Cross-Company Code-subcontracting special procurement keys 70 and 82

[former_member133846]

Dear Community,

I have got quite a big question that is also pretty urgent - so I apologize in advance for many words. 🙂

When using special procurement keys 70 and 82 (production in another plant) in materials to reproduce Cross-Company Code-subcontracting within two SAP Full-ERP Companies (both companies - "main company" & "producing company" - exist in the same SAP Cloud environment and belong to the one company structure) the system is posting "wrong" journal entries in Finance.

In the producing company (that is for example not being the owner of the raw material in line nr. 00002) the line items concerning "Profit & Loss" seem as if this company would have produced the end product for itself (1. Change in inventory in the producing company even though this product has been delivered back to the main company, 2. showing the consumption of materials that have been extracted from the main company that have never left the actual possession of the main company)

In the main company no journal entry postings are shown in "Profit & Loss". The posting lines only concern the balance sheet - the extraction of the raw material and the delivery of the end product.

Also, postings made by Controlling and are also producting cross-company-code journal entries as if:

1. The producing company would have to pay cross-company-code overhead costs concerning the raw material

2. The main company would have to pay the differences between estimated and actual production costs in any case.

So the question is: Have you ever had this case and how did you solve it? Or was there any other way how you solved the problem that Cross-Company Code-subcontracting within two SAP Full-ERP Companies does not seem to be possible?

Our ideas:

1. We have decided that a separate account determination for intercompany processes won´t work for our case as we have more than 20 company codes in total and the main process lies within but not only within intercompany-subcontracting.

2. We have set up a concept to use substitution to make correct postings but ended up finding out that it is not possible to substitute journal entry posting lines within SAP Cloud.

3. We are now working on a new concept that filters all Journal Entry postings triggered by the cross-company-code production order (production in another plant) to then create new postings leading to correction postings in both companies.

Thank you already if you have read the wohle text! 🙂 It would be even greater if you were able to give us some input on this issue, even some thoughts. Any idea could be helpful as we feel as if we are replacing SAP in some ways which should normally not be the right way.

Thanks a lot and have a great day,

Sabrina

[former_member133846]

Special Procurement Keys:

[former_member133846]

Screenshots Special Procurement Keys:

[former_member133846]

Screenshots Journal Entries triggered by Production Order

[OwenLiu]

Hi Manufacturing experts,

do you have any suggestion here?

Best Regards,
Owen

[OwenLiu · Accepted solution]

Hi Sabrina,

Could you please check whether this works:

For Procurment from Other Plant you have to maintain the Material master in both the Plant. i.e. the Receiving Plant and the Plant from which the component has to be procured i.e Supplying Plant.

Maintain Special procument Key 40-stock trasfer or procurement from other plant in MRP 2 view for the component in Receiving Plant. In customization mention the supplying plant in the special procument type 40.

Go to - Maintain Plant Parameters, enter the Receiving Plant and then select the Special procurement tab, then maintain the special procurement U and Plant - Supplying Plant.

When you run MRP the in Receiving Plant stock transfer orders are created in the receiving plant to the supplying Plant which is specified in the Special procurement Key 40.

The component will be issued to the Receiving plant from the Supplying plant against the Stock transfer order created in Receiving plant.

-----

Also some difference among keys:

1)spl procurement key 80 "production in alternative plant.

Here a planned order is generated for the material in the other plant which can be converted into production order on doing the GR for the order the material is directly posted in the storage location of the required plant.

2)70 with drawal from alt plant.

Here the material is directly issued(used) from stock from the other plant.

3)40 stock transfer from other plant

Here a stock transfer request is created for the other plant, the other plant may procure or produce the material, put it in stock and then transfer against STO.

Best Regards,
Owen

[former_member133846 · Accepted solution]

Hi Owen,

thank you very very much for your detailed reply.

I have spoken to our Consultant for implementation of production and according to her Special procurement key 40 does not exist in SAP-Standard within the Cloud System.

Furthermore, using this key would also mean switching the ownership structure but the material taken from the "main company" will always stay in the possession of the main Company and won´t lead to a "selling" process that would be caused by stock Transfer, wouldn´t it?

So only if the problems mentioned above could be solved, the Special procurement key could be an Option that we could give a try.

It would be great if you took the time for getting back to me.

Kind Regards and have a great week,

Sabrina