Summer/Winter variant handling of oil products

[v_s6]

Hi,

We are having a scenario where we manufacture a summer and winter variant of the same product. The additives that are used to manufacture these variants are different and the valuation is different as well. In business what happens is that let's say there is winter variant stored in a tank which is needed for sales at that point in time, it is taken out of the tank and replaced with equivalent volume of summer variant. Now what we want is that the stock valuation should also decrease as cost wise the summer variant is cheaper than the winter variant.

Do we need to have two separate material numbers for this scenario or we can still work with one single material number having two alternative BOMs? Is there a standard IS-OIL functionality to handle this scenario?

Regards,

V S

[Former Member · Accepted solution]

Hi,

As mentioned by you, since the the additives used to manufacture these variants are different, although the material is same, but it is suggested to created 2 different material codes for summer & winter variants.

In this way i believe you will get more clarity than using a single material code with 2 alternative BOMs.

Standard IS-OIL inventory will not be able to distinguish the different BOMs. It will only be able to valuate differently.

[petra_just]

Hi VS,

your scenario reminds me of the same material being taxed or untaxed. It also gives the product a different value depending on the situation. If you do not have this TAX/UNTAX issue in addition, you could use valuation classes. On the other Hand, most oil companies have this TAX/UNTAX issue. If you do, you have to use a separate material code as suggested by yourself. I would prefer a separate material code because the Basis product is not the same. To obtain the winter product, a substance is added to avoid freezing, thus it is not the same product.. you are saying that you replace the winter product by the summer product. If you use different material codes, you can do a transfer from material to material. Since, the sales price is most probably different too, it becomes more and more obvious that a separate code is needed.

hope it helps

Regards

Petra