Sub contract order

Dear all
I want to know about the Subcontarct process in  MM.
thanks
Kashyap

Hi,
Refer following link;
Subcontracting Process
Subcontracting Process
Subcontracting without Payment of Duty
- Creation of Subcontracting PO (ME21N)
To create a subcontract order, proceed as follows:
   1. Enter the material you want to order and the item category for subcontracting (L) in the order item.
      Press Enter to display the screen for component processing.
   2. Enter the components that the vendor requires to manufacture the ordered material (end product). Note the following:
         1. You do not need to enter the date required for the components. This date is proposed by the system when you press Enter. It is calculated as follows:
                      o Delivery date of the item minus planned delivery time
         2. If you do not want the quantity of the components to be changed if the order quantity of the end product is altered, set the indicator Fixed quantity.
         3. If you want to assign a particular batch of the component to the vendor for the manufacture of the ordered material, enter the desired batch.
         4. You can determine whether the components are available on the date required by selecting Component List
            ® Component Availability. If you entered a bill of material as the material in the subcontract order, the components are created automatically.
   3. If you want to determine the components in the bill of material at a later date (for example, if the bill of material is subsequently changed), choose Item ® Goto ® Components ® New BOM explosion. The existing components are deleted and redetermined in the bill of material.
   4. Save the purchase order.
When you print the purchase order, the components are printed per order item.
- Transfer Posting of Components to Subcontractor (Mvmt Type - 541) (MB1B/ME2O/MIGO)
1. From the Inventory Management menu, choose Goods movement ® Transfer posting.
2. Enter the issuing plant and storage location. Choose Movement type ® Transfer posting ® Stck w. subcontract. ® From unrestricted. Enter the vendor and then choose Transfer posting ® Create with reference ® To purchase order.
A dialog box appears in which you can enter up to 4 purchase orders.
3. Choose Continue.
The collective entry screen appears. The vendor and the components contained in the purchase orders entered are automatically proposed by the system.
4. Edit and adopt (copy) the desired items.
5. Post the document.
- Creation of Subcontracting Challan w.r.t. Transfer Posting Doc (J1IF01)
- Goods Receipt w.r.t. Subcontracting PO and Refer Subcontracting Challan at the time of GR (MIGO) {GR with 101 and auto consumption of components with 543 movement}
When the vendor delivers the ordered material (the end product), you post a goods receipt for the subcontract order in the same way as for a standard purchase order. The system determines the components for each order item and creates a goods issue item for each component. As a result, the material document consists of the following items:
Goods receipt items for the materials supplied by the vendor
Goods issue items for the components
After you have copied an order item, you can change the quantities in the goods issue items.
Valuation: - The goods receipt is valuated at the subcontract price plus the value of the components consumed.
Note: - If by-products are planned in the purchase order as components with negative quantities, receipt of the by-products is automatically posted to the stock of material provided to vendor at goods receipt.
- Reconciliation of Subcontracting Challan (J1IFQ)
- Completion of Subcontracting Challan (J1IF13)
- Generation of Annexure IV (J1IFR)
- LIV for Subcontracting PO (MIRO)
Subcontracting under Full Payment of Duty
- Creation of Subcontracting PO (ME21N)
- Transfer Posting of Components to Subcontractor (MB1B/ME2O/MIGO)
- Creation of Excise Invoice w.r.t. Transfer Posting Document (J1IS)
- Capture Excise Invoice at the time of GR of Finished Goods w.r.t. Subcontracting PO (MIGO)
- Post Excise Invoice (J1IEX)
- LIV for Subcontracting PO (MIRO)
Master Data
- MM01- Material Masters for Components and FG
- XK01 - Vendor Master (Subcontractor)
- CS01 - BOM for FG
- ME11 - Purchase Inforecord for Subcontracting
Note: - Excise Transactions need to be performed only if it is applicable.

Similar Messages

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    Thanks for your reply.
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    Regards
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  • Sub contract order  GRN

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    Also requested to send me the List of Movement Types.
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    Hello Srinivas
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    Edited by: Srikanth Pusian on Aug 27, 2008 8:15 PM

  • Sub-contracting orders

    dear sap guru,
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    Regards,
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    You should clarify your scenario:
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  • Sub contracting Order

    Hi ,
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    (3) In PO the Item Category L.
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    Lekhram

    Hi Lekhram,
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    Cheers!
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  • Sub Contracting Purchase Order

    Hi All
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    Thanks
    SUNIL

    Hi
    if you are working with Alternative BOM in sub contracting. the system works as follows
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    Hope i answered your question
    Regards
    VIkrama

  • Sub-contracting External Processing PP-PI

    hI,
    I am trying to create sub-contracting order through SAP PP-PI.
    I have a FG - X, with components X1 & X2.
    I have 3operations and 3 phases in the Recipe for X.
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    ( Pls note that its not allowing me to enter a PIR of material/vendor combination, hence had to create for Material Group/ Vendor).
    Now when i Create and release a Process order for X, there is a Pur req created but it has no material, and i cant change anything in this Pur. req.
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    Hi,
    When a Preq is created for external processing, the material is not copied in to the Preq. This is std SAP behavior. However with EhP4, this functionality is made available. You need to activate this functionality and then some code changes has to be done in the BADI in order to copy the material from order to Preq. I don't remember the BADI, but I am sure there is one.
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  • Issues in sub-contracting

    in subcontarcting scenario i have one issue
    issue 1:
    Materials (both excisable and non excisable) are supplied to
    subcontracting vendor.
    At this time in 57Fc challan only excisable items are maintained.
    But in sap while creating the sub contracting challan it is showing all
    excisable items and non-excisable items.
    But as per client requirement non-excisable items only should be displayed
    while creating /reconciling/completing the sub contracting challan.
    issue 2:
    when semi finished material is returned back to client by sub contractor
    some raw material is still with the vendor.
    while raising sub contracting order to the vendor  against the same
    material ,system should pop up how much raw material left with that
    subcontracting vendor .
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    Hello,
    All the materials which are declared for excise have to be maintained against the respective chapter ID's. Please refer the settings in excise rate maintenance.i.e j1id.
    If only the non excisable items have to be appeared then only maintain the same.
    Please check if it helps. As I suppose you will get the help in J1id.
    Regarding issue 2:
    Is it the scrap that is produced at the the subcontractors level or the main parent raw material which is left??
    If scrap is left then that has to be mentioned along with the components provided at the sub contractors level.
    If the parent material is left then it has to be checked at the stocks at the subcontractor level and brought back by GR against 101 mvt type.
    The BOM has to be defined accordingly. If semi finish of 1 is to be produced by supplying 2 parts of raw material then mentioned only the one which is required. Do not supply additional extra Quantity.
    Regards,
    Prasanna.

  • Sub-Contract Price Charges

    Hai,
    I have created a Sub-Contract Order for Finished Product, with some Components(Semi-Finished Products) the same is send to the Vendor.
    The vendor assembled Finished Product by Using free issue of Stock from my company and the same way he consumed his own Stock to assemble the Finished product.
    Now my question is, the payment we are doing to the vendor is Service Price or Material Price(Vendor Consumed for Assembling the finished product) or both.
    Regards
    JC

    Hi JC,
    As you told you are supplying sub -components materials to vendor, the supplied material will be own by your company .Only the stock will updated as "stock provided to vendor".When you do the GRN against your subcon PO the components will be consumed will be consumed and what are all the value used for subcon process and material value will loaded to your FG account.
    So as components are owned by you you should be only for processing charges which is negotiated between you and the supplier which you will putting while creating the subcon PO.
    Aside of this if the subcon vendor also adding some materials to process the FG , it depends how you had tied with your supplier whther he will be charing you the service charges including the charges of added materials.
    By the by i don't think so why he is adding the material extra.As alreday you are sending the components which are necessary to produce the FG material.
    Hope this is clear to you.

  • Creation of Sub Contracting PO through Maintenance Order

    Dear All,
    I am aware of the sub contracting indicator to be cliked in the maintenance order in order for the system to generate a Sub Contracting PO through Maintenance Order. However I am unable to see this indicator in maintenance order fields.
    Is there anything that I am missing in customising settings or is this related to activation of any business function sets.
    I am working in ECC 6.0 EhP 5.0.
    Need your help / inputs so as to resolve my issue.
    Thanks in advance.
    JK

    Hi Tehsin,
    Thanks for ur response. 
    However this is something I am aware of. The settings suggested by you will automatically generate a PR with Account Assignemnt Category as 'Order' (F) & Item Category as 'Service' (D) combination.
    I am looking for the auto generation of PR through the maintenance order with Account Assignemnt Category as 'Order' (F) & Item Category as 'Sub Contracting' (L) combination.
    Looking forward to hear from all.
    Thanks in advance
    JK.

  • Swap between two different item categories in sales orders for sub-contracting

    Dear gurus,
    my requirement is to have the ability to swap between two different item categories for sales orders for sub-contracting.
    This should be controlled by a combination of the material and a value maintained the Usage field in the Customer Material Info Record (for example by entering a ‘V’).  A combination of Sales Doc Type, Item Cat Group and Usage should result in the creation of a purchase requisition.
    In the event that a process order is required instead of a purchase requisition (i.e. the product is to be manufactured in-house instead of sub-contracted) the user must have the ability to change the Item Category within the sales order to produce a process order.
    The user would just change the item category within the sales order, and the system would automatically remove the purchase requisition assigned to the SO, and create a process order and assign it to the SO.
    Can you suggest any possible solution?
    Thank you in advance.

    Hi Majlo,
    In my system, I checked.  First created sales order with third party line item and then changed item category to normal item category.
    Till Purchase order not created, I can change Item category of my sales order line item.
    In this case SAP inform by log and once save delete purchase requisition of that line item .
    For this you need to assign another item category as an manual item category in SPRO Item category assignment.
    After this user can manually change item category to other one manually, if PO do not exist.
    Please let me know if your query is different.
    Regards

  • Goods receipt through Inbound delivery for Sub-Contracting Purchase order

    Hi
    I am trying to do goods receipt for the inbound delivery /shipping notification created for a sub -contracting Purchase order. The Finished product and the component part are batch managed, When I try to perform PGR in VL32N , I am getting a blank screen as error message and Goods receipt is not getting triggered . I checked for OSS note and found 645119 close to my issue but not an exact match . We are in ECC 6.0 with EHP 4. Can some one clarify whether it is possible to post GR through inbound delivery for a Subcon Purchase order .
    Thanks in advance for your immediate response.
    with regards,
    Joseph Anand B

    Hi, The issue may be due to this - the component is batch managed but the batch data is blank in the component list of the Purchase Order Item. Or a batch is maintained in the PO item component list but the stock for the same batch is not available with Vendor, i.e. stock with some other batch may be available.
    In a receipt for Sub-cont PO, 101 happens for FG and 543 happens for component. But there is no option to provide the component details in a delivery. So in standard system, when 101 happens via a delivery, 543 will be posted in the background. So any error in posting 543 will result in a blank screen without any error message.
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