Direct purchasing of components for subcontracting flow

Hi,
I have following business scenario:
I have Material A which I send to the subcontractor 123. The subcontractor adds component B and do some more transformations of the product. In the end I receive part C. Because of local tax requirements (Brazil) the invoice I get is separated into 2 lines - first one corresponds to the transformation process and the second one to raw material/component added (because the tax we need to apply is different in both cases).
What I did, was to create BoM for material C with 2 items: A and B. For the material B I set procurement type F and special procurement type Z1 (which basically the only thing it has is, a direct purchasing selected). I set also the price and the same supplier 123 inside the BoM item for B. I created a subcontracting plan, set the requirement in ME38 and check the explosion.
It alows me to do GR 101 for C, it does consume A with material movement 543, but I don't have any movements for material B. I have expected to get 101 and 543 (or actually 101541543) for B, but I got none... and of course I cannot do the invoice verification for this supplier, because MIRO shows only the price from scheduling agreement for C. What's bugging me is that even it did nothing to B it still did allowed me to post good entry of C...The GR have been done thru VL31N and not by MIGO (just in case it matters).
Do you know what I did wrong? What should I check? Or maybe you have better idea of how to do this flow in SAP (I'm still working with 4.7).

Hi,
I would just add the cost of comp. B as a (freight) condition in the pricing procedure of C. You can define it with calculation type C (not the material no. C - the calculation type C! , which means the amount is directly dependent on the quantity of C purchased/received (and hence on the qty of B too).
Meaning that you pay to the vendor for the service (PBXX or PB00) and for any additional materials it provides (the additional condition).
Then in the BOM you will only have A.
BR
Raf

Similar Messages

Subcontracting flow

hi all,
I need to know what is the normal flow of subcontracting.
I explain, for example i have to produce X quantities of an intem, and i know that i have to create a purchase order for poste type (s) subcontracting. i did it, i have created a purchase ordrer with a supplier. when i used tcode ME2O to see stock of the supplier,i found negative quantities which represents quantities of my purchase order. How can i make this quantities positives, and what is next step to continue my flow, to make entry of stock of my purchase order with MIGO ?
Best regards

hi
Refer this link
http://help.sap.com/saphelp_erp2005vp/helpdata/en/b9/c2df3ae710c60ae10000000a114084/frameset.htm
Subcontracting without Payment of Duty
u2022     Creation of Subcontracting PO (ME21N)
u2022     Transfer Posting of Components to Subcontractor (Mvmt Type - 541) (MB1B/ME2O/MIGO)
u2022     Creation of Subcontracting Challan w.r.t. Transfer Posting Doc (J1IF01)
u2022     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}
u2022     Reconciliation of Subcontracting Challan (J1IFQ)
u2022     Completion of Subcontracting Challan (J1IF13)
u2022     Generation of Annexure IV (J1IFR)
Note: - In this case, you have to maintain the Assessable Value for the Components to be supplied to Vendor in J1ID and also Excise Tax rates for the Chapter IDs linked with these components. So during J1IF01, system will take the Assessable Value as Excise base Value and calculates the Excise Duties by taking Excise Tax Rates.
Subcontracting under Full Payment of Duty
u2022     Creation of Subcontracting PO (ME21N)
u2022     Transfer Posting of Components to Subcontractor (MB1B/ME2O/MIGO)
u2022     Creation of Outgoing Excise Invoice w.r.t. Transfer Posting Document (J1IS) - Used to send the components to Subcontractor's. Here 57F4 Challan is not created.
Accounting Entry: -
CENVAT Input BED - Cr
CENVAT Input ECS - Cr
CENVAT Input ECS - Cr
CENVAT Suspense A/c - Dr
u2022     Capture Vendor Excise Invoice at the time of GR of Finished Goods w.r.t. Subcontracting PO (MIGO)
u2022     Post Excise Invoice for FG received from Subcontractor (J1IEX)
Accounting Entry: -
CENVAT Input BED - Dr
CENVAT Input ECS - Dr
CENVAT Input ECS - Dr
CENVAT Clearing A/c - Cr
Master Data
u2022     MM01- Material Masters for Components and FG
u2022     XK01 - Vendor Master (Subcontractor)
u2022     CS01 - BOM for FG
u2022     ME11 - Purchase Info record for Subcontracting
regards
kunal
Edited by: kunal ingale on Dec 11, 2008 1:48 PM

Return ROH component for Subcontracting

Hi All,
Can anyone please guide me for the process of return Raw Material Components for Subcontracting, after the Goods Receipt of Finished Goods using MIGO.
I have searched other threads which are using transactions J1IF01, J1IFQ and J1IF13. Does anybody knows what the use for these transactions.
Below is the current flow which I am using
Create Subcontract Purchase Requisition - ME51N (item Category L)
Create Subcontract Purchase Order - ME21N (Item Category L)
Create Transfer Posting - ME2O
Create Goods Receipt Document - MIGO
Create Logistic Invoice Verification - MIRO.
Thanks.

Hi
Actually use for subcontract adjustment we have to use t-Code MB04 enter the Delivery note number and PO number through which PO you are going to issue or receiving. Then select the component which component you are going to issue or receive .
If you are going to receive the material from vendor means just enter the quantity for example 10 then post it it will reduce the stock of subcontractor
If you are going to Issue the material to vendor means just enter the quantity for example -10 with negative then post it it will increase the stock of subcontractor .
Hope it will help you
Regards
Murugan

Cofiguration step for SubContracting Order Cycle (SCO)

Pls,provide me the the configuration steps of SCO(Suncontracting Order Cycle)

Sub Contracting Cycle
(1) You have a material that can be procured externally, and you have maintained BOM with components. Any waste generated and received during subcontracting process can be maintained as component with negative quantity. (special procurement type should be 30 in material MRP2 view for the mateiral you are getting back from subcontractor)
(2) You create a subcontracting PO (PO with Item Category L). You can also maintain Purchase Info Record for Subcontract category for material and subcontractor.
(3) You make a transfer posting to issue components for SC PO. Material is sent to subcontractor. As material remains under your ownership, system does not make any value entry. But quantity is shown as "Material Provided to Vendor"
(4) You receive finished material against SC-PO. You also specify components consumed in manufacturing of finished goods. Additionally, if you have negative components in BOM, now you'll also receive subcontracting by-products. There are three events, so three accounting entries are generated:
DR FG Stock/ SC By-Product Stock
CR Change in Stock (FG/ SC By-Product )
(for finished goods received)
DR Subcontracting Charges
CR GR/IR Clg
(for moneys payable to Subcontractor)
DR Consumption (Components)
CR Change in Stock (FG/ SC By-Product ) 0
(material provided to Vendor is now charged to expense)
(5) You do the IV for SC Invoice, and the process is complete.
Process of Subcontract in MM
Sub-contract business process:
You want to buy material from the supplier (processed material/ assembled item) , but for some reason (quality of certain item / price ) you will give some component to vendor .
Vendor shall process the item / use the item provided & supply the final item.
SAP process:
1.Create the finished goods material code.
2.Maintain the BOM for the material.
3.Create PO with item category as "L" .
4.Issue material to vendor with movement type 541
5.Receive the material against the PO with movement type 101.
6.MIRO to account for vendor's invoice for the service charge& material used by him.
Note:: At the Time of GR 543 Mvt is up dated for Raw Material.
Can anybody tell me how a process has to be given to subcontracting?
Suppose, I have 3 operations 1)weaving 2)dyeing 3)cutting & packing
if no 2 process (i.e Dyeing) has to be given to subcontracting, what process should i follow ?
The following process to be followed for subcontracting.
1. Item code(material master) to be created at the stage of before dyeing.
2. Item code(material master) to be created after Dyeing as subcontracted item.(F30)
3. Bill of material to be created for the material(2) calling for material(1)
4. Info record and source list to be created for material(2) with the corresponding vendor
5. PO to be released for material (2)
6.Along with PO the material(1) to be issued to vendor
7.On receipt of material when GR is made the stock with vendor will get updated.
How to Create a Subcontract Order?
To create a subcontract order, proceed as follows:
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.
Enter the components that the vendor requires to manufacture the product.
Please note:
u2013 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:
Delivery date of the item - Planned delivery time
u2013 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 (column F).
u2013 You can determine whether the components are available on the date required by selecting Edit -> Availability check.
If you entered a bill of material as the material in the subcontract order, the components are created automatically.
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 -> Component -> New BOM explosion. The existing components are deleted and redetermined in the bill of material.
Save the purchase order.

Posting of Components made compulsory for Subcontracting Purchase orders

Hi
I am working in ECC 6.0. In case of Goods receipt for subcontracting Purchase Orders, does the child quantities automatically changes when i change the default quantity of Header material according to the BOM relation ? I found it is not happenning.Please inform is this standard?
Also i can post the documentfor header material without the components,by manually changing the quantities for Child items .Kindly give a me suggestion by which this can be controlled.
Regards
Arvind

Hi,
1.
The component changes as per the header material in MIGO when you want to do GR. Please take care that the components musn't be exploded when you change the qty of the BOM header material. If they are exploded, collapse them ("close the explosion"), after that change the qty of header material and when you explode the components again you should get the proper quantities (this button is in the line of BOM header material).
2.
As per my best knowledge, in standard system you cannot restrict/control the change of component quantities. The cause of it might be that the quantity of components may differ from the rates defined in the BOM and the user HAVE TO CHANGE the quantities as per the real consumption.
Solution might be training. If the user intentionally changes the component quantities, this is a HR issue..
Regards,
Csaba.
Edited by: Csaba Szommer on Dec 26, 2008 5:14 PM

Components for the Subcontract Purchase Order

Hello All,
I am trying to create a subcontract Purchase Order, I have created a subcontract Purchase Info Record using ME11 for the Finished Goods and also defined the BOM using CS01.
When using ME21N, I have defined the line item as L Category. In the Item Detail -> Material Data tab, there is a "Components" and "Explode BOM" button. When I click on the "Components" button, I see the list of raw materials defined in the BOM. I know for subcontracting that we are able to enter the components manually or can be generated via BOM explosion. I would like to ask how can I enter the components manually as when I try to delete an item it said not able to do so.
Can anyone please help.
Thanks.

Hi..
In Subcontract PO, BOM can be deleted by selecting all BOM line items then go to Edit and select Delete tab .
To enter the component manually click on Collective Entry Tab in PO BOM and after that you can enter components manually.
So 1st delete the BOM and then add BOM manually by above procedure.
But as a standard Practice CS03 BOM only to be changed and then explode the PO BOM.
Regards
Vishnu

Sending components on a PM03 task for subcontracting

Hi,
Is it possible to send components on a PM03 (external services) operation for subcontracting?
To be more clear: we've defined the following starting scenario's:
1) send an item for an analysis - positiontype L / PM02 operation
2) send an item for a modification directly - position type L / PM02 operation
Ad1:
The subcontractor might report back that the item sent needs to be overhauled or should be modified. In any way, a certain service (modification) should be carried out. This service is predefined in the system in a service master record. We currently process this service as a PM03 operation in the PM order and stipulates a service preq and PO. So send the item on PM02, add another line - PM03 - to handle to service. We do a GR on the PM02 operation and do a service entry sheet receipt for the service performed.
Ad2)
The item will be modified and shipped back. Only PM02 is applicable and only a GR will be performed.
The service / modification will be handled as a PM03 operation as the item is already at the subcontractor. Would it also be possible to only use a PM03 and add send the item on this PM03 operation as well? I.e. somehow combine position type S and L?
Or would material type Service (DIEN) be suitable for this?
Thanks for the suggestions.

Hi,
Is it possible to send components on a PM03 (external services) operation for subcontracting?
To be more clear: we've defined the following starting scenario's:
1) send an item for an analysis - positiontype L / PM02 operation
2) send an item for a modification directly - position type L / PM02 operation
Ad1:
The subcontractor might report back that the item sent needs to be overhauled or should be modified. In any way, a certain service (modification) should be carried out. This service is predefined in the system in a service master record. We currently process this service as a PM03 operation in the PM order and stipulates a service preq and PO. So send the item on PM02, add another line - PM03 - to handle to service. We do a GR on the PM02 operation and do a service entry sheet receipt for the service performed.
Ad2)
The item will be modified and shipped back. Only PM02 is applicable and only a GR will be performed.
The service / modification will be handled as a PM03 operation as the item is already at the subcontractor. Would it also be possible to only use a PM03 and add send the item on this PM03 operation as well? I.e. somehow combine position type S and L?
Or would material type Service (DIEN) be suitable for this?
Thanks for the suggestions.

Process Flow for Subcontracting

I need help in the process flow for Subcontracting
With Regards
Maya

Please have a look at the building block '442 RFQs for Project-based Procurement' and '443 Purchase Orders for Project-based Procurement' of the SAP Best Practices for Engineering, Construction, and Operations SAP Best Practices for Engineering, Construction, and Operations U.S - V1.604 (SAP Best Practices for Engineering, Construction, and Operations – SAP Help Portal Page).
Best regards,
Maria

Problem for Goods Receipt for Subcontracting Purchase Order

Dear all,
Presently, we are using SAP version 4.6C and we need to introduce GR for
Subcontracting Purchase Order. We have developed a ABAP program to handle
subcon Goods Receipt by uploading flat-files from our subcontractor. The
scenario is as follows :
Goods Receipt for Subcontracting Purchase Order
1. In the ABAP program, function BAPI_GOODSMVT_CREATE will be used for goods
movement.
2. Data provided to the function are as follows :
- Posting date
- Document date
- Material number
- Plant
- Storage location
- Batch
- Movement type (101)
- Quantity
- Purchase order number
- Purchase order item
- Movement indicator (B - Goods receipt for purchase order)
3. The function will do data verification and automatically determine GI
item for subcon stock:
- Movement type (543)
- Special stock (O - parts prov. vendor)
- Material
- Quantity
- Plant
Our problem is that :
Only the GR item in the interface is to be transferred and the GI item is
determined by the system. So, the quantity for subcon stock cannot be
changed using this BAPI. Then the system will continue processing the goods
receipt and create material document.
Manually, by using transaction code MIGO, the user can display the subcon
stock data and then change the quantity.
By using transaction code MB01, after the user fills in all the GR fields,
the system comes to line item 002 (subcon stock data) and then quantity can
be changed.
As per user requirement, quantity for GI item must be same with the quantity
that has been transferred to subcon vendor in Delivery for Subcon
(transaction code VL02N).
We cannot achieve this requirement by using the BAPI mentioned above. Would
appreciate any valuable help from anyone who is able to help us on this
matter. Are there any other BAPI's that can help us to achieve the same
result ?
Thank you in advance and best regards.

As far as i understood the problem I suggest u to create the
BDC according to user actions that are performed in he manual
operation.
I can't say that the BAPI performs the exac solution what you want.
I have done some BDC work using MB01 and suggest you to be careful
and try to keep the complete in the logic as some chages in rows in BDC will
change the complete scenario.And throw correct quantity val in correct
material
row.
This methodology will help u even in mass uploads.
Or in case of automation u can perform the call transaction BDC in
background mode.
so As per my understanding bdc program is the solution. pls try and let me
know.

Good receipt problem for subcontracting purchase order

Good receipt problem for subcontracting purchase order
with account assignment type E.
After update to ECC 6.0. Do good receipt for subcontracting purchase order with account assigment 'E'.The system show the error message(KI235)----Two cost elements (Change in Stock (Subcontracting)&Outside processed fee) haven't CO account assignment.but the field status for sale order is option entry , when I default cost center for the cost element in OKB9.the system post the material document and generate the following accounting document.
Doc.Type : WE ( Goods receipt ) Normal document
Doc. Number    5000056065       Company code    1000         Fiscal year     2007
Doc. date      2007.12.04       Posting date    2007.12.04   Period          12
Calculate Tax
Doc.currency   HKD
tm PK Account    Account short text   Tx Cost Ctr   SaleOrder               Amount
1 89 13500000   Stock-Work in proces                   1007823 10             274.4
2 96 21210010   GR/IR Clearing                             1007823 10             205
3 91 41010102   Chg in Stock(Subcon)    10901099 1007823 10            274.4
4 86 41031000   Outside processed fe     10901099 1007823 10            205
5 99 13500000   Stock-Work in proces                    1007823 10            69.4
6 81 41010101   Cost of Prod (Subco)                      1007823 10           69.40
My problem is:
When use MIGO to do good receipt for subcontracting Purchase order, for consumption account((Change in Stock (Subcontracting)-41010102&Outside processed fee--41031000) ,why the system dont recognize the sale order filled as CO account assignment?

Dear fanny chen
Did you get a solution for your open question?
I`m facing the same problem, so any help yould be appreciated.
Regards

Message type for generating IDOC for SUBCONTRACTING PURCHASE ORDER

Hi All,
I have to generate IDOC for PO creation or change .
I am using IDOC_OUTPUT_ORDERS and IDOC_OUTPUT_ORDCHG.
The messagetype.idoctype I am using is ORDERS. ORDERS05 and ORDCHG. ORDERS05.
Now the confusion is regarding whether this message type will work in case of SUBCONTRACTING PURCHASE ORDER as well ?
As I have gone through some websites and came to know that I will have to use PORDCR1.PORDCR102 specially for subcontracting.
And programs we need to use is BUS2012_ICH_R3 instead of RSNASTED and Form Routine SEND_PORDCR1 instead of EDI_PROCESSING.
Purchase Order Collaboration scenario - Not generating IDOC in ECC
http://www.erpgenie.com/faq/edi_purchasing.htm on this site question no 8.
Subcontract PO IDOCs
I hope your experience will help me .
Please reply ASAP.
Edited by: uttam27 on Dec 4, 2011 1:47 PM

There is a generic function to create change pointers for all message typs - 'CHANGE_POINTERS_CREATE_DIRECT'. This is triggered only if you configure your message type to create change pointers from BD50.
Once you activate it do any change to orders you can see change pointer tables BDCPV filled. Then BD21 will read the changes and generated outbound idocs accordingly.

Components are not getting consumed at the time of GRN for Subcontracting P

Dear All,
I hav created a Subcontracting PO and transfered the componenets
At the time of GRN for Finished Product, consumption of componets are not happening and GRN is getting posted
Please help me

Hello,
Have you created the subcontracting Purchase order or not? check , Item category "L" was available in Purchase order not?
I mean you are not getting the 543 movement type in MIGO transaction.
Follow below steps for subcontracting
Sub-contract business process:
You want to buy material from the supplier (processed material/ assembled item) , but for some reason (quality of certain item / price ) you will give some component to vendor .
Vendor shall process the item / use the item provided & supply the final item.
SAP process:
1.Create the finished goods material code.
2.Maintain the BOM for the material.
3.Create PO with item category as "L" .
4.Issue material to vendor with movement type 541
5.Receive the material against the PO with movement type 101.
6.MIRO to account for vendor's invoice for the service charge& material used by him.
Please check these steps are their in your PO or not?
Regards
Mahesh Naik.

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Issue components for a subcontracting scheduling agreement

Hello,
Please can anyone tell me how (steps) to issue components on subcontracted item on a scheduling agreement . Item is also set up with KANBAN indicator so GR is done thru changing KANBAN bin status.
Thanks
Mira

You can view, Explode during creeation of delivery schedule for SA. Use ME38 transaction you will see the BOM in item details

Creation of delivery for subcontract Purchase Order

Hi All,
I am trying to create delivery for subcontract PO. ME2O transaction creates delivery but doesn't link PO to delivery . Is there any SAP table where we can see link of subcontract PO to delivery created throug ME2O?
Business don't want to use MB1B transaction because it doesn't create delivery inturn doesn't create any paper work(Pick list or Packing list).
Is there any way to create delivery based on subcontract PO?
Thanks in advance.
Sonali.

You have to do Sub con PO setup in Img customization. You can be able to print all ur required documents during MB1B also. Presently I am doing exact the same setting for my present project. Complete Configuration required under
Img->MM->IM and PI->Output Determination.ABAP help will be required to design the layout for pick list and packing list.Let me know if you need more information.
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Direct purchasing of components for subcontracting flow

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