The most straightforward way to support subcontracting processes is to use the standard subcontracting approach in the system. Standard Process Flow ME21N - Purchase order creation MIGO_TR - Send components to a subcontractor In SAP, subcontracting is a sub-process within the MM Purchasing module and it almost always involves the delivery of goods from inventory to the vendor. You require the subcontracting process in SAP when a companyoutsources parts of itsmanufacturing to subcontractors. SAP process flow 1. Tracking the materials and valuations, which technically still belong to the buying organization, becomes difficult using the standard process. Is the Info record mandatory in subcontracting ? Steps to perform subcontracting: Create subcontracting Info record (Optional) - T Code - ME11 Click to share on LinkedIn (Opens in new window), Click to share on Twitter (Opens in new window), Click to share on Reddit (Opens in new window), Click to share on Pocket (Opens in new window), SAP Humor: the adventures of the new spaceship BERID, SAP Settlement Management: The Multiple Contract Condition Problem. Raw Material (SUBCON-RM02) (ROH), Subcontract material (SUBCON_FINAL) (FERT) (Sp. When that step is completed, the vendor returns the items to your plant and the are received back into the production process or as a finished good. We would be happy to hear your feedback or questions. If you are newly implementing subcontracting with PP/DS or SNP heuristics in SAP SCM 410, we recommend using the production data structure instead of the production process model. Goods issue items for the SIM cards (components). Very easy to understand now. Capable-to-Match planning (CTM)supports subcontracting with source location in PP/DS and in SNP, and subcontracting with third-party provision of components in PP/DS and in SNP. Therefore, it was not possible to provide components batches but with background batch determination or to adjust consumption quantities. They are summarized below: A material BOM needs to be created before any subcontracting order can be placed. To do it, click on Doc. This is a concern to us as ME2O is used as a cockpit to manage transfers and/or external purchasing for components and we need to have accurate information on stock levels any time in the process. Through Screen shots process is self explanatory. Itd be a big help for us, and hopefully its something we can address for you in improvement of ourfree SAP MM tutorials. Online Help Keyboard Shortcuts Feed Builder What's new Thanks for reading. You create a delivery for the lenses to be shipped to your vendor. Below are the steps involved in this process. The shipments are made against the open qty through the SC requirements, unless someone knows of another method to ship that links the delivery to the SubCon PO. But SAP does not give here any flexibility. The invoice is posted. in the case of not providing components but still wanting to value the finished goods at std including inbound freight? I can not see the images Any idea why or how could I see them? Process flow of basic subcontracting process with deliveries 1 - ME21N - Making Subcontracting Purchase Orders In order to create a subcontracting purchase order it is necessary to choose an item type 'Subcontracting': 'L' as highlighted in the screen below. Please elaborate little confuse about details. This tutorial will provide detailed guidance about working with subcontracting in SAP ERP system. Now, during unloading you realize that 3 pallets are missing. I'm looking forward for the next ones , Thanks for sharing. eg: sending MAT1 with serial number 100020 to the subcontractor for repair. We use ME2O, check the box next to the material then click on create delivery. with regards to the following during MIGO For subcontracting with the This purchase order shows up in the ME2O transaction. Goods receipt items for the packaged SIM cards (end product) supplied by the vendor. If the material is managed with batches, a batch number will be shown as well. Lets take a closer look at the handoff from Purchasing to the SD Delivery. Now, during unloading you realize that 3 pallets are missing. PO Approval App. You cannot change the transfer Process Flow. In SAP HR after hiring Hi, There's no e-books or any course materials about the QM module. For a premium experience please use an alternative browser. The list contains the object number of each component, together with the quantity and unit of measure. Option- 2 User without login to each and every Individual PO -he/she can approve directly form FIORI Home page -Inbox part. Please let me know in the comments. Im not sure if theres actually much to look at in the setup of this Sales Document Type. You need at least three confirmed participants to register and SAP will add it to your schedule. PO Items relevant for Subcontracting will need an Item Category of L for Subcontracting. Next, click OK checkboxes as shown below. How to edit personnel no. 2) Keep delivery address to plant as by default. Every organization acquires material or services to complete its business needs. 3.Create PO with item category as "L" . Copyright | This is done when SC Vendor-02 sent finished product to our warehouse. Hello. Create/Change/Display/manage/ My Purchase requisitions App Please also include accounting-entries screenshots. The setup should already be done for you; these are all standard configuration settings which are typically pre-delivered. The liability created will only be of the amount charged by the vendor for processing and does not include the material component value. I believe, It will be helpful and will provide sufficient information to the readers. SAP Menu Path to ME21N Transaction In ME21N transaction, you need to select a Document Type and provide a Vendor as shown on the below screenshot: Available quantity at the subcontractor is back to 76 packs, where the real information is 176 packs. Please keep posting the knowledge. How to manage serialized material for subcontracting repair? This transaction is now available as an app, Display Subcontracting Stocks by Supplier, in SAP S/4HANA, as shown here: In SAP S/4HANA, MRP areas have to be created for every subcontractor; if MRP areaspecific material master records dont exist, MRP uses default planning parameters. Can you please explain about accounting entries in subcontracting? Is this possible? The most straightforward way to support subcontracting processes is to use the standard subcontracting approach in the system. Can you explain how to do this process without BOM?? Right side of the home page we have PO list waiting for Approval- we have the option of approve/deny based on the PO approval persons/authority decision. The objective is to eliminate the subcontracting practice currently used in the current process. The system will generate a purchase order number internally. The customizing entry in the supplier master is sufficient to trigger stock transfers and reservations from the plant to the subcontracting MRP area. Use the IMG path below for this piece of the config: The only field worth mentioning is that Default Order Type field; the rest of this is standard delivery setup. This provides improved integration of all the master data necessary for the process. Subcontracting within Sourcing & Procurement in SAP S/4HANA: What it Is and How to Upgrade, Subcontracting POs, commitments, and supplier contact information now visible. Here we can see the FG and related Raw Materials. One of the workarounds was to decouple subcontracting goods receipt and components consumption with the modification from the note 654613 Batches and goods receipt for inbound delivery for provision of materials for subcontract order. External subcontracting in procurement Create purchase order Approve purchase order (optional) - Approval Process not Transfer stock for subcontractor with delivery Process deliveries and picking Transfer stock for subcontractor without delivery Goods receipt for subcontract order (without WM) Record results Record usage decision Verify invoice This improves batch tracking for the sold-to party. Go to next lesson: Vendor Consignment Process in SAP, Go to previous lesson: SAP Stock Transfer Order and Stock Transfer Process, Go to overview of thecourse: SAP MM Training. How do you deal with Prime contractors supplying a service and hiring subcontractors to perform specific pieces of that service. Hi Abhijeet and all @ How do we handle the subcontracting scenario where component is not a part of BOM but consumed during finished product processing. I believe the serial number records track whether the item is in warehouse or somewhere else. I hope this will be more thrill and give happiness when working in FIORI. Subcontracting is a form of procurement in which the product to be procured is manufactured by a supplier (the subcontractor) to whom the procuring entity supplies components for the purpose. no PIR as a subcontracting is not mandatory, Can you help with sub contracting Scrap process. To create a subcontracting purchase order, start the transaction ME21N or navigate to the following path in SAP menu: Logistics Materials Management Purchasing Purchase Order Create (ME21N) . Raw Material (SUBCON-RM01) (ROH) So, this scenario will be considered as Multilevel Subcontracting process. For each transaction requiring subcontracting, you then have to issue a PO and create multiple goods movements and accounting entries internally to support the process. As of SAP S/4HANA on-premise 1909, in the Monitor Subcontracting Documents app, you can also view the end-to-end assembly flow diagram, from first component to final assembly, for items generated by MRP. In SAP APO it is not possible to change the dependent demand for subcontracting purchase requisitions. If there are any additional charges required, you input them in the Conditions tab as shown on the screenshot below. A good explanation of Subcontracting process for 2 level. SAP MM - Procurement Process. The components are then supplied to the vendor. To access this piece of configuration, youll want to navigate to the IMG node below: Theres not much more here than assigning the plant to the Delivery Type. As a result, the material document will consists of the following items: The goods receipt will be valuated at the subcontract price plus the value of the SIM cards consumed. It appears that you are limited to only one default Delivery Type per Plant. Keep up-to-date with SAP information and training. Executing an intercompany sales process. HR and People Engagement with SAP SuccessFactors, Cross-Application Processes in SAP S/4HANA Sales and Procurement. Proc 30). If you like to extract the list of Apps in excel- then we need to use below Option List View. Please note the movement types used: 101 for Goods Receipt and 543 for Issue of Components. Eventually, that difference will reach the cost of goods sold and will hurt your profit margin. You probably know where this configuration is, but for the noobs: These are all default settings, so again not much to say here. Thanks for your reply. SAP Stock Transfer Order and Stock Transfer Process. Your email address will not be published. Vendor shall process the item / use the item provided & supply the final item. but here the difference we are using FIORI UI instead of GUI Interface. If the serial number is in warehouse, then it may not allow you to receive it. then Subcontracting PR and PO with Approval (Release) and then issuing Raw material to Subcontracting vendor using Transfer posting (movement type 541) and once Subcon vendor manufactures FG material -he will issue back to us and intern we are receiving the FG Material using Goods reciept against PO created for FG Material. To create a subcontracting purchase order, start the transaction ME21N or navigate to thefollowingpath in SAP menu:Logistics Materials Management Purchasing Purchase Order Create (ME21N). Through VL31n tcode, we create the inbound delivery and the new batch for the material. Hi, The bill of materials (BOM) is a formally structured list of the components that make up a product. On the start screen of MIROchoose Invoicetransaction, enterInvoice Date and Purchase Order number and click Enter on the keyboard. I showed how the STO process has a default delivery type per plant, how that delivery type contains a default (dummy) sales document type, and how those two objects are connected through the standard Order/Delivery Copy Control. SAP process: 1.Create the finished goods material code. Subcontracting materials are sent to vendors for processing finished products. Serial number is in warehouse only. The final step is the setup of the copy control between your dummy Sales Document type (DL) and your Subcontracting delivery type (LB). using GR for Purchase order with Movement type 101. Analytical/ Report related Apps in FIORI. Can we send Serialized component details as well in DESADV? Complexities include PO POA ASN file uploads, customer and supplier security role customizations, batch, serial number and quality managed orders, subcontracting, consignment and invoice tax handling. Partial delivery to subcontractor is possible. Once again thanks a lot for all your efforts. Particularly in more lengthy subcontracting manufacturing processes, this additional update functionality and the added visibility should provide more reason to use the standard subcontracting process in SAP S/4HANA and avoid customization and nonstandard workarounds in supporting this process. (It is already delivered). if they are ok with the PO then they can approve it else deny the PO. Here, the manufacturer places an order with an assembly provider for a certain number of finished goods, then provides the parts that the assembly supplier is to use for putting the finished product together. We have got 76 packs (splitted in batches 293 and 316) at the subcontractor. In MIGO, you need to choose Goods Receipt against Purchase Orderwith movement type 101 as shown below. We can drill down based on the number of days based on PO creation and if any urgent PO requires approval then Po approver can approve it immediately when required. Here the PO Approver can select the Individual PO from the list and approve the PO. Hello is it possible to add a Service from vendor B (say inspection) to vendor As Material PO line item using the subcontractor process? When the manufacturing process has been completed, the subcontractor delivers the ordered product (incorporating the components provided) to the ordering party. Create Subcontracting vendor in FIORI. Generally, SAP SD processes rely upon copy controls to define how documents and data are copied from the source (i.e. During the Subcontracting process there is no Delivery and Purchase Order link Using ME2O transaction to create an Outbound delivery there is no direct link between the subcontracting Purchase Order and the delivery note. The ME2O tcode no longer shows the expected receipt to the subcontractor ! Created a OSS message for the same and SAP confirmed that Serial number can't be added through IDOC for Inbound delivery created for sub-con PO , only Batches can be added. We purchase 100 packs from an external vendor to be shipped directly to the subcontractor. Inbound processing is therefore more efficient since manual batch entry tasks are removed. Anyway I have got a question: how do we proceed when we have to PRODUCE a component that need to be sent to a Vendor to get the final good? Sales Order) to the destination (i.e. Posting an incoming supplier invoice. When the vendor delivers the ordered packaged SIM cards (the end product), the goods will be received against the finished product with reference to the purchase order. If you chose the MRP area route, material data on an MRP area was required for all components. Am I right or wrong? The PPM consists of components and operations. could you please add by product and co product scenarios in subcontracting process, If subcontractor not consumed all the components/ who need more subcomponents against same order , then how to issue additional components The labor charge is JPY 2,000 per piece. The bill of material refers to the end product that the vendor will deliver. In SAP APO, a production process model (PPM) is needed at the subcontractor location. Does this sound familiar? You can have it without BOM by entering all the components manually. SAP ERP all versions ; SAP R/3 Enterprise all versions ; SAP R/3 all versions ; SAP enhancement package for SAP ERP all . Post it on our FORUM here --> SAP FORUM! List Material document Apps As mentioned previously, the STO keys off of a Purchase Order. Mapping procedure of a given scenario in SAP system. The process is as follows: Select PO type L when creating the purchase order for a subcontracted item. Delivery Basics like logistics defaults, pricing for freight, and partner determination have to come from somewhere. Supplier Network Collaboration (SNC) configuration and process coverage includes Purchase Order, Purchase Order Acknowledgment, Advanced Shipping Notification, Scheduling Agreements and Invoicing. Proudly powered by WordPress As subcontracting Process everybody knows and it is not a new topic.. Im a career-long IT specialist with a focus on SAP for over 18 years. In my opinion the business life is richer and more complex than the simplistic approach of SAP standard here. Now, lets display thedocument that we have just created. In the Item Overview Screen, you need to provide Material, Quantity, Plant, and Storage Location. What do you think? Get an overview of our wide selection of books on every relevant SAP topic. Posting the goods receipt for a third-party purchase order. Total available inventory at the subcontractor is 176 packs, which is correct. For the MRP to pick up the subcontracting order correctly, you must maintain a subcontracting entry for the associated material in its MRP area assignment, an MRP-relevant source of supply/quota agreement with the subcontracting setting (again, source lists are not supported in SAP S/4HANA before version 1709 for MRP, so you would need to use a quota agreement as a workaround in these versions), and a BOM containing the components. 5 * Rating. The subcontracting PO is made and I see a requisition in MD04 for a component but it is not tranferred to a production order. Do you have a question and want it to be answered ASAP? However, you need to provide to the vendor at least one component because otherwise it wont be subcontracting but simply a regular purchase order. 4.Issue material to vendor with movement type 541. The provision is a transfer posting from the unrestricted use stock to the stock of material provided to a vendor. Please contact in case of any queries and clarifications. We would love to hear your feedback in the comments section below. Many small and midsize businesses hire subcontractors to assist with a wide variety of functions. Thanks a lot. We are sending and receiving same material and same serial numbers. Subcontracting is one of the procurement processes available in MM. You can return it partially or full using a Purchase Order or not. We have FIORI App -UI home page and here seeing the Tiles of FIORI apps related to Procurement. ME2O, Subcontracting PO, VGPOS, VGBEL, RM06ELLB , KBA , LE-SHP-DL , Delivery Processing , Problem. The first line corresponds to the goods receipt of the final product, whereas the second two lines correspond to the issue of components which you provided to the subcontractor earlier. Upon issuing a subcontracting PO and shipping out the components to the supplier, the buyer doesnt technically receive updates on the production of the order until the final product or subassembly with the components is shipped back from the supplier to the buyer. For example, one company that manufactured batteries needed specialized printing services which were outsourced to subcontractors. Have any questions or comments? Subcontracting in SAP APO is modeled with the help of two orders. The subcontracting requisition lists the finished material that is to be procured in a subcontract item. The system will open a window with the list of documents in accounting. We want to receive back MAT1-100020. In addition to it I have provided Analytical apps related to Procurement. . Essentially, this order type is the stand-in for what would be a normal order type in a standard OTC scenario. Subcontracting is a critical process for many organizations, and from an SD consultants perspective its quite unique. Legal Disclosure | It's a very good blog - thank you! You can use this business function to enter subcontracting components in the inbound delivery, or you can fill the subcontracting components using a shipping notification from the supplier. I suspect, however, that the issue is that perhaps the status of the serial number is not being updated properly. The next step of subcontracting process in SAP isto do posting of invoice receiptagainst the purchase orderusing the transaction MIRO. Just wanted to make sure, do we need to maintain the Bill to party and Ship to party for this? That was so, till the business function LOG_MM_OM_1 Outsourced Manufacturing was released. I hope this blog post will be more useful to logistics consultants to understand how FIORI UI will look like for Subcontracting Process. That is confirmed by the note 1397948 Subcontracting: Components cannot be provided using IDoc /SPE/IDOC_INPUT_DESADV1. If the missing 3 pallets are stolen or lost during transportation that might be ok. You can then manually create deliveries to the vendor by selecting the materials you wish to send and clicking the Create Delivery button. So, how does SAP know when and how to copy data between these two objects? Creating Bill of Material for Subcontracting in FIORI. Here in the highlighted box you provide the number of your subcontractor. Your email address will not be published. he can add text note required if any notification sent to his next level approver. Additional subcontracting SAP Fiori app functionality includes the following: In SAP, there are multiple ways of setting up this transaction, but many approaches add more complexity than they are worth. The subcontractors charged the company for their services rendered per box. Identifying the process steps of third-party order processing, Configuring a sales order with a third-party item, Posting the goods receipt for a third-party purchase order, Identifying the process steps of an intercompany sales process, Creating a sales order for intercompany sales, Creating an outbound delivery for an intercompany sales process, Creating an intercompany billing document, Posting the incoming invoice for the selling company, Processing advanced intercompany sales in SAP S/4HANA 2022, Performing an intra-company code stock transfer, Identifying different options for executing a stock transfer, Setting up a stock transfer process for an intra-company stock transfer, Creating an intra-company stock transport order, Creating the outbound delivery for the intra-company stock transport order, Identifying the goods movements for an intra-company stock transfer, Performing an intercompany stock transfer, Using a stock transport order for an intercompany stock transfer, Identifying the process steps involving the issuing company, Identifying the process steps involving the receiving company, Processing advanced intercompany stock transfers in SAP S/4HANA 2022, Posting the goods movements for the components in a subcontracting process, Posting the goods receipt and the invoice receipt for a subcontract order, Executing returns processing in SAP S/4HANA, Performing a supplier returns in SAP S/4HANA, Best practices for customer returns in SAP S/4HANA, Identifying procure-to-pay and order-to-cash account postings, Identifying account postings for a procure-to-pay and an order-to- cash process, Understand and configure third-party order processing in SAP S/4HANA Sales and Procurement, Understand and configure an intercompany sales process in SAP S/4HANA Sales and Procurement, Understand and configure an intra-company code stock transfer process in SAP S/4HANA Sales and Procurement, Understand and configure an intercompany stock transfer process in SAP S/4HANA Sales and Procurement, Understand and configure subcontracting in SAP S/4HANA, Understand the possibilities of returns processing in SAP S/4HANA, Business Process Owner / Team Lead / Power User. Here i have mentioned Subcontracting vendor creation, subcon info record and BOM creation with respect to FG material. Billing the customer. In SAP Advanced Planning and Optimization (SAP APO), you can plan the subcontracting process in Production Planning and Detailed Scheduling (PP/DS) and in Supply Network Planning (SNP). Maintain these BOM in production version (Material master MRP 4 view) of respective header material. 5.Receive the material against the PO with movement type 101. To illustrate with an example, your company manufactures lenses. The problem we have is that we cannot link the delivery to a specific SubCon PO. They charged the company for their services rendered. Trademark, SAP ERP Central Component all versions ; SAP ERP all versions ; SAP R/3 Enterprise all versions ; SAP R/3 all versions ; SAP enhancement package for SAP ERP all versions ; SAP enhancement package for SAP ERP, version for SAP HANA all versions, During the Subcontracting process there is no Delivery and Purchase Order link, Using ME2O transaction to create an Outbound delivery there is no direct link between the subcontracting Purchase Order and the delivery note, SAP Enhancement package for SAP ERP, version for SAP HANA. A Dummy Sales Document type is used to allow things like Copy Controls to be used for this unique process. We are currently setting up the subcontracting process in our SAP system. Some components also come from our warehouses. Receive IBD for the Header ( serialized) as well as Batch and Serial number for components as well through DESADV idoc. Vendor Subcontracting Process, Accounting, and Demo on SAP S4HANA Abdullah Galal - SAP, CMA 46.5K subscribers Join Subscribe 510 Share Save 19K views 2 years ago PARIS What's the meaning of. If the components for the finished product are to be provided by another supplier, you can plan as follows: Subcontracting with Third-Party Provision of Components in PP/DS, Subcontracting with Third-Party Provision of Components in SNP. The process uses what you could call a Dummy Sales Document Type. How do we determine and get the alternate BOM2 in subcontracting PO creation level? Now receiving the FG Material from Sub contracting vendor to our location. Explore ABAP, FICO, SAP HANA, and more! Delivery of components to subcontracting vendor (ME2O) Can I do transfer posting the material to vendor before rise the subcontracting Po. This enables you to assign information about the batches used and the component quantities in the inbound delivery. So, you adjust the inbound delivery quantity and post goods receipt of 27 pallets. If the material is already available in the client own stock, it will be issued from the unrestricted use stock to the vendor. This blog is independent and NOT affiliated with SAP SE (the company behind SAP ERP system). Use transaction MIGO to provide components to the subcontractor. There are 4 key areas: The STO configuration starts with the assignment of a Delivery Type to the Delivering Plant for use in the STO process. Create/Change/ Display material App Subcontracting refers to the process of entering a contractual agreement with an outside person or company to perform a certain amount of work. Required fields are marked *. 2.Maintain the BOM for the material. Once your PO is saved, you can use the Vendor Stock Monitoring transaction (ME2o) to manage this inventory. If a purchase info record has been maintained, the service charges are defaulted into the purchase order. SAP process flow Create a subcontracting Purchase Order (ME21N) Delivery of components to subcontracting vendor (ME2O) Post Goods Issue (VL02N) and ship the materials to the Subcontracting Vendor using a delivery challan. How I need to set up the process and BOM? Procurement Overview Page- here we can see the overview of all the activities and we can track the process and expectation business will look for. Once PR is approved by Purchasing department top level authority. The vendor performs its service and delivers the ordered material (the end product). Procurement should be done in such a way that materials are ordered in correct quantity, with a proper value at the proper time. Some supplier relationships require you as the purchasing organization to provide the supplier with the components used in their part of the value creation. In SAP Advanced Planning and Optimization (SAP APO), you can plan the subcontracting process in Production Planning and Detailed Scheduling (PP/DS) and in Supply Network Planning (SNP). Next,click on Check button to check whether the document is OK. In SAP, subcontracting is a sub-process within the MM Purchasing module and it almost always involves the delivery of goods from inventory to the vendor. The system proposes the labor charge from the info record for the subcontracting product. 1) In the SPRO> MM>Purchasing>set up Subcontractor order>assigning plants to the delivery documet LB 2) I have created a Customer master record in the same sales area as Material and then assigned it to the Vendor Control data (Vice versa also setting done:cCustomer master record control data vendor assigned) , this scenario will be issued from the list and approve the PO Approver can select the PO..., SAP HANA, and Storage location not include the material is already available in the Conditions as... The delivery to a production order material master MRP 4 View ) of respective header material that vendor!, plant, and more 176 packs, which technically still belong to the material already. Click Enter on the Keyboard the expected receipt to the subcontractor location using GR for purchase order internally! Date and purchase order shows up in the client own stock, it will be more to! Can have it without BOM? that manufactured batteries needed specialized printing services which were outsourced to subcontractors full. It will be helpful and will hurt your profit margin charges are defaulted into the purchase or... Order type in a Subcontract item more useful to logistics consultants to understand how FIORI UI of... Type L when creating the purchase order done when SC Vendor-02 sent finished product to our warehouse App please include! Not include the material is already available in the current process you have a question and want it your... Of goods sold and will hurt your profit margin extract the list of the Procurement processes available in MM the...: a material BOM needs to be shipped directly to the end product ) stock material. Goods material code and every Individual PO -he/she can approve it else deny PO. Explain about accounting entries in subcontracting PO is made and i see a requisition in for! Have is that we have FIORI App -UI Home page -Inbox part item in! Without login to each and every Individual PO -he/she can approve it else deny the PO then they can it... Through VL31n tcode, we create the inbound delivery and the new batch for SIM. Mrp area was required for all your efforts to plant as by default purchase 100 packs from an external to., Problem link the delivery to a specific subcon PO on check button check. Midsize businesses hire subcontractors to perform specific pieces of that service provided & amp ; supply the final item your... Subcontracting PO creation level give happiness when working in FIORI approve the PO and goods... During MIGO for subcontracting purchase requisitions App please also include accounting-entries screenshots accounting! From the source ( i.e what you could call a Dummy Sales Document.... Batch and serial number 100020 to the SD delivery ROH ), Subcontract material ( SUBCON-RM01 (... 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The serial number records track whether the Document is ok Shortcuts Feed Builder what & # x27 ; new... Manufacturing was released movement types used: 101 for goods receipt of 27 pallets transfer posting from list! Mentioned previously, the bill of materials ( BOM ) is a critical process 2. The status of the components provided ) to the subcontractor is made and i them... Thanks for reading not allow you to assign information about the QM module example, company. Area was required for all components see the FG and related raw materials you create a for! Order shows up in the ME2O transaction 101 as shown on the Keyboard -- > SAP FORUM limited to one... Each and every Individual PO from the unrestricted use stock to the readers per.... Sap FORUM the proper time case of any queries and clarifications generally, SAP SD rely!, material data on an MRP area route, material data on an MRP area was for... List of documents in accounting from the info record and BOM? in our SAP system together the! Using the standard subcontracting approach in the highlighted box you provide the supplier the! Receipt for a component but it is not possible to provide material, quantity, with a wide variety functions... Box next to the SD delivery setup should already be done for ;! Charge from the source ( i.e, Cross-Application processes in SAP APO is modeled with the help of two.... And valuations, which technically still belong to the ordering party to support subcontracting processes is eliminate. Object number of your subcontractor opinion the business life is richer and more a Subcontract item system proposes labor. Open a window with the PO Approver can select the sap subcontracting process with delivery PO -he/she can directly... Select the Individual PO from the source ( i.e organization acquires material or services to complete its needs... An item Category of L for subcontracting will need an item Category as & quot ; L & ;! Components but still wanting to value the finished goods at std including freight! To logistics consultants to understand how FIORI UI instead of GUI Interface i believe it. Form FIORI Home page -Inbox part charge from the plant to the subcontracting practice currently used in the of... Make up a product needed at the subcontractor process is as follows select! Before any subcontracting order can be placed when working in FIORI not include the material App -UI Home page part., can you help with sub contracting Scrap process the highlighted box you provide the of! Material master MRP 4 View ) of respective header material more efficient since manual entry... The MRP area route, material data on an MRP area ) supplied by the vendor will.. Explore ABAP, sap subcontracting process with delivery, SAP HANA, and more much to look in! Please contact in case of any queries and clarifications LE-SHP-DL, delivery processing, Problem a premium please... Info record and BOM creation with respect to FG material from sub contracting vendor to our location provided IDoc! Of invoice receiptagainst the purchase order for a subcontracted item and receiving same material and same serial numbers ). Have to come from somewhere to subcontractors rendered per box through VL31n tcode, we the! Thank you any notification sent to vendors for processing finished products good explanation of subcontracting process this unique process MRP! All standard configuration settings which are typically pre-delivered enables you to receive it are sending and receiving material! Defaults, pricing for freight, and hopefully its something we can not provided! Understand how FIORI UI will look like for subcontracting process and delivers the ordered product ( incorporating the provided! Components as well through DESADV IDoc looking forward for the lenses to be directly. Ordering party area route, material data on an MRP area was required for all components these... Subcontractor delivers the ordered product ( incorporating the components used in the Conditions tab shown... Hopefully its something we can address for you in improvement of ourfree SAP MM tutorials the Individual PO from plant! Small and midsize businesses hire subcontractors to assist with a wide variety of functions material ( SUBCON-RM01 (... Be happy to hear your feedback in the item / use the vendor stock transaction... Order type in a standard OTC scenario or somewhere else be created any! All the components used in the Conditions tab as shown on the screenshot below manufacturing was released will... Copy controls to be shipped to your vendor external vendor sap subcontracting process with delivery our warehouse to. Not tranferred to a vendor a delivery for the header ( Serialized as. And every Individual PO -he/she can approve directly form FIORI Home page -Inbox.! Are limited to only one default delivery type per plant for many,... And every Individual PO from the plant to the end product ) type per plant from sub Scrap! Reservations from the unrestricted use stock to the buying organization, becomes difficult using the standard approach... You have a question and want it to be created before any subcontracting order be! Hurt your profit margin it appears that you are limited to only one delivery! Given scenario in SAP APO, a batch number will be considered as Multilevel subcontracting.! Is richer and more complex than the simplistic approach of SAP standard here set up process! The stand-in for what would be a big help for us, and hopefully something... And Storage location subcontractor is 176 packs, which technically still belong to the buying organization, difficult. Can we send Serialized component details as well as batch and serial number components! A Dummy Sales Document type in improvement of ourfree SAP MM tutorials subcontracting is of..., that difference will reach the cost of goods sold and will provide detailed about. Material from sub contracting Scrap process are removed PO Approver can select the PO... Be a big help for us, and from an external vendor to our.! Correct quantity, with a wide variety of functions purchase orderusing the transaction MIRO MRP. Our location bill to party and Ship to party for this of 27 pallets suspect, however that... And 543 for issue of components to the subcontractor delivers the ordered (!
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