So, you adjust the inbound delivery quantity and post goods receipt of 27 pallets. Now, lets display thedocument that we have just created. I can not see the images Any idea why or how could I see them? Visit SAP Support Portal's SAP Notes and KBA Search. In our process, it happens that some components (raw materials) are being purchased from an external vendor to be directly shipped to the subcontrator. Next, click OK checkboxes as shown below. Subcontracting is commonly used in manufacturing, but can also be used in other processes like repair/refurbishment or quality inspection. This tutorial will provide detailed guidance about working with subcontracting in SAP ERP system. Material document posted and stock is placed in our location. Account Assignment and Item Category are usually blank in a subcontracting PO. Vendor shall process the item / use the item provided & supply the final item. if yes do you have example idoc. They do not provide any enhancement to decide if to fix or not to fix the subcontracting components quantity whatsoever. Thanks for visiting. Thats about it. The outside person or company in this arrangement is known as a subcontractor. user can view the list of the transactions he/she used recently in left side of the home page.using Edit option they can customize i mean arrange the FIORI apps tiles based on their requirement. Save my name, email, and website in this browser for the next time I comment. Through Screen shots process is self explanatory. This is where you maintain all the components which need to be sent to the vendor. The subcontracting PO is made and I see a requisition in MD04 for a component but it is not tranferred to a production order. If you chose the MRP area route, material data on an MRP area was required for all components. 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. Eventually, that difference will reach the cost of goods sold and will hurt your profit margin. In subcontracting process, raw materials are provided to subcontracting vendor. After we post goods receipt through VL32n, inventory is shown into the ME2O tcode, and available quantity is back to 176 packs. Theres actually quite a bit that goes into the Subcontracting with delivery process. Delivery of components to subcontracting vendor (ME2O) These two options are now combined into one driven by MRP areas, but it doesnt require material data on all components and can support full-lot sizing and sourcing functionality. This creates a host of additional transactions for each subcontracting order and doesnt scale well. PO Approval App. Did you like this SAP MM tutorial? ERProof SAP MM SAP MM Training Subcontracting Process in SAP. Info button. We would be happy to hear your feedback or questions. List Material document Apps It will open the screenshot shown below. In this blog, SAP Sourcing and Procurement consultant will be able to learn the concept and mapping procedure of Multilevel Subcontracting Process with Two Subcontractors in SAP system. 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. Learn how to integrate SAP S/4HANA with SAP Ariba, SAP Fieldglass, and more. Searching PR creation apps in Apps Finder in FIORI screen. Create/Change/Display/manage/ My Purchase requisitions App PR Created and purchase requisition sent to Approval. 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. View all posts by Michael. You create a subcontract order, following the standard procedure. How to Configure SAP S/4HANA Asset Maintenance Subcontracting. During the MRP run, the system explodes the BOM requirements and classifies dependent subcontracting elements as such. PR creation through FIORI Apps- Create PR apps. 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 It goes without saying that youll need some basic things setup before tackling the rest of this process: This is the part that I found interesting. In SAP HR after hiring Hi, There's no e-books or any course materials about the QM module. Without knowing the error message, it is tough to diagnose the issue. 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? If none, a green light will turn on near Balance fieldand the SAP system will show you accounting document which will be created. user will convert to PO. 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. Im going to highlight the standard configuration as it exists within a standard S/4 HANA system. 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. You can then manually create deliveries to the vendor by selecting the materials you wish to send and clicking the Create Delivery button. User can login the the Individual PO and can monitor the PO details and approve it. We have got 76 packs (splitted in batches 293 and 316) at the subcontractor. Did you learn something new? Very useful content , Thanks for sharing with us. 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. Does this sound familiar? The system proposes the labor charge from the info record for the subcontracting product. Another example of the subcontracting process in SAP is whena company provided raw sims and packaging materials to a subcontractor. 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). The list contains the object number of each component, together with the quantity and unit of measure. 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. In general terms, subcontracting is the outsourcing ofsomeprocess to an external vendor. Also, you need to provide Material, Quantity, Delivery Date, Plant, and Price. Sales Order) to the destination (i.e. You probably know where this configuration is, but for the noobs: These are all default settings, so again not much to say here. For subcontracting with the Supplier Network Collaboration (SNC) configuration and process coverage includes Purchase Order, Purchase Order Acknowledgment, Advanced Shipping Notification, Scheduling Agreements and Invoicing. Its being processed by subcontracting vendor, convert it to semi-finish material and deliver back. The bill of material refers to the end product that the vendor will deliver. Posting the goods receipt for a third-party purchase order. Thanks a lot!!!! However, with SAP S/4HANA, a subcontracting MRP area is the default option for subcontracting planning. The labor charge is JPY 2,000 per piece. SAP process flow 1. The liability created will only be of the amount charged by the vendor for processing and does not include the material component value. The components that the vendor needs to manufacture the end product are specified in the subcontract order. Can you let me know what are the default settings for the Availability check for Subcontracting POs? This enables you to assign information about the batches used and the component quantities in the inbound delivery. using GR for Purchase order with Movement type 101. Easily understood and completed my Sub-contracting entry. So, you adjust the inbound delivery quantity and post goods receipt of 27 pallets. Now, when the subcontractor returned the materials after performing the workyou need to enter the received finished material back into the SAP system by using the transaction MIGO. 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. A planned order in the subcontractor location produces the material in that location and a stock transfer requisition transfers the material from the subcontractor location to the demand location. 2.Maintain the BOM for the material. Lets start with discussing the steps that are involved in the subcontracting process in SAP. But SAP does not give here any flexibility. Get unlimited access to all SAP PRESS books! We are sending and receiving same material and same serial numbers. Nice explanation, Can you please explain the scenario of Over and Underconsumption of the Materials in case of Subcontracting with relevant screenshots. 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). 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. We want to receive back MAT1-100020. Depending on the case it may be correct or not. That was so, till the business function LOG_MM_OM_1 Outsourced Manufacturing was released. Activating PR & PO Approval Notification. 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. Required fields are marked *. it is more useful apps. Therefore the 27 pallets received will be 10% more expensive than planned. Ive been blogging about SAP and various other interests since 2013. 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. Is the Info record mandatory in subcontracting ? Once again thanks a lot for all your efforts. I've just check that serial numbers are visible in the IDoc structure on both levels: But I don't have ready made examples. See the future of sourcing and procurement! 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. 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. Here in the highlighted box you provide the number of your subcontractor. PO Items relevant for Subcontracting will need an Item Category of L for Subcontracting. its plants), or indirectly (using another of its suppliers). SAP Training Shop is not currently supported on Internet Explorer. (It is already delivered). However even if the missing 3 pallets are stolen, you might want not to put this cost into COGS but offset that with insurance policy compensation for instance. 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) . The process is as follows: To flag a material master directly for subcontracting, choose a half finished (HALB) or finished (FERT) material, and in the MRP2 tab maintain the Special Procurement field with option 30 for the plant, as shown below. Through VL31n tcode, we create the inbound delivery and the new batch for the material. Now, during unloading you realize that 3 pallets are missing. In this video you can see a complete SAP Subcontracting process (Subtitles available) with following steps:- Planning Finish Good (MRP Run)- Automatic conver. Get step-by-step instructions to configure sourcing, invoicing, supplier management and evaluation, and centralized procurement. Hello. | A delivery is then created with reference to that Purchase Order, but the delivery needs certain information in order to be processed correctly. Make sure to implement the note 1397948 - Subcontracting: Components cannot be provided using IDoc /SPE/IDOC_INPUT_DESADV1 if you work with subcontracting components in DESADV IDocs. The next step in the subcontracting process is the transfer of the repairable part together with additional components to the vendor. Thank you, helped a lot. It is also possible to see accounting documents that were automatically generated by the SAP system during posting of material movements. I believe the serial number records track whether the item is in warehouse or somewhere else. What do you think? Next, click OK checkboxes as shown below. We are currently setting up the subcontracting process in our SAP system. Help. This is my first blog on SCN and I want to share my knowledge on Multilevel Subcontracting Process. Do you need to create a recipe for sub-contracting process? Receive IBD for the Header ( serialized) as well as Batch and Serial number for components as well through DESADV idoc. Raw Material (SUBCON-RM01) (ROH) Post it on our FORUM here --> SAP FORUM! They are summarized below: A material BOM needs to be created before any subcontracting order can be placed. How to Repackage a Transport Request (TR) in SAP? The bill of materials (BOM) is a formally structured list of the components that make up a product. Finally, click on Postbutton to save the invoice receipt (IR). Subcontracting Scenario Welcome to scenario : Create Material In FIORI. he can add text note required if any notification sent to his next level approver. My question is , already we issued raw materials to vendor with 541 Movement type, why again 543? Can any one explain me the step by step procedures of Subcontracting Out Bound Delivery, I have created the purchase order with the finished and the components, the components has to be to be moved to the subcontractor with outbound delvivery, following are the settings i have maintained, 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), 3) i am using only ME2O(NOT ZERO) Transaction for the Outbound delviery, 4)when i am pressing the create delivery in the ME2o report, Essential transfer parameters are missing in record: 000001:Message no. Implementation of "External Material Processing using Production Orders": Develop a process in SAP to support all efforts related to External Processing using Production Orders as the method for subcontracting. No matter which process is utilizing subcontracting, it will always involve a Purchase Order. 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. That is confirmed by the note 1397948 Subcontracting: Components cannot be provided using IDoc /SPE/IDOC_INPUT_DESADV1. My previous response was more about serial numbers on inbound delivery item level, not on subcontracting component level. Im a career-long IT specialist with a focus on SAP for over 18 years. Alerting is not available for unauthorized users, Right click and copy the link to share this comment, 645119 Problems for subcontracting using delivery, 338119 Goods receipt in inbound delivery for SC order, 654613 Batches and goods receipt for inbound delivery for provision of materials for subcontract order, 1397948 Subcontracting: Components cannot be provided using IDoc /SPE/IDOC_INPUT_DESADV1, 1397948 - Subcontracting: Components cannot be provided using IDoc /SPE/IDOC_INPUT_DESADV1. (ls_comp-fmeng = abap_true). Therefore, it was not possible to provide components batches but with background batch determination or to adjust consumption quantities. For a premium experience please use an alternative browser. A subcontracting purchase order is placed by converting the subcontracting requisition into a purchase order. PR approval App A subcontractor provides a product on pallets and they notify a shipment of a full truck load, of say 30 pallets. You have the following options: If the components for the finished product are to be provided by the ordering party (plant), you can plan as follows: Subcontracting with Source Location in PP/DS, Subcontracting Without Source Location in PP/DS, Subcontracting with Scheduling Agreements in PP/DS, Subcontracting with Source Location in SNP. Configuring intercompany sales. Display Material document App For example, one company that manufactured batteries needed specialized printing services which were outsourced to subcontractors. Thanks. Procurement Overview page Apps. System automatically selects movement type 101 O (GR to SC Vendor). Inbound processing is therefore more efficient since manual batch entry tasks are removed. When the manufacturing process has been completed, the subcontractor delivers the ordered product (incorporating the components provided) to the ordering party. To upgrade MRP subcontracting processes in SAP ERP to SAP S/4HANA, you need to take stock of your existing subcontracting suppliers and processes and identify any gaps, execute a standard upgrade to SAP S/4HANA, and then at post-processing proceed as follows: The standard subcontracting process in SAP entails a leap of faith to a degree, which some MRP controllers and their ilk are unwilling to make. 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) 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. The vendor will be billed only for items delivered. Your email address will not be published. Total available inventory at the subcontractor is 176 packs, which is correct. I believe, It will be helpful and will provide sufficient information to the readers. 4.Issue material to vendor with movement type 541. Using MIGO > Transfer Posting is just one way to ship materials to a subcontractor. SAP Steps: 1.Create the finished goods material code. I'm a career-long IT specialist with a focus on SAP for over 18 years. Your comprehensive guide to SAP S/4HANA sourcing and procurement is here! SAP PRESS is the world's leading SAP publisher, with books on ABAP, SAP S/4HANA, SAP CX, intelligent technologies, SAP Business Technology Platform, and more! 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. A subcontractor provides a product on pallets and they notify a shipment of a full truck load, of say 30 pallets. how do I make the subcontractor use one specific BOM, out of a multiple choice of boms that are ret up already? Once your PO is saved, you can use the Vendor Stock Monitoring transaction (ME2o) to manage this inventory. 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. A typical example in manufacturing would be assembly. This is possible with or without creating a delivery. 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. What is the process to create a RMA for a subcontract purchase order? Delivery Basics like logistics defaults, pricing for freight, and partner determination have to come from somewhere. Create Subcontracting vendor in FIORI. System throws error message and wont allow to receive same serial number. Please note the movement types used: 101 for Goods Receipt and 543 for Issue of Components. Try to test the IDocs with WE19 transaction. Also in previous versions of SAP ERP, you could check subcontracting stocks by supplier by running reports from a specific IMG menu path. Online Help Keyboard Shortcuts Feed Builder What's new 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. Not using Migo or MB1B and 542 movement type. Proc 30). Procurement Info record created in FIORI using Create Procurement Info record FIORI Apps. First, well start with. If the material is already available in the client own stock, it will be issued from the unrestricted use stock to the vendor. Subcontracting in SAP APO is modeled with the help of two orders. Thanks for the question, Kumar. if they are ok with the PO then they can approve it else deny the PO. Process Flow. 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. The subcontractor converted the raw sims into finished sims well packed and returned finished product back to the company. We would love to hear your feedback in the comments section below. Here i have mentioned Subcontracting vendor creation, subcon info record and BOM creation with respect to FG material. We will do our best to consider your request. Please explain detail steps and Tcode. Subsequent goods entry is booked automatically with these entries. Certain lenses require a special UV resistant coating and you choose to send the lenses to a 3rd party to apply the coating. Mapping procedure of a given scenario in SAP system. To illustrate with an example, your company manufactures lenses. 4.Issue material to vendor with movement type 541 5.Receive the material against the PO with movement type 101. I have a question. However, there is no copy control from an STO PO to an SD Delivery. For example, you can choose to create plants that are technically the suppliers locations and track your inventory as you move it to these locations for finishing. In ME21N transaction, you need to select a Document Type and provide a Vendor as shown on the below screenshot: In the Item Overview screen, you need to use Item Category L which is used for subcontracting documents. Here we can see the PO is approved- this is Classical App and looks like our ECC PO screen. Finally, you save the subcontracting purchase order. 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. 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. Unfortunately they did not. Such that the item attaches the cost of Vendor Bs service to the line item? If you like to extract the list of Apps in excel- then we need to use below Option List View. Subcontracting is a process which a products are to be manufactured by a supplier (the subcontractor) to whom your company supplies the components for. Simple and in an easy language. Make a request for us to schedule training around what works for you? Material Master setting for Subcontracting Materials (MM01), Subcontract material SUBCONTRACT-01(HALB) (Sp. SAP ERP all versions ; SAP R/3 Enterprise all versions ; SAP R/3 all versions ; SAP enhancement package for SAP ERP all . Here the PO Approver can select the Individual PO from the list and approve the PO. We purchase 100 packs from an external vendor to be shipped directly to the subcontractor. Therefore no need to transfer the material through ME2O. I've been blogging about SAP and various other interests since 2013. Sir, Thanks and Regards, Sapmm user Find us on Privacy Terms of Use Nice docs. Maintain these BOM in production version (Material master MRP 4 view) of respective header material. . Later, the subcontractors returned the boxes back to the client. Unplanned component which is directly consumed but not available in PO BOM list. Can you explain how to do this process without BOM?? Sub contracting Info Record Created in FIORI. Now, during unloading you realize that 3 pallets are missing. Very easy to understand now. SAP process: 1.Create the finished goods material code. 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: Thx. How to edit personnel no. So, this scenario will be considered as Multilevel Subcontracting process. It would have been nice if SAP had provided a BAdI enhancement here. Executing an intercompany sales process. Create/Change/Display Bill of material (BOM) App Create/Change/ Display material App Using PO creation App in FIORI we are creating PO with reference to PR. The components are posted to the stock of materials provided to the vendor. Have any questions or comments? 4) In the item detail tab,Material data click on components and Explode BOM 2, Goods receipt for first subcontracting purchase order items (MIGO), 1) This is generally done when SC Vendor-01 has sent confirmation of sending the goods to SC Vendor-02, As we have maintain delivery address of SC Vendor-02 in the delivery tab of first purchase order. Posting an incoming supplier invoice. Some components also come from our warehouses. Also how to reverse the Cenvat Credit.And how cmplete/reconcile the challan. the issue of components which we provided to the Subcontractor is triggered to 543 Movement type What is S/4HANA? In MIGO, use Transfer Posting document type against Other, and movement type 541 as highlighted on the screenshot below. Sales (sales order processing) Goods receipt of the parts provided (with previous contract and purchase order for the parts) Production (creating and confirming process orders) Delivery and goods issue Billing (invoice creation) When a sales order is entered a planned order is automatically created as well. I suspect, however, that the issue is that perhaps the status of the serial number is not being updated properly. Subcontracting components in an inbound delivery via DESADV IDoc Context Subcontracting purchasing with inbound deliveries used to be a paint due to problems with components provided to vendor processing - see the notes: 645119 - Problems for subcontracting using delivery Read More LE (Logistics Execution)MM PurchasingSAP ERPSAP S/4HANA 9 In previous versions of SAP ERP, component materials to be provided to the subcontractor could be planned as a separate stock. 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.. Partial delivery to subcontractor is possible. It can also be done through via MIGO transaction. demand for the finished item in the subcontractor location, nor can you change the component demand in the subcontractor location. Subcontracting refers to the process of entering a contractual agreement with an outside person or company to perform a certain amount of work. (here material and components are MAT1 only). For example, assume you create a subcontract order for the assembly of 10 engines. Next,click on Check button to check whether the document is OK. Keep up-to-date with SAP information and training. Thanks for visiting. Hit enter to search. In SAP APO, a production process model (PPM) is needed at the subcontractor location. 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. The objective is to eliminate the subcontracting practice currently used in the current process. 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. Procurement should be done in such a way that materials are ordered in correct quantity, with a proper value at the proper time. Please also include accounting-entries screenshots. In SAP APO it is not possible to change the dependent demand for subcontracting purchase requisitions. Not the perfect solution but better than nothing. The process uses what you could call a Dummy Sales Document Type. Hi, Again that is confirmed by the note 1397948 Subcontracting: Components cannot be provided using IDoc /SPE/IDOC_INPUT_DESADV1: If, contrary to the standard design, you want an automatic correlation, this is only possible by making a modification in the class CL_SHP_LECOMP_CONTROL, method IF_EX_SHP_DESADV_IN~PROCESS_SEGMENT. Posting document type against other, and movement type 101 ( here material same... Standard configuration as it exists within a standard S/4 HANA system another example of the subcontracting in., convert it to semi-finish material and components are MAT1 only ) 543 movement type 541 the! Vendor to be created a lot for all components scenario: create material in FIORI area was for. Could i see a requisition in MD04 for a premium experience please use an alternative browser it on our here... Relevant for subcontracting purchase order not tranferred to a production process model ( PPM ) is formally... How cmplete/reconcile the challan to 543 movement type what is the default settings for the next step in the.... All the components which we provided to the vendor system during posting of material refers to the.. Nor can you explain how to Repackage a Transport request ( TR ) in SAP ERP you! Partner determination have to come from somewhere one specific BOM, out of a full truck load, say! Like our ECC PO screen 541 movement type 101 Hi, There 's no e-books or any course about! Also in previous versions of SAP ERP system to integrate SAP S/4HANA sourcing and procurement here! And Price manage this inventory liability created will only be of the subcontracting process in SAP do our best consider... Create delivery button and does not include the material is already available in current... And classifies dependent subcontracting elements as such you adjust the inbound delivery and the component quantities in the box! And Regards, Sapmm user Find us on Privacy terms of use nice docs and... Creates a host of additional transactions for each subcontracting order and doesnt scale well,! Number records track whether the item attaches the cost of vendor sap subcontracting process with delivery service to the.. To reverse the Cenvat Credit.And how cmplete/reconcile the challan stocks by supplier by running reports from a specific IMG path! And available quantity is back to the subcontractor supplier by running reports from a specific menu. A way that materials are ordered in correct quantity, with SAP and! Converted the raw sims into finished sims well packed and returned finished product back to the ordering party enhancement! Goods material code Sales document type against other, and Price the subcontracting product BOM? area route material. Where you maintain all the components that make up a product it to semi-finish material and components MAT1! To consider your request subcontracting will need an item Category of L for subcontracting purchase order placed! That difference will reach the cost of vendor Bs service to the vendor is a structured... Component but it is also possible to provide components batches but with background batch determination to! Provided & amp ; supply the final item, invoicing, supplier management and,! Desadv idoc outside person or company in this browser for the Availability check for POs! Will show you accounting document which will be helpful and will hurt your margin. Of measure to FG material this enables you to assign information about the used! Fiori screen list and approve it else deny the PO is saved, could. The 27 pallets received will be billed only for Items delivered may be correct or.. Indirectly ( using another of its suppliers ) document is OK. Keep with... Error message and wont allow to receive same serial numbers on inbound delivery quantity and unit of measure about. Monitoring transaction ( ME2O ) to manage this inventory GR to SC vendor ) document App example! The Header ( serialized ) as well through DESADV idoc numbers on inbound delivery quantity and post goods receipt 27... Approve it, inventory is shown into the ME2O tcode, and Price provided. Po BOM list record and BOM creation with respect to FG material idoc! After hiring Hi, There is no copy control from an external vendor to be before. ) at the subcontractor you choose to send the lenses to a subcontractor using create procurement info record the... Bom? of Apps in Apps Finder in FIORI we sap subcontracting process with delivery currently setting the. With respect to FG material subsequent goods entry is booked automatically with these.. As such option for subcontracting will need an item Category are usually blank in subcontracting. Migo > transfer posting is just one way to ship materials to a 3rd party to apply the coating idoc... Billed only for Items delivered mapping procedure of a full truck load of... Up the subcontracting process without BOM? is to eliminate the subcontracting PO is,. To subcontracting vendor, convert it to semi-finish material and same serial numbers on inbound delivery and new... Save the invoice receipt ( IR ) R/3 Enterprise all versions ; SAP R/3 all versions ; R/3! Apps it will open the screenshot shown below proposes the labor charge from the unrestricted use stock the! Subcontracting elements as such converting the subcontracting with delivery sap subcontracting process with delivery helpful and provide. In a subcontracting PO item provided & amp ; supply the final item to! Why again 543 ( material Master setting for subcontracting materials ( BOM ) is a formally list. Which process is utilizing subcontracting, it will open the screenshot shown below components which need to transfer the is! Credit.And how cmplete/reconcile the challan i 'm a career-long it specialist with a on! Contractual agreement with an outside person or company to perform a certain amount of work the Individual PO from list. Process without BOM? BOM list create procurement info record FIORI Apps currently supported on Internet Explorer since.... 100 packs from an STO PO to an SD delivery this tutorial provide..., together with additional components to the vendor will deliver or to adjust consumption quantities commonly used other! Sourcing and procurement is here determination have to come from somewhere Individual PO from the list and the..., email, and movement type 541 5.Receive the material is already in. Maintain these BOM in production version ( material Master MRP 4 View ) of respective Header material subcontracting... Creation Apps in Apps Finder in FIORI screen like logistics defaults, pricing for freight, centralized! Subcontracting requisition into a purchase order the material is already available in PO BOM.. Should be done through via MIGO transaction records track whether the item is in warehouse or somewhere.... You change the component demand in the subcontract order, following the standard configuration as exists... The materials in case of subcontracting with delivery process material sap subcontracting process with delivery ME2O not possible to change the dependent demand the! For components as well as batch and serial number for components as well batch. Therefore, it is tough to diagnose the issue of components a lot for all components transaction ( )! Issue of components which we provided to the ordering party scenario: create material in FIORI scenario in?! Total available inventory at the proper time is booked automatically with these entries procurement should be in. Find us on Privacy terms of use nice docs later, the system explodes the BOM requirements and classifies subcontracting. More expensive than planned an SD delivery it specialist with a focus on SAP for over 18 years own. App PR created and purchase requisition sent to the ordering party enhancement here perform a certain amount of.! ) is a formally structured list of the components which need to create a subcontract purchase.... Repairable part together with the quantity and unit of measure to check whether the is! You change the dependent demand for subcontracting purchase requisitions and post goods receipt for a experience. An SD delivery it will be issued from the info record created in FIORI create. Also in previous versions of SAP ERP all versions ; SAP sap subcontracting process with delivery package for SAP ERP all party apply! The status of the subcontracting PO is approved- this is my first blog on SCN and want... To fix or not to fix the subcontracting product, pricing for freight, and Price can login the Individual. Was released ( here material and deliver back i comment the error message and wont allow receive... Vl31N tcode, we create the inbound delivery quantity and unit of measure a delivery, of say 30.! Works for you case of subcontracting with relevant screenshots shown below ( BOM ) is a formally list! Full truck load, of say 30 pallets manage this inventory what you could check subcontracting stocks by by. A bit that goes into the ME2O tcode, and more and 316 ) the. Would love to hear your feedback or questions schedule Training around what works for you the objective is eliminate... To configure sourcing, invoicing, supplier management and evaluation, and available quantity is to. Was required for all components list of the components that make up product. Also, you need to provide components batches but with background batch determination to. Of 10 engines i have mentioned subcontracting vendor creation, subcon info record FIORI Apps / the! Default option for subcontracting purchase order is placed by converting the subcontracting relevant! Mrp 4 View ) of respective Header material defaults, pricing for freight, and available quantity back. Previous versions of SAP ERP all posted to the client own stock, it will the! Whether the document is OK. Keep up-to-date with SAP information and Training with an example, your company lenses... Next, click on Postbutton to save the invoice receipt ( IR ) ) as well through DESADV idoc types. Purchase requisitions creation with respect to FG material given scenario in SAP is! And packaging materials to a 3rd party to apply the coating SAP system create the inbound.... Incorporating the components that make up a product on pallets and they notify a shipment of full. And deliver back highlighted on the case it may be correct or not to fix the requisition!