Precious metals Overview and Procurement using S/4HANA
In this blog, the overview on ‘Precious metals’ is highlighted and how can we procure using S/4HANA
- A metal is considered to be precious if it is seldom available on the earth
- The category of “precious” metal can also be determined by high demand as well as market value
- The well-known precious metals are gold, silver, Platinum, Rhodium, and Palladium
- Precious metals have been extensively used in various industries
Usage of Precious Metals in various industries
- Precious metals are used for manufacturing various components
- Precious metals are used for the plating process
How Precious Metals are traded?
Now a day’s precious metals are traded like stocks in various exchanges around the world. Traders will be buying or selling precious metals on behalf of their customers. Based on the quantity, the dealer will notify the prices for buying or selling. The agreed price will be the trading price of precious metals. Precious metals can be traded online and it’s becoming easy and convenient. Like stock, there will be a trading limit for precious metals and trading companies follow the rules set by the exchange. The funds can be transferred electronically. Handling, transportation, and insurance charges vary with the weight of the precious metals, distance, and mode of delivery.
How can we procure precious metals using S/4HANA?
The process steps involved in procuring precious metals are almost similar to the stock materials procurement process, except for the pricing procedure and a few customization changes. Purchase info record has to be created for precious metals and relevant condition record has to be maintained on a going basis.
Configuration in S/4HANA for precious metals
- Define a non-dimensional unit of measurement (Global settings Check units of measurement)
- Set up two new condition types (Purchasing – Conditions – Define price determination process – Define condition types)
- Make new entries in the calculation schemas Purchasing – Condition -Define price determination process – Define calculation schema)
- After going through the above blog, the user should have gained knowledge on the precious metal procurement process
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