SAP Special Procurement Key (SPK) 52 – Collective Order: Definition, Purpose, Example, and Configuration Steps

1. What is SPK 52 (Collective Order)?

SPK 52 (Special Procurement Key 52) is used in SAP Production Planning (PP) and Controlling (CO) to manage collective orders, where sub-assemblies are linked directly to the main production order instead of being produced separately and stored in inventory.

Key Concept:

• In a collective order scenario, sub-assemblies do not have separate production orders for inventory management. Instead, they are directly created and consumed within the main production order.
• No goods receipt (101 movement type) is posted for sub-assemblies.
• Costs from the sub-assembly order are automatically transferred to the main production order without a separate settlement process.

2. Purpose & Benefits of Using SPK 52

3. Real-World Example – Bike Manufacturing

Scenario:

A motorcycle manufacturer produces bikes, where the Frame Assembly is a sub-assembly used in final production. Instead of storing frames in stock, they are directly produced and consumed in the main bike assembly order.

Material Master Setup

4. SAP Process Flow (Step-by-Step)

Step 1: Define SPK 52 in SAP

• T-Code: OMD9 → Configure Special Procurement Type
• Maintain SPK 52 as:
  • Procurement Type: E (In-House Production)
  • Special Procurement Type: 52 (Collective Order)

Step 2: Assign SPK 52 to the Sub-Assembly in Material Master

• T-Code: MM02 → MRP 2 View
• Set Special Procurement Key: 52 for Frame Assembly (FRAME_2000).

Step 3: Create a Production Order for the Final Bike (CO01)

• T-Code: CO01 → Create production order for BIKE_1000.
• SAP automatically creates a linked production order for the sub-assembly (Frame Assembly FRAME_2000).

Step 4: Issue Raw Materials to the Sub-Assembly (MIGO / MB1A)

• T-Code: MIGO or MB1A
• Issue raw materials (steel tubes, welding materials) to the Frame Assembly Order using 261 movement type.

Step 5: Confirm Sub-Assembly Production (CO15)

• T-Code: CO15 → Confirm FRAME_2000 (No 101 posting).
• The cost of the Frame Assembly is directly posted to the main Bike order (BIKE_1000).

Step 6: Confirm Final Bike Production (CO15)

• T-Code: CO15 → Confirm BIKE_1000.
• The complete bike is received into inventory using 101 movement type.

Step 7: Settlement of Main Order (KO88)

• T-Code: KO88 → Settle the main production order.
• The sub-assembly costs are already part of the main order, so no additional settlement is needed.

5. How Costs and Movements Work in SPK 52

6. When to Use SPK 52?

Use SPK 52 When:

• The sub-assembly is never stocked but always used in the final product.
• Cost tracking should be done in the main order without separate settlements.
• Reducing WIP (Work In Progress) complexity is required.

Do Not Use SPK 52 When:

• The sub-assembly must be stored in inventory before being used.
• Batch management is required for sub-assemblies (e.g., pharmaceuticals, chemicals).
• The sub-assembly is used in multiple final products (not just one).

SAP SPK 52 (Collective Order) – Financial Postings & Impact on Balance Sheet & P&L

In SPK 52 (Collective Order), financial postings occur only at the main production order level, as sub-assembly costs flow directly into the main order without intermediate stock postings.

7. Financial Postings in SPK 52

8. Detailed Financial Accounting Entries

(A) Raw Material Issue to Sub-Assembly (Frame Assembly)

T-Code: MIGO / MB1A – Issue steel, welding rods for the frame.
SAP Movement Type: 261 (Goods Issue to Order)
Financial Entry:

cssCopy codeDr. Raw Material Consumption (P&L) ₹10,000 Cr. Raw Material Inventory (B/S) ₹10,000

• Impact: Reduces raw material inventory and records expense in P&L.

(B) Sub-Assembly Confirmation (Frame Assembly)

T-Code: CO15 – Confirm production of the Frame Assembly
SAP Movement Type: No 101 posting
Financial Entry:

pgsqlCopy code(No FI Posting as costs are carried forward to the main order)

• Impact: No stock posting, cost flows into the main bike production order.

(C) Raw Material Issue to Main Bike Production Order

T-Code: MIGO / MB1A – Issue tires, engine, etc., for Final Bike Assembly
SAP Movement Type: 261 (Goods Issue to Order)
Financial Entry:

cssCopy codeDr. Raw Material Consumption (P&L) ₹50,000 Cr. Raw Material Inventory (B/S) ₹50,000

• Impact: Reduces raw material inventory and records expenses.

(D) Goods Receipt of Final Bike (BIKE_1000)

T-Code: MIGO / MB31 – Post goods receipt for BIKE_1000
SAP Movement Type: 101 (Goods Receipt for Finished Goods)
Financial Entry:

cssCopy codeDr. Finished Goods Inventory (B/S) ₹75,000 Cr. Production Order Settlement (WIP - B/S) ₹75,000

• Impact: Moves production cost into Finished Goods Inventory (Balance Sheet).

(E) Production Order Settlement (KO88)

T-Code: KO88 – Settle the production order
Financial Entry:

cssCopy codeDr. Cost of Goods Sold (P&L) ₹75,000 Cr. WIP Clearing Account (B/S) ₹75,000

• Impact: Moves the cost to COGS (P&L) and clears WIP.

9. Impact on Balance Sheet & P&L

Balance Sheet Impact (B/S)

Profit & Loss (P&L) Impact

10. Summary of SPK 52 Financial Impacts

11. Key Takeaways

SPK 52 (Collective Order) eliminates sub-assembly stock postings, simplifying cost tracking.
Costs from sub-assemblies automatically move to the main production order.
No 101 movement for sub-assemblies – they flow directly into the final product.
Production order settlement (KO88) moves costs to COGS and clears WIP.

12. Conclusion

SPK 52 (Collective Order) ensures that sub-assemblies are not separately stored but are directly linked to the final product’s production order.
It eliminates extra production orders and simplifies cost tracking by automatically transferring sub-assembly costs to the main order.
Ideal for industries like automotive, manufacturing, and engineering where sub-assemblies are always built into the final product.