Material provided by customer - subcontracting process

Hi All,
In our scenario our customer is subcontracting some assembly work to us. The material to be assembled in provided by the customer completely. It is always in the ownership of the customer even when it is lying at our end.
Is there a standard process in SAP to map this scenario? How can we check the customer stock lying in our SAP system at our end?
Regards,
V S

Hi,
If you want to track these materials and stock than you will have to create them as non-valuated materials in your system and take GRs when customer sends you these materials. You may take it as un-restricted stock, Sales Order Stock or Customer Stock based on your requirements.
As material is non-valuated it will not create any liability in your system.
Than, use this materials in BOMs for your production order and create a Sales order for the final product.
Regards,
Dakshesh

Similar Messages

Material Provided by Customer table MKUB

There is a table in SAP "MKUB Material Provided by Customer"
My question is how is this table used?
We currently manage material that our customer owns and have not yet found a good process.
If there is a standard SAP process it would be great.
Thanks in advance
Brad

PK
Thanks for the additional information.
However a 501 E movement does not update table MKUB.
The reason I am asking about MKUB is because usually if a table has been created by SAP there is a process in place that uses the table. Just by the name of the table " Material Provided by Customer" it indicates to me that there may be a standard SAP process for what I am trying to accomplish.
The 501 E mvt requires that I sell the material back to the customer using the same sales order that was used to bring the material into stock.
What we need is the ability to bring in material owned by the customer, have it identified in SAP as owned by that customer, and be able to ship the material out to the customer as new orders are created.
In this case we are acting as a 3PL warehouse for the customer.
Any additional thoughts or suggestions would be great.
Thanks
Brad

How to clear the stock of material provided to vendor(subcontracting stock)

Hi SAP Gurus,
Please let me know how to clear the stock of material provided to vendor(subcontracting stock) and need your help in what senario this stock will show in " Matl prov. to vendor "
Thanks and Regards,
SHARAN.

Hi Sharan,
Matl Povided to Vendor stock will appear in Subcontracting scenario.
If at all you have given some material to a subcontractor , this will be consumed automaticaly when you will recieve the ordered material from subcontractor.that is 543 movement will take place in the backgroung when u do the GR.
In case if u need to clear the stock u can do 542 and take the stock back to unrestricted.
Edited by: Donsandy on Jan 21, 2009 6:19 PM

Defining material provided by customer

Dear All
I have a problem in defining "Material Provided by Customer".I have created a matl of type"UNBW" .Further I have included this matl in the BOM of another FERT matl.On the item tab of BOM I have choosen the matl under ref.Then in the "STATUS and LONG TEXT" tab page
under the "FURTHER DATA " box when i choose the matl provision indicator and choose the code matl provided by Customer system is accepting.But after MRP run system is not showing anything about the customer matl.
When I went back to BOM and checked the box for matl Provision in F1 it shows that the "INDICATOR IS NOT ACTIVE FOR THE CUSTOMER SUPPLIED MATL.
What could be wrong.We are using SAP ECC 5.0
With best regards
Suryanarayana tata

Hi Surya,
Create the Sales Order with sales BoM. Then do GR for others and select the Movement type 501 (without PO) and special stock as E (Sales order) usually known as 501E Movement type. Mention the sales order and item no mentioned in Sales Order for which you want to receive.
Receive the material and do the production.
Hope it will be useful. Kindly mention if so.
Regards,
Elanchezhian. K.C.

Material provided by customer

Hi Gurus,
My client is processing the raw material which is provided by customer and also the same raw material is been procured by client.Now he wants to differentiate between customer & self procured material due to price diff. He does not want two diff. no. for the same material. I have gone through various links in SDN but no suitable solution have been found. And also how to generate requirement for customer provided material.
Regards,
Deven

Hi! Devendra,
You should receive customer supplied material against the sales order with movement 501(if you don't want to valuate the material in your inventory). System will show that material separately as customer stock. If you want to show that material in your inventory but want to valuate it separately then you will have to use split valuation as was suggested earlier.
I suppose this will help you in resolving the issue.
Regards,
Uday

Customer material are used in Subcontracting process

Dear All ;
in this scenario Some of the input materials are supplied by the supplier .how to address this in SAP .
Is ok to build the solution like this .
1) vendor Code will be created .
Normal PO will be created an in delevery address subcontring vendor code will be given and SC vendor will be ticked .
GR will be made and the Customer supplied material stock will be increased as "O' stock at subcontractor end .
2) Normarl Subcontring PO will be created and all necessary item will be created for the final product in the BOM
3 ) GR will be Made against Subcontracting vendor .
Thanking You;
Joydeep mukherjee

If you can have customer supplied stock as your stock in your system than yes this process should work fine. But it will not work towards financial part.
Your customer will not pay you the cost of entire final product, he will pay you final product cost minus his stock value and hence how to achieve that will be an issue.
There are no direct solutions to your problem and it may vary on case to case basis depending on your business requirements.
But what you may do is create this customer as your vendor also and cross-reference them in each other masters.
So while receiving goods from customer, create a normal PO with his vendor code and provide the subcon vendor as delivery address.
Create sales order for the final product against this customer.
Create another subcon PO for subcontractor.
Than proceed with invoicing and billing (for invoicing you may select to ERS as customer is not going to send you any invoice) and while billing and payment you can nulify the amount of vendor invoice to get balance payment from your customer.
Regards,
Dakshesh

MRP4 view exclude storage location & material provided by vendor/customer..

Hi
Could anyone please tell me in MRP4 view for a material,where is the option so that i can exclude or include the storage location stock from MRP?
and also in which T code i should indicate the material is provided by vendor/material provided by customer?In CS01wher's this option?
Please help me
Thanks & regards
Raj

Hi Karthik,
MRP area is nothing to do with storage locations settings in MRP4 view. If you want to activate MRP area and use the MRP run at MRP area level then you have to customized MRP area either at storage location level or sub-contractor level (in MRP master data settings )... then you need to assign this MRP1 view of the material and with valid MRP type. Now when you run the MRP then planning will be carried out at this MRP area for this part.
With storage location indicators in MRP4 view (must enter with putting the stoarge location values from MM02/MM03) you can exclude the stock of this storage location (indicator 1) in the palnning run or you can plan seperately with indicator2 with using re-order level. Here no need of MRP area.
If helps rewards points.
Regards
TAJUDDIN

Subcontracting process where Material Supplied by vendor

Hello Gurus,
If anyone can provide me input how to map subcontracting scenario with subcontracting challan where some material is also added by vendor(Which is unknown at the time of raising purchase order).
This additional componenet also attracts excise so how to take credit on top of this.
I am mentioning what i am doing for this process and what issue i am getting
1. I am sending component A for conversion from subcontracting vendor and receiving Z.For this i created one Subcon PO, transferred material A then created subcontracting challan.
2. Now vendor is adding his material B.This part i am handling by inserting this material B in components of A(FG) by amending PO.In the same PO i maintained vendor supplied material as separate line item and its delivery i selected as delivered directly at vendor site.
3. At the time of doing GR first i am making GR of vendor additional component(With capturing of excise invoice) then for the FG material with ref to subcontracting challan.
4.
4.Now when i am recociling sub con challan system is not considering the extra quantity (Recieved from Vendor) and system is not recognising and becuase of this i am not able to save the Challan
SO need your expertise help if i am following process wrong as mentioned above or shall i try some another way to process this cycle
Regard
VIvek

Create the BOM for Z (Finished)component (Raw component A)
Create the sub contracting PO for Z componet
Send A component through 541 with MB1B transaction
While receiving finished goods in MIGO there is a option (Non-Ordered Material)click this option add vendor added meterial (B) and receive along with finished goods.
You can settle the same when you crete the invoice.
Hope this would help.

In subcontracting process same material to come back from vendor how?

hi
in subcontracting process i want to send x material for processing purpose and same material is going to come back tell me the process how can i do
chandra

hii
For ur scenario, u have carried out external service management process.
Because , subcontracting is nothing but , u have to X material and receivea as A materia or some different material.
SO if u r going to receive the same material , u can do it as service process.
Thanks
SAP-MM

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

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

10gR3 Custom IBR process

I have a process for our 751 env that makes some changes to a document prior to it going through IBR. This has been working well for quite a while, but now we are moving over to 10gR3 and I am looking into getting it working in the new env.
While IBR has been completely reworked in 10g, I can see some similarities. I can see that I need to make changes to the std_docrefinery.htm file do define the new process, as in 751. However, I cannot find where to put my executable (I am using the commandline option).
So I guess my question is - does anyone know of any doco or resources for 10gR3 IBR Custom Conversion development? I have downloaded the HowTo component, and that has been of limited help.... I cannot find any official Oracle help on this.
Thanx
PS. Pls excuse this being cross-posted to the Yahoo form.

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

Project stock Material Sell to Customer

Dear Gurus,
I Created the Project , WBS Element, Activities,WBS BOM.
Then Raw material procurement process, Subcontracting process, Production order for the Finished material to get the Stock has been covered under the Project.
So now I have a Project stock at my Plant of say 10 Quantity..
Now I want to sell the same Stock material to One of the Customer ( Who developed this Project material). The revenue should be covered in the Project itself. How can I proceed for this.
As for as I know I have done customization in OPSB -- Automatic Revenue planning & assigned the Account & selecte the check box for Sales order.
I created the Sales order & assigned the WBS Element in the account assignment tab, then I did the Delivery in VL01N then when I am doing the billing for this delivery I am getting the error Item is not relevant for billing.
How to go about this. Please provide the process how to sell the Project stock material to Customer with Revenue generation from Project.
rgds
gsc

Ohh come on...
Just mark the WBS as a billing element.
Go to change project... select the required wbs and check the Billing element indicator.

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

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

Material provided by customer - subcontracting process

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