Assembly subcontracting-GI to vendor

Hai friends
Actually i have an situation where i need to send the material to my subcontractor where some operation is carried out on that and send back to us .Remaining operations are carried out as in-house to convert in to finished product.So i have defined the one we are sending as raw material and receiving one as semifinished and the one as FERT after the in-house operations are carrried out on the semifinished .After the MRP run ,the purchase requisition is converted in to Purchase order for the semi-finished and released to vendor .But iam not able to issue my ROH against that PO.
Pre-requites like info record , pp02 in routing ,in MM special porucrement key is all done
Pls let me know what could be the problem and how to solve it.
Thnaks in advance
Srini.

Hi,
First you have to transfer the Raw materials to sub contractor's location using MB1B movement type 541.After this stocks will display as at sub contractor's location.Ensure the creation of BOM of the semifinished material with all the raw materials as components and creation of proper sub contarting PO ( in item cat. column "L" should be there) on the semi finished material.
Then you do the migo of the semi finished material against the PO, there you will do the GR for HALB and GI fo the RMs from the sub contractor's storage location.
Hope this will help you.
Thanks
Sandip

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Subcontracting From MUltiple Vendors

Dear Experts
Please help
I made a subcontracting PO for Vendor A with of 100,but he did not made the material of desired quality ,so i sent the same material to vendor B 60 pcs and vendor C 40pcs(without bringing in to factory premisis ).After B & C done the job work.I recieved the material.
How this can be done in system.What are necessary steps reuired to do this.Please guide.
Regards
Raj

Hi,
One of the solution is :
1. Do 542 movement and get back the material from A in system , cancel subcontracting challan thru J1IF11.
2. Create 2 POs for B & C Vendor
3. against that 2 POs create transfer posting(541) & create separate subcontracting challans
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Hi SAP Gurus,
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Hi Srinivas,
Thanks so much for the reply. I just had a quick question. When we receive the goods from the subcontractor, i mean after the GR, when we go to ME2o, do we still see the stocks at subcontractor? becuase we have completed the GR process and also do we see the stocks in MMBE? please lemme know. Thanks in advance
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Example :
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hi jaya
check whether these points will help you
Item category: L
Order type: NB
In info record vendor should be maintained as subcontractor.
Vendor (Subcontractor) receives the components used to manufacture a finished product directly from your company or through third party.
Your company should place a purchase order for the finished product. In this manually you can enter the required individual components or it can be determined via the explosion of BOM (if exists).
Stock check at vendor level: ME2O
Company stock check: MMBE
GR for individual components through movement type: 501 or 561 (if with out PO or without reference).
GI to subcontracting vendor: through movement type 541.
GR from sub contracting vendor: through movement type: 101
Movement type 543 is displayed to cancel the material cost account.
If the subcontracting order has to be generated through materials planning,the special procurement key has to be set in MRP 2 screen.
regards
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Subcontract Process with vendor supplied component

Hi,
We have a subcontracting process, when we send 3 components to the vendor, the vendor apply another component and return the semi finished to me.
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We sent the 3 components via mb1b.
We create a PO of the Semi Finished Good if we verified the components the 4 components are there.
When we try to receive via MIGO and click in verify The 3 itens that I send is OK ... But the item that is supplied by the vendor show me an error message that there is no stock.
What should I do to receive the component supplied by the vendor ?

Hello,
1. Create subcontracting with item category "L" and second line item in same PO enter with Item cateogroy means STD.
2. Item level of the Delivery address tab, tick SC Vendor and enter the same Vendor code there.
3.Go for GR for only for 2nd line item first. This stock will automatically picks 101 O Mvt, and u can view this stock as Vendor stock.
Check MMBE stock overview , Material is showing provided to Vendor at plant level.
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5. Go for second GR for finished Product.
4th Material shown as Material provided to Vendor in stock overview. if you want to get back that same material to your stock. reverse that stock use t code MB1B with help of Movement type 542.
Or else.
Through subsequnet settelement you can send the 4th Material to your subcontrcator MB04.
Regards
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Rejection of subcontract material to vendor without return of material.

Dear friends,
There are some subcontracted (semi finished) parts kept with us which were received from Subcontractor after their process. As usual at the time of GR, the raw material sent to them were consumed at our end and relavent labour charges were paid to them towards this.
Later it is found that the parts are faulty and decided to reject the same to the Subcontractor.
1. We like to scrap the semi finished material at our end which will be later sold to external customer. For this stock of the scrap material to be maintained. (The scrap material is maintained in another material number and also it is in kg which is different than the semi finished material).
2. The value of the rejected semi finished good after deducting the scrap value has to be debited to Vendor account.
3. The labour charges also to be debited to the vendor account. (Can this be posted by subsequent credit?)
Friends, is there any solution to this issue. Please guide.
Thanks
Harikrishnan.

1. We like to scrap the semi finished material at our end which will be later sold to external customer. For this stock of the scrap material to be maintained. (The scrap material is maintained in another material number and also it is in kg which is different than the semi finished material).
After making the GR complete the cycle upto invoice verification and book the total labour charges.After that you scrap the semifinish material with movemen type 551.Then make a copy of movement type 561 say z61 after that upload the stock with scrap codes with Z61 and sell it.
*2. The value of the rejected semi finished good after deducting the scrap value has to be debited to Vendor account.
Pass the subsequent Credit in invoice verification for rejected semifinish scrap value.
I hope this way you can work out your requirement
Regards
Vivek Sharma

Subcontract returns to vendor

Dear all Guru,
I am facing the problams in returning(for rejection) material to subcontract vendor.
so when I am receiving subcontract material processed material is inwarded by 101 and 543 for consumption
and inventory for HALB matl is increasing and raw matl is reducing...this is happening as per required.
but when i am making return delivery for the GR no
then by 122 mov type HALB matl inventory is reduced and 546 mov type for RAW matl but the stock is reducing
Pl suggest in return delivery raw mateial speacial stock need to be increased instead of decrease.
regards,
Vimlesh

Hi,
i have the same problem using MIGO, if i don't explode the components the result is correct (for the component type movement 544 + O) but, if you explode the component the result is wrong (for the component type movement 546 - O ) and the stock is bad.
Solutions ?
thank you
regards
Andrea

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Hi all,
everything I find in documentation and forum about subcontracting is if a company gives something out for subcontracting.
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Thanks in advance
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Dear Martin,
As I understood from you...it is customer 1 is giving material X...you add Y and Z and sold to customer 1 as M.
In this case your product is M
You need raw material X, Y and Z.
X you are getting it from a venor called 1
M you are supplying it to customer called 1.
For M you have process order.
You place order to X with vendor 1 and sell M to customer 1
In this case vendor and customer is same.

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Hi all,
A Purchase order is done for a subcontractor, but the materials are not issued from our plant instead it directly goes to the subcontrator from some thid party vendor. How is the process handled in sap. Please explain the flow until the invoice of components and finshed good.
Thanks in Advance,
Srivatsan

Hi
Following are the process steps.
1. Create PO on raw material supplier (vendor 1) & in the delivery address select the subcontract vendor (vendor 2)& check the box (s/c vendor)
2.Create a separate PO for s/c vendor for the processing of raw material into semifinished material
3.Prepare GR (GR1) for vendor 1 (movement type will be 101 O). Now the material stock will be with vendor 2.
4.Prepare subcontracting challan with reference to GR (with movement type 101 O) TC:J1IF01
5.After recieving the material from vendor 2, prepare GR (GR2) Movement type 101.
6. Reconcille & complete the challan. TC:J1IFQ & J1IF13
7.Capture & post the excise invoice for GR1 through TC:J1IEX
8. Invoice Verification for Vendor 1 & vendor 2. TC:MIRO
Please ensure that the customisation settings for subconracting process for movement type 101 (o).
Hope the above is inline with your requirement.
Regards,
Krishna A S V

Subcontracted Stock at Vendor has quality problem - must be blocked

We have stock at a Vendor (Special Stock Type O) that has a possible quality problem. It must be put on hold until we determine the extent of the problem.
It is still showing up in MD04 as available stock. I tried to move it to QI with movement 322 but it still shows up as available.
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Thanks in advance.
Best regards to all!

Hi ppkk,
Thanks for your thoughts.
The problem is that this stock is at the vendor, so there is no storage location. We have Quality related Storage Locations for stock in the plant, and if we move parts to those storage locations they do not show up as available stock in MD04.
But the Special Stock type O is just "Stock at Vendor" with no Storage Location.
I think that we would have to receive the stock back into our plant in order to move it to a Quality related Storage Location.
Does that make sense?
Thanks again.

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Hi,
We have a scenario where in production 4 operations needs to be performed, one of which is a external process [subcontracting]
Process 1 - Drilling
Process 2 & 3 - Subcontracting [External process] u2013 2 processes
Process 4 u2013 Finishing
After drilling process, material is sent to subcontractor A for cutting, after this is done Vendor A will sent product to Vendor B directly for further operation . Once this is done We receive from Vendor B
Then it will go to Process 4 [Finishing]
Can you please help in mapping this scenario in SAP
If there is only one vendor involved then I believe process will be like one subcontract PR [system creates automatically], we issue goods and we receive finished goods
In this case Subcontract vendor A sends directly to Vendor B
Both Vendor A and B sends invoice to US
Any pointers in this regards will be of great help
Thanks

Hi ,
While raising the subcontracting order for vendor A enter Delivery address vendor B address & save.
Raise one more P.O(subcontracting ) with vendor B
when vendor supplied material to vendor do the migo.
then in sap stock will increase at vendor B.
when material recieved from vendor B do migo stock will increaes in respective plant.
you can procees invoice with P.O wise
Try this one & let me know
Rgds
venkat

Subcontracting Challan (one subcontracting vendor - different addresses)

Dear SAP Gurus,
I' m having a very different kind of requirement.
I'm supplying a material for subcontracting to a vendor, but subcontractor is having four different plants. So I want to print different addresses each time I print the challan.
Is it possible to change the address while creating (in subcontracting PO only one address is maintained. Or else I need to create different POs with different addresses for same subcontractor).
Please help,
rajan

Hi Rajan,
Cannot you create vendor masters in the following way:
subcontractor: vendor
plant1: vendor01
plant4: vendor04
Via partner functions you can define the plants as ordering address / supplier of goods. In this case you can display the right ordering address.
http://help.sap.com/saphelp_46c/helpdata/en/a1/7b373944f7a97ce10000000a114084/frameset.htm
BR
Csaba

Subcontracting scrap, component consumption and service cost booked to vendor

Hi,
Our client is issuing 100 pieces of component "A" to subcontracting vendor to manufacture finished product "B". In MIGO, we are receiving finished product B and consumption is booked for 100 pieces of component A . Invoice is paid to the subcontracting vendor for the service cost.
Later, we realized finished product did not met the quality standards and decided to scrap out the finished product B. This is scrapped and stocked out using std. SAP using 551 mov type. But the client want to charge scrap cost of finished product B, service cost (Job work cost) and the consumed components (A) of 100 pieces to subcontracting vendor. How to map this challenging scenario in Std. SAP.
Regards,
Sat

No need to create subcontracting PO.
Just create a standard PO, use material as FG (Material B as per your scenario)
Enter the vendor (whom you want to charge for it)
Let me explain the scenario:
1. You have created a subcontracting PO for vendor X, FG material B and component A.
Subcontracting service charge = Rs. 10.
Price for Material B = Rs. 50
Price for material A = 30.
2. You have done GR.
Now the FG material B is in your stock. (Here, you have done 551 movement type). Right ?
Now just do not do 551 movement type. Leave the stock as it is.
3. Then create a standard PO for material B and vendor X, give the price = (10+50+30) 90 and tick the return option in PO line item.
4. Then do goods receipt. Movement type 161 will be automatic posted in system and stock will be consumed from your storage location.
Then accounting entry will be
Stock account Credit
GR/IR account Debit.
5. Then you can do credit memo to vendor from MIRO with the reference of this PO. Then the accounting entry will be
GR/IR account Credit
Vendor Account Debit.

Assembly at customers site

hi
PP gurus
My client is a construction equipment manufacturing company and he will give subcontracting to many vendors and he wants to assemble the final assembly at the customer site.
Please throw some light on how to map this.
Thanks in advance
Ravi

The scenario that I suggest have:
- Create a SLoc in your Plant but with the address of your customer.
- Sending components to subcontractor that will produce the subassemblies, Position L in Purchase Order ; these SC will send their products to the SLoc.
- Vendors supplying components will have Sloc as the delivery address.
- Create a WC and a routing for the final assembly; BoM for the final product will have components and subassemblies.
- Create a production order
- Produce the Assembly with a production order at your customer.
Regards

Assembly Cost

I am working on a Trading client.There is no PP module includes here.
After Goods receipt, they do the assembling of spare parts and makes a final product. Now they want to add the Assembling cost to the final product Inventory. How can we add assembling cost on final product in SAP?
Waiting for the reply.
Points will be awarded.

Hello Neraj
You create your assembling unit as a vendor and make sure to give the vendor name correctly as to identify it. Then block that vendor for payment in the vendor master.
So in the case of subcontracting, the assembling charges will go to the vendor a/c given for the assembling unit vendor.
Hope it is clear till now.
Now the most important thing is that you have to transfer the entries in that particular vendor a/c to a P/L account at every period ending. This is a must as the assembling cost expense should come in the P/L statement. Make sure that you document the transfer to P/L properly and you make it a point somehow to go this action at every period end along with other period ending activities.
Hope this helps
Regards
Gregory Mathews

Assembly subcontracting-GI to vendor

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