Handling Contract MAnufacturing Process

Hi Friends,
We have a scenario wherein we are going to handle contract manufacturing process in our company.
The party will provide us the input materials and we have to process it to finished products and provide back to them.
In my opinion, this is the reversal cycle of process handled by subcontracting(outsourcing).
How can I incorporate this business process in SAP?
Kindly provide your expert inputs to handle this business scenario.
Regards,
Jignesh

Hi
This scenario can be handled in following way
1) Create a Free goods PO to recieve the Input material .( since it it the customers material you cannot account the material in your books)
2) Perform GR against free goods PO-If you are taking input credit then perform J1IH -Additional excise
3) Perform Inhouse PP process
4) Raise a sales order ,Delivery ,PGI,Billing and sell the output material
Regards
Sandeep

Similar Messages

Subcontractor Process, but sell the components to the Contract Manufacturer

We currently are executing a process that is more or less like SAP standard subcontracting solution. We manufacture a component "A", and supply it to a Contract Manufacturer. After the CM is done working with it, he produces a new product 'B', which he sells to us. When we book the receipt of B, we also book the consumption of A. We are using standard Subcontracting POs or Scheduling Agreements. It is our responsibility to plan both the component A and the product B that he produces, since the product B is a component of our Finished goods.
Now, our company has determined that they wish to sell the component (A) to the CM rather than just ship the component to him. In this case, we do not retain ownership and we may not value the inventory. We still wish to perform planning on A, according to our planning situation of B and our knowledge of the entire planning situation of A (all supply/all demand/all stock that was generated by our company).
Can anyone think of a solution that would allow us to plan "A" in this situation? We prefer a non-enhanced solution, but in the end, it has to work 'somehow'.
Best Regards,
DB49

3 suggestions at this point (first 2 of them differ only slightly):
1. With proc. key as F-30 for B (benefit with this, at a later date if BOM of B is expanded & chile parts other than A are to follow normal subcon, this will be handy)
- In BOM item details for A, maintain the material prov. indicator as L
- Sub-con demand from B will not trigger a demand for A
- Create SO manually for A, whenever there is demand for B
- Rest of the process should be just as per normal
2. With proc. key as F for B
- Create SO manually for A, whenever there is demand for B
- Rest of the process should be just as per normal
3. I understand from my colleague that in EhP 5 for ECC 6.0, there is a consignment stock flow which can be used for sub-con flow. Although I haven't tested this or read much about it, would suggest to have a look at it, to see if it helps to address your need.
If one of the above is suitable, then am quite sure you can automate the creation of SO via a Z program.
If in case I get any further brain waves will update this thread.

Extraction OF contract manufacturing orders

Hi
Can somebody let me know the query to be used to extract all contract manufacturing orders associated with Process Orders.Please let me know the table which can be used to extract.
Thanks

Hi,
All the subcontract purchase orders will be having the Item category "L". Based on this you can extract this details. Normally, the subcontract purchase order will be handled with different purchase order type.
Regards,
V. Suresh

Contract Manufacturing Orders Extraction

Hi
Can somebody let me know the query to be used to extract all contract manufacturing orders associated with Process Orders.Please let me know the table which can be used to extract.
Thanks

Hi,
All the subcontract purchase orders will be having the Item category "L". Based on this you can extract this details. Normally, the subcontract purchase order will be handled with different purchase order type.
Regards,
V. Suresh

Intercompany Contract Manufacturing

Hi
We have a subcontracting process where RM/PM is issued by Parent company and other company charges processing fees and sends back FG to parent company.
So this is typically a subcontracting process in SAP where one company sends the material to vendor( 2nd company ) and vendor processes the goods for 1st company and charges processing fees. In 1st company stock will be reflected as stock with vendor and in vendor books (2nd company), this stock will be not appear.
Both the companies are on SAP and using same client.
Now our requirement is as under -
1. Parent Company needs Inventory tracking which is being issued to Vendor for their materials ( because both the companies are on SAP )
2. Vendor needs to generate an invoice for processing fees with following details:
1. Material Produced
2. Quantity produced
3. Batch details
This is legal requirement where Invoice should capture Processing charges details at the time of dispatch..
Kindly advice how this scenario can be mapped with above details. Issues which we are facing are :
1. If we use simple sub contracting process, material tracking is not possible in Parent Company
2. When material is issued to Vendor (Company Code 2), How to receive/dispatch FG material in Vendor so that complete processing in PP can be mapped.
thanks,
Manoj

Hi Hugo !!!
Since u r getting the semi finished products (which is a raw material for ur company) from ur customer & then u process it & making as a finished product for ur customer, there are two ways to map it in SAP
1) U can go for sub contracting
2) U can first treat the products supply by ur customer just like ur procurement process from a vendor & then sell it to ur customer & adjust the invoice with incoming invoice from ur vendor.
Since u said it is a contract manufacturing so u should go for sub contracting.
sub contracting is purely MM peoples job.
In this case u will charge ur customer for ur sub contracting job u did for ur customer.
hope it will help u.
thanks
Dibya

Contract Manufacturing Material Type

All,
I need help in determining what material type to use for contract manufacturing. We will be building a product for a customer who will supply the material to us. We want to set up the parts in the material master so that we can track the parts in inventory and be able to produse production orders against the inventory. What I need to make sure of is that the parts will not show any value in our inventory as we will not take ownership of the parts. Please advise the material type to use and how to configure the set up. As always thanks for the help and support.
Thanks,
Sean

Dear Maniyar,
Like every son has his own father, likewise every material has his own identity i.e is material type.
Material types Determines
When you create a material master record, the material type you choose determines:
configurable material or process material
internally or externally
The number range
Which screens appear and in what sequence
Which departmental data you may enter
What procurement type the material has i.e. in-house/external
Together with plants it determines either quantity related update in Material Master/Stocks Account
Moreover, Account effected by entering or leaving warehouse totally dependent on material types.
Best Regards
Mohsin Abbasi

Ways of creating contract and process flow of contracts

hi friends
ways of creating contract and process flow of contracts
thanks for ur help
regards
krishna

hi,
In the MM Purchasing component, a contract is a type of outline purchase agreement against which release orders (releases) can be issued for agreed materials or services as and when required during a certain overall time-frame.
Contracts can take the following forms:
Quantity contracts
Use this type of contract if the total quantity to be ordered during the validity period of the contract is known in advance. The contract is regarded as fulfilled when release orders totaling a given quantity have been issued.
Value contracts
Use this type of contract if the total value of all release orders issued against the contract is not to exceed a certain predefined value. The contract is regarded as fulfilled when release orders totaling a given value have been issued.
You can also set up corporate buying contracts with your vendors. These are valid for all plants and company codes within a client (see Centrally Agreed Contract).
You can create a contract as follows:
Manually
You enter all data relating to the contract manually.
Using the referencing technique
As reference document (the document you copy from), you can use:
Purchase requisitions
RFQs/quotations
Other contracts
CREATION OF CONTRACT MANUALLY:
Choose Outline agreement --> Contract --> Create(ME31K)
The initial screen appears.
Enter the necessary data. If you make any specifications under the group heading Default data, this data will appear as the default data in each item.
In the Agreement type field, specify whether you are creating a quantity or value contract, for example.
Press ENTER .
The header data screen appears.
Enter the contract validity period. Check the other fields on this screen and make any necessary changes (e.g. the terms of payment) and define the header conditions.
Press ENTER .
The item overview screen appears.
On this screen, enter the information for each item (material number, target quantity, price, receiving plant, or account assignment, etc.) using the same procedure as with purchase orders.
Material without a master record: leave the field for the material number empty and enter the following:
u2013 Short description of the relevant material or service in the Short text field
u2013 Material group to which the material belongs, in the Material group field
u2013 Account assignment category
You can enter u (unknown) or the category of an account assignment.
u2013 The target quantity and the order unit
If you specify an account assignment category other than U (field A), you must enter the relevant account assignment data for the item. To do so, choose Item ® Account assignments (see also Account Assignment).
If necessary, review the details for each item. Select the item(s) to review. Then select Item -> Details.
Enter the desired conditions.
Enter further text for the item if any additional instructions to the vendor or Goods Receiving are necessary. Choose Item -> Texts -> Text overview.
Save the contract.
Hope it helps..
Regards
Priyanka.P
AWARD IF HELPFULL
Edited by: Priyanka Paltanwale on Aug 25, 2008 7:20 AM

How to create Handling Unit using Process Order no. & Packing Instruction

Hi experts,
Please guide me how to create Handling Unit using Process Order number & Packing Instruction reference?Noramlly this is done using standard transaction 'COWBPACK'.
ANY FUNCTION MODULE OR BAPI TO DO THIS.
if any solution please explain with proper example..
Thanks In advance
Thanks,
Yogesh

Hi experts,
Please guide me how to create Handling Unit using Process Order number & Packing Instruction reference?Noramlly this is done using standard transaction 'COWBPACK'.
ANY FUNCTION MODULE OR BAPI TO DO THIS.
if any solution please explain with proper example..
Thanks In advance
Thanks,
Yogesh

Custom manufacturing process

Hi,
There is a custom manufacturing process in a client of ours.. They take out the tire from the truck
and send to vendor.. The related vendor cover the tire and send it back. Then the covered tire is put
on the truck again.. We manage this process in SAP. For example we use "ABC" material code for the
tire, and the ABC material code has three valuation types "LANDING, COVERED, NEW". They remove ABC
code (the tire) from the truck with the valuation type "LANDING" with the movement type 992 (a copy of 262). Then
the ABC code sent to vendor with valuation type "LANDING" and with the movement type 541. After
that they create a PO. In the item of PO, ABC code is entered with the valuation type "COVERED" and
in the material data tab, they enter ABC code with valuation type "LANDING" to components area.
When doing the GR with respect to the PO, system requires new accounts for BSV and FRL keys. What is
logic behind this ? Why does SAP require these account instead of using the account which is already
there for WRX key ?
Thx,

system requires new accounts for BSV and FRL keys as u are doing GR for subcontracting PO
As u are consuming the landing type and geting covred type of material
BSV is Changes in stocks are posted in Inventory Management at the time goods receipts are recorded or subsequent adjustments made with regard to subcontract orders
while FRL is used for goods and invoice receipts in connection with subcontract orders that is your labout charges that u will be paing to ur vendor for converting landing type of material to converted one.
Account entries woyuld be
BSX Stock acount + for covered type
BSV Change in stock acount - for covered type
FRL External service + (labour charges that will be payed to vendor po price)
WRX GR/IR clearing account -
BSX Stock acount - for landed type
VBO for consumption from stock of material provided to vendor + for landed type
hope this makes clear

Oracle Process Manufacturing Process Execution Cycle

Hi I am new to OPM and looking for an overview of how OPM works.
I have searched but could not find any specific document.
If anyone is having or knows the process , Please share it.
Thank you in advance..

Hi;
Please see:
Information Center: Oracle Process Manufacturing [ID 1393312.2]
http://docs.oracle.com/cd/E18727_01/doc.121/e13652/T321962T321965.htm
http://docs.oracle.com/cd/A99488_01/acrobat/115gmepeapiug.pdf
http://docs.oracle.com/cd/A85683_01/acrobat/gmetrm.pdf
http://oracleappscommunity.com/oracle/blog/955/oracle-process-manufacturing-process-execution-tables/
Also see:
For r12.1.1:
http://download.oracle.com/docs/cd/B53825_01/current/html/docset.html
For r12:
http://download.oracle.com/docs/cd/B40089_10/current/html/docset.html
For r11:
http://download.oracle.com/docs/cd/A60725_05/r11_doc.htm
Regard
Helios

Error handling an evaluation process request. Cannot create process. NativeErrorCode:193

Hi,
I always get the following error. This happens every time I try to use Power Query to import data (even if I try to simply load a local CSV file).
I can select the CSV file, or chose the desired online-search data source, but when the data should be pulled into Excel, I get "Error handling an evaluation process request. Cannot create process. NativeErrorCode:193"
and I'm stuck.
I have already tried to:
execute Excel 2013 as Administrator
connect directly to Internet (without the company proxy)
Set “run as administrator” to all users on D:\Program Files (x86)\Microsoft Power Query for Excel\bin\Microsoft.Mashup.Container.exe
I'm running Windows 8 Pro (64 bit), Office 365 ProPlus (32 bit) and
PowerQuery_2.10.3598.81 (32-bit).
Any suggestions?
Thanks in advance,
Marco

Are you familiar with using tools like Process Monitor (aka procmon) for debugging? This error suggests to me that there's some kind of bad machine state that's interfering with the loading of the executable, and this kind of problem tends to be pretty hard
to debug.
Some of the easier things to do and check:
1) Run "chkdsk /f" against each of your drives to ensure there are no disk issues.
2) Enable tracing and send us the logs. There's a description for how to enable traces at
http://social.technet.microsoft.com/Forums/en-US/7b04152f-b7fb-46a9-92be-860d46b48059/when-error-says-see-the-inner-exception-for-more-details?forum=powerquery
3) Open up a command prompt (cmd.exe, not powershell), switch to "D:\Program Files (x86)\Microsoft Power Query for Excel\bin" and run Microsoft.Mashup.Container.exe to see if you get some kind of error message. The expected behavior of this application
is that it will exit almost right away with no error.

E-Sourcing - Contract Approval Process

I'm trying to develop a contract approval process with our Legal department using the E-Sourcing Contract Module and I don't see a contract approval process in the contract module. Does anyone know if the E-Sourcing Contract Module has a contract approval process similar to the RFx's approval process?
Please let me know.
Thank you,
Mauricio
Edited by: Mobirdies on Apr 19, 2010 11:56 PM
Edited by: Mobirdies on Apr 19, 2010 11:56 PM
Edited by: Mobirdies on Apr 19, 2010 11:57 PM

Hi,
TWE : Togethere Workflow Editor
It is an Editor to develop workflow in xpdl format, which E-Sourcing(ESO)/CLM application understands.
If you create/open exisitng Workflow Defination in ESO/CLM and from Toolbar click Edit Workflow, it will open in TWE !
Thanks,
Vaibhav

Manufacturing process

Dear friends iam new to Manufacturing please help me to understand.
When client request new item which is not available.so we need to manufacture this item. so what are the steps and modules involved in this process.
If we keep on creating items for small changes in item, then no of items become huge in some time.If items are of different dimensions like 200x190x210 these sizes will keep on changes, so we need to create each time as different items.

When client request new item which is not available.so we need to manufacture this item.
so what are the steps and modules involved in this process.New items are created in either Oracle Inventory or Oracle Engineering.
New BOMs and Routings are created in either Oracle Bills of Materials or Oracle Engineering.
Order are processed in Oracle Order Managment.
The demand is sent to Oracle Supply Chain Planning (MRP).
MRP suggests Oracle Work in Process jobs for the make items or Oracle Purchasing Purchase Orders for the buy items.
Oracle Work in Process can interface to Oracle Purchasing using Outside Processing for any routing steps that are sent to an outside vendor.
Jobs are completed into inventory.
PO's are received into inventory.
Available stock is picked and shipped to the sales order using Oracle Shipping
Oracle Order Management interfaces with Oracle Accounts Receivables.
If we keep on creating items for small changes in item, then no of items become huge in some time.If items are of >different dimensions like 200x190x210 these sizes will keep on changes, so we need to create each time as >different items.If you create an item that is considered to be a prototype, you can change the item's attributes through the Oracle Engineering process.
If you create an item in Inventory with a distinct set of attributes that is being transacted and will continue to be transacted, you should create another distinct item to handle any attibute changes.

Sub-contracting External Processing PP-PI

hI,
I am trying to create sub-contracting order through SAP PP-PI.
I have a FG - X, with components X1 & X2.
I have 3operations and 3 phases in the Recipe for X.
The 2nd phase is having the control key for external processing, because of which i had to assign Purc.Info record to this phase.
( Pls note that its not allowing me to enter a PIR of material/vendor combination, hence had to create for Material Group/ Vendor).
Now when i Create and release a Process order for X, there is a Pur req created but it has no material, and i cant change anything in this Pur. req.
Please help.

Hi,
When a Preq is created for external processing, the material is not copied in to the Preq. This is std SAP behavior. However with EhP4, this functionality is made available. You need to activate this functionality and then some code changes has to be done in the BADI in order to copy the material from order to Preq. I don't remember the BADI, but I am sure there is one.
Thanks

Handling Unit Managment Process flow

Hi all,
I am implementing Handling Unit Management currently. I am looking for; how does the business process flow change once HUM is activated.
So far, I got an idea:
GR process:
Purchase Order -> Goods Receipt (MIGO) -> ASN(Inbound Delivery) -> Pack & Create Handling Unit -> Post Goods Receipt(via the Inbound Delivery)
GI process:
Sales Order -> Outbound Delivery ->Pick & Pack(Handling Unit) -> Goods Issue
Please let me know if i am correct in my assumption.
Also, I would like to know how the stock is transferred from the stock stored in HU's in the warehouse to the stock which is to be delivered.
For example :
I store a material X in HU's in multiples of 500. I have to deliver to a customer around 100 pieces of X.
How do I go about unpacking the HU of 500, then creating 2 HU's (one with 400 pieces to be stored back in the warehouse, and the other HU of 100 pieces for the customer.)
Is it possible to do so ?
Or I need to create a separate storage location where I have to keep the partial unpacked 400 pieces ?
Anyone's help will be appreciated in this matter.
Thanks,
Shefali

try this
http://help.sap.com/printdocu/core/Print46c/en/data/pdf/LOHU/LOHU.pdf

Handling Contract MAnufacturing Process

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