Through VL31n tcode, we create the inbound delivery and the new batch for the material. Posting Transfer Posting stock from own stock to Sub contractor . Here we can see the FG and related Raw Materials. Please keep posting the knowledge. The vendor charges for his or her service. 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). The requisition for subcontracting must contain the item category L which is used for subcontracting in the SAP system. SAP Training Shop is not currently supported on Internet Explorer. Do you have a question and want it to be answered ASAP? If you elected to plan without MRP areas, you werent able to use the full functionality around lot sizing and were only able to order full lot sizes. Thanks a lot. 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: Subcontracting is one of the procurement processes available in MM. In previous versions of SAP ERP, component materials to be provided to the subcontractor could be planned as a separate stock. if yes do you have example idoc. Proudly powered by WordPress We have FIORI App -UI home page and here seeing the Tiles of FIORI apps related to Procurement. Sub contracting Info Record Created in FIORI. In this scenario as shown in below structure, two raw materials (SUBCON-RM01 & SUBCON-RM01) are provided to first subcontracting vendor (SC Vendor-01). If there are any additional charges required, you input them in the Conditions tab as shown on the screenshot below. The labor charge is JPY 2,000 per piece. Next, click OK checkboxes as shown below. Now, click Explode BOM button to open the below screen, where you provide your components to the subcontractor. How to edit personnel no. When the manufacturing process has been completed, the subcontractor delivers the ordered product (incorporating the components provided) to the ordering party. Explore ABAP, FICO, SAP HANA, and more! You probably know where this configuration is, but for the noobs: These are all default settings, so again not much to say here. So it will automatically explode when we create purchase order. However, with SAP S/4HANA, a subcontracting MRP area is the default option for subcontracting planning. There are relatively few logistics-related fields. However, the integration with an SAP ERP system requires at least SAP ERP 2005 with Enhancement Pack 03. 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. Lets take a closer look at the handoff from Purchasing to the SD Delivery. The transaction shows the requirements for materials from the specified vendor and displays a color coded status in green if the vendor has sufficient quantities of the components, in red if the vendor does not. Procurement Overview page Apps. My question is , already we issued raw materials to vendor with 541 Movement type, why again 543? They charged the company for their services rendered. This often is used as justification by finance and other stakeholders on the buyer side for setting up phantom plants to represent the supplier and then moving and tracking the materials in these plants. System will allow to receive same serial number after subcontracting. Here i have mentioned Subcontracting vendor creation, subcon info record and BOM creation with respect to FG material. 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 System throws error message and wont allow to receive same serial number. Just wanted to make sure, do we need to maintain the Bill to party and Ship to party for this? a reverse of me2o ? 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. However, there is no copy control from an STO PO to an SD Delivery. Subcontracting within Sourcing & Procurement in SAP S/4HANA: What it Is and How to Upgrade, Subcontracting POs, commitments, and supplier contact information now visible. Posting the goods receipt for a third-party purchase order. If you take a look at the delivery type defined in step (1), youll notice a setting in the Order Reference area called Default ord.ty.. We are currently setting up the subcontracting process in our SAP system. The stock of the components provided to vendor is reduced as if the entire 30 pallets are shipped. Subcontracting in SAP APO is modeled with the help of two orders. Executing an intercompany sales process. WElcome to the world of Subcontracting to deliver fast, accurate and quality stuff, that will exceed your customer's expectations Prozia (PMC) is an offshore delivery center based in NCR region, India. (ls_comp-fmeng = abap_true). I believe, It will be helpful and will provide sufficient information to the readers. This purchase order shows up in the ME2O transaction. the issue of components which we provided to the Subcontractor is triggered to 543 Movement type Theres actually quite a bit that goes into the Subcontracting with delivery process. The system will generate a purchase order number internally. Post Goods receipt for PO & Good Movement App The system proposes the labor charge from the info record for the subcontracting product. During the MRP run, the system explodes the BOM requirements and classifies dependent subcontracting elements as such. I've just check that serial numbers are visible in the IDoc structure on both levels: But I don't have ready made examples. Sales Order) to the destination (i.e. Create/Change/Display Procurement Info record App 2.Maintain the BOM for the material. (here material and components are MAT1 only). Tracking the materials and valuations, which technically still belong to the buying organization, becomes difficult using the standard process. In our process, it happens that some components (raw materials) are being purchased from an external vendor to be directly shipped to the subcontrator. In addition to it I have provided Analytical apps related to Procurement. If the serial number is in warehouse, then it may not allow you to receive it. it is more useful apps. Therefore the 27 pallets received will be 10% more expensive than planned. It's a very good blog - thank you! Simple and in an easy language. 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. But SAP does not give here any flexibility. However if they have never been shipped due to a loading problem on the subcontractor side, that is definitely not ok. A subcontracting product is valued with the price of the service plus the cost of the components. Subcontracting will appear under the general plant stock if there is no MRP area maintained for the supplier. in the case of not providing components but still wanting to value the finished goods at std including inbound freight? If the missing 3 pallets are stolen or lost during transportation that might be ok. Against each subcontracted item the system copies the material components that are to be provided to the vendor from the bill of material (BOM). Help. My previous response was more about serial numbers on inbound delivery item level, not on subcontracting component level. Analytical apps related to PR, PO, GR, IV- Your usage of this website signifies your agreement with our terms and conditions. It means that the Cost(per unit) which is reflecting in MIGO is sum of raw material and the additional cost given in condition tab in subcontract PO. When we hire Alerting is not available for unauthorized users, Right click and copy the link to share this comment, Approve purchase order (optional) Approval Process not, Transfer stock for subcontractor with delivery, Transfer stock for subcontractor without delivery, Goods receipt for subcontract order (without WM). Lets start with discussing the steps that are involved in the subcontracting process in SAP. The components are posted to the stock of materials provided to the vendor. Hello is it possible to add a Service from vendor B (say inspection) to vendor As Material PO line item using the subcontractor process? 1) Post Goods Issue according to the Purchase Order number (4500000863) above. Once your PO is saved, you can use the Vendor Stock Monitoring transaction (ME2o) to manage this inventory. Hit enter to search. It brought: Subcontracting Components in Inbound Deliveries. That is confirmed by the note 1397948 Subcontracting: Components cannot be provided using IDoc /SPE/IDOC_INPUT_DESADV1. Generally, SAP SD processes rely upon copy controls to define how documents and data are copied from the source (i.e. Any one help me to this query ASAP? Proc 30). This blog is independent and NOT affiliated with SAP SE (the company behind SAP ERP system). Depending on the case it may be correct or not. demand for the finished item in the subcontractor location, nor can you change the component demand in the subcontractor location. Identifying the process steps of an intercompany sales process. They sent a DESDAV / DELVRY07 message and it creates an inbound delivery in your system. Not using Migo or MB1B and 542 movement type. We have got 76 packs (splitted in batches 293 and 316) at the subcontractor. Click on Simulate button which will notify you of any errors. Question If I send Material A to the subcontractor and later I receive 90 % of Material B and 10 % of Material A, how can we handle this? We use ME2O, check the box next to the material then click on create delivery. The fixed quantity indicator is always set automatically for all components, so that no correlation occurs for the component quantities when changes are made to the inbound delivery quantity. Can you let me know what are the default settings for the Availability check for Subcontracting POs? it again depends on the user decision. Inbound processing is therefore more efficient since manual batch entry tasks are removed. We are sending and receiving same material and same serial numbers. The liability created will only be of the amount charged by the vendor for processing and does not include the material component value. Double click on Accounting Document. Adding this value will open up the Components button located on the item Material Datatab. Subcontracting Purchase Order to SC Vendor-01, 1) Create Subcontracting Purchase Order to SC Vendor-01 for material (ME21N), 2) Indicate SC Vend in Item Detail Delivery tab to SC Vendor-02 (also tick the check box), 4) In the item detail tab,Material data click on components and Explode BOM 1. The next step in the subcontracting process is the transfer of the repairable part together with additional components to the vendor. 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