Intercompany - Subcontracting Process

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

There is no restrication that Automatic PO will not be created if the PR is created from the Sales Order.
Please elobarate on the exact error you are getting.
However please follow & check if these general settings are in place.
1.Material has the auto PO checked in Material Master.
2. Vendor has the Auto PO checked in Vendor Master.
3.Source list is maintained if material master has source list checked.
4.Valid conditions exist in the Sub Contracting info record.
5.Right variant ex - doctype,Plant etc exist or are entered in ME59N.

Similar Messages

  • Intercompany subcontracting

    hi there
    I have the intercompany subcontracting process in my company
    Where i have five subsidary companies
    In which two companies are subcontracting & rest three companies are the main companies
    In this some of the material has been provide by the three companies & some of the material is bought by subcon companies
    I want to map this scenario in the SAP
    Well suggest me the solution for this

    Hi
    Please maintain the the Subcontrcating Companies as vendors in Company codes who are getting the work done & assign them the plants assigned under the Subcontracting Company Codes.
    Please create the subcontract orders on these vendors.
    Thanks & Regards
    Kishore

  • ME59N - Intercompany Third party subcontracting Process

    Hi Experts,
    In Intercompany third party subcontracting process, PR is created from the sales order. PR has the account assignment category X and Item Category L.
    Fixed source of supply exists. Subcontracting Info record has been created.
    Material components icon has been deactivated as it is generating from Sales order.
    While using ME59N, it throws Requisition could not be converted. One of our collegues told that if the subcontracting item has been automatically generated from SD Module, then ME59N will not convert the PR to PO.
    Please let me know if there are any settings needs to be done. Or standard ME59N will not convert the above scenario.
    by
    Prabhu

    There is no restrication that Automatic PO will not be created if the PR is created from the Sales Order.
    Please elobarate on the exact error you are getting.
    However please follow & check if these general settings are in place.
    1.Material has the auto PO checked in Material Master.
    2. Vendor has the Auto PO checked in Vendor Master.
    3.Source list is maintained if material master has source list checked.
    4.Valid conditions exist in the Sub Contracting info record.
    5.Right variant ex - doctype,Plant etc exist or are entered in ME59N.

  • Error while releasing Billing document in Subcontract process

    Hi All,
    We are working on Subcontract process as explained below:
    Company code X purchases the component A and sends it to Company code Y on Subcontract. Company codes X and Y belongs to one company using single operative chart of Accounts, Controlling area & operating concern. FI configuration has been maintained in OBYA by treating above company codes Inter company GLs. The component A is sent to company code Y as non value added item. Through 501 movement type, as the component is sent by Company code X.
    Company code Y will add some components (like B,C and charges some expenses as service component D for preparing Finished good) and send this FG to Company code X. For this company code Y will raise a Sales order and followed by MRP run and Production order is created.
    In VA02 of above Sales Order, while entering Item details, where the Settlement rule is asking for PA Transfer structure (in Account assignment tab of Item details) and giving the following error analysis:
    Enter a PA transfer structure
    Message no. KD 044
    Diagnosis
    A PA transfer structure is required for settlement to profitability analysis.
    System Response
    You cannot save this settlement rule.
    Procedure
    Enter a PA transfer structure. To do this, choose the "Parameters" function in the settlement rule. As part of customizing, you can also store a default value for the PA analysis structure, in the settlement profile. The system then uses this default value when you enter a settlement rule.
    In addition to above, another issue has raised while releasing the Billing document after doing PGI. Accounting document is not getting generated and while releasing the Billing document (VF02) it is throwing an error as
    “Enter profitability segment as cost object for Revenue and COGS posting”
    Message no. ZC 001.
    MM,PP,SD & FICO configuration settings maintained:
    1. All required OBYC settings
    2. All cost element and Cost element categories have been maintained
    3. From MM side the system is generating FI & CO documents
    4. Settlement profile in Production Order type is maintained (in KOT2). Allocation structure and PA transfer structure were maintained in (OK06, OK07 & KEI1).  In PA transfer structure we have assigned the required Sources and Value fields and settlement cost elements.
    5. In VKOA condition types KOFI and KOFK were maintained for relevant Customer & Material Account Assignment groups.
    6. Required settings have maintained in OKB9.
    Movement types 501 (sub contract), Received back to Company code X through Movement  type 101. In spite of these settings still we are getting the above mentioned errors.
    Could any one help to provide some inputs on the above issue as early as possible.
    Thanks in advance.

    Hi,
    check  in the sales order line item procurement tab . u can get the requirement type. in SPRo check the requiremnt class for the requirement type. in that requirement clas u will get settrlemnt profile for the sales order. Check that settlemnt profile there u have to maintain the PA transfer structure.
    I think both problem will get solved by maintaing the PA structure..
    You are doing sales order costing right....and i hope it is non vsaluated sales order costing .....
    If help ful please assign points.
    cheers
    Prabhat

  • Credit Memo Request for intercompany sales process

    Hi Experts
    I try to find SAP notes regardsing the credit memo request for intercompany related issue but I can
    not find any nates. The customer return the goods with 2 different
    scenario :-
    -Return with credit
    -Return with replacement.
    Can anybody explain how this 2 scenario perform in the SAP
    intercompany sales process. Appreciate for your help. Thanks in advance.
    Regards,
    Jennie Tan

    Already answered
    Enter IG (internal credit memo) as the billing type for intercompany
    billing for order type RE.
    Cust-Sales/distrib-Transactions-Billing-Intercompany billing-Order types
    Intercompany billing always refers to a delivery
    Processing flow will be:
    1. Create returns request invoice receipt (with or w/out reference)
    2. Create returns delivery and goods receipt
    3. Create credit memo invoice receipt for customer for 1.
    4. Create internal credit memo for 2.
    Therefore you must make the following entries in the document flow
    for billing documents:
      Target BillType        DlvType              ItemCat
    a)    IG                  LR
    b)    IG                  LR                    REN
    Parameters for entries:
    For a) Copying requirement:  14  Dlv.-rel.header IV
          Copy item no.: x  (Check and decide yourself)
    For b)Copying requirement: 15 Dlv.rel. item IV
          Data VBRK/VBRP      : 1  Inv.split (sample)
          Billing quantity    : B
          Qty/itm val.pos/neg : +
          Pricing type        : G
    Also, refer following SAP Notes
    13160 - Returns with intercompany billing
    24756 - Credit memo requests with inter-company billing
    652007 - Reporting internal credit memos on arrival side
    11980 - Intercompany billing with order-related billing document
    164074 - Problems for internal invoices on returns
    Thanks & Regards
    JP

  • Goods Receipt in Subcontracting process

    Hi,
    I am beginner in SAP.
    This is regarding Goods Receipt in Subcontracting process.
    I have provided raw material Quantity = 100 Nos. to subcontracting vendor.
    Subcontracting vendor done machining on 80 Quantity, and we have done Goods Receipt for 80 Quantity as Finished Parts.
    Subcontracting vendor found 20 Quantity as Defected.
    Shall I take back 20 Quantity by Movement Type 542.
    OR
    Shall I do Goods Receipt of 20 Quantity as Finished Product and price = 0. & then stock transfer of Finished to Raw Material.
    Please reply.

    Hi,
    It depends on what you want your subcontractor to do with the faulty raw material stock - if you want them to scrap it you can scrap stock from subcontractor stock using movement type 551 and special stock "O" (the system should prompt you to enter the vendor code). If you want it returned for you to scrap it - movement 542 to return it then scrap it from your own stock.
    You shouldn't receive an additional 20 of the finished parts - as you only received 80 not 100. Close the purchase order off to close off the balance of 20 remaining.
    Thanks

  • Error M7019 BAPI_GOODSMVT_CREATE - Subcontracting process

    Hi,
    I am developing a subcontracting process and using the BAPI_GOODSMVT_CREATE to return the goods, but when I do the low inputs (mov 543) the BAPI returns the following message.
    TYPE       E
    ID               M7
    NUMBER      19
    MESSAGE Combination of movement type 543  and function selected not possible
    LOG_NO     
    LOG_MSG_NO     0
    MESSAGE_V1        543
    MESSAGE_V2     
    MESSAGE_V3     
    MESSAGE_V4     
    PARAMETER            GOODSMVT_ITEM
    I'm using GOODSMVT_CODE = "07" (MB04).
    When I run the same procedure via transaction MB04 I can create the document.
    Has anyone experienced this? Would have any suggestions?
    Thanks
    Sandra Avila

    Hi,
    Successfully execute the BAPI using the help of SAP
    http://wiki.sdn.sap.com/wiki/display/ERPSCM/HowToGoodsMovementswith+BAPI#HowToGoodsMovementswithBAPI-MoreinformationonLINEIDandPARENTID
    Thanks to all
    Sandra Avila

  • Serial numbers for subcontracting process

    Hello Experts,
    We are using SAP ECC 6.0 and trying to implement the subcontracting process with serial numbers. This scenario is focused on those materials that we need to keep track on how many times it has gone to repair (for example, a motor) by specific item. Suppose there's a material called "Material A". However, there are MANY "Motor A"'s, and thus, the need for serial number to keep track on the number of repairs each one has had.
    So, having said that, the scenario is working so far. However, the user CAN'T type in the serial number of the material at the REQUISITION LEVEL. This can be done at the PO level and at the goods receipt level.
    This brings a problem since the Purchasing dept. doesn't know the serial number. This information is known by the user, but there's "serial number" functionality in the requisition. Is there a configuration for this? Could it be possible for the serial number to be in the requisition and then inherit it to the PO?
    We want this in order to automate the process.
    The configuration we made was in the "Plant Maintenance and Customer Service" section, using procedures MMSL "Maintain goods receipt and issue doc." and POSL "Serial numbers in purchase orders". There's no procedure for purchase requisitions. If this can be also done from a Work Order, that will be just fine.
    Let me know if it is possible or if you have any idea on how to do this.
    Regards,
    Gilberto Gallardo.

    Hi,
    Serial no can be used for the following business transactions.
    1. Goods Receipt/Goods isssue and other inventory postings.
    2.sales orders and delivery notes
    3.maintenance orders
    4.production orders.
    Settings:
    1. create a serial number profile in customising.
    2. Assign the serial number profile in the material master record in work
    scheduling view for fert and raw material in plant data / stor2  view..
    Business procedures may be assigned in configuration to a serial number profile.
    The assignment to the serial number profile determines if serial numbers are required , can be assigned, must be assigned,are assigned automatically
    MMSL : Goods issue , receipts,stockj transfers,stock transport orders
    Thanks
    nandha

  • Third Party Subcontracting Process doubt

    Hello all Gurus,
    I have one doubt regarding the third party subcontracting process. I have created a PO with delivery address as that of SC vendor.
    Now how to do the GR for components if the SC vendor lets me know that he has received the materials from the 3rd party vendor??
    Can someone tell me the process after a PO is created for this scenario???
    Thanks and Regards,
    Umakanth.

    Hi,
    As I perceive you are speaking about the provision of subcontracting components from one of your vendor directly to another one,
    In this case you did well if you wrote the vendorID in the suitable field on 'Delivery address' tab of your PO. 'SC Vendor' thickbox should be also checked. This is not the subcontracting PO itself, it is only a PO to procure the components for subcontracting - your SC vendor receive the components directly. That's why there's no point in speaking about 'L' item category.
    After getting information from your SC vendor about the arrival of the goods (components) the only thing you have to do is to do a GR against your PO. The goods will get to your SC vendor's special stock via mvt 101 + 'O'.
    That's all.
    BR
    Csaba

  • Subcontract Process with vendor supplied component

    Hi,
    We have a subcontracting process, when we send 3 components to the vendor, the vendor apply another component and return the semi finished to me.
    I have a BOM of this semi finished Good that includes all the 4 components.
    We sent the 3 components via mb1b.
    We create a PO of the Semi Finished Good if we verified the components the 4 components are there.
    When we try to receive via MIGO and click in verify The 3 itens that I send is OK ... But the item that is supplied by the vendor show me an error message that there is no stock.
    What should I do to receive the component supplied by the vendor ?

    Hello,
    1. Create subcontracting with item category "L"  and second line item in same PO enter with Item cateogroy means STD.
    2. Item level of the  Delivery address tab, tick SC Vendor and enter the same Vendor code there.
    3.Go for  GR for only for  2nd line item first. This stock will automatically picks 101 O Mvt, and u can view this stock as Vendor stock.
    Check MMBE  stock overview , Material is showing provided to Vendor at plant level.
    4. Provide other 3 components with MB1B- 541 Mvt.
    5. Go for second GR for finished Product.
    4th Material shown as Material provided to Vendor in stock overview. if you want to get back that same material to your stock. reverse that stock use  t code MB1B with help of Movement type 542.
    Or else.
    Through subsequnet settelement you can send the 4th Material to your subcontrcator MB04.
    Regards
    Mahesh Naik

  • Tables for subcontracting process

    Hi All,
    Pls tell the tables for components in subcontracting process.
    Regards
    Sunil

    Hi
    After creating a subcontacting po, it will update the following tables
    RESB , EKET , EKKO, EKPO
    Join the two tables RESB and EKET with RSNUM , PO NUmber, Line item as the linking field, if u pass the PO Number in the EKET Table then you can able to see all the components that you have mentioned in the PO for the Final Product. This component is not from the Material BOM , its from what you have maintained in the PO.
    Pls clarify in your query , completing means closing the PO with GR,IR or just PO creation.
    Regards
    Amuthan M.
    Edited by: Amuthan M on Nov 3, 2009 2:28 PM

  • G/L accounts updation  in subcontracting process

    Hi,
    i request you provide details of G/L accounts while ;1) updation while we supply materials to vendor
    2) while we recieve the finshed product.3) And while settlement to vendor.
    Thanks & Regards,
    Ramesh kumar.

    Hi,
    If Material has Price Control as "V" (MAP)
    (BSX) Stock A/c of Assembly - Dr
    (BSV) Change in Subcon Stock - Cr
    (FRL) Subcontracting Charges - Dr
    (WRX) GR/IR Clearing A/c - Cr
    (BSX) Stock A/c of Components - Cr
    (GBB-VBO) Consumption A/c of Components - Dr
    If Material has Price Control as "S" (Std. Price)
    If Material is having Price Control as "S" then Price Difference A/c will also in picture.
    This depends on configuration; SPRO > MM > Inventory Management and Physical Inventory > Goods Receipt > Price Differences for Subcontract Orders at Goods Receipt
    Price Differences for Subcontract Orders at Goods Receipt
    In this step, you configure for each valuation area whether price differences are generated for a Subcontract order at the time of a goods receipt if the manufactured material is managed at standard price and the standard price varies from the receipt value (externally performed service + value of components + delivery costs).
    Example
    Finished product: $400 (value at standard price)
    Subcontract order:
    o Ext. service : $250
    o Components : $100
    Posting schema without price differences:
    Stock account FERT : 400 +
    Stock change : 400 -
    GR/IR clearing acct : 250 -
    External service acct : 250 +
    Compon. stock account : 100 -
    Consumption account : 100 +
    Posting schema with price differences:
    Stock account FERT : 400 +
    Stock change : 350 -
    Price difference : 50 -
    GR/IR clearing acct : 250 -
    External service acct : 250 +
    Compon. stock account : 100 -
    Consumption account : 100 +
    And cost center is mandatory for subcontracting process
    the accounts for the BSX FRL and GBB-VOB needs the cost elements
    Sometimes if you have freight the key FRN also gets used.
    Edited by: venkatesh kumar on May 11, 2010 12:46 PM

  • Options in excise tab ( subcontracting Process)

    HI,
    Subcontracting business process
    i am getting No excise duty, Create RG23D, and create RG23D for existing excise invoice options in Excise invoice tab at MIGO.
    i have checked above settings in the system...but still the same error
    please suggest
    Regards,
    Girish

    Hi,
    If you are making a process of Subcontracting , then you should be able to get Refer Subcontracting Challan in MIGO , for that in CIN--> Plant Setting you should REMOVE Tick from Depot against that plant  also check that for the Excise Group if it is a subcontracting process Depot Setting should NOT be there.
    If you put a tick against Depot in CIN --> Plant Setting and Depot Setting for the Excise Group, you will get RG23D tabs in MIGO
    Regards,
    Vikas

  • Excise treatment during subcontracting process with excise duty

    Dear all,
    Iam aware of the subcontracting process STEPS, but my query is while dealing with Excise in Subcontracting process, will the Excise duties captured in J1IS(create outgoing excise invoice) be RECONCILED with excise duties captured in J1IEX(subcontractor's excise invoice). As per my scenario both the duties are different unlike reconciliation process in the process without excise duty. My questions are
    1.Do both excise duties during j1is and j1iex should be same or can it be different (since in  j1is we capture Duties on raw material's assesable value where as in j1iex we capture duties semi finished goods given by sub contractor.)
    2.Kindly eloborate treatment of  excise duties captured in these steps.
    Revert if you didnt understand this scenarion.
    Regards,
    Sravanthi.Y

    Hi,
    57fc challan will be issued when we send raw materials to subcontractors WITHOUT EXISE DUTY.Hence not relevant in my case. But my case is WITH excise duty.we send subcontractor the excise invoice by using j1is. later he will process these raw materials and will give back the semi finished goods along with excise invoice(which we will capture n post using j1iex). so my question will excise duties differ in j1is(excise invoice TO subcontractor) and in j1iex(excise duty FROM subcontractor)?

  • Intercompany reconciliation process in ECC 6.0

    Hi
    Can anyone guide me on how to understand intercompany reconciliation process in ECC 6.0? I have tried but could not understand.
    Thanks in Advance

    Hello,
    If you have been using F.2E you should probably review note 1180060 ( https://service.sap.com/sap/support/notes/1180060 ) as an introduction.
    It is necessary to set up some ICR specific details with the new solution. But if you use customizing generation as described in note 1172591 ( https://service.sap.com/sap/support/notes/1172591 ) migrating to the new solution should not be too hard...
    Best regards,
    Ralph

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