MRP areas with subcontracting

Hi,
Details:
1) we have BOM like A is the finished product and under A -B and C are the compnents.
2) we have created the mrp areas and assigned in the materials master for all the materials.
and created the purchasing info records as well.
B and C will be procure from from vendor1 and will supply to vendor 2.
Vendor2 will use the B and C materialsand to make the Finished material A and supplies to plant.
So i defined subcontracting for A material.
I have created the scheduling aggrement for B and C material with Vendor1 and A with vendor2.
After MRP run schedule lines are creating for B and C materials only and PRs is creating for A material in place of schedule lines.
To create the schedule lines for A material is there any config settings to be done.
My requirement is schedule lines to be created for A,B and C materials.
Suggest me how to solve run the scenerio.
Waiting for responce.
Thanks
Chindam

Hi Chindam,
Check whether you had maintained source list if so the schedule lines will be created automatically when trigger a MRP run.
regards,
patil

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Subcontract MRP Area with quota usage - urgent

We have a subcontractor supplying assembly X which in turn require us to supply component Y to the subcontractor. We have two vendor for supplying component Y to subcontractor. Scheduling agreement with component vendors are set up for direct delivery to subcontractor. Both the scheduling agreements are included in the source list with MRP indicator 2. Quota arrangement is set up for the component.
We have set subcontractor MRP area and assigned the same to component Y material master. Special procurement key 20 is assigned in subcontractor MRP area. Quota usage and source list are duly enabled. Quota usage indicator is 3 which provides for MRP, PR, schedule line etc.,
When we run MRP ffor component Y for subcontract MRP area, system is generating schedule line for but without update quota file. Further, the scheduling agreement picked up is not of the correct vendor as per Quota logic.
Does SAP support quota usage with subcontract MRP area. If not, is there a work around.
Shall appreciate urgent response

Dear Ravi,
you will get a seperate location product for your material. MRP areas in apo are represented by a seperate location (type 1007 = storage location mrp area). You can transfer your ecc mrp areas via cif (CFM1). The master data you maintain in mrp section of the material master in R/3 will be trasfered to that location product. Furthermore you can maintain it manually in apo MAT1 (location = name of your mrp area). That technique provides you the possibility to maintain different parameters for the plant and the mrp area.
Kind regards,
Christian

Subcontracting with MRP areas / Customer consigment

Dear all,
I'm currently looking for some information regarding subcontracting processes with MRP areas.
On the first hand I need a general overview how subcontracting purchase orders would be handled with MRP areas. In addition I'm really interested in the replenishment of the subcontractor stocks. On the other hand some facts about the customizing would be fine.
My second topic is consigment stocks at the customer. So I need similar information as for the MRP areas but regarding this customer consigment.
It would be really great if someone has some literature recommendations or official documentations about these issue.
Many thanks in advance!
Regards
Enrico

Hi Enrico,
Working with subcontracting and MRP area's gives you the option to plan the requirements for the subcontractor separately and you can then order the components separately. This functionality is used when working with scheduling agreements and direct deliveries to the subcontractor as there this is a requirement.
A second instance where one would use and MRP area with sucontracting is that when a material is used both by the subcontractor and it's also used directly in the plant production. The requirements for the subcontractor can be separately planned using an MRP area.
The following links may give you some more information regarding working with subcontracting and MRP area's
[MRP area|http://help.sap.com/saphelp_470/helpdata/en/c4/106956ae8a11d1a6720000e83235d4/content.htm]
[Planning for Components to be Provided in Subcontracting|http://help.sap.com/erp2005_ehp_04/helpdata/EN/c4/106956ae8a11d1a6720000e83235d4/frameset.htm]
Edited by: Peter Pallen on Jun 5, 2011 7:19 PM

MRP Area and SA Schedule Lines

Hello All,
We are looking at using MRP Areas and noticed it can not be turned off once on (ECC 5.0). Given that, is the following true with reference to schedule agreements:
- Will seperate schedule lines be created for each MRP Area (same material)?
- Does the receiving storage location come from the material master or the MRP Area (Does it matter if it is a type 01 or type 02 MRP Area)?
- Is it possible to define differen't receiving slocs in a schedule line for a Plant MRP Area?
Thank you,
Jerry

Thank you Charlie,
The link is helpful however it doesn't come straight out and answer the questions - meaning there is a bit of ambiguity there.
It would be appreciated if you or anybody that is using MRP areas with schedule agreements is doing the above.
Regards,
Jerry

Creating Planned Independent Requirements for an MRP Area.

Hi All,
I am trying to enter Planned Independent Requirements for an MRP Area, with requirement type VSE and I get the following error;
"Only stock requirements are allowed when planning at MRP area level".
I can enter at the Plant level with no problems.
Any guidance is greatly appreciated.
Kevin.

The following is the excerpt from SAP [Help|http://help.sap.com/saphelp_470/helpdata/en/81/470a58ddab11d1b55b0000e82de178/frameset.htm] I think you maintained a planning strategy in the MRP view (for the plant) which doesn't support VSE.
You can delete PIRs from an MRP area by deleting the MRP area number from the Creating Planned Independent Requirements screen and recompiling.
When you define the planning strategies and parameters in the material master, these parameters apply to the whole plant, including all the MRP areas within the plant: You cannot maintain the MRP areas separately.
The integration of the MRP area and the assignment of the MRP area in the sales order is supported only by a user exit in the sales and distribution user exit pool.
Sales orders with MRP areas are created irrespective of the availability check control group in the material master.
Customer order processing of production sales orders with the item category (account assignment Step E Single) is only maintained in the MRP area of the plant.
In Customizing and in the MRP area user exit, make sure that when transferring individual sales orders, only requirements types KE, KEK, KEKS, KET, KELV, KEV, KEVV, VSEF, and VSE are generated.
The following requirements types are valid for the MRP area: KE, KEK, KEKS, KET, KELV, KEV, KEVV, VSEF, and VSE.
You cannot plan with preliminary planning materials in the MRP area.
There is no planning strategy for the material segment of the MRP area.
The planning strategy for the material master segment of the plant is assigned to the material segment of the MRP area.
The consumption mode and the periods of adjustment are derived from the plant in the MRP area of the material master.
Only consumption customer requirements with planned independent requirements are allowed: VSF requirements with KSV and VSFB with KSV.

MRP area configure but vendor is diffrent between client

May I know if have configure MRP area before?
I faced the following problem. Hope you can help.
I configure one MRP area with MRP area type as 03 (i.e. vendor) in DEV-100
However, I cannot put in the subcon-vendor number at DEV-100 because the vendor is internal numbering and it is different between the production and devleopment.
Thus, how to put in the vendor number in DEV-100?
and How to change it in Production system on this vendor?
thanks
Tuff

Hi,
you have to do this configuration directly in production...
Kuber

MRP Area Clarification

Hi Friends
I have a Plant with only one storage location and I assign an MRP area with plant type and Storage location type MRP area, when I run MRP for the plant only the plant level requirements are taken into account and the stock is not considered right?? And when I run MRP at MRP area level for storage location the stock is considered and the requirements at plant level are not considered correct?
Please clarify the above
Jade

Hi,
You have a plant with only one str location. Plant is assigned with MRP area & str location also assigned to str loc MRP area.
So in the plant no str location.
When run MRP at str location level, system will not consider plant level.
MRP run at Plant level will not consider str loc MRP area.
Regards,
Dharma

Subcontracting with MRP area

Hi,
we have a FERT material that is in the MRP area by storage location.
This material was produced internally. When we ran MRP the requirements and planed orders for FERT material and its components were showed in MRP area. It was ok
Nowadays this FERT material was changed to subcontracted.
We don't have a defined supplier for FERT material.
When I run MRP the requirements and planed orders for FERT material are still in MRP area.
When we run MRP for components, the requirements and planned orders go to MRP plant.
This way if we have in MRP area documents placed to cover the requirements from FERT material, MRP will suggest to cancel them. In MRP plant the MRP will suggest to create another documents to cover. How can We avoid this problem?
Thanks and best regards,
Elaine

Hi Elaine,
If your FERT material is set to F , 30 then your MRP run in MRp Area will not create any dependent requirement.
Assuming the setting is X in Material Master,
Given an option please remove the MRP Area planning and the PIR related to that and shift PIR for you FERT material to Plant level in mD61,MD62. This should avoid Planned order getting created in MRP Ara and Plant.
in my past experience unlesss you want to do Planning run with Scope as planning as Vendor th euse of MRP Area for planning for PIR leads to confusion for End users.
Hope this helps.
Thx
MJ

Subcontracting & MRP Areas

Hi, I'm on a project and we're looking at a way of doing a weird process.
Basically they want to do internal assembly with a Subcontracting PO process.
1. All the Finished Products would be stored in storage location SL01.
2. All the components used for the Finished Products would be stored in storage location SL02.
3. The rest of the components (for direct selling) would be stored in storage location SL03.
With PP the solution would be :
A. I create an MRP Area for SL02.
B. I use special procurement inside the component material masters for the MRP Area SL02 to procure stock from the plant.
C. I assign SL02 as a Production Storage Location in the BOM items so the dependent requirements go down in the MRP Area.
D. The requirement generates a Stock Transfer Requisition from the MRP Area to the plant.
That works I know ... but since they plan to use Subcontracting Order all the requirements from PReq or PO are coming outside of the MRP Area even if the BOM item Storage location is in the PReq or PO ... that's normal stuff (see note 503497).
I know the normal process would be to create a Subcontracting MRP Area, but the thing is that I want the requirements for components to come down on 1 specific storage location and then, if it doesn't have enough stock there, ask to the rest of the plan for it. With a subcontracting MRP Area, the requirement would still come down on the plant, not the MRP Areas.
So basically my question is : Does anyone know what could be done to make it work (standard or custom / ABAP solution).

Anyone has an idea ?

Replenishment delivery for material with MRP areas and Avl Check

HI We have MRP area at storage location level maintained for materials. Stock exists in the plant in the storage location which is part of the MRP area.
Now when I create STO and try to create delivery for the same, system is giving message 0 stock available and not creating delivery. Material has 02 Avl Chck group.If I deactivate the MRP area in the material master, it allows creation of delivery.
How can I ensure that system creates delivery even though stocks exist in MRP area relevant sloc only in the plant?
Sriram

1) According to SAP when inbound deliveries are used and your delivery item category is set up for mvt type 101, these should be received with transaction VL32N. If you use MIGO/MB0A instead the GR status in the delivery will not be updated. If you then report on open deliveries you'll notice that nothing is received in the course of time. Amazing. Now if you set up the delivery item category without the movement type your inbound will not even be GR relevant. Just one of these things that's nice to be aware of.
Check note 199703.
may b it helps...

Problem with MRP area

Gurus,
I had activated MRP area for exisitng client.
The scenario is,
Within a plant i have two MRP area. One is plant level (A) and the other one is storage location level (B)
A finished good and its components belongs to both the MRP areas. (A and B) I created a Planned Independent Requirement for finished good at storage location MRP area (B) and run MRP via MD02 for MRP area B, i got a planned order at MRP area B. But the dependent requirements for the components are created at MRP area (A) plant level.
My requirement is to get the dependent requirements at MRP area B for pegged requirements of MRP area B.
Suggestion to this isue is highly appreciated.
Thanks,
Aravind

Hi pravin,
Thank you for the reply.
Initially my client was not activated for MRP area. So when i activated MRP area, throughout my client for each of the existing plants an MRP area is created by default. So, all the materials that belongs to the plant, by default belongs to the plant MRP area.(A)
I created one more Storage location level MRP area (B) and assigned that to MRP 1 view of the finished good and all of its components. I also created a planned independent requirement for the finished good at MRP Area B. that is i can see the requirement in MD04 screen only with the MRP area B and not in MRP area A.
Then i ran MRP for the finished thru MD02 for MRP Area B. I got a planned order in MD04 of MRP area B.
As you are aware MD04 screen is specific for particular MRP area.
This planned order is not displayed in MD04 screen of MRP Area A. But the dependent requirements for the components are not displayed in MD04 screen of B. But the dependent requirements are seen in MD04 Screen of MRP area A.
As per my understanding the dependent requirements of components should be displayed in MD04 screen of B as my pegged requirements are from MRP area B.
Kindly suggest and please let me know if any thing is not clear.
Regards,
Aravind

Availability check with MRP area at Sloc level

HI We have MRP area at storage location level maintained for materials. Stock exists in the plant in the storage location which is part of the MRP area.
Now when I create STO and try to create delivery for the same, system is giving message 0 stock available and not creating delivery. Material has 02 Avl Chck group.If I deactivate the MRP area in the material master, it allows creation of delivery.
How can I ensure that system creates delivery even though stocks exist in MRP area relevant sloc only in the plant?
Sriram

I am sure you have already moved on from this issue, but what you mention is a limitation prior to ECC 6. You can not identify on the purchasing document the source sloc of the supplying plant. This is why you can not create the STO between sloc MRP areas. I was told this was resolved in ECC 6.
Jon

Multiple MRP areas to be handled with MD04

Hello to all,
my scope is to advice the user in MD04 when there are other MRP-Areas for the same material in the same plant and maybe offer a function to jump there directly. I am looking for suggestions how to solve this, maybe one of you did it already...
Thanks to all
Joerg

Hi ,
Yes u can use multiple MRP area for the single plant & SAp has given Provision to go to differant MRP area from MD04 , only u have to cchange the MRP area option in the MD04 screen , you will directly jump to given MRP area of that material & u will get the stock & MRp element details of the selected ,material.
Regards
satish

MD04 - Subreq - Storage location MRP area

Hi all,
I have an issue of Subreq in MD04 which is not assigned to the the good MRP area.
I'm explaining :
Business process
   -> I work with a subcontractor
        case 1 : either I buy raw material to be processed and delivered it directly to my subcontractor
        case 2 : either I send raw material from my physical stock to my subcontractor
   -> I create subcontracting purchase order with indication as components, the raw material.
   -> In case of the components are already in my subcontractor (case 1), the reservation (Subreq) should not consume my physical stock.
   -> In case of the components are in my physical stock (case 2), the reservation (Subreq) should consume the physical stock.
Solution choosen
Then I decided to create a storage location MRP area : "EXTERN" as External.
I assigned a storage location "EXT" to this MRP area.
I assigned this MRP area to the material in MRP1 / MRP Area.
In the purchase order, in the components popup,
For case 1 : I assigned "EXT" as Prod.Stor.Loc and Supply area
For case 2 : nothing special is filled
Issue
For the case 1, althought I assigned the storage location "EXT", the Subcontractor Requirement is not attached to the good MRP area.
WHY?
Remark : I didn't use the subcontracting MRP area because I would like to have 2 cases : case 1 & case 2.
Thank you in advance for your help about this problem which make me nervous !

Hello Catherine
Your system is working as designed. The following note explains the system design in more detail:
503497 - Subcontracting and MRP areas
Take a look on the relevant information provided by this note below:
Reason and Prerequisites
The most important point to understand the system behavior is the fact that the withdrawal of the (subcontracting) component is generally carried out during the goods receipt for an SC procurement proposalfrom the subcontractor stock that is managed at plant level from an inventory management point of view and that has no reference to a storage location at all.
This causes that subcontractor requirements can never enter a storage location MRP area, since you can later not post the withdrawal from this MRP area.
Thus SC-requirements always enter the SC segment of the plant MRP area or the SC-MRP area.
The SC MRP area in turn is supplied by stock transfer reservations from the plant MRP area or via third-party order processing through procurement proposals with goods receipt directly to the subcontractor. A supply through the materials planning from a storage location MRP area is not possible.
For the above reason, SC-requirements do also not carry any storage location, since the storage location does not have any control function at all for SC-requirements:
You cannot and you should not determine a storage location MRP area (see above), and the subcontractor MRP area is determined via the vendor of the procurement proposal, thus it is independent of the storage location.
See also Note 376050 on this topic that makes a modification available which prevents the deletion of the storage location in the subcontractor requirements, so that you can use, for example, customer-specific reports to analyze the storage location.
Please observe that the mentioned modification note 376050 only makes the storage location available on table RESB, so that you can use it on custom report. This modification will not make the storage location to be considered by MRP or on MD04.
BR
Caetano

Please help with subcontracting scenario............

Hi All,
Can anyone please help me in dealing with subcontracting scenario with scrap taken into account. Please provide the screen shots from BOm creatio to challan closing. the requirement is urgent. please help me. all replies will be suitablly rewarded.
regards,
vvr sharma

Sub Contracting Cycle
(1) You have a material that can be procured externally, and you have maintained BOM with components. Any waste generated and received during subcontracting process can be maintained as component with negative quantity.
(2) You create a subcontracting PO (PO with Item Category L). You can also maintain Purchase Info Record for Subcontract category for material and subcontractor.
(3) You make a transfer posting to issue components for SC PO. Material is sent to subcontractor. As material remains under your ownership, system does not make any value entry. But quantity is shown as "Material Provided to Vendor"
(4) You receive finished material against SC-PO. You also specify components consumed in manufacturing of finished goods. Additionally, if you have negative components in BOM, now you'll also receive subcontracting by-products. There are three events, so three accounting entries are generated:
DR FG Stock/ SC By-Product Stock
CR Change in Stock (FG/ SC By-Product )
(for finished goods received)
DR Subcontracting Charges
CR GR/IR Clg
(for moneys payable to Subcontractor)
DR Consumption (Components)
CR Change in Stock (FG/ SC By-Product )
(material provided to Vendor is now charged to expense)
(5) You do the IV for SC Invoice, and the process is complete.
Process of Subcontract in MM
Sub-contract business process:
You want to buy material from the supplier (processed material/ assembled item) , but for some reason (quality of certain item / price ) you will give some component to vendor .
Vendor shall process the item / use the item provided & supply the final item.
SAP process:
1.Create the finished goods material code.
2.Maintain the BOM for the material.
3.Create PO with item category as "L" .
4.Issue material to vendor with movement type 541
5.Receive the material against the PO with movement type 101.
6.MIRO to account for vendor's invoice for the service charge& material used by him.
Can anybody tell me how a process has to be given to subcontracting?
Suppose, I have 3 operations 1)weaving 2)dyeing 3)cutting & packing
if no 2 process (i.e Dyeing) has to be given to subcontracting, what process should i follow ?
The following process to be followed for subcontracting.
1. Item code(material master) to be created at the stage of before dyeing.
2. Item code(material master) to be created after Dyeing as subcontracted item.(F30)
3. Bill of material to becreated for the material(2) calling for material(1)
4. Inforecord and source list to be created for material(2) with the corresponding vendor
5. PO to be released for material (2)
6.Along with PO the material(1) to be issued to vendor
7.On receipt of material when GR is made the stock with vendor will get updated.
How to Create a Subcontract Order?
To create a subcontract order, proceed as follows:
Enter the material you want to order and the item category for subcontracting (L) in the order item.
Press ENTER to display the screen for component processing.
Enter the components that the vendor requires to manufacture the product.
Please note:
You do not need to enter the date required for the components. This date is proposed by the system when you press ENTER.
It is calculated as follows:
Delivery date of the item - Planned delivery time
If you do not want the quantity of the components to be changed if the order quantity of the end product is altered, set the indicator Fixed quantity (column F).
You can determine whether the components are available on the date required by selecting Edit -> Availability check.
If you entered a bill of material as the material in the subcontract order, the components are created automatically.
If you want to determine the components in the bill of material at a later date (for example, if the bill of material is subsequently changed), choose Item -> Component -> New BOM explosion. The existing components are deleted and redetermined in the bill of material.
Save the purchase order.
When you print the purchase order, the components are printed per order item
Subcontracting - Key Points
Special Procurement Process.
Item category: L
Order type: NB
In info record vendor should be maintained as subcontractor.
Vendor (Subcontractor) receives the components used to manufacture a finished product directly from your company or through third party.
Your company should place a purchase order for the finished product. In this manually you can enter the required individual components or it can be determined via the explosion of BOM (if exists).
Stock check at vendor level: ME2O
Company stock check: MMBE
GR for individual components through movement type: 501 or 561 (if with out PO or without reference).
GI to subcontracting vendor: through movement type 541.
GR from sub contracting vendor: through movement type: 101
Movement type 543 is displayed to cancel the material cost account.
If the subcontracting order has to be generated through materials planning,the special procurement key has to be set in MRP 2 screen.
- To create the Subcon Info Record : Tcode ME11 - Info Category - Click Subcontracting
- To create Material BOM : Tcode CS01
- With the Info and Material Setup, you can then create the Purchase Order in Tcode ME21N
Hope this is helpful.
Regards
Ravi

MRP areas with subcontracting

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