MRP with Subcontracting (Urgent)
Hi,
I have a scenario of Subcontracting in an Automobile Industry. The planning plant is I005 and the BOm is as follows -
Final Assy 'FA' (FERT) {Assembly done on subcontract basis by subcontract Vendor A005)
-- Sub Assy 01 'SA1' (HALB) - {Assembly done by Subcontract Vendor D025}
-- Sub Assy 02 'SA2' (HALB) - {Assembly done by Subcontract Vendor A005}
--- Component 01 'C1' (HALB) - {Component required in both SA1 and SA2 and procured by plng plant I005}
--- Componenet 02 'C2' (HALB) - {Component required in SA2 only and procured by plng plant I005}
--- Component 03 'C3' (HALB) - {Component required in SA1 only and procured by plng plant I005}
The clients requirements are as follows -
1. Want to put plan for FA as PIR in MD61 for 3 months as monthly plan.
2. Take Run on monthly basis in plant I005
3. After MRP run the system should do the following things -
-- In net requirement calculation the system should take material provided stock and I005's unrestricted stock.
-- System will create subcontract PO for SA1 to vendor D025 and FA to A005
-- system will not create subcontract PO/PR or Sch Line for SA2 but it should plan for C2 for subcontract vendor A005.
-- System should take care of Material Provided stock for D025, A005 and un restricted stock of I005 for Component C1 and club the total required quantity and make monthly schedule line in SA as per Source List maintained.
-- the system should create Sch Line for C3 as monthly schedule line for SA per maintained in Source list
I made few settings as follows but the results are not as per my expectations.
1. For FA - Procurement type - F and Spl Proc Key - 30 and planning strategy 10 and MRP type - PD
2. For SA1 - Procurement type - F and Spl Proc Key - 30 (Subcontracting) and MRP type - PD
3. For SA2 - Procurement type - F and Spl Proc Key - 60 (Phantam in planning) and MRP type - PD
4. For C1 - Procurement type - F MRP type - PD
5. For C2 - Procurement type - F MRP type - PD
6. For C3 - Procurement type - F MRP type - PD
7. Maintained Source list for C1, C2 and C3 with valid sch agreements and MRP relevency indicator "2"
8. Running MRP monthly for plant I005 and with NETCH, Sch Line - 3
Can anyone please guide me with the correct settings I need to make to map the requirements.
Thanks and Regards,
Amol Rathore
What I have under stood from your BOM is -
Level Item ProcType SpKey Vendor
1 FA F 30 A005
1.1 SA1 F 30 D025
1.2 SA2 F 30 A005
1.1.1 C1 F Some Vendor
1.1.2 C3 F Some Vendor
1.2.1 C1 F Some Vendor
1.2.2 C2 F Some Vendor
Please clear whether this BOM is correct or not?
cheers
kapil
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Please help with subcontracting scenario............
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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 sharmaSub 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 -
Hi SAP Experts,
I have a question about MRP.
Can we work MRP with subcontractor stock?
Let me explain, the MRP could not to generate new planning orders if I have subcontractor stock. For example:
In MD04 transaction
MtlRes 100- units
MtlRes 100- units
MtlRes 100- units
SubcSt 300 units
If I have this situation, the MRP run could not to generate planning orders because the subcontractor stock recover the quantity.
This problem (almost) drive me crazy. I really appreciate any help.
Thanks in advance.Dear Demetrio
Please note that the logic for subcontracting was changed as of release
4.0A.
As of release 4.0 the net requirements calculation for components to be
provided in subcontracting takes into account that the provision stock
can only be used to cover the corresponding requirement of material
provided. The provision stock that is already available from a
subcontractor (vendor) can only therefore be used to cover the
requirements of material provided at this subcontractor.
The system uses only the stock that has not been assigned to a
subcontractor as unrestricted-use stock to cover all requirements.
For further information about this issue please consider the below QA. With the modification of note 170597 the old logic can be achieved. Please notice that it is a modification note.
1. Question
Why does the MD04/MD05 display an own segment for subcontracting as of Release 4.0B and how does the materials planning work with this new logic?
Answer
The logic regarding the subcontracting was changed as of 4.0. This is explained in detail in the release notes for 4.0A:Planning of the components to be provided for subcontracting
Material Requirements Planning -> Planning Execution -> Material Requirements Planning: Planning of the components to be provided for subcontracting
2. Question
Why does the third-party order processing for subcontracting work differently as of Release 4.0B?
Answer
The (Pseudo) Third-Party Order Processing for parts provided together with the own segment for subcontracting results in problems and can result in inconsistencies. This is described in detail in Note 214298.
As of Release 4.5A you can implement the third-party order processing with subcontracting MRP areas (refer to the corresponding documentation).In addition you can use a modification to reset the system to the behavior before 4.0A, refer to Note 388479. As of Release 4.7, BAdI 'MD_SUBCONT_LOGIC' allows this without a modification.
3. Question
Why does the discontinued part for subcontracting not work?
Answer
You cannot divert requirements of material provided to the follow-up material. The reasons are described in detail in Note 43636, section 6.
4. Question
Why does the system not display the requirements of material provided in the storage location MRP area, as expected?
Answer
Requirements of material provided (subcontracting requirements, material staging requirements) never reach a storage location MRP area, because later you cannot post the withdrawal from this MRP area.
The withdrawal of the components (to be provided) during the goods receipt for an SC procurement proposal occurs always from the stock with subcontractor, which is managed - from the viewpoint of the inventory management - on plant level and has no storage location reference.Refer to Note 503497 for details.
5. Question
Why does a requirement move from the subcontractor segment into the plant segment and is covered there although it appears already to be covered in the subcontractor operation segment by a receipt element (Pseudo third-party order processing for the subcontractor)?
Answer
The corresponding receipt element must standardly always be within the rescheduling horizon. This is required (due to technical reasons) even then when the input itself does not have to be rescheduled, so that the net invoice can deliver consistent results for the subcontractor segment together with the rescheduling check.
If the receipt element occurs after the requirements date, the corresponding element must participate in the rescheduling check (Transaction OMDW).
Regards
Soundar -
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Hi Gurus,
i have a question . I want to realize a process MTO with Subcontracting
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Emreu2022 Create material in MM01
u2022 Create BOM in CS01
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regardsBill
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KrishHi,
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When I am Running MRP with LOT SIZE as "MB" (Monthly Lot Size)
System Is raising Planned Order,
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ChaitanyaHello ,
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Company
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How to Run MRP with requirement Plan Number
Dear all,
I am working for the process of MRP Run .But customer requirement is that "To Run the MRP with requirement Plan Number"
If you are aware of this scenario ,please provide the solution.
Thanksin AdvanceGo to MD61
Select the Radio Button Rqt Plan Number
Write the plan number eg. "test1"
now you get the next screen
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first line Testmat1 -qty 100 150 ....
2nd line Testmat2 -qty 150 100
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K.Prabakaran -
Posting invoice for SC order with freight - URGENT!
Hi,
I'm getting differences in accounts for invoice only for freight with subcontract order.
I should get this lines in invoice for an invoice more expensive than the previous GR (let's forget taxes by now):
KBS total of invoice
FR1 in the amount expected by GR
FRE for the additional payment
BSX to value the stock according to fre
BSV to clear fre
all FRE, BSX and BSV should be the same, but they aren't. FRE is greater than BSV that is the same than BSX.
Do you have any clues?
Regards.This is being adressed by SAP development team for canadian provinces taxation.
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any one can clear my doubt. I can run MRP with item category( ex L, B, K etc). but i don't know how to run MRP with aaccount assignment ( ex with K, P, Q etc)
Hi,
You can run MRP for your material but it won't calculate with PO with account assignemnt since the goods received against that PO won't be kept in stock - MRP calculate with stock levels.
BR
Csab -
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
ChindamHi Chindam,
Check whether you had maintained source list if so the schedule lines will be created automatically when trigger a MRP run.
regards,
patil -
hi thr ,
here we r using planing strategy 10 .we have BOM like HALB A conatains ROH B
and that ROH B is send outsidefor subcontracting for cutting operation .
when i am taking planning run it is not generating DepReq for ROH B .
i have maintained spl procurement key 30 in HALB A in MRP 2 view .
why it not linking the ROH material .
and what r the setting to be mainatained for such scenario .
routing for the HALB contains only one operation Cutting and we have maintained PUR info record in the Routing for the same .
plz guide for the same above .Ajay,
Routing is not required as you are subcontracting HALB A (as mentioned by you only one operation representing external processing).
1. Maintain HALB A - Special Procurement - F & 30
2. Maintain BOM for HALB A with usage 1 - Production and status relevant for all. See that your BOM is within the valid date range of the required date. Here component ROH B should be assigned.
3. Maintain Inforecord of Subcontracting type for HALB A.
With this run MRP you should get Subcontract Req generated for ROH B.
In your present case you have maintained external operation, which will get triggered only during creating/release of Production order. I think you will be having a planned order only for HALB A, please convert it into production/process order and check, then system will create subcontract requirement.
Regards,
Prasobh
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