Byproducts in subcontracting

hi gurus
how are the byproducts are taken care of in subcontracting.

Hi
For Eg. You are Sending Product A to your SC-Vendor and Getting Back Finished Product B and *by Product C*
While Creating BOM for youe Finished Product Material B....in Components List, Maintain The Product C Qty. as a Negative Component.....and also in Material Master also for Product C maintain as a By Product...
Then While you do GR for your Finished Product, Material B in MIGO......the By Product Material C will be generated in 545 O+ M.Type......and it will be lying at SC-Vendor's Place.....Then you have to separately take back thisBy Product Material C in MB1B useing M.Type:542 in to Company's stock
Reward if useful
Regards
S.Baskaran

Similar Messages

Subcontracting Byproducts/Scraps

Handling of byproducts and scrpas in Subcontraction process?
Is there any special movement types handling the above materials?
Do they have to reflected in the BOM also?
Regards,
Kapil
Edited by: Kapil Joshi on Dec 31, 2007 4:55 PM

Hi
If you want to get By product or Scrap from SC-Vendor.....you have to maintain while creating BOM itself...
For eg) you give Product "A" to SC Vendor and getting back Product "B"...and By product "C"....
Then Create BOM for Product "B" in CS01...and in Components list...you give Product "A" , and maintain Product "C" as a negative component(ie) By product..)
Then Create PO for Product "B" in ME21N with Item Category "L"....
Then Issue Product"A" to SC-Vendor in ME2O///
After completion of product "B"....you do GR for Product "B"...in MIGO 101+ movement type....
At this time, the Component, Product"A"...will be automatically consumed in 543 O-- movement type...and your By Product will be generated in 545 O+ movement type and it will be lying at SC-vendor's Place....
Then separately, you can Get back this By product in to Company's stock in MB1B movement type....useing movement type 542....
If the By product generation is higher or lesser...you can do subsequent Adjustment Option....
Reward if useful
Regards
S.Baskaran

Subcontracting Handling ByProducts

Hi I created a BOM with two components and there is one component as negative qty which is generated as By Product.
When I am creating a subcontracting PO with Item Category "L" I am able to expolde the BOM with Two Components only
and the negative qty is not coming.
Also when I am doing GR against this PO the system is doing 101 movement for FG and 543 Movement for two subcomponents
but it is not creating the stock of by product at vendorend with 545 + 0 movement type.
Please advice am I doing something wrong,
Lekhrams
Edited by: Lekhram Sharma on Jan 2, 2008 2:37 PM

You can use subcontract orders to plan the receipt of by-products from subcontracting:
Similiar to production order processing, by-products are entered in the subcontract order as components with negative quantity.
In the provision of the components (with reference to the purchase order, for example), the system ignores the negative component items.
In the goods receipt for the purchase order, the system automatically posts the receipt of the by-products. In the material document, you can identify the by-product items from their movement type 544. Note that the by-products are posted to the "stock of material provided to vendor" (also referred to as "subcontracting stock").
The receipt can still be corrected using the Subsequent Adjustment function.
Due to the receipt of the by-products, the value of the manufactured material is reduced.
To transfer the by-products quantities from the "stock of material provided to vendor" (or subcontracting stock) to the unrestricted-use stock, you enter a transfer posting using movement type 542 (reversal of the provision of the components).

In migo 545 mov type is occuring instead of 543(Subcontracting Process)

Hi All
Subcontracting scenario is there
Movement type as per declaration.
201-- Some material is issued.
262-- one material is reversed.
541--Transfered to Sub con(Same reversed mat is included here)
101--Migo is done after comming back from vendor(SC)
Now instead of settling raw materials by 543 mov type, system is showing mov type by 545,
no negative qty is declared in PO.
Where the error is
Rgds
Ana
Edited by: ana kamat on Dec 24, 2008 1:23 PM

Hi,
Movement type as per declaration.
201-- Some material is issued.--- to cost center
262-- one material is reversed---- reversal for a different mvt type(production order)
541Transfered to Sub con(Same reversed mat is included here)- w.r.t. PO
101Migo is done after comming back from vendor(SC)---GR for subcon PO
Now instead of settling raw materials by 543 mov type, system is showing mov type by 545,
no negative stock is declared in PO.
Check in the BOM in PO(material data tab in PO whether the material qty given is -ve)
scrap/byproducts are accumulated in vendor's place using this mvt type.
You have to recieve using 542.
Regards,
Deepak.

Subcontracting issue.

Hi friends,
We are implementing PP-PI module for chemical industry.
We have two different company code (A& B) under one client. For company code A plant is 4000 & for company code B plant is 6000. In 6000 plant we are doing subcontracting process for particular product and subcontractor (vendor) is 4000. Plant 4000 is also producing SLR material. Now we are talking about 6000,Our material is also SLR it contains one raw material (X) & other byproducts(Y&Z). for that purpose we created MRP view in material master. We also created BOM. After creating PIR & MRP run we got purchase requisition & we convert PR into PO. Then we stock transfer by 541 moment type. From here we can do regular subcontracting process but we need to know how we should transfer the material X to plant 4000.so what is the procedure for material X in terms of planning & execution view in plant 4000 for production & how it should transfer to 6000.
Thanks & regards

If I understand your question, you are talking about special procurement type 40...
In SLR material master, view MRP 2, you set your material master, in Plant 6000, to be procured (F)...but, you also set Special Procurement Type 40, which means that you will buy it from another plant of your own.
In Plant 4000, your material is In House Production (E)....
So, each time you post a need of SLR in Plant 6000, it will be transfered to Plant 4000 as an Stock in-Plant Requisition.
You must have an Plant Transfer MM scenario to support it...using MB1B transaction, executing movement type 101 in Plant 6000 against Purchase Order created.
Am I been clear or I missed it all?

Problem in Posting of GR for Subcontracting PO Through MIGO

Hi All,
When I am posting 101 through MB01 for Subcontracting PO The system is creating three line items in Material Document( 101, <b>543 & 545</b> ) which is correct.
But if i am doing the same through MIGO it is posting three line items as (101, <b>543 & 543</b>) - Which is wrong.
I am using SAP R/3 4.7.
Please let me know if there is any OSS note to fix this.
Thanks a ton in advance.
-Nirupam

Hi,
I can't belive it....543 is showing Credit indicator and 545 is showing debit indicator. Which is perfect. So, when we receive a subcontracting PO, if at all there is any byproduct that is going to be received, it has to be either debit or credit (only one way) whether we receive from MB01 or MIGO. If you see 545 in MB01 that means, you are receiving by-products along with ....However, in MIGo you are showing only 543 (consumption of components).....Are you missing any by-products comingup in mIGO? Is the PO the same you are using in both MB01 and mIGO....very minimal differences in terms of functionality we may encouner between these two transactions but I strongly doubt about posting two different movements types for exactly the same data....I am not doubting you; just curious to work on such problem. Please cross verify again and let me know.
Regards

Subcontract PO

Dear Friends,
I need your help in solving the following strange issue in Subcontract procurement scenario. (item category L in PO)
I am making a GR for the processed goods with out sending the child material to subcontractor.
When I do so system should throw error message "Special stock O , material -X, does not available with vendor ABC "
But , during GR (with out sending child material to vendor) , I am keeping the curson in child material ( system explodes the BOM and child material will also appear in GR with movetment type -543) and doing "Check" before posting. When I do so system automatically deselect the child material (since child material is not sent to vendor ) and allowing to post the GR with out child material. i.e. GR is getting posted with out child material i.e. only 101 movement happens and 543 is not happening.
Actually system should not deselect the child material during "Check" and instead system should gives error message as " "Special stock O , material -X, does not available with vendor ABC ". But it is not happening
Can any one help me to fix the issue
Thx
Rishi

hi
here child material refers to bi product which we will give -ve in bom creation .system automatacally generate byproduct after sc process. the biproduct u have to receive through MB!B by 543 mvt then only a/c doc generated.
regards
srinivas kona

SubContracting Melting Order

Hi,
Business Process-
Ex- Created a New Model Car, this design have a particular time limit to achive the target. If the design not able to succeed inthe market with in the given time period we will melt this design.
SAP-
Design is the FG material Number with BOM universal (Engine, tyres, headlights, doors, steering, break etc, etc)
I issued this FG to Subcontracting Vendor through Movement type 541.
Now he will seperate all the Parts and returns back as a raw materials to us.
Now how to MAP this in the system.
Note- After seperation of the parts there is no more FG for GR.
Thanks in advance
Veera.

hi
as this will be a scenario in which u will send 1 RAW and get multiple FG
so what u can do is define the BOM for finished goods say ENGINE with raw material CAR and add other components with -ve value in BOM
means
bomwill be like
FG ENGINE (major component ) for this BOM will be
CAR 1
headlight 2-
cluch plate 1-
tyres 4-
etc etc
so when u send material will be CAR
and engine will be the major poduct and other parts will be minor
so at time of GR the -ve part velue become possitive and treated as byproduct
regards
kunal
hope it clears

A subcontracting Scenario

Hi ,
In subcontarcting PO scenario please explain me the following.
I am sending x kg of material A to SC Vendor .
I am expecting y kg of Material B from SC vendor.
By product in the procedure is C.
I have maintained BOM as A material to be send A, finished assebly is B and byproducts C in cs01.
Steps Involved are
1. I sent x KG to SC Vendor . ( Explain how to issue goods to SC vendor with Movement type involved.)
2. Found that actual consumption was less than expected in BOM, So i want reverse those extra parts i sent to SC vendor.( How to reverse them and using which Movement type)
3. After completion of process i want to do GR for the Finished product XX.(How to do GR and Movement type envolved)
4.In last stage i want to recieve the by-products from the vendor.( Movement type)
5 Scrap generated in process to be recieved in companies own stock( Movement type)
5. What are various excise document which are involved if vendor sends me the finished product within subcontracting period.( 180 days)
6. What is the " Reconcillation the SC challan ? Meaning of reconcillation?
Edited by: Shreya Sinha on Dec 29, 2007 12:30 PM

HI All,
Can anybody help me regarding subcontracting. Any help would be much appreciated.
Talking about subcontracting, right now we are facing some issues.We have right now what we call dismantle subcontracting,
Scenario 1:
Normally we send material A,B,C to vendor 1 for subcontract and receive material D.now on vice versa, we want to send material A, to Vendor 1 to receive material B,C and D.
while Material B,C,D will remain in vendor site after dismantle process is done.
I know, i can input one of the subcomponent say : A in PO as a parent component then put rest of others as a subcomponent with addition negative quantity for material D.
but the problem is , a lot of subcomponent for dismantle is involved and the customer is minded if they have to put a lot of subcomponent every time they create PO(while this PO subcontract may vary every time).Any other way for resolved this objection.
thank you,
Regards,
Daniel Tan

Subcontract scenerio

hi experts,
i have one problem in sub contract po. I need to send a Finshed item to a subcontract vendor for dismantaling.
For example suppose if we are sending a Car to s/c vendor for dismantaling.
the return item will be Tyre,wheel like that.
How to make S/c contract po. The stock of the car in compnay is 1.
Pls help
regards
arun

Hi,
This is a aprroach, if suits please adopt.
Say Let us have CAR as a Material X
Engine as Material A
Wheels as Material B
Tyres as Material C
Create a BOM for the Material A with the components X as 1 whereas B and C as child components with negative quantity ( ie -1 ) considering B and C as byproducts.
Create a PO for your component A ( ie Engine ) and do a transfer posting of X ie Car.
Then during GR you will be able to receive the child components as well as engine which means A through 543, B and C through 545. and the cost of the CAR will get consumed.
Regards,
DilliB

Process Industry subcontracting

Dear All,
I am having one scenario where we are having 2 plants in different company codes.
One Plant X is raising subcontarcting PO for another plant Y.
Now X has sent child components to plant Y thro 57F4 challan.
Now the issue is how the plant Y will take child component into their stock. so that they can process and sell it thro SD.
Is there any standard procedure in SAP for this scenario, please let me know.
Thanks in advance.
Regards,
Umesh

hi
make code for ur finished major product as B and other products as C D ur raw mat will be A (car )
create bom of B here pur A as main component and C and D with -ve quantity (byproduct)
like B 1 no
      A 1 no
      C -1 no
      D -1 no
then u will get C and D as by product with +ve quantity at time of final ge (101)
process will be as follows
Process Flow
This scenario consists of the following steps on goods delivery:
Purchase order creation based on a scheduled purchase requisition created by last MRP run
Optional: manual purchase order creation
Purchase order approval (if required)
Components of the Material sent to the subcontractor through a Transfer Posting
Creation of Subcontracting Challan
This scenario consists of the following steps on goods receipt:
Goods receipt for purchase order delivered by subcontractor
Component reservations and consumption of component quantities as provision of material
Reconciliation of Challan
Completion of Challan
Invoice receipt by line item
Invoice verification and validation of tax expenses
Outgoing payment
hope it clears
regards
kunal

Report for Material at subcontract AND PO number

We are preparing for Inventory verification at subcontractors.
My boss believes it would be easier for the SC vendor if we could supply the PO number for which the material was shipped.
I haven't found such a report. Is there one?
If you know the tables and links, I can write a ABAP query
Thank you for any help that can be provided.
Althea

Hi,
ME2O works fine if you want to track which subcontracting PO's are still open and what is the current stock at vendor.
ME2ON is another version of the same basic ME2O report.
Try also MBLB - Stocks at subcontractor.
As far as PO to 541 link is concerned, I do not think it is possible to find it unless there is some specific business process being followed which is supported by custom code.
The reason is that when you issue against 541, you are simply providing materials to vendor that the vendor needs.
There might be multiple open SC POs for same material/batch and there is no point in tracking against a particluar PO. Its the same material/batch the vendor receives.
When you post a PGR for a SC PO, then the stock from vendor premises is consumed by 543 and the track to your SC PO is maintained.
I tried maintaining EBELN as required in OMJJ for 541 but still no MSEG-EBELN is populated. Maybe I am missing something.

Subcontract Opening and closing stock and program

Dear All,
Is there any standard program for subcontract stock for which i can give previous date range and get the stock on older date to older date for the vendor (example like in MB5B for inhouse stock)
also we need to insert this details in custom report program so can anybody have developed such program or any function module is available for this
Pl suggest
Regards,
Vimlesh

dear sir.
Tcode : S_P00_07000140 - inventory and raw material for special stock report.
in selection-field give the special stock indicator O. and give the selection Date : Date on which u and to see the stock at vendor.
and exective it will show the stock on date.
in selection-fields we have an option for vendor and material also.
regards
jrp

Error while creating PO in operation subcontracting

I am getting an Error while creating PO in operation subcontracting.When I'm trying to convert the purchase requisition for the operation in the routing into a Purchase order it gives me the error "Not possible to determine any components".Please guide me why I am getting this error. I have already assigned the component to the operation in the routing. I also have this component in stock. But no Idea why I'm getting this error

Hi Sam,
please check ,
Assign a recursive BOM for the material for which you want to create the purchase order .ie. create a BOM of mat say X having a component X and marking the indicator recursive ticked.
Please create the BOM which is valid much before the date of creating a purchase requisition .
And proceed for the creation of subcontract purchase requisition.
Please Revert back, if the problem is solved.
OMKAR

Error while posting GR for subcontracting process

Dear Friends,
while creating a GR for a subcontracting PO, I get the following error. please suggest what to do. i checked the configuration for the movement type and could not come up with the solution.
Fld selectn for mvmt type 543 / acct 7449990 differs for Vendor goods movement (014)
Message no. M7093
Diagnosis
Comparison of the field selection strings from movement type 543 and G/L account 7449990 has revealed that there is an incompatible field selection combination at one or more points.
Field for which the field selection is different: Vendor goods movement
Example
On the movement type screen, a given field is a mandatory-entry field, whereas on the G/L account screen, the same field is suppressed.
System Response
You cannot post this transaction, unless you have changed the field selection adequately.
Procedure
Contact your system administrator.
Action to be taken by the system administrator
Check whether any postings resulting from this movement type are to be made to the G/L account determined automatically. If you find that the G/L account is not correct, check the automatic account determination in the Customizing system for valuation.
Proceed
If the G/L account is correct, use the report RM07CUFA to compare the field selection for the movement type with the field selection for the G/L account and change the incorrect settings or the field status group of the G/L account.
Proceed

The field is mandatory in acct 7449990 and hidden in movement type 543 or vice versa. To check the field status for that movement type, you can run the program RM07CUFA
Once you execute this program and found that the field is set to mandatory, then it should be mandatory for that movement type field status also.
Alternatively, Go to txn OMJJ, click on Movement Type and execute. There double click on "Field selection (Enjoy) and see whether the movement is maintained as Required Entry or Optional Entry.
Now go to FS00, input the G/L Account 7449990 and execute. There go to tab Create/bank/interest and chech whether you have maintained any value against "Field status group" and also you have checked the box for "Post automatically only".
This should be done in consultation with FI people only if the issue is in production client.
thanks
G. Lakshmipathi

Byproducts in subcontracting

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