Inhouse production vs. subcontracting

Dear All,
What are the proper settings for materials that are produced inhouse and procured externally as subcontracting goods at the same time? (maybe inhouse production will be ceased)
The material was produced inhouse (proc. type 'E' [so it has got BOM]) but we plan to outsource this activity.
Thank you for your help.
Csaba

Hi Csaba,
There is no problem it the material has a BOM.
Still you can got ahead with 'X' both procurement.
There are two methods.
Method 1.
During MRP Run, a planned order will be generated.
Convert this partially into PR for the required qty from subcontractor. Then tick the closed indicator.
For the remaining qty you can convert the pl order into Prod order for in-house prodn.
Method 2
Use quota arrangement.
Given
1.E - inhouse prodn 50%
2.F-External procurment with L-sub-contracting - 50%
Also, In the lot-size T.code OMIE tick the splitting qutoa.
During MRP run, a pl order & PR will be created.
Pl.reward if useful.
Regards,
Senthilkumar SD

Similar Messages

Non Stock Materail with Inhouse Production

For raw material with category nonstock and procurement type inhouse production. when we run MRP and check in md04 for that material; what would be the result of such combination. Can any one please explain in detail.
In what scenarios is this used.

Hi,
Non stock material is item category which is used when material is not usually stored. This items can be planned directly without material master also.
While creating BOM select this catyegory for the component which has no material master.It will be added in BOM as a text message of componets.
System will ask about text,UOM,qty,rate,puchase group etc.
U cannt see this item after MRP run.But PR will be generated as a text message for purchsing.
Regards,
Suhas

MRP - Inhouse production time

Dear Gurus,
In the Mrp 1 View, The In-house production time is in no.of Days format.but my client want's this to be entered in no.of hrs format
Kindly Advise
Regards
Palaniappan Meenakshi Sundaram

I don't think it is possible, if he want in terms of Hrs format, he is suppose to go for Lead time scheduling instead of Basic Date scheduling.
The inhouse production time maintain in MRP1 view is independent of Qty and the MRP run result will not be so accurate
They have suppose to maintain Work center ,Routing Master data, then they can maintain Inhouse processing time interms of Hrs,min and sec
K.Prabakaran

Inhouse production / Subcontracting mapping in SAP PP

Hi,
I have a scenario for inhouse and subcon. My FG is canbe manufactured inhouse and as well as can send for subcontracting for operation.
for this I have maintained X (both procurement type) in Material master and also created a MRP group and assigned in Material Master, in that MRP group I have maintained order type for my Prd.Ord and in external procurement I have maitained a subcontracting PR doc type.
When I run MRP it is giving me planned order and allowing me to convert in to either prd.ord or PR, till this point its fine but when I try to convert in to PR its getting converted but it is not a subcontract PR, but I want to convert into subcontract PR.
Can anybody tell me what more I need to do to achieve this scenario.
Regards
Ramana

Dear Clifford and Brahmankar,
I have tried to maintain as you said special procurement type in MRP 2 view as 30 (subcontract) after maintaining this and running the mrp its giving me only PR in the md04 screen, but when I run MRP with the processing indicator as 3 i.e. planned orders it will give me planned order where I can convert into either prd.ord or sub con PR.
But If I give processing indicator as 3 (planned order) while running MRP for all other external procurements also mrp giving planned orders, which again they have to convert in to PR which is extending one step of work which is not desirable.
To overcome this I maintained the conversion indicator in MRP group to planned order (3), but still its giving me PR when I run MD02 with processing indicator (3).
So how do I Over come this situation, so that only for this material I'll get Pl.Ord and for all other F procurement its PR. Please help me.
Regards
Ramana

Goods receipt of by product in subcontracting process

the by-product are produced in subcontracting.
we have to take back this by product into our company from the subcontractor.
we have to use which movement type to take it back and the transaction code

I think we need a better understanding of the stock in question. Different stock categories will require different movement types (since the mvmnt types are partly defined by the stock catagory).
Also are these "by-products" to be recieved along with a finished good (FERT) as a consumption? (or do you actualy need the inv. available for putaway on the WM level)?
If there is a finished goods reciept that will also take place and the stock is stock type "O' that needs to be consumed along with a finished goods then the material (by product) should be consumed from stock type "O' as part of the GR in MIGO.
So two totaly different cenarios here,
1. simply move the stock into your warehouse from the venders stock (MB1B transfer)
2. consume the stock durring GR in MIGO as a componant type c0nsumtion of the goods that is issued along with the 101 MIGO GR. (separate movement type posted for the same line viewed as a drop down from the finished good material)

Cross company production with subcontracting

Hello Experts,
I have two company codes say C1 & C2. When I get the requirement of 1000 nos of FG X, all material will be procured in C1 & 1st operation will be performed in C1. Due to capacity issue, 2nd operation have 1 production line in C1 & 1 production line in C2. So the 2nd operation for 700 nos will be carried out in C1 & 300 nos will be carried out in C2. All materials required on prod line in C2 will be send by 57F4.
How to go for this scenario?
Regards,
Sagar

Hi Sagar,
Create 2 level of BoM in C1 like FG = X and SFG = Y.
Here, the output of SFG = Y will be called Input for FG in Plant C1 and as an Input again for Plant C2.
Say you need 1000 SFG to manufacture 1000 FG. You have got capacity constraints for producing 1000 FG in Plant C1, the please follow the below process,
1. Create, Release, Issue RMs and GR a Production/ Process order for SFG for 1000 in Plant C1.
2. Create, Release, Issue SFG and other required RM and GR a Production/ Process order for FG for 700 in Plant C1. Here you will consume 700 SFG.
3. Create a subcontracting PO for 300 FG. With the Subcontracting PO transfer 300 SFG to Plant C2. You need to show Sales Purchase for SFG 300.
4. Create, Release, Issue SFG and other required RM and GR a Production/ Process order for FG for 300 in Plant C2. Here you will consume 300 SFG.
I think the decision of how much to be transferred to Plant C2 is totally depedant upon capacity available in Plant C1. The Production Planner or the Line Scheduler is the right person to decide how much quantity to be subcontracted to Plant C2.
The SD and MM processes are pretty straight but as far as Excise configuration and requirements are concern the composite meetings and decision by PP, MM, SD and CO team would really help you.
Regards,
Shoyeb
Edited by: Shoyeb A on Dec 12, 2011 12:55 PM
Edited by: Shoyeb A on Dec 12, 2011 1:03 PM

By-product and subcontract

Hi All
There is a purchase order, and it is subcontract purchase order. and there is by-product in BOM. When I do goods receipt for this subcontract purchase order, there is an error information:Value of the goods movement is negative. therefor I cann't save the document.
I would like to know how to solve the error?
Thanks!
DanDan

HI
While doing the GR select variant subsequent adj. in place of good reciept
step a) give your po no.
If under coverage of component then mark the check box in front of line item and give the quantity
and by product can be received in production plant By t code MB1b and MVt type 542,.
Check and revert
Regards
Anupam Sharma

Subcontracting in Production, 2 subcontracting vendors involved

Hi,
We have a scenario where in production 4 operations needs to be performed, one of which is a external process [subcontracting]
Process 1 - Drilling
Process 2 & 3 - Subcontracting [External process] u2013 2 processes
Process 4 u2013 Finishing
After drilling process, material is sent to subcontractor A for cutting, after this is done Vendor A will sent product to Vendor B directly for further operation . Once this is done We receive from Vendor B
Then it will go to Process 4 [Finishing]
Can you please help in mapping this scenario in SAP
If there is only one vendor involved then I believe process will be like one subcontract PR [system creates automatically], we issue goods and we receive finished goods
In this case Subcontract vendor A sends directly to Vendor B
Both Vendor A and B sends invoice to US
Any pointers in this regards will be of great help
Thanks

Hi ,
While raising the subcontracting order for vendor A enter Delivery address vendor B address & save.
Raise one more P.O(subcontracting ) with vendor B
when vendor supplied material to vendor do the migo.
then in sap stock will increase at vendor B.
when material recieved from vendor B do migo stock will increaes in respective plant.
you can procees invoice with P.O wise
Try this one & let me know
Rgds
venkat

545 Goods receipt from by-product from subcontracting

Hi ALL,
If a scrap component is entered with a negative quantity for the subcontract order, the receipt of the by-product is posted during goods receipt for purchase order or during the subsequent adjustment.
Now, when i'm doing MIGO, it's automatically using mtype 545 + O to receive my scrap to vendor stock. The screen filed of special stock indicator (GOITEM-SOBKZ) is not changeable. I want receive the scrap to normal unrestricted-use stock ( only 545 ) . So how to set the field be changeable?
Thank you .
Wayne.

Hi
By product will be received as special stock during goods receipt.
To transfer the by-products quantities from the "stock of material provided to vendor" to the unrestricted-use stock, you please enter a transfer posting using movement type 542 (reversal of the provision of the components).
warm regards
sairam akundi

How to account trading and inhouse products when it is same

Dear sir,
We are doing trading and manufacturing of same product with different part codes. This because trading item input item is 1:1 , where as inhouse manufacturing contains multiple input raw material for same product.
Please tell or explain is there any other way we can take stock into single part code for both inhouse manufacturing and trading of same product.
Regards
Lokesh
bangalore

is there any other way we can take stock into single part code
Yes you can have with one material code. In material master, in Accounting1 view, you have a field "Valuation Category". Explore this field through which you can have two values; one for trading and another one for manufacturing. Consult with your FI colleagues.
thanks
G. Lakshmipathi

Assets Inhouse Production

Hi SAP Gurus,
Plz advice on this issue.
I have requirement of Capitalizing Inhouse Made assets and they want also capturing the excise duties all because they are internally making these assets and transferring it to the foundry.
So basically,
Assets are making inhouse
Capturing of Duties after manufacture is complete
And they want to capitalize afterthat
If suppose I will capture this through Transaction Code ABZE then how my clearing account(contra:acquisition and APC) will get cleared.
Then how can I capture the all duties ?
Plz advice ? I will sure I will give credit for this.

Hello
Check this
Acquisition from Internal Activity
Purpose
An acquisition from internal activity is the capitalization of goods or activities that are partly or completely created within your own company.
Process flow
You are required to capitalize your own costs for such internal activity (for example, production orders or maintenance orders). There are two different approaches that you can use:
Capitalization of costs collected in a production order (when you manufacture an asset that requires capitalization within the framework of an internal production order)
Capitalization of costs collected in a maintenance order (for plant maintenance that requires capitalization, such as general improvements)
You capitalize the maintenance order or production order by settling it to an asset. As a prerequisite for this settlement, the settlement profile of the order must allow for receiver type "A" (for asset). You enter the settlement profile in the order type. It is copied from there into the individual order. You define settlement profiles in Customizing of the CO-OM (Overhead Controlling) component.
Manual Direct Capitalization
If there is no CO order in the system for the internal activity, you can manually post acquisition and production costs or maintenance costs to an asset. When you post in this way, the system posts to the same accounts as it does for a non-integrated purchase acquisition. The offsetting account for the APC account is also the clearing account "offsetting APC account " in the FI-AA account determination.
There is a special transaction type for acquisition from internal activity. This special transaction type makes it possible to distinguish between acquisitions from internal activity and other types of acquisitions in reports.
Determine the costs that require manual capitalization.
Determine the asset, for which the APC is to be capitalized
Post the acquisition (Postings ® Acquisition ® Acquis. in-house prod). You only need to enter the asset as the account assignment. The system automatically determines the corresponding offsetting account for the clearing according to the account allocation in the asset class
or
Choose Logistics ® Production ® Production control.
Choose Order ® Change.
Choose Header ® Settlement rule. Enter your asset as the settlement receiver (type ANL) and enter the settlement amount (percentage rate or equivalence number).
Choose Period-end closing ® Settlement and settle the order.
Reg
*assign points if useful

By Product in Subcontracting

Hi expert
i want to know........we maintaing By Product in BOM in Sub Contracting Process.sometime what happen i send Spray bottle to Sub contracting, but before complete the finished product. i want to get back Spray bottle back from vendor.
Process
1.Mixing of RAW.
2.mould.
3.Spray.
4.heat.
5.polish
After completing the 3 Process of Spray, it getting empty so i take back, before completing the Finished product.
i would like to have solution, where i can take my empty Spray Bottle, ( i have maintain empty bottle as by product in BOM) before finished Product.
Regard
NAbil

hii
Thanks for explanation.
But still i am in confusion, because what is the difference between raw material and scrap as bottle.
In BOM or in material master where the major difference will come??
Becasue i wanted to know how system know that , this is scrap and this raw material for consumption ??
Any input from experts .......
Thnaks
Edited by: MM group on Dec 1, 2010 8:39 AM

How to capture cost of Inhouse Production Scrap to the Product?

We follow REM Backflushing to carry out goods issue,goods receipt and actual activities capture .
If I do Assembly scrap,component scrap or Activity Scrap through MFBF.How can I differentiate the consumption or Activity booked account of scrapping in Product Cost collector.My requirement is clear demarcation of how much quantity of material A is consumed for good Finished products and how much quantity consumed for scrapped or Bad Finished Product
At the time of scrapping ,Production Persons are not able to relate to the Finished Product?
What is the process followed universally to handle In process Rejections or Process Scrap?
Expecting the reply as early as possible
Regards,
N.Prem Nivas

[http://help.sap.com/saphelp_erp60_sp/helpdata/en/5f/1faba54aee11d189740000e8322d00/frameset.htm]

Inhouse Production Time

Hi,
I have new material with all routings and BOM available for this.Now I want to know what will be exact production time will required to manufacture this product.I don't want to run MRP just want to know production time (Including Production time for bellow level Items).
Is there any way to find out this without generating any MRP Element?

Hi,
Thanks for reply,
But it is not worrking.See example bellow
I have material A which has BOM Items as B and C.
Routing i.e operation to mfg A requires 5 days
Routing i.e operation to mfg B requires 10 days
Routing i.e operation to mfg C requires 3 days
So total time require to mfg A will be 5103=18
But as per transaction which you have given system update only 5 days as production time in Material Master considering routing of 'A' not total time (i.e. 18days
) considering routing of BOM Component 'B' AND 'C' .
Hope you understand what I exactly want?

Split valuation for Finished goods.

Hello All,
I have an FG which is produced inhouse and also subcontracted.
While implementation the subcontracting scenario was never considered.
Now we have stocks and production orders for that FG and hence split valuation cannot be activated.
Is there any other way out so that I can value the stock seperately for inhouse production and subcontracting in the current situation.
Regards
Vijay Singh.

hi
Split valuation is used for maintaining two different price for same material.
ex:-if you are manufacturing a material, ur manufacturing "X" price is Rs.100/-> But you got order of 100T. But you plant manufactruing capacity is 50T,But you do not want to lose the order,so you procure material "X" from vendor at Rs.110/- to meet customer demand.In this case you have use Split valuation ie.....same material but maintaining two different prices.
The Split Valuation settings are as follows:
1.SPRO> MM>VALN AND ACC ASSIGNMENT> SPLIT VALUATION> Acitvate Split Valuation
2.SPRO> MM>VALN AND ACC ASSIGNMENT> SPLIT VALUATION> Configure Split Valuation
Click on Golbal type: create your own valuation types as Type 1, Type 2 etc
Click on Global categories:create your own Valuation Category as Type(T) and
Activate all valuation types(Type1, Type2 ) for your category(T)
regards
kunal
award if helpful

Inhouse production vs. subcontracting

Similar Messages

Maybe you are looking for