal Insights

Fabric Costing with S/4 HANA in Textile Industry catering Make To Order Configurable Material scenario-Part 1

Relevance:

  •     Wherein finished fabric is configurable but Super BoM is not applicable.
  •     Routing and operations will be selected based on characteristics of finished fabric.

Note – There are multiple ways to select operations for configurable materials.

In this article, I explain the logistical and costing process for fabric,which is considered to be a material variant, though the routing is having “DUMMY” operations, which will be replaced with original values during MRP run to generate production order from sale order.

Figure: Displaying the routing created for finished fabric.

Object dependencies have been written for “DUMMY” operations.

Figure: Displaying the object dependencies for one of such operations.

A variant table is maintained within the transaction CU60.What is there within the table?

The table contain client’s preferred selection of operations from within the list of “DUMMY” operations.

There are certain key fields for selection of an operation from the list of “DUMMY” operation list.These key fields are noting but variant characteristics. These variant characteristics will be selected while defining material variant with class: 300.

Example of some characteristics:

Chars.         Descriptions.

SNG1          SINGEING-AML
SNG2          SINGEING-AEP
SNG3          SINGEING-CDR
SNG4          SINGEING-DE
SNG5          SINGEING-HVC

Value of these characteristics will be firmed within the “Classification” tab of material master data of finished fabric.

Let us see the material master and the variant table for operation selection.

Figure: Material master data for finished fabric.

Figure: Variant table for operation selection

We can see that if “Single Singeing-DE” would be selected against “Denim Finishing Operation01”, work center DDESNG will be derived along with standard text key D-SNG.

20 dependent procedures have been written within the dependency of 20 “DUMMY” operations.

Figure: Showing Procedure D_P_RT07 is taking care of operation number 80 within the routing.

The said 20 operations, if we review the first Figure, consist the set of “DUMMY” operations.

And these operations, as they are variable and can/cannot be selected for a finished fabric, are maintained within the material master[classification tab] of finished fabric.

Figure: Re-visiting how many operations are selected for the material.

 

Accordingly, by following the variant table and operation selection procedures, sale order prepared for finished fabric contain 4 dependent operations. Let us check below.

Figure: Sale order configuration screen

Rest of the operations[the first and last two] are fixed operations and will be selected for each and every material/finished fabric. So, “ObD” can be seen as appearing against second to fourth operations.

Now, let us check the planning strategy of the finished fabric, to be produced.

Figure: Planning strategy is MTO- Configurable material.

 

Figure: How a work center’s “Default Values” shall look like to collaborate with variant table setting/value maintenance.

The work centers are having 5 default values, corresponding to variant table, shown earlier.

Re-checking the variant table gives us confidence that last standard value is appearing as “0.000” for key field “SNG4”.

Likewise, values from variant tables will be replacing “Activity Type”s appearing against each of the operations, for “Base Quantity” mentioned in the routing. it may so happen that “Base Quantity” has not been referred while devising formula for utilities/activity types.

With all of the above mentioned settings, once sale order will be costed, system will show the probable cost against the sale order’s item.

Figure: Sale order cost estimate for the aforesaid material/finished fabric.

We can see that operations have been selected and costed, as well, according to the planned cost set within KP26.

Figure: Further analysis of product structure.

For the client, stages of production process/WIP valuation are  DENIM FINISH FABRIC->DENIM GREIGE FABRIC->DENIM FABRIC SIZED->ROPE DYEING.

More or less, all the fabric manufacturers follow the above process/stages of manufacturing.

So, sales order will show the drill down for main production confirmation stages, corresponding materials and operations.

As per sale order costing with sale order NOT being a cost object, EK02 is being populated to reflect the fabric cost against the specific sale order.

 

Conclusion – This doesn’t end here. Check the next part.

 

 

 

Be the first to leave a comment
You must be Logged on to comment or reply to a post.