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.

Similar Messages

  • 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.

  • 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

  • Returnable Packaging ...Third party subcontracting

    Hello SAP Eperts,
    This is third party subcontracting scenario but is for RTP material.
    1. Import Vendor "A" will send material in returnable packaging RTP to plant "P"
    3. Bank guarantee will be provided to return the RTP within 6 months. If not returned, "P" will have to pay duty with penalty on the same
    4. The movement of RTP should generate alerts say at end of 4,4.5,5 5.5 months
    5. GR will be done for RTP in "P"
    6. RTP material is dispatched to subcontracting vendor "B",
    7. RTP will be returned to "P" by subcontracting vendor "B"
    8. "P" has to send back the empties [RTP] to "A" without payment of duty
    How to configure in SAP. Please describe complete process
    Thanks
    Tushar

    It is realy a complex business to be mapped in SAP..
    1 RTP can be received as free tick or with transport equipment..
    2 For mapping bank guarranty consult with FI...for FI functionality..
    3 movement of RTP should generate alerts say at end of 4,4.5,5 5.5 months---->
    For this u have to maintain work flow..  Consult Abaper
    4 RTP subcontracting can be mapped in STD,
    5 By return PO or 122/502  this can be send back to vendor

  • Third party & subcontracting combine

    Dear Experts,
    I am having the following scenarios:
    Customer C1 send  the PO for Material F1 that i am not producing.
    So i send the Raw Material M1 reqd for F1 to Vendor V1 that he directly ship to Customer C1 and invoice to me. Accordingly i bill to Customer.
    So it is a scenario of third party & subcontracting combine.
    Please tell me how to handle such scenario along with all the accounting & excise effects.
    Plz suggest
    Thanks

    Hi,
    Follow the below process;
    1. VA01 - Create Sales order for material F1 and Customer C1
    2. As a result of this a Subcontracting PR will get generated automatically. (For this take help of SD Consultant, it is controlled by Schedule Line category in VOV6, take copy of CS and change Item category to 3 i.e. Subcontracting)
    3. ME21N - Subcontracting PO w.r.t. PR (Considering BOM is in place). In PO under "Delivery Address" Tab, maintain the Customer Code as C1. As a result of this, vendor will get information that stock is to be dispatched to Customer C1.
    4. MB1B - Transfer Posting of raw materials via 541
    5. J1IF01 - Create Subcontracting Challan w.r.t. TP mat. doc.
    6. MIGO - GR w.r.t. PO (Here it will update stock of the material F1 via 101 and auto consumption of components via 543 O). Refer Subcontracting Challan.
    7. J1IFQ - Challan Reconciliation
    8. J1IF13 - Challan COmpletion
    9. MIRO - LIV w.r.t. Subcontracting PO
    10. VL01N - Create Delivery w.r.t. Sales Order to write-off the stock of material F1
    11. VF01 - Create Billing Document on Customer C1
    12. J1IIN - Outgoing Excise Invoice (I think, it is not required)

  • Third Party Subcontracting process

    How to configure Third party sales for Sub Contracting orders.
    (Scenario: Sub contracting orders should deliver at Customer place)
    Please suggest
    Thanks
    SUNIL

    Hi Sunil
    Follow these steps
    If components to be provided to a vendor are supplied not by your company but by a third-party, you can order the components from the third-party and specify the subcontractor in the purchase order as the delivery address. At goods receipt the components are posted directly to the stock of the material provided to vendor.
    Entering a Purchase Order for Components
    To order components for a subcontract order from a vendor and have them delivered direct to the subcontractor, enter a standard purchase order with a different delivery address:
    From the Purchasing menu, choose Purchase order ® Create ® Vendor known.
    Maintain the data on the initial screen. Make sure you enter the vendor of the components and the plant concerned.
    Enter the items.
    Then choose Item ® More functions ® Delivery address.
    A dialog box appears in which you enter the delivery address.
    In the field Vendor enter the number of the subcontractor and select the SC vendor box.
    Selecting the box causes the components at goods receipt to be posted directly to the stock of the material provided to vendor when the goods receipt is posted.
    Save the purchase order.
    Posting the Goods Receipt of the Components
    If the subcontractor lets you know that the components have arrived, you can enter the goods receipt for the purchase order. The components are posted directly to the stock of the material provided to vendor.
    Stock Update
    A goods receipt posting has the following results in the system:
    the stock of material provided to vendor at plant level is increased. The stock of material provided to vendor is not managed at storage location level, since the stock is no longer stored at your company.
    Valuated stock at plant level increases.
    Documents
    An accounting document is created for the material document.
    After this normal subcontracting order for finished product.
    Reward if useful
    Shawn

  • Third party subcontracting

    Hi Expert,
    I have some subcontractor related problem.
    In subcontracting process component to be supplied by " Third party" not by our company,we create the purchase order and given the delivery address to the subcontractor address. in this process which movement type is use for transport the material to the vendor and which movement type is use by system to consume the supplied material. what is the procedure please explain in detail.how many PO have to be created in this process.
    Please explain step by step with T-code ,item category and with movement type

    Hi,
    The third party sub con scenario involves two PO's as below,
    1. The third party PO , u need to create third party PO for ur component material to be supplied by third party to ur SC vendor.
    The PO will be std NB , wr in delivery adrs tab u will check the check box for SC vendor and maintain the SC vendor
    and when u do the GR for this PO , the material will be with SC vendor stk, u can chk in MMBE. The movement type will be 101 only for doing GR
    2. The second PO is the finished material PO which u will place for ur SC vendor - which will std doc type NB , with item category L.
    The finished material will have BOM maintained.
    The main point in third party sub con scenario is the transfer posting ie goods issue will not be done ie 541 movement type for component material will not be done. Since the third party PO has already supplied material to SC vendor.
    Here u do direclty GR for SC vendor PO, at that time 101 will recieve ur finished material and 543 will consume ur component material which u have supplied to ur SC vendor via third party vendor.
    And u can chk after this in MMBE the sub con stk will get reduced for component material.
    Pls go through this step , u will get it.
    Pls reply for any clarification

  • Hi third party subcontracting

    Hi
    Can any body can help me in configuration of third party sub-contracting scenario.
    With regards
    GNK

    Hi,
    Here you can treat this two procedures are diffrent
    For Contractor
    Create P.O >> send semifinish goods to vendor
    For sales Point
    Sales order >> PR >> PO >> Vendor invoice reciept >> Customer invoice Issue wrt order.

  • How to view stocks in third party subcontracting process

    Hello,
    We have created a 3rd party subcon Sch.agr(LPP).
    We need to track the movement for the materials in the system.
    Do we have any tcodes for the same.
    Manoj.

    You can see the stocks with mvement type 101-O for that material

  • Intercompany third party and sto

    Hi sd gurus,
    Am i a stage to goto clients place plz send the documents or screen shots for the above,with theoritical explanation,so that i can get confident on him.Plz kindly send to my mail id [email protected] had learned a lot from sdn sd gurus.plz help me .
    plz explain intercustomer number how to create which company code which sales area for creating internal customer no all those things theortically
    Thanks & regards,
    srinivas

    Hi Srinu,
    sent good amount of info.....hope this will help u out in ur assignments.
    Regards
    Ali
    Message was edited by:
            Ahmad Ali Shaik

  • Subcontracting third party

    Hello!
    We want to implement a third party subcontracting.
    I mean a subcontractor (S) has to create material A for us, and he will get the raw material (B) form vendor (V).
    I implemented a contract for vendor V and material B and added as delivery address S and marked there the flag SC-vendor.
    I maintained the source list including the contract and marked it as FIX and MRP-relevant.
    MRP is creating a purchase requisition (Material B) but the Source Determination is not working. i.e.: it is for me not possible to get the fixed vendor (V) and the delivery address of vendor (S) including flag SC-vendor automatically into the purchase requisition.
    I would greatly appreciate every assistance and every idea.
    thanks
    Flo

    Hi,
    In  Purchase Order/Release Order, you need to enter  manually subcontract Vendor(S) .
    As you have contract with main vendor (V), Create a contract with main vendor (V) with raw material (B) and then caretae a release order/ Purchase Order WRT contract  & delivery address tab of release order line item, flag the subcontracting Vendor & maintain the Vendor Number (S) . So when you do the GR , the material(B)  in the system will be shown as dispatched to  subcontract Vendor(S)
    Now you can create  one Sub-Contract Purchase Order to Subcontract Vendor(S) with material (A ){ Earlier you should have maintained BOM for material (A ) where you have taken component as material (B)} & then once material (A ) produced you can do GR.
    Regards,
    Biju K

  • Intercompany sales third party FI entries

    Hello all,
    Can somone please tell me how do the FI enteris flow in case of Intercompany third party sales.
    Here Customer XYZ places order on company code 1000 and then comany code 1000 order company code 2000 to directly deliver this material to the customer XYZ.
    I think the FI entries that will be generated will be at the time of PGI and billing.
    Please guide,
    Thanks,
    Sam

    Sameer,
    below is overall process flow for 3RD party-
    Customize the third party sales in summary:
    1. Create Vendor XK01
    2. Create Material – Material Type as "Trading Goods". Item category group as "BANS".
    3. Assign Item Category TAS to Order type that you are going to use.
    4. A sale order is created and when saved a PR is generated at the background 
    5. With reference to SO a PO is created (ME21N). The company raises PO to the vendor.
    6. Vendor delivers the goods and raises bill to company. MM receives the invoice MIRO 
    7. Goods receipt MIGO 
    8. Goods issue
    9. The item cat TAS or Schedule line cat CS is not relevant for delivery which is evident from the config and,   therefore, there is no delivery process attached in the whole process of Third party sales.
    10. Billing     
    SD -  3rd party sales order Create Sales Order
    VA01
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          Sales org, distr chnl, div
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          PO #
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          Quantity
          Enter
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    SD -  3rd party sales order View the PR that is created with a third party sales order
    VA01
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          Goto Item Overview
          Item ->Schedule Item
    SD -  3rd party sales order View the PR that is created
    ME52N
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    SD -  3rd party sales order Assign the PR to the vendor and create PO
    ME57
          Key in the PR number
          Toggle the "Assigned Purchase Requisition"
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          Check the box next to the material
          Assign Automatically button
          Click on "Assignments" button
          Click on "Process assignment"
          The "Process Assignment Create PO" box , enter
          Drag the PR and drop in the shopping basket
          Save
    SD -  3rd party sales order Receive Goods
    MIGO_GR
          PO Number
          DN Number
          Batch tab , click on classification
          Serial Numbers tab
          Date of Production
          Flag Item OK
          Check, just in case
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          Save
    SD -  3rd party sales order Create Invoice
    MIRO
          Invoice Date
          Look for the PO , state the vendor and the Material
          Check the box
          Clilck on "Copy"
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          Amount
          State the baseline date
          Simulate & Post
          Invoice Number
          *Invoice blocked due to date variance
    SD -  3rd party sales order Create a delivery order
    VL01N
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    SD -  3rd party sales order Create a billing document
    VF01
          Ensure that the delivery document is correct in the
          Enter
          Go to edit -> Log
          Save
    REAWRD if this helps..
    Regds'
    MM

  • MRP in third party scenario. System not creating schedule lines

    HI
    I am using third party subcontracting scenario. As i am purchasing material but i am not taking material in under my company. I am paying to my vendor but the delivery is going to my subcontractor.
    Here i am able to create planned order or purchase requisition. But MRP is not generating schedule lines for that vendor.
    Regards,
    Anand.

    Hello,
    Check the following settings.
    1. Source list active in Material master.
    2. Valididy of the source list.
    3. Any quota arrangement
    4. Purchase infor record.
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    If the lead time is very high and this is going beyond the sourcelist validity, then also PR's only created.
    So there are so many possibilities. check for the above said things and revert back.
    regards,
    <Manick>

  • How  to map the Third Party materila for Job Wok process in our Plant

    Dear All,
    please guide me how  to map the  Third Party  Subcontracting in Our Plant Means Customer materials to be Processed  in our Plant and  then we have to sent to customer after processing.
    please  Brief me  with the Proces sflow
    Reagrds
    kishore Edagali

    1) create a 2 material as non valuated (one incoming material "A1"& after processed material"B1")
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  • 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

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