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

Similar Messages

Intercompany subcontract purchase order (plant to plant)

Hi
1>I had created intercompany <b>subcon po</b> (plant 2 to plant 1).
2>I had transfered material using mvt type 541. with refereance to PO.(P2 to P1 stock provided to vendor).
Before going to create delivery we have to recieve the compents in plant1 and we need to make this comp to assy.
Here my question is
a> which movement type we are going receive the compents in plant 1.
b>how to make this componets to assembly in plant1.
3>Create deivery.
4>Post goods issue.
5>Goods Receipt.
6>Invoice.
Thanks and Regards
K Raj.

Hi Raj
This posting ideally belongs to MM forum.
Guess you can use non-valuated materials here to receive components.
The component materials are valuated in plant 2 but not valuated in plant1.
a) Use 262 in plant 2 to receive materials. You can also use a dummy (internal) order for this. You can also create a new movement type with a copy of 262 for this purpose.
b) Create a production order for finished assembly with all the components as its BOM. Issue the materials to this production order.
Hope this helps
Best regards
Ramki

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.

Intercompany Third Party Subcontracting

Hi everybody,
our case is an Inter company third party subcontracting.
Plant A in company code 1000 sends Component X to Plant B in company code 2000.
Plant A asks his third party to send Component Y to Plant B.
Plant B assemble X and Y and deliver finished material Z to Plant A at last.
I proposed SAP standard scenario for third party subcontracting:
1- plant A creates PO (item category L) for material Z and vendor = 'Plant B'.
2- Plant A do transfer posting (ME2O) component X to Plant B. so X would be provided to vendor.
3- Plant A creates PO (third party) for component Y with delivery address = 'Plant B' and also set Plant B as SC Vendor.
4- when Plant B receives component Y, informs Plant A.
5- Plant A do GR based on PO ( third party). so component Y would be provided to vendor.
6- when Plant B sends finished material Z to Plant A, Plant A do GR based on PO (SC). SAP receive Z and consumes X and Y right off.
the Project team didn't accept my scenario for 2 reasons:
1- it is not sap best practice for intercompany subcontracting.
2- they said there is an extra GR in my scenario.I mean when plant A creates PO for third party, and Plant B do GR, the components must be provided to vendor Auto, and there is no need to do GR in plant A place.
please help me.
Does really SAP has another scenario for intercompany third party subcon?

you totally miss the production part in plant B.
if your plant B produces material, then they usually do this in the PP module via production or process orders. they have to record the machine ours, the labor , the have to plan etc etc.
How can plant B take the material from subcontractor stock which is just special stock in plant A? What movement type does plant B use to send the produced material to plant A?
Subcontracting via the purchasing module is used for external processing.
You better do standard stock transfers and production instead of the subcontracting process.

How purchasing master data setup impact CO costing run

Dear all,
Question 1:
Could somebody out there, if you have this area of integration knowledge with CO, tell me the detail process and logic of how, when a costing run is perform, the master data in the Material master fields of Procurement Type and Special Procurement Type; Purchasing Information Records; and Source List impact the successful of costing run?
Question 2:
CO guy complaints that there are missing PIR and source list for following type of material setup in material master:
A) procurement type - F, Special procurement - blank (i.e. third party)
B) procurement type - F, Special procurement - NON-blank (i.e. can be intercompany, subcontract, vendor consignment),
Hence Costing run unable to determine the price. Is it a valid complaints
Regards,
Daniel

Hi,
Though Costing is realted to the price control , cost lot size and valuation class in Material master.
It almost equvalent dependent on Special Procurement type also is costing view and MRP view.
Do refer the effect of special procurement type in costing in belowHelp Link
https://help.sap.com/saphelp_46c/helpdata/en/7e/cb7f5643a311d189ee0000e81ddfac/content.htm
Do refer the basisc of standarad costing estimates in below Link
Basics of SAP Standard Cost estimate- Understanding the flow of cost settings-Part 1

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.

Subcontracting between intercompany plants

Dear Experts,
Can anybody tells me the configuration required for subcontracting between plants belogs to different company.
Suppose A Plant sents material for job work to B Plant which, belongs to different company. We have created a vendor code for plant B and send the material thru subcontracting cycle. Now problem coming with Plant B. How Plant B prepares the invoice and stock reduces from Plant B.
Needs Config setting. Full Points will be given for helping answers.
Thanks
GR

Friend
Two solution can be thought of as two solutions
solution 1
Sucontracting company does not want to track inventory and caputre subcontracting costs incured then follow the following
Maintian vendor master linking to customer master ( subcontrancting comapny vendor and customer)
Vendor for expensing subcontracting charges, customer master if you want to follow SD delivery
Detail configuration is as mentioned below
1. SPRO -Materials Management -Purchasing -Purchase Order - Set up Subcontract Order
In the grid enter Supply plant code from where Input materials to subcontractor have to be delivered) and the Delivery type "LB" which is SAP Standard Subcontract delivery type
2. Shipping point definition
Spro - Enterprise structure - Definition - Logistics executin - Define copy,delete, check shipping point
3. You should have set the shipping point for that plant which is done in
Spro -Enterprise structure - Assignment - logistics execution - Assign shipping point to plant
Check the following setting are also done
4. Shipping point determination
SPRO-Logistics Execution - Shipping -Basic shipping functions -Shipping points and Goods receiving points determination - Assign shipping points
5. Delivery type definition
SPRO - Logistics Execution -Shipping- Deliveries - Define Delivery types
Last but not the least
6. Material master should have sales1, sales2 and sales/plant view extened with necessary data like loading group, transportation group etc
7. Customer master should have been set for respective company code and sales organisation
Solution 2
Create Cross company STO. Create Production order in the Subcontracting company (its plant) and capture material consumption and caputre overhead costs. Create additional STO to send finished material back.
ENJOY SAP
Regards
Edited by: Gopal SP on Apr 2, 2008 12:39 PM

Kit Management in Intercompany Replenishment

Dear Gurus,
I've this problem:
I'm mananging the kits in normal sales with a main item categories with structure scope B (explode multi level BOM) so that, when the sales order is created it born with all materials of the BOM. In the item category assignment I'm managing the item categories types of the components in the BOM.
And, refereed to this sales order, the outbound delivery is created correctly, with all components of the BOM (BOM is a Sales BOM)
When I created a purchase order for intercompany replenishment, when i create the referred outbound delvery(with transaction VL10B) the delivery is created with the main material only, without all components.
How is possible to have all components in outbound delivery?
I need the BOM explosion in the outbound delivery created from the Purchase Order
Regards
Could you help me?
Thanks

As I understand you want to have BOM explosion in purchase order, something similar to sales BOM.
As per my best knowledge this functionality does not exist in standard system. You can explode only subcontracting BOM in PO but of course those components are to be provided and not procured.
There might be industry specific solutions in which you may get this (functionality), e.g. structured article in IS-Retaik:
http://help.sap.com/erp2005_ehp_04/helpdata/EN/2b/b03886df3611d1953b00a0c930e0da/frameset.htm
And it's also a good question how SAP APO can handle this problem.

Cross company code subcontracting process

Dear Experts,
I want to map one scenario in sap mm.
We have 3 company codes within the client. Company A and Company B we have already implemented.
Now we are going to do Implementation for the third company C. Company C mainly doing a job work (service) only. Both the companies A and B are giving the job work to the Company C. Currently we are considering company C as a vendor. Company A and B will create a PO, Subcontract Challan and MIGO. PP process also we need to include in company C. If we implement SAP in company C how to map the Process.

Hi,
You can use subcontracting STO between plants that belong to company codes (intercompany STO with subcontracting):
Re: Subcontract
But in my opinion it is not the best solution in SAP because raw material flow is very dummy (you can transfer the components to the subcontracting special stock segment of the plant vendor - no component transfer between plants).
I would suggest you to check multi plant / multi site planning as alternative solution:
http://help.sap.com/erp2005_ehp_04/helpdata/EN/f4/7d2d4d44af11d182b40000e829fbfe/frameset.htm
Reagrds,
Csaba
Edited by: Csaba Szommer on Sep 29, 2009 9:03 PM

Subcontracting cross company code

Hello,
I didn´t find a standard way to handle the following scenario:
Plant A creates an intercompany purchasing document item category L for subcontracting with header material S and supplier 1 which is intercompany for Plant B (another company code).
Plant A provides material P to Plant B with transaction ME2O and delivery.
The goods issue with reference to delivery creates special stock material provided to supplier on plant level for plant level (quantity and value).
Works all fine so far -->standard subcontracting procedure
My Question:
How should Plant B post goods receipt:
Background:
The goods receipt would lead to doubling material quantity (stock available in Plant A and in Plant B) and double valuation.
Plant B needs to create production order to produce S and P as component.
Any Ideas ?
Your help is very apreciated
Cheers
Thomas

Hi,
But if the two plants are in different company codes then the STO can use Billing and profits etc. so that the revenue can be managed as you need it.
By using STOs with billing, the system treats the supplying plant as a vendor and the reciving plant as a customer anyway. But the whole process is much easier because you treat them as stock transafers and yet get the benefit of the profit / loss and billing functions.
You rellay do need to read up on the use of STOs cross-company (too much detail for this thread). There may even be some help on the first thread on this forum.
I think that you will be pleasantly surprised at the benefits to the whole process if you explore this option fully. The STOs are "easy" to maintain, the movements and consumptions etc. also follow basic real-world logic and the accounting is DEFINITELY as the auditors would want to see it.
If your plants were set up incorrectly and were within the same company code, then these options would not be available to you (because the SAP system does not allow you to break financial rules and cause audit problems, you cannot have a profit from a transfer within the same legal entity). But is your case you have got the structure correct (many people don't) and so I would recommend that you exploit this standard SAP functionality to your benefit.
Short or long-term, you will realise the benefits, go down the suncontracting route for this solution and your users will have messy functions and will not have the kind of reporting and exnquiries that they will definitely need.
It is up to you, subcontracting is not "wrong" as such and you could get it to work, but it will certainly not be the best solution (by far)
Steve B

Intercompany scenario in manufacturing

We're in the manufacturing business with several companies in US and Mexico. As we roll out SAP at a Mexico location, we need to prorotype an intercompany scenario. Manufacturing of some of our products is started in the US and is completed in Mexico. We were hoping to use Intercompany functionality, but it seems that it is working only with finished goods. I.e. if we sell one product from US and one product from Mexico then it would work. But we sell one product, it's just manufactured in two locations.
We explored an option to enter 2 materials instead of one (IS and Mexico pieces separately), but this would mess up the reporting, require customer service re-training, etc.
In another company on a different SAP box we use the following process:
- sales order and production order are created in the US company
- subcontracting purchase order is created for Mexico company
- Mexico company creates their own sales order/delivery/invoice and completes their piece
- US company completes their delivery and invoice.
Since in this case US and Mexico companies will be in the same box, we were hoping to avoid implementing the same scenario because it involves many additional documents (POs, SOs, etc.).
Is there any way to utilize Intercompany functionality in our scenario? If not, is there any way to simplify the process described above?
We've done a lot of research and are at the end of our wits right now. Any suggestions would be appreciated.
Thank you.

Hi
This is just a wild thought about the process to be mapped...
I am thinking about using both Intercompany and Third Party sales processes to map the requirement.
Scenario 1: If the Mexican plant has to make the delivery to customer...the Mexican plant will be selected as the delivering plant in the sales order and the availability check happens as per the lead time required to receive the partially processed material (raw material for Mexican plant) from US and other lead times and the finished goods should be delivered to the customer directly.
Scenario: If the US plant has to make the delivery to customer...the US plant will be selected as the delivering plant in the sales order...a different item category should be determined (like TAS) and a PR should be generated automatically like third party process and the non SD people should take care of getting the finished good from Mexican plant to US plant (sending the semi finished product and getting the finished good).
This can just be an input for your thoughts.
Thanks,
Ravi

Third party sales along with subcontracting.

Dear Experts,
Currently in our company we are having a scenario for third party sales along with subcontracting. the scenario is as explained under.
Company
A B C, D, E (vendors)
A raises a PO to B for the purpose of procurement of material X and services Y .
B generates a Sales Order against A's PO and performs procurement of material X
from vendor C. C delivers the goods directly to A and invoices B.
Now here the requirement is that material X is common in company A & B and I need to maintain
the consumption and valuation of material X in both company codes.
How is this done.
In context to the above scenario;
Now the material which has been delivered by company C (vendor) to Company A;
again this company A gives the same material X (which now becomes raw material or spares)
to B as free issue for the purpose of project.
Through normal Third Party sales order created in company B; the system issues me the following message

Hi,
Actually the scenario is that company A & B both are different but wish to interface their operations
in order to achieve speedy transactions. If both were under same company umbrella then intercompany would have been possible. But in this case these are two different companies all together.
thank you for your response.
Regards
Vivek
Edited by: Vivek A. Chokshi on Jan 9, 2009 6:09 PM

Intercompany process Flow

Hello friends,
Company AB makes FG for Company AD, and company AD may be making components for AB in near future. How will all of these intercompany transaction work?
I know two flows by definition as below ;
a)You will send components from AD to AB.
b) Finished goods from AB to AD.
However, I would like gather few thoughts on how to design and implement into system.
Appreciate any valuable input here. Thank you in advance.
Regards,
Suvi

Hi Suvi
I have a similar scenario in one of the client. This is how the setup is in SAP for me. I do not know if this will work for you, but anyways it is mentioned below as a guideline.
The prerequisites are as below.
AB & AD are 2 plants categorized under one company code.
AD is an external vendor & also configured as Plant in the same company code. Plant AD & Vendor AD (Do not Confuse)
Intracompany configurations to be completed.
Points to note
AB sends components to AD
AD processes components & does a value add and sends finished goods back to AB.
Process
Plant AD creates a Scheduling Agreement (subcontracting) with the Vendor AD to supply the finished goods.
Plant AD provides the WIP materials to the vendor using the ME2O.
If the WIP is in shortage quantity the Plant AD creates an STO (intracompany) for the supplier Plant AB.
Plant AB delivery materials (using outbound delivery) to the Plant AD wrt the STO.
Plant AD receives the WIP goods using MIGO 101.
Plant AD moves the shortage qty after receiving to the vendor AD using ME20 - 541 movement.
Vendor AD processes the finished goods & Plant AD receives it via the MIGO 101.
Then Plant AD moves the finished goods to the Plant AB via the intra plant transfer.
Hope this helps.

Report for Material at subcontract AND PO number

We are preparing for Inventory verification at subcontractors.
My boss believes it would be easier for the SC vendor if we could supply the PO number for which the material was shipped.
I haven't found such a report. Is there one?
If you know the tables and links, I can write a ABAP query
Thank you for any help that can be provided.
Althea

Hi,
ME2O works fine if you want to track which subcontracting PO's are still open and what is the current stock at vendor.
ME2ON is another version of the same basic ME2O report.
Try also MBLB - Stocks at subcontractor.
As far as PO to 541 link is concerned, I do not think it is possible to find it unless there is some specific business process being followed which is supported by custom code.
The reason is that when you issue against 541, you are simply providing materials to vendor that the vendor needs.
There might be multiple open SC POs for same material/batch and there is no point in tracking against a particluar PO. Its the same material/batch the vendor receives.
When you post a PGR for a SC PO, then the stock from vendor premises is consumed by 543 and the track to your SC PO is maintained.
I tried maintaining EBELN as required in OMJJ for 541 but still no MSEG-EBELN is populated. Maybe I am missing something.

Subcontract Opening and closing stock and program

Dear All,
Is there any standard program for subcontract stock for which i can give previous date range and get the stock on older date to older date for the vendor (example like in MB5B for inhouse stock)
also we need to insert this details in custom report program so can anybody have developed such program or any function module is available for this
Pl suggest
Regards,
Vimlesh

dear sir.
Tcode : S_P00_07000140 - inventory and raw material for special stock report.
in selection-field give the special stock indicator O. and give the selection Date : Date on which u and to see the stock at vendor.
and exective it will show the stock on date.
in selection-fields we have an option for vendor and material also.
regards
jrp

Intercompany subcontracting

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