External Material for Subcontracting

How do you manage material from customer that you just add a process to it?
Right now we do not enter the material in our stock and just make a service sales order type?
Is there a best practice process for this scenario?
Thank you,
Carlos

Hi sumit,
In subcontracting the material has to return within 180 days otherwise it will be
treated as exciseable goods.
when we do GR for external po's we receive only the operation to be performed
so conversion cost to the vendor shall be paid
when ceate Production order system will create planned order only which is unfirmed as the procurement type ' X ' and procurement key for subcontracting you need to define MRP 2 under procurement.
after ensuring GR is done order confirmation of operation ( external ) has to be done here only system capture the quantity ( subcontracting material ) and also valuation of the material in production order. As order settlement is order based .
pl reward points ,
regards,
vimal balaji

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Is it possible to create a BOM for ROH material for Subcontracting

Dear Guru's
As per my knowledge BOM is needed only for HALB & FERT material even if for subcontracting purpose. So is it possible to create a BOM for ROH material for Subcontracting?. Pls help me to get a soln ?
Regards
Ragesh

Ragesh,
When you are subcontracting the material, the Std SAP says that the material type should be HALB and not ROH.
But if client requires for any reason that the material should be ROH only, there is no problem in chaning the settings.
Sumeet

Project stock material for subcontracting

Hi,
I want to send project stock material (special stock with 'Q') for subcontracting vendor. Pl elaborate the procedure.
Subcontracting PO is with account assignment category 'Q'.
Pl revert.

Hello Sachin
We had similar requirement but in a different way. i.e sending material for subcontracting work for materials returned by customers getting it reworked bringing the reworked material back to plant stock and then sending to customer.
We had used alltogether different transactions ADSUBCON is the transaction code. Prerequsite is you will have to implement BADI BADI_ADSUB_MVT_TYPES of enhancement specefe ES_BADI_ADSUB_MVT_TYPES.
Regards

How to send finish material for subcontracting ?

Dear all ,
I per our client requirement finish materaila has to send for the drilling to the subcontractiong .
Shall i use subcontracting method in which material which i will send & which i will receipt will be same plz reply me .
abhay

Dear,
It depends on your requirement
If the material is going and comming back after a perticular operation, and vendor is with in the company primises (no excise gate pass) then you can configure it as a external operation in a production order, but in system will not show the material sent to vendor for subcontarcting vendor, this informatoon you will get it in Production order only, not in inventory
I this is the case, system will create a SC PR during Production order release. Then you can convert it to SC PO and send the material to vendor. It is like a servive PO...
If you want to send component 1 and 2 to vendor and he will assemble and give it back to you and vendor is siyuvated outside your primises(excise gate pass involved), then you need to create a SC PO.
In this case you issue (541 O ovement) raw material to SC vendor ans system will show in inventory managmenet that the raw material is with SC vendor in MMBE. When you recive the assembly from SC vendor (using 101 mov type), system isues raw material to SC PO.

Sending material for subcontract vendor two times

Hi,
I have a requirement, we create the subcontract PO as per BOM 10 different types of raw materials are required now initilaly at the time of MB1B only 8 items are ther in the system so we do the trasnfer posting for 8 items then subcontract challan create ref. to MB1B document number now later we recd the remaining two items in our system now how to issue that two material aganist the challan.
regards,
zafar

Hi All,
   Thanks for your reply, I per above reply I try one in development server,
Subcontract Po created for one FG material Qty : 1, the Finish good BOM contain 2 raw materials
Finish Material : FG1
BOM Comp.     : RM1
BOM Comp.     : RM2,
when I have done the transfer posting posting first time I have transfer only RM1 to vendor with 541 movement type, then ref. to that document number I have created Subcontract challan with J1IF01 so as per Transfer posting doc. in challan only RM1 come, then without transfering the the RM2 when I am making GR for FG material system is posting both RM1 and RM2 to consumption even for this challan i have not transfer the RM2 to vendor, so withotu saving the GR then I have trabsfer the RM2 to vendor against the same PO with MB1B movt. 541 now both the RM1 and RM2 are transfer to vendor but with different document now when I made the GR both the RM1 and RM2 are posted to conusmption but when I ma doing reconcilliation for the challan and GR system is giVING ERROR MESSAGE
Material 229 is not assigned fully, short by 1.000 NO
Message no. 8I574
as this material I have transfer in secodn document and this is not there in the challlan so is there any other method so this.
regards,
zafar

Issue material for Subcontracting with reference to PO for multiple batches

Hi All,
Issue: I want to issue 5-6 materials with reference to PO which have multiple batches. How can that be done?
Thus, if my raw material in stock are:
mat X   Batch 1    50 nos
mat X   Batch 2    40 nos
mat X   Batch 3     30 nos
mat Y Batch 6    10 nos
mat Y Batch 7    10 nos
mat Y Batch 8    10 nos
mat Y Batch 9    10 nos
i f for semi finished material A, sub contractor order 45000009 is created, where raw material required are:
Mat X      100 nos
Mat Y      30 nos
then how can I issue the raw materials wrt PO, and select multiple batches at the same time, without user entering the material again and again.
I have gone through the SDN multiple times to see the probable solution exists, but I have not received any solution.
Regards,
Ankush

DO MB1B transaction, with Movement type 541,
Enter the material with different Batches for required qty. as different line items.
e.g
line item 1 : mat X Batch 1 50 nos
line item 2 : mat X Batch 2 40 nos
line item 3 : mat X Batch 3 10 nos
line item 4: mat Y Batch 6 10 nos
line item 5 : mat Y Batch 7 10 nos
line item 6 : mat Y Batch 8 10 nos
Edited by: sudhansu satapathy on Oct 21, 2011 7:29 PM

Material issue for subcontracting PO

while issuing the material for subcontracting PO with TCode MB1B mov type 541 when i am giving more quantity then the subcontracting PO it is posted how it is possible. Please help...
For an instance i am giving quantity 10 in Subcontracting PO and giving 12 quantity in MB1B, its posted...

Hi,
Yes , With MB1B if your sending materials to Subcontractor you can send more qty then then PO qty system will allow you , there is no controle.If you want to send as per po qty then use ME2O transaction.

180 days crossed for subcontracting

Hi,
I sent the material for subcontracting,also received the same material after the return date(ie.after 180 days).
Now the system is showing the error 'Cannot Reconcile : Crossed Return Date, please Reverse'. I know the std process that we have to reverse it and recredit after receiving the material.
My query is:
1. Is there any other solution than the above?
2. Suppose if I reverse and recredit,can I see the history for this in system.
Please suggest the solution.
Regards,
Goraksh.

Hello
There is no other solution other than re crediting. IF recreditted it will be document in the system.
Make sure that from next time that you make a document for receiving the material even if not received physically and provide it for subcontracting again.
Regards
Gregory Mathews

PO number and material issued against this PO for subcontracting

How to know the link in between the PO number and material issued against this PO for subcontracting.
I have checked that PO history is not getting updated.
Thanks,

Hi,
We have 2 different scenarios where you can post a goods issue to Subcontract Venodrs.
Scenarios 1: You can post the goods issue against a subcontrac vendor with out referencing the Subcon PO from ME2O, at this stage we will be knowing what is the stock at subcontract vendor but we will not be knowing the issues against which and how much Quantities are posted.
So when we are post goods receipt, then we will come to know the consuption quantities.
Scenario: 2, If we use the delivery concept then we can track the goods issues against the subcon POs.
If you really keen to track the material issued to Subcon vendor against a PO so better use with delivery.
Thansk,
Satya.

Production operation external processing goods receipt for subcontract PO

Hi PP/MM experts,
I searched for existing forum entries but no luck or final answer.
I have a question about the goods receipt for a subcontracting PO that is account assigned to an operation of a production order (external processing for operation).
The following situation:
Production order type PP02 - external processing
There is only one operation in the production order with control key PP02 - external processing. I marked the control key PP02 in configuration for 'Automatic goods receipt'.
I created a PO for the PR is the operation
When I'm doing the goods receipt of the subcontrating PO a 101 posting is triggered for the finished product and components are consumed by 543 O movements. So far so good. But the inventory for the finished style is not increased. In MIGO I even see that even a batch number for the finished product is determined. Looks like that only the service is posted but not the inventory. I assumed when I mark the operation contol key for 'goods receipt' that the MIGO will also post the inventory for the finished style.
Reason for PP order and not only subcontract order is that we want to manage capacities of external suppliers with PP capacity planning.
Is that a bug in our system or normal behaviour? We use SAP ERP 6.5 with IS AFS.
Thanks in advance for your answers.
Best Regrads,
Harry

Hi Rizzi and all others,
thanks for your replies.
I'm using a production order for the following reasons:
We want to use capacity planning for external suppliers. At least to have some overview of work they have to do in a month
The external assembly can also be changed to internal assmebly and for that reason we will start always with the same kind of document -> production order.
But one more thing what is really confusing. In the materials document list MB51 the 101 movement for the service is listed even if the inventory was not increased. That is really confusing for the users.
Best Regards,
Harry

Returnable transport packaging for Subcontracting material

Dear All,
I have a doubt regarding a new process to be followed in our company. We need to issue raw material to our subcontractor for processing. We also intend to send packaging material to the subcontractor along with the raw material. Ie We are sending the raw material to the subcontractor along with the packaging material ( say, in boxes).
I would like to know how to address this issue.
What We tried
Standard SAP is allowing the vendor's Packaging material to be "received" from the vendor when we Purchase material from the vendor using movement type 501 'M'. After this, we are able to see this as a "special stock" as RTP ( Returnable Transport Packaging ) in T code MMBE. After this we can issue the packaging material back to the vendor using movement type 502 'M' . There is also a provision to send " our" packaging material to a customer through a Sale order, and receive it back from them.
But is there any standard process for sending "our" packaging to a subcontractor and receiving it back from them ?
We also tried including the packaging material in BOM, and sending it through 541 movement but in this case, when we perform Goods receipt ( 101 movement of the parent material ), the packaging material gets consumed, which should not happen. We want them back in stock.
We also tried using the option "Non - Ordered item" for the packaging material while performing Goods Receipt of the parent material. But this would increase the stock of the packaging material without us even issuing the same to the vendor initially. ie More stock will be there than is actually present.
So how else do we address this issue ?
Regards,
Velu

Hi Velu,
This scenario can be automated as well in BOM.
While maintaining the BOM for the subcontracting material, include the packaging component as twice, but one with negative quantity. PFB screen shot.
Also turn of the costing relevancy indicator and maintain material provision indicator as "K"(customer material) for both the line item.
So while doing GR for the sub contracting, system post automatically 543 and 545. Hope this is useful, if it is so, your rewards are awaited .
Regards,
Chinna

No external no.assignment possible for material for material type HALB??

no external no.assignment possible for material for material type HALB??... message no:m3317
i got this error msg while i try to create external material via mm01
material: pump
industry type: mechanical engineering
material type: semi finished product
after pressing enter error came...

Hi
If you created number range already, then you need to remove the number range and recreate the same with external number range w/o check
Try it out.
Thanks
Raman

External procurement for inhouse material

Dear All,
I have maintained 0 as the external procurement status for the material type inhouse. But my client want's to send this material for sub contracting which is not exactly external procurement. but the system is not allowing me to do so giving error blocked for exterrnal procurement
How to reslove this. is there any exit for this issue.
Please help

Hi,
Please check in material master >> Purchasing view >> Any block indicator is exists for external block.
If yes please remove it
Regards,
Mahesh Wagh

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

Report for subcontracting material

Dear all,
I need your help.
we have two plants suppose plant 1 and 2
plant 1 have sent some material to plant 2 by subcontracting challan
so i need a detail like
1) material sent via 57f4
2) input material (raw material)
3) output material (finish material after subcontracting)
4) vendor
5) price, qty
is there is any report like this....

Hi
Go to J1ILN > Indirect taxes > procurement > subcontracting > reports > chalan Listing.
This may be of your help. beyond this you will have to develop client specific report.
Best Regards
Nishant Shende

External Material for Subcontracting

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