Customer subcontract

All,
Follwoing is my flow to handle customer subcontract using sales stock & Make-To-Order concept. We are given a Semi-FG say "F02" from customer in which "F02" is the product we sold to them before. They subcont us to add colour to the "F02" and make it to FG as "F01" and ship it back to them and charge then an added-value cost (not full price including the cost of "F02")
I encountered the problem as follows:
1. In sales order how to differentiate between normal price and added-value price for F01 as when doing billing, we only want to charge the added-value price in subcontracting case, and charging full price for normal sales ordering (in which we make F02 for customer also).
2. Any report other than MD04 to see make-to-stock S.O as in MTO scenario, Md04 wont shows the Sales order at all
******************Here is the config and flow**********************
a).     Create Sales Order, in procurement tab "Requirement Class" = KEV and Schedule Line cat to BN
b).     MIGO -> GR->Others -> 501-E -> for F02 (Customer Supplied Material), provideSales Order/Item#
i)MMBEyou will see the stock is being show as Sales Stock (NOT Inventory stock)
ii)Md04 for F45684XX4915FR3102 è you will see the stock as Sales Order stockè means customer owns the stock
iii)MB51 for material doc for this GR è No account document means this GR stock does not affect the Balance sheet account on FI, but affect the MM (as it generate material document)
c)CO08 to create Prod Order from Sales Order è use F01 (The FG to customer) è in Prod Order component view add component F45684XX4915FR3102 (op# = 10) è release $ Save go to MD04 you will see the S.O and cutomer Stock show
d). MIGO GI--> Order# --> 261E
i)Md04 è Sales Stock customer entry is gone
ii)MB51 è material document has no accounting document è since the stock does not belongs to company (GR/GI of F02 does not affect FI, only MM)
e).GR-> Order -> 521 E in where tab è use 101-E
i)md04 è Prod Order Entry gone, only Cust Stock entry remain with stock quantity
ii)MB51 è Accounting Document Inventory/Fact Output equal to EK02 cost value * qty
f).     Sales order no need to confirm stock, since it is MTO, the confirm field is auto assign with qty
g.     Open DN è Vl01n è input pick qty è Save the DN (without PGI)
MD04 è Delvry entry is shown
h.     VL02n è PGI
MD04 à All item are vanished
i) VF01 -- create Billing
price being chare equal to the normal price (NOT added-value price)

"Dependent requirements ind. for individual and coll. reqmts" (MARC-SBDKZ) on MRP4 of material master is used to control whether the components are managed in the special stock segment or not in MTO environment.
(Discussed many times on the forum.)

Similar Messages

Customer Subcontract Stock for Production Order

Dear All,
We have create a Subcontract Sales Order from VA01. Now after MRP run, we have a Planned Order which in turn will be converted into a Production Order.
The Finished Product contains a BOM, the Production Order in turn contains a list of the Raw Material Components. The scenario is as below.
Finished Product A
Raw Material Component B1
Raw Material Component B2 <- Material from Customer Subcontract (Booked into SAP system using Mvt 501 - E)
Raw Material Component B3
Raw Material Component B4
In case we want to issue material to this Production Order, system is requiring me to issue the Raw Material Components from Sales Order Stock (Special Stock E) for all components B1, B2, B3 and B4.
But for my case only B2 is the Material from Customer Subcontract and all other Raw Materials B1, B3 and B4 are from inhouse.
I would like to ask is there any method to modify the Production Order so that B2 is issue from Sales Order Stock where as for B1, B3 and B4 are from the normal unrestricted stock.
I have checked in the Plan Order but it only allows me to change the stock type for the whole Production Order. Does anyone knows how to set only particular components in the Production Order to be issued from Sales Order Stock?
Thanks.

"Dependent requirements ind. for individual and coll. reqmts" (MARC-SBDKZ) on MRP4 of material master is used to control whether the components are managed in the special stock segment or not in MTO environment.
(Discussed many times on the forum.)

Material provided by customer - subcontracting process

Hi All,
In our scenario our customer is subcontracting some assembly work to us. The material to be assembled in provided by the customer completely. It is always in the ownership of the customer even when it is lying at our end.
Is there a standard process in SAP to map this scenario? How can we check the customer stock lying in our SAP system at our end?
Regards,
V S

Hi,
If you want to track these materials and stock than you will have to create them as non-valuated materials in your system and take GRs when customer sends you these materials. You may take it as un-restricted stock, Sales Order Stock or Customer Stock based on your requirements.
As material is non-valuated it will not create any liability in your system.
Than, use this materials in BOMs for your production order and create a Sales order for the final product.
Regards,
Dakshesh

SD Subcontract Order

Hello Experts,
I have a question regarding Subcontract Process in SD, where our Customers give us Raw Materials for Production add on services.
I have created a Subcontract Quotation (QU) and Subcontract Sales Order (TU) for a Finished Material. Under MD04 I have this Plan Order created after MRP run. I have converted this Plan Order into Production Order. In the BOM for this Finished Good, we have the Raw Material Components supplied from the Customer.
Now the I have the question of how can I perform Goods Receipt for the Raw Materials provided from the Customer.
I have checked in the internet some create Purchase Requsition of Account Assignment Category "M - Ind. cust. w/0 KD-CO", set the Condition as 0 and receipt the Goods under MIGO. I would like to ask is this correct? If not can anybody help is solving how I can receipt the Customer Subcontract Raw Materials into the system.
Many Thanks

Hi,
Master data - Define customer as vendor and Vendor as customer
From MM side
Create separate storage location for subcontract material provided by customer
Receipt goods with or without reference to P.O
From SD side
Create sales order for finished goods >> Delivery
Kapil

Allowing "Reader Users" to Save MULTIPLE Unique Sets of Forms Data for One Form

I own Acrobat Pro X. I use it to create many documents in my law practice. I need to deliver a contract form to a client that the client will use again and again and again... The client only owns Acrobat Reader. I need this to be like a "template" in Microsoft Word. The client needs to be able to fill-in the fillable fields on the document that I have created, then print and save it (e.g. as "Jones.pdf"), then fill it with new data and print and save it again (e.g. as "Smith.pdf"). This process may need to be repeated hundreds or thousands of times. Sometimes the client will need to reopen a document (data set) that was previously saved and printed and see it as it was last printed (so, to load "Jones.pdf" and see it as it was created). Sometimes the client will need to send a "filled" PDF to one of his customers, where the client's customer can print the document, but not change any of the fields (much less the body of the document, of course). So to sum up:
* Attorney creates contract with fillable fields in Acrobat Pro X and sends to client;
* Client uses PDF created by attorney to create, print and save an infinite number of unique 'data sets' for the document, any of which can be opened and printed at any time; and
* Client sends locked-down, un-changeable PDF to Client's customer for customer to print, but not change.
All of this needs to be able to happen without the Client ever buying Acrobat. Is this possible? I'm aware of File > Save As > Reader Extended PDF > Enable Additional Features, but I cannot figure out if this will work, since I don't use Reader on my pc.
Surely this scenario is faced by document creators often. However, I tried and failed to find a set of search terms which would reveal discussion threads that were relevant to this query.

I apologize for being unclear. I'll try to clarify the facts.
1. I have written a custom subcontract agreement for one client. This is the only client that I will ever give this particularl document/subcontract. My client will *never* send the data or the document back to me. Once I turn over this document to my client, it is from my perspective, a one-time, one-way transaction.
2. My client
Will be the only person who will ever put data in the fields (using Acrobat Reader);
Will create hundreds or thousands of unique subcontracts using the document that I have created, but the only difference between each will be the data that my client has put in the fields;
Needs to be able save each unique set of data as a unique pdf (jones_1.pdf; smith_2.pdf; etc.);
Needs to be able to email the completed document to his customer in a way that his customer cannot modify the document, but can view it, print it, sign the paper printout and snail-mail it back.
3. My client's customer
Should be able to view and print, but be unable to change anything in the document;
Will not need to sign the document electronically (there will be no digital signatures)
Users of Microsoft Word are familiar with the concempt of templates. When you create a new document based on a template, the content and formatting can be changed in each new iteration made from the template, but the original template is not changed. I could give my client the subcontract as a Word template, but his staff could easily or accidentally change important language that I don't want them to be able to change. For the client's own protection, I want the client only to be able to change data in the fields that I've designated. This sort of scheme is impossible using a Word document or template. I hope it's possible with a PDF.

Goods reciept against services sales order

Dear SAPERS,
I have one scenario with my client, i.e. My client will receives rough castings from their customer against customer subcontract purchase order.
My client will do PP operation on it and sent back to their customer with service charge invoice, In this process we want to track the material receipts and issues with respect to sales order.
Please provide solution for this.
With regards,
Venkat.

You have to follow the steps listed under Servicing Plant. Besides this, your pricing procedure should have a condition type for TDS
From MM point of view, they inward the base material and when the part is being sold, it will be a different part number for which, you need to maintain the sales view.
In fact, you have not indicated as to whether the quantity and value while inwarding can be updated. If it is valuated, then you can follow the normal MM process with material type as ROH with quantity and value updation boxes are checked in IMG.
thanks
G. Lakshmipathi
Edited by: Lakshmipathi on Aug 4, 2011 1:36 PM

Subcontracting PO from Sales order = Delivery address tab = customer

Hi,
We have a Sales order which saves a PR.
If I transfer the PR to the subcontracting PO.
The delivery address is equal to my company.
But I want to send the goods directly to the end customer.
I will post a dummy receipt. I need a customer field in the
tab delivery address (same as with third party).
How can I solve this problem?
Thank you,
Eric van Zundert

this is possible however you have to some configuration.
1.you have to maintain combination item category -L and acct assignment category - 1
    spro-->mm->purchasing--->Account assignment here you have to maintain
2.you have to allow to create PO with item category 'L' when PR item category is 'S' .
    spro->mm->Purchasing->PO->document types
    for std order NB you have to maintain above combination
3. now if PR is converted into PO ,the system automatically take item category --S
    acct assignment category--1 from Sales order.In PO you have manuallly change the item category from 'S' to 'L'.
   now the delivery address will not be changed from customer address.
   this will solve you problem
reward if useful

Customer material are used in Subcontracting process

Dear All ;
in this scenario Some of the input materials are supplied by the supplier .how to address this in SAP .
Is ok to build the solution like this .
1) vendor Code will be created .
Normal PO will be created an in delevery address subcontring vendor code will be given and SC vendor will be ticked .
GR will be made and the Customer supplied material stock will be increased as "O' stock at subcontractor end .
2) Normarl Subcontring PO will be created and all necessary item will be created for the final product in the BOM
3 ) GR will be Made against Subcontracting vendor .
Thanking You;
Joydeep mukherjee

If you can have customer supplied stock as your stock in your system than yes this process should work fine. But it will not work towards financial part.
Your customer will not pay you the cost of entire final product, he will pay you final product cost minus his stock value and hence how to achieve that will be an issue.
There are no direct solutions to your problem and it may vary on case to case basis depending on your business requirements.
But what you may do is create this customer as your vendor also and cross-reference them in each other masters.
So while receiving goods from customer, create a normal PO with his vendor code and provide the subcon vendor as delivery address.
Create sales order for the final product against this customer.
Create another subcon PO for subcontractor.
Than proceed with invoicing and billing (for invoicing you may select to ERS as customer is not going to send you any invoice) and while billing and payment you can nulify the amount of vendor invoice to get balance payment from your customer.
Regards,
Dakshesh

Subcontracting with the finished material to be given to the customer

dear all,
I want to implement a scenario, in which i want do subcontracting. the material shall not be given by me but shall be ordered to another vendor who shall give it to the subcontractor, the subcontractor shall give the finished product to the customer. I would like to do the goods receipt and receive the invoice from the sub contractor.
Please tell the procedure if any one has implemented this scenario.
regards

Hi,
1) For bought out material (to be given by your vendor to Sub-Contractor) - Preferably this PO should be generated from MRP generated PR (requirement coming from the sale order). You can change the delivery address (in Delivery Address tab at Item Details level). In the bought out material PO, you can maintain the vendor number (of your sub-contractor) & put tick at SC Vend. This will change the delivery address to the sub-contractors address. When you post GRN the material stock will be shown as material provided to sub-contractor.
2) For Sub-Contractor Vendor (material directly to be given to the customer) - The condition you maintained is of the Third Party Supply.The PR for this PO must be generated from the sale order you booked in the system (for the customer to which you want to deliver the material). Maintain the procurement key as F (External procurement) & special procurement key in the material master as 30 (Sub-Contracting) for this material. Using this PR, raise the sub-contracting PO. When you post the GRN for this material the material will be posted to the material supplied to customer & the account hitting at GRN will be COGS (Cost of Goods Sold). The material provided to the sub-contractor (directly from the bought out material vendor) will be consumed at this GRN.
Hope this helps.
Regards,
Prashant
- Reward points if answer is helpful

Subcontracting with Customer Owned Stock

Hi Guys
We will have stock that is owned by a customer but stored on our premises and we will be using the Subcontracting PO Process to send away unserviceable items and get them refurbished to come back as servicable.
We need the facility to do this with both normal stock AND Custiomer owned stock
In my current scenario the only stock i have is customer owned (special stock cat B) and i want to create a Subcontracting PO AND an outbound delivery using the customer owned stock,
Any help in how to do this would be appreciated
Regards
Frenchy

Hello
Please check the below SAP help documentation links on customer stock
Subcontracting for Customer Stock - Inventory Management - SAP Library
Customer Stock - Inventory Management - SAP Library
I hope this helps.
Thank you.

Reversing subcontracted finished goods that came from customer returns.

Dear Gurus,
I have a scenario where the finished goods that came from subcontracting needs to be reversed back to its components without reversing the subcontracting charges. How to process this scenario in SAP.
The subcontracting job is packing. The individual materials will be sent to vendor and vendor will return the packed finished product. The packed material will then be sold. The materials that came back as customer returns due to quality reasons is unpacked and reverted back to its components.
How to process this reverting of the packed finished goods back to its components in SAP.
I understand one thing that reversal of subcontracting GR without reversing the subcontracting charges is not possible and it is not a proper procedure. I am unable to trace a way to process this using other indivdual movement types too.
Kindly suggest and Thanks in advance.
Thanks & Regards,
Pradeep Kumar . S
Edited by: pradeep.spk on Oct 24, 2011 7:14 AM

Thanks for your reply Nishant but the problem is subcontracting charges should not be cancelled. The packing job done by vendor was paid and it is irrevokable.
The Finished goods returned from customer should be reduced from inventory and its components should be added back so that we can scrap the defective components and do our further processing using the good components.
The requirement is how to process the reduction of the finished goods from inventory and add the components back to inventory in SAP.
Thanks in advance.
Edited by: pradeep.spk on Oct 24, 2011 10:51 AM

Direct Shipment of Subcontract stock to customer

Dear Gurus,
Does anyone know if there is a way to direct ship material to a customer from a subcontractor where the sub-contract stock does not need to be manually received back into the plant (MIGO 101) and then shipped out to the customer. I would like a combination inventory transaction based on the customer sales order shipment to handle the reciept of the finished product from the vendor along with the consumption of the components sent to the vendor..
Thanks a bunch,
Debbie

Hi,
EKPO-PSTYP:
- if you use third party process you have to define "S" in this field
- if you use subcontracting you also have to define "L" in this field
...you cannot define two values for the same field at the same time...
Regards,
Csaba

Subcontracting for a Customer

Dear Friends,
My client has the below scenario :
Scenario 1: Step 1 : Customer supplies Raw Material A
                    Step 2 : Client does goods inwards
                    Step 3 : Processing happens at Clients Shop floor (RAW MATL "A" becomes "B")
                    Step 4: Issues to customer Material "B"
                    Step 5 : Invoices Customer for only processing charges
Scenario 2: Step 1 : Customer supplies Raw Material A
                    Step 2 : Client does goods inwards
                    Step 3 : Processing happens at Clients Shop floor (RAW MATL "A" becomes "B")
                    Step 4 : Material "B " is issued by client to his own subcontractor for some further processing to become "C"
                    Step 5: Receipt of Matl "C" by client from subcontractor
                    Step 6: Clients pays the subcontract for processing charges
                    Step 7: Processing again happens at Clients Shop floor ( "C" becomes "D")
                    Step 8: Issues to customer Material "D"
                    Step 9 : Invoices Customer for ALL processing charges
NOTE at all stages Materials are NON VALUATED.. since we do not want customer material to affect our stock values.How to Map this.
Kindly help and guide
Thanks
nandu

Hi,
You can adopt the following steps
For scenario 1:
1) Create a Free goods PO
2) Recieve the material A against the PO
3) Issue the material for PP inhouse processes
4) Raise a Sales order and send back the processed material to customer
Scenario 2:
1) Create a Free goods PO
2) Recieve the material A(UNBW) against the PO
3)Raise a subcontracting PO with item category L
5) Issue the material to the customer( vendor ) th MB1B -541
6) Recieve the material th MIGO for the O/P material(UNBW)
7) Issue the material for Inhouse production
8) Raise a Sales order and send back the processed material to customer along with the Invoice.
Regards
Sandeep

Subcontracting for customer

We have a process in which we are doing subcontracting for our customer. Our external customer will send the material to us on 57f4/Excise paid subcontracting challan. We will process the material and send it back to the customer. How can we map this process.

Dear Kannan
I hope you would have gone through the suggestion given by me in this link
[Subcontracting in SD |Re: Subcontracting in SD]
Whatever suggested there holds good for your process also. That is ED and Tax is NOT applicable
After completion of the job work, if you are returning partial quantity of the component back to customer, then you should use Annexure VI Challan to fulfill Excise Regulations. At the time of sending the final quantity, you should return the original 57F4 challan duly filled in at the bottom space.
In case, you are returning the entire quantity in one lot, then Annexure VI is not required.
Thanks
G. Lakshmipathi

Subcontracting with MRP areas / Customer consigment

Dear all,
I'm currently looking for some information regarding subcontracting processes with MRP areas.
On the first hand I need a general overview how subcontracting purchase orders would be handled with MRP areas. In addition I'm really interested in the replenishment of the subcontractor stocks. On the other hand some facts about the customizing would be fine.
My second topic is consigment stocks at the customer. So I need similar information as for the MRP areas but regarding this customer consigment.
It would be really great if someone has some literature recommendations or official documentations about these issue.
Many thanks in advance!
Regards
Enrico

Hi Enrico,
Working with subcontracting and MRP area's gives you the option to plan the requirements for the subcontractor separately and you can then order the components separately. This functionality is used when working with scheduling agreements and direct deliveries to the subcontractor as there this is a requirement.
A second instance where one would use and MRP area with sucontracting is that when a material is used both by the subcontractor and it's also used directly in the plant production. The requirements for the subcontractor can be separately planned using an MRP area.
The following links may give you some more information regarding working with subcontracting and MRP area's
[MRP area|http://help.sap.com/saphelp_470/helpdata/en/c4/106956ae8a11d1a6720000e83235d4/content.htm]
[Planning for Components to be Provided in Subcontracting|http://help.sap.com/erp2005_ehp_04/helpdata/EN/c4/106956ae8a11d1a6720000e83235d4/frameset.htm]
Edited by: Peter Pallen on Jun 5, 2011 7:19 PM

Customer subcontract

Similar Messages

Maybe you are looking for