Auctioning subcontracted materials

Hi all,
we have implemented SRM 4.0 with pland driven and strategic sourcing scenarios.
My client wants to auction the services related to the subcontracting process. I know PREQs with subcontracting items aren't relevant for plan driven procurement, but i was wondering: since in plan driven procurement it's the PREQ to make the rules and the PO is simply created with reference to the PREQ and takes all information from it (apart from price and conditions which come out of the strategic ousrcing negotiation), would it make sense to transfer the subcontracting PREQ forcefully, even loosing the information about the subcontracting (so beig treated as a standard preq), get negotiated through strategic sourcing and then send the PO back to R/3 as a standard PO? Would it take the subcontracting position type autoamtically from the PREQ? Has anyone tryed it before?
Thanks for you help
Simone

Hi Simone
Ofcourse, you have another solution...
Do not bother about the extended classic/classic etc.
Just pick the data from accepted bid in a custom program and create a PO in the backend by calling BAPI_PO_CREATE1.
Also ensure that you remove the 'External procurement profile' in PR before creatign PO. It will surely work but you will not be able to use Conf/Inv in EBP anymore.
Best regards
Ramki

Similar Messages

Planning of subcontracting materials with scrap percentage

Hi All,
Need your help for below mention scenario,
For planning, where my planning is start with subcontracting materials.
To clarify more, strategy group is defined in subcontracting materials. Now when I entering Assembly scrap or Component scrap in material master or BOM, system is not considering this scrap percentage for planning.
when i defining scrap percentage with procurement type, E (Inhouse Production) or X ( Both) system is considering scrap percentage. But for external like F or X with special procurement 30 (Subcontracting) its not considering the scrap percentage.
Please suggest, how I can plan subcontracting materials with scrap percentage.
Regards,
Rajesh
Edited by: Rajesh Sawant on Feb 18, 2009 4:54 AM

Hi Jejesh,
Thanx for reply.
This scrap is required for subcontracting materials.
Setting in material master,
In MRP 1 and MRP 4 view- Define scrap as Assembly and Component scrap as per the requirement.
Procurement key - F or X
Special Procurement key - 30 (Subcontracting)
Strategy group- 40 (Planning with final assy) in MRP 4 view.
Bill of Material setting,
Component scrap and Operation Scrap in Bill of material.
Based on above master data, Plan Independent Requirement (PIR) cration for above materials and MRP Run.
Here after mrp run based on above setting, scrap percentage is not considered. Plz suggest the solution.
Regds,
Rajesh

Material determination for subcontracting materials

Hi
Where and how material determination will happen for subcontracting materials ?
thanks

While creating the PO when you put the item category L it will search the BOM for the FG and its components, if BOM doesn't exists in the system for the FG then put the components in PO manually..
To create the BOM for the FG go to T-code CS01 nad mantain the components for the FG and save it it will be copied to PO in ME21N in material tab by putting the item category L Subcontracing.
You can do it in ME21N at item detail level in material tab...
Here mantain the components for the FG.
Regards
Sujoy
Edited by: Sujoy on Apr 9, 2009 12:51 PM

How to ship back subcontracting materials from vendors to company .

Hi
Our client is delivering subcontracting materials to vendors using ME2O transaction .
She is asking me how can I ship back materials from vendors to company .
Example :
Shipped 236.C from company to vendor .
Now we need to ship back 236.K from vendor to company .
Could you brief me T codes to be used and entire process in step by step .
Thanks In Advance

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
harish

Report for issuing componets to subcontracting materials

Hi
I am trynig to develop a report for issung components to subcontacrting maerial
as per our scenerio... every day we are creating purchase orders item cat L for subcontract material
                                  then issue the materials against to subcon. pur.order...then do GR with 101..
as per our requirement...
report input entries..like   1. subcon material code
                             2. from date --- to --- todate
out put..for report..like.... total consumption of components with line item wise (as per bom) with that pertical period..
for this any std. report is there ?
or if go for zreport....pls guide to me..
any one can suggest to me
thanku
regards
sesidhar

HI,
Certain set of inforamtion can be availed in MB51 and using 541 Mvt type..
But it is better that you develop a zreport to get the information what you wanted if you are not satisfied with the MB51 report from standard SAP.
Try MBLB also
Thanks & Regards,
Kiran

Problem while returning the subcontracting materials.

Dear All,
i have received finished material A (10 pcs) from subcontractor (BOM maintained B- 200 pcs and c- 300pcs to manufacture A).
Due to quality rejection i am returning 1 pc of finished material "A" to the subcontractor. When i return through MIGO with 122 mvmt type system will display entire quantity ,ie 10 pcs, against the material document number. Now i reduce the returned quantity of finished material as 1 pc, but subsequently BOM materials (components) are not getting reduced.
please advise how to reduce the components propotionate with finished product while returning the subcontracting items.
Eg : A received 10 pcs ( BOM- B=200& C= 300)
returned 1 pc of A, then system should show the components B =20 & C=30. but system shows B=200& C=300.

Hi,
As per your suggestions, system does not allow to do Component reversal 542 movement. How ever system will check the special stock provided to vendor 0. All the component from vendor side consumed and recived GR already for the components B and C.
The following Error message occurs while doing 542 MVMT:
Deficit of Stock w. vendor unr. 20,000 PC : B1 TEST O
Message no. M7021
Diagnosis
Shortfall below the specified stock level or quantity amounting to 20,000 PC.
System Response
If the message is an error message (E), the above is not allowed.
If the message is a warning message (W), the system will allow your input, but the warning is intended to prevent you entering a wrong quantity.
Procedure
In the case of a warning message, check the quantity entered.
In the case of an error message, change the quantity or terminate processing.
Other Possible solution, I have simulated
Return delivery and refer material document number
Manually change the Material A ( With 122 mvmt - qty as 1 ) With Reason for movement
And Sub component as B ( 544 O + GI receipt subc.stck ) with qty 20, similarly Sub component C ( 544 O + GI receipt subc.stck ) with qty 30)
Finally you can check with MMBE ( Finished product A- 9 qty) MBLB - Stock provided to vendor Component B -20 and C-30 qty
I hope this with return the Finished product and consumed subcomponents respectively.
While doing Return delivery for against Material document system always with full qty and BOM qty only, We will manually change returnable qty to the vendor and Reason for the return in any business process flow.
I hope this solution resolved your issues on Return process subcontracting
Even after the Returned the goods to the Vendor ( due to damaged - reason ) ( with 122 and 544 O+) . Later supplier finished his re -work for the returned goods / services , you can do it regular GR against PO number with as usual subcontracting receiving process ( 101 and 543 O-)
Regards,
Thiru
Edited by: thiru on May 5, 2010 11:48 AM
Edited by: thiru on May 5, 2010 11:49 AM
Edited by: thiru on May 5, 2010 11:53 AM
Edited by: thiru on May 5, 2010 11:55 AM
Edited by: thiru on May 5, 2010 12:02 PM

Delivery Split for subcontract materials in ME20

Hi Friends
When I try to delivery multiple materials from the same PO through ME2O, they get split into multiple deliveries. Lets say I have selected about 4 materials in one transaction, I see that 3 materials go into one delivery, 1 material go into separate delivery This way I now have about 2 deliveries for a single PO.
I want to understand how this split is working and how to avoid?
All these below parameters are same for all the 3 materials
a)delivery date u2013 Same
b) Shipping Point - Same shipping point
c) Shipping Condition - Same
d) Delivery Type - LB for all
e) Loading group - Same for all materials
f) Route - Is also same
Thanks In Advance
Pala

Hi
My functional scope is Sales And Distribution , as this dilivery split comes under my scope , I am investigating this issue even though I have to understand MM functionality .
I am not able to find PO for this sub contract delivery .In SD , In VL02N, document flow starts from delivery for subcontract process , there is no display of precceeding document(PO) for this subcontract delivery .
If I want find PO for this delivery , how and what do I do ?
Thanks
Jayapala S.H

BOM: particular subcontracting materials. Help!

hi everybody.
We are dealing with a rare issue concerning the Bill of materials and the material master.
common subcontracting codes have this structure:
code : AB1 --> procurement type: F30 (subcontracting)
the bom contains the code AB2--> procurement type : F (buy)
when we purchase the code AB1, the system inserts automatically code AB2 in the PO and generates need in the mrp
BUT we have some codes which have another structure:
code : AB1 --> procurement type: F30 (subcontracting)
The bom contains:
1) code AB2 --> procurement type : F (buy) when we purchase the code AB1, the system inserts automatically code AB2 in the PO and generates need in the mrp
2) code AB3
3) code AB4
4) code AB5
We want code AB2 to be sent to the supplier as material to be worked, but WE DO NOT WANT the mrp to process code AB3 AB4 AB5 (which are supplied by the supplier and not by us)
The easiest way of dealing with this issue would be to cut codes AB3 AB4 AB5 from the bom, but WE NEED TO KEEP THOSE CODES in the bom, to keep history of the composition of the materials and to be able to repair possible broken materials.
Do you know if there is any way to tell to the mrp to avoid to process codes AB3 AB4 AB5? is there any box in the bom which we can thick?
Thanks in advance for your help
Arianna

Are you certain everything is right in your story?
I cannot see any relation between AB2 and AB3, AB4 and AB5, except that they are in the same BOM for AB1.
But why should AB3, AB4 and AB5 come into the game if you want rework AB2?

PPV for subcontracting materials mystery- posting to a different cost element?

Dear All:
Are there any OBYC (FI-MM) account determination settings to have PPV incurred due to Subcontract (SC) POs post to a different account than regular PPV? If not, is there any distinguishing characteristic at the line item level for SC PPV posting to report it in contrast with regular PPV line item?
Or am I looking at creating a substitution rule to make this happen?
Looking forward to some insights!

Hi Althea and Szymon: Thank you for your inputs. The subcontract material in our system is setup as F/30 (Procurement Type, Special Procurement) and as a HALB (semi-finished goods) in the same plant as other semi finished goods. So, no opportunity to segregate their PPV (posted via MT 101) account via valuation modifier in OBYC.
BSV transaction is used to store the offsetting account during inventory receipt during 101. So, in essence here's an example of accounting doc during GR :
Description       Amount   Transaction     Material      Quantity
FG Inv (B/S)        100          BSX              FG123            +1
GR/IR (B/S)         -15          WRX            FG123            -1
PPV (P/L)            -25          PRD            FG123             -1
SFG Cons (P/L)   -75          BSV            FG123              -1
Subc Fee (P/L)     15           FRL            FG123             +1
Inv SFG (B/S)       -12          BSX           SFG456           -1
SFG Cons (P/L)    12         GBB-VBO    SFG456           +1
So BSV+PRD = BSX (FG)
I am looking to see if I can get the $25 favorable PPV posted to some other account via OBYC. Right now it's getting posted through PRD and getting mixed up with PPV for external purchases.
Thanks for your inputs.

Procedure of Return of subcontracted materials

Dear Expert,
we are using subcontracting procedure in our company,sometime material provided by subcontractor is faulty this material we want return to subcontractor..how to do ?
Thanks

You want to return parent material sent by subcontractor after job work,
If material is taken for production,move stock rejection storage locatin,
ask quality poeples to bring stock to new material(Material you want to return) in QA32
Create a recrusive BOM(Parent & Child are same),Create a purchase order with item category L,Check recrusive BOM,
Do MB1B(541 matl doc.) to tranfer material to subcontractor,Create Challan to send materials

MRP list - components of subcontracting materials

Dear All,
Our practice is to deliver the components of F-Z3 materials to our subcontractors at once, independently from subcon. POs (all the components at once). So, we don't have stock of them at our plant (storage location) but at our suppliers.
This 'causes problems' when we use MD04 material list. F-Z3 components are marked with 'red', because F-Z3 material PldOrd-s generate requirements at our plant - there's no stock to cover them.
If these requirements were genereted at our subcontractors there would be no problem, because there's enough stock to cover them (the requirements).
How can this problem be handled? Which settings are necessary?
Thank you.

Hi Stephen,
Maybe my explanation wasn't clear enough, I'm trying to describe the problem more precisely.
The problem (if problem exists at all) is with the MRP list of components of F-Z3 materials (that are in the BOM of F-Z3 goods).
The MRP list of these components are 'devided' into two parts. One begins with 'Stock' and the other section begins with 'SubcSt'. The structure:
<b>Stock</b>
SubReq1
SubReq2
<b>SubcSt</b>
SubReq3
Generally, all of our components are in the WH of our suppliers, that's why 'SubcSt' is high, 'Stock' is near 0.
But MRP shows 'red light' because the purchase requisitions on F-Z3 level generate requirements like SuReq1 & SubReq2 - these are not covered (by 'Stock'~0).
But (if everything is OK) the stock level at suppliers ('SubcSt') is enough to cover all SubReq (123), but only SubReq generated by F-Z3 PO belong to this section.
So, MRP indicates a failure that doesn't exist (am I right?). How can we set SAP to consider the things described above?
Thanks for your help.
BR
Csaba

Overhead on Subcontract Vendor Charge

We have implemented Raw Material Costing, adding overhead through use of a costing sheet.
We use subcontracting (PrcTypF/SpcPrcTyp 30). In most plants it is a minor portion of the cost, so we did not need to know how to add overhead to the vendor charge
At One of the plants that we are converting now to Raw Material costing, the Subcontract vendor charge is 80 - 90% of the value. We need overhead added to that charge.
I thought I could just check the box in the valuation variant for Overhead on Subcontract Materials and it would calculate.
It did not..
I did add the subcontract cost element to the BASE on the costing sheet.
What else do I need to do to get the overhead
thank you
Althea

Have you specified OH costing sheet under the tab overhead? This costing sheet needs to be specified for the Finished/semi finished field.
Please check if you can see the OH sheet under the valuation tab. Also check if the cost element in OH costing base is showing in itemization.
I think it is a OH costing sheet issue and not subcontracted material issue.
Sanjay Wagh

Subcontracting with Error Handling

Dear All,
we have some subcontracting materials. If the warehouse do the good reciept and the one of the components is not at the subcontractor stock they get an error.
Now they came up with the question if it is possible that this materials went to the COGI and once a week they solve this problems.
kind regards,
Bernhard

Hi Bernhard,
COGI is not enabled for this situation, and the reason I can think of is that the system is calculating online realtime the moving average price of the received material, by summing up the costs of the issued materials. Therefore the information on which and how much of the components were issued must exist at the time of receipt, and cannot be later processed like in COGI.
I know this doesn't help with your problem, but at least now you can better explain to your users why the stock must be accurate.
Regards,
Mario

Changing Service Masters in to Service Materials (DIEN) any complications,

Hello SAP Gurus,
We are dealing with a Construction Based Client and along with Materials we also mainly require services,
We right now have created Service Masters for catering our Service requirements, doing service entry sheets,
But the major Issue with going by Service Masters is this Service masters could not be included them in BOM and we could not run MRP for there requirements,
Basically for completing any Construction activity we require Material and also services to be performed but the service masters could not be included in MRP, also the delivery cost cannot be handled going by Service masters,
so we are planning to convert our Service Masters in to Service Materials to accomplish this requirements. any issues going by the same, and any precautions to be followed please suggest. have any one run there service requirements by using Service Materials instead of Service Masters / service activity please throw some light.
Awaiting your suggestions
Thanks and regards
Kumar

Hi,
Thanks for your reply,
The BADI and the info you have explained details about activating Services for Subcontracting Procedure, where in it requires to maintain Material Masters as required for managing and running Subcontracting process,
But our company have already created 1000s of Service masters for managing there Service Activities ( only problem being cannot run MRP for Service masters and Specify Delivery cost for Service POs)
now as to get MRP we should make a huge shift from Service Masters to Subcontracting Materials with BOM Values and should be well planned. i will definitely try to work on it and see how it goes.
but also is there any way to use the existing Service Masters for running MRP, or including in BOM, or any how to Plan services,
Thanks and Regards,
Kumar

Individual purchase order with subcontracting material

Hi all,
I've implemented a individual purchase order in a sale order by means of 'TAB' category item. The material has been set as 'subcontracting'.
When I create the sale order, a purchase requisition is automatically created with M imputation and special stock 'E'.
Once I create, the purchase order with reference to purchase requisition, I set 'L' category item. Then I save the purchase order.
In order to simplify the flowchart, the vendor has enough stock to manufacture the required material.
Then, Tx. MIGO, stock input with reference to purchase order.
For the FERT material --> movement 101 E + is set.
For the component --> movement 121 E - is set.
How can I obtain 121 'O' - movement for components in order to decrease SC vendor stock?
Thank you very much in advance for your support.
Best regards,
Alberto Ramos.

Dear Charlie,
Thank you very much for your response. As you comment, I made a mistake with the number of movement. Certainly the movement for raw material consumption is 543.
I have executed the flowchart you describe. In your case, an independent subcontracting purchase order is done. This flowchart works correctly (with the results you comment. Actually the raw consumption are related to mov. 543 O -).
The problem is when purchse order is related to a sales order. That is:
1. Sale order TA with only one position material A. Category item 'TAB'.
2. Material master for material A --> MRP 2 view --> Special procurement field: 30 - Subcontracting
3. An automatic purchase requisition is created (thanks to 'TAB' category item, schedule line, ...)
4. Tx. ME21N --> I create a purchase order with reference purchase requisition:
    4.1. Account assignment category field is set to 'M' from sales order / purchse requisition
    4.2. I manually set Item category field to 'L' for indicating subcontracting (I don't force this to be 'L' from sales order / purchase requisition because I need to use the same flowchart for subcontracting and not subcontracting materials)
5. Tx. MIGO
    5.1. For Fert material the system executes mov. 101 E + (as in your description)
    5.2. For raw materials the system exectures mov. 543 E - ( instead of 543 O -). I would like to obtain the reduction of subcontracting stock, because this material is in my center but povided to SC manufacturer.
Should I do a 'Subsequent adjustment' by means of Tx. MIGO the movement are:
- FERT material 121 E - (depending on adjustment)
- Raw materials 543 E - (again 'E' instead of 'O' which is the result I would like to obtain).
I will very much appreciate your comments.
Thank you again,

Auctioning subcontracted materials

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