MTO-Subcontracting

Hi
Scenerio:
1. Against saleorder MRP will be done, output will be PR with account assignment cat "M"
2. Subcontracting PO will be created w r t PR (Sucontracting PO will a/c assignt cat "M" and Item cat "L" )
3. Compoents will be shown at "Sale order stock" using tcode MMBE
4. Transfer posting using tcode MB1B. with movement type 411 + E (Saleorder stock to Unrestricted stock)
5. Transfer posting using tcode MB1B with movement type 541 (Unrestricted stock to Subcontractor)
with reference to PO
Here am geeting error as "PO XXXXXX has no items"
How to resolve this issue? or any alternative solution ?
Your immediate suggestions will be appreciated
Raju

Hi,
Please check SAP online help where it is explained how to manage this situation:
Subcontracting is also possible in conjunction with sales order stocks and project stocks. The subcontracting orders are account-assigned to a sales order or a WBS element. Thus, the components are not transferred (using a transfer posting) to the "stock of material provided to vendor" but are directly withdrawn from the sales order stock or the project stock at the time of the goods receipt. The material manufactured is also posted to the sales order stock or to the project stock. The cost of subcontracting is then debited to the sales order or WBS element.
Since the components are not transferred to the "stock of material provided to vendor", we recommend that you use a transfer posting to transfer the provided components to a new storage location (for example, 9999). This enables you to obtain an overview of those stocks that are physically located at the subcontractor. This information is particularly important when you carry out a physical inventory of the sales order stocks and project stocks.
http://help.sap.com/erp2005_ehp_04/helpdata/EN/4d/2b90b043ad11d189410000e829fbbd/content.htm
Regards,
Csaba

Similar Messages

Re: MTO & MTS for same product

Hi Experts,
How to configure both MTO & MTS for a same product.
Regards,
Vivek

Hi Experts,
I am having a requirment for MTO Subcontracting order.The customer issues raw material for the production for the FG product. Now I want that the system should do the Planning for the FG by MRP & also to calculate the the raw material required. The system should also be able to created purchase requisition for the deficit raw material. The raw material should not have any financial implication i.e. they are are only relevent for stock posting & not for any valuation purpose.
Here my client is the subcontractor. So he does production for Other clients as well.
Please advise.
Regards,
Vivek

Subcontracting process for MTO scenario

Dear Sir ,
In my company one scnario comes , in which we are making MTO sales order for customer , some item of BOM of finished goods I have to provide to the subcontracting vendor for making semifinished goods .
How I can do this activity according to SAP point , as subcontracting vendor stock is represented with specail indicatior O and sales order stock with E.
Please help to get rid off this issue.
thanks & regards
Shailendra

check these links http://help.sap.com/erp2005_ehp_04/helpdata/EN/4d/2b90b043ad11d189410000e829fbbd/content.htm
http://help.sap.com/bp_blv1600/V5600/BBLibrary/HTML/150_EN_IN.htm
Edited by: anjali s on Apr 28, 2009 12:57 PM

Subcontracting in MTO scenario.

Hi,
We have an MTO sales order against which we are raising a subcontracting PO. At the time of goods receipt, movement type 101 'E' and 543 'O' has triggered. 3 controlling entries have taken place:-
1. Cost for Goods issue to subcontractor is debited to PSG. (543 'O')
2. Credit for goods receipt from subcontractor is credited to SDI. (101 'E')
3. Service charge for subcontractor is debited to SDI.
The above entry has happened only once and is leading to excess credit on the sales order.
When we replicated the case in test environment, we found that all the costs have gone to PSG (as per OKB9). The movement types are the same as before.
We replicated a case where we triggered 543 'E' instead of 'O' and the costs are still going to PSG for all the entries. This was done by changing the 'individual/collective' indicator in material master. I believe this is the recommended SAP setting for subcontracting in MTO scenario as per following link.
Subcontracting for Sales Order Stock and Project Stock - Managing Special Stocks (MM-IM) - SAP Library
Can anyone explain when does system overrule OKB9 and take sales order as cost object?
What can be the probable reason that system is behaving differently for only one occassion?
Is there any other indicator in material master that I should look for?
Can I look at OMJJ for possible causes?
I know this has been asked several times on the forums before but I have not been able to explain above situation. So thanks in advance.

OKB9 is only functional in the case where a "cost object" has not been assigned to a P&L transactions. That's why it is called "Default Account assignment". In the Case of your MTO, the sales order is really considered as the cost object and hence would take precedence over other default...once a cost object is determined, any further assignment of a cost collecting object becomes statistical depending on the type of cost objects. Basically cost objects have precedencies: I believe Sales order, internal orders, Cost center, etc in that order. Meaning, when 2 are assigned, the one in the lower order become statistical. In any of these cases, OKB9 takes a back seat. OKB9 only comes to play when the internally generated accounting entries will result in no cost object assignment, then SAP looks to see if you have a reference maintained in OKB9.
Basically, for your MTO, the sales order (an maybe the cost center, etc assigned the to sales order) becomes the cost holder. OKB9 will not feature.
OMJJ will help you simulate the goods movement and see how the accounts are derived/cost assigned. If OKB9 features, you will also see it referenced. But I don't think it will, unless your goods movement results in an accounting entries that internally does not reference the sales order, then OKB9 kicks in.

MTO - make to order with subcontracting

Hi Gurus,
i have a question . I want to realize a process MTO with Subcontracting
Could you tell me how can i customize this process?
Best Regards
Emre

u2022     Create material in MM01
u2022     Create BOM in CS01
u2022     Have routing in CA01
u2022     Create sale order in VA01
u2022     MRP Run in MD50
u2022     Check planned orders in MD04
u2022     Convert component planned order to PR
u2022     Convert component PR into PO for external procurement in ME21N
u2022     Create subcontract PO with reference to PR via ME21N
u2022     Transfer goods to subcontractor with movement type 311E
u2022     Create excise challan J1IFQ
u2022     Receive the goods from subcontractor via MIGO
u2022     Execute J1IFQ for reconciliation
u2022     Update the challan via J1IF13
u2022     Convert finished material planned order to production order
u2022     Issue to production with movement type 261 via MB1B
u2022     Confirm production order via CO15
u2022     Receive goods against production order
u2022     Order settlement for production order in KO88
u2022     Create delivery in VL01N
u2022     Create billing document in VF01 / VF04
thanks
G. Lakshmipathi

Error in MIGO of Subcon PO in MTO scn, not triggering Movement type 543/E

Dear Consultants,
I am trying to perform Goods receipt against a Subconctracting PO, in a MTO scenario. The components are linked to Sales Order (Special Stock - E). I have maintained '0' in the Individual / Coll requirements field in the MRP 4 view of the component.
So after creation of PO(Subcon), I am trying to perform MIGO - without issuing components to vendor as 541/E movement type for componenets is not allowed in standard.
While performing MIGO I am getting the error no stock available with vendor, the system is trying to trigger 543/O movement type whereas I am expecting 543/E to be triggered for the components.
I am also not able to perform 311/411 E movement type for the components as they are linked to WIP Batch.
Can anyone sujjest if there is a way by which the MIGO should trigger 543/E during MIGO.
Thanks
Arindam.

Hi
i donr think the movement type 543 E will trigger as the subcontracting only supports 543 O in standard , you need to do customizing as follows
Also check in SPRO > Logistics - General > Tax on Goods Movements > India > Business Transactions > Subcontracting > Maintain Movement Type Groups > here for Movement Type Group "0002", Movement Type "543 E" should be maintained.
just check following link for the subcontracting with sales order ,
[Sub Con 1|http://help.sap.com/saphelp_470/helpdata/en/4d/2b90b043ad11d189410000e829fbbd/content.htm]
[subcon 2|Subcontracting for project stock;

Make to order---subcontracting

Dear Expert,
Please help me on below scenario.
I raised special sales order through MTO process. After that i run MRP.
In this Process, one Subcontracting Process comes throgh Production Planning.
I have converted PR to Subcontract PO. The Account assignment category is M & item Category is L In this process my BOM is explode Automatically as per Production Planning. I maintained also sales order ref & Item No in the PO item details window.
I Saved & approve PO.
While Doing MB1B 541 MVT, i got below error.
Purchase order 4500000070 has no items
I have maintained everything in PO.
Please help me. Any settings require for this?

Hi,
Go to bellow steps :
=>Create material in T.code MM01
=> Create BOM in T.code CS01
=> Have routing in T.code CA01
=>Create sale order in T.code VA01
=> MRP Run in T.code MD50
=> Check planned orders in T.code MD04
=>Convert component planned order to PR
=>Convert component PR into PO for external procurement in T.code ME21N
=>Create subcontract PO with reference to PR via T.code ME21N
=>Transfer goods to subcontractor with movement type 311E
=>Create excise challan T.code J1IFQ
=>Receive the goods from subcontractor via T.code MIGO
=> Execute J1IFQ for reconciliation
=> Update the challan via T.code J1IF13
=>Convert finished material planned order to production order
=>Issue to production with movement type 261 via T.code MB1B
=> Confirm production order via T.code CO15
=>Receive goods against production order
=>Order settlement for production order in T.code KO88
=>Create delivery in VL01N
=> Create billing document in T.code VF01 / VF04
Go to bellow links
http://help.sap.com/saphelp_470/helpdata/en/4d/2b90b043ad11d189410000e829fbbd/content.htm
http://www.sap-img.com/materials/sub-contracting-cycle.htm
Thanks,
Raviteja

Subcontracting child material issue with SO ref

Hi all,
As per the client business scenario we are using MTO for all production/purchase process, In between the production process the material also going to subcontract for some process and coming back as new material. As i mentioned earlier all material movement with ref to sale order only.
So, the child material in SO stock, created the subcontract PO through MRP by using Item cat - L and Account Assignment - M, with child material, system is recoganising the subcontract consumption with ref to SO in 543 mvt type. but while sending the material from plant through 541 system is not able to recoganise (since there is no special stock assigned in value string OMJJ).
How to make the Sale order reference as manditory while GI (541/542) and GR (101/102/543/544/545/546) of subcontracting.
Request your valuable suggestions
Regards
Sridharan

Hi,
Please refer below link...
http://www.sdn.sap.com/irj/scn/go/portal/prtroot/docs/library/uuid/a04ec1a0-c39b-2c10-6889-f6f69625f3f3?quicklink=index&overridelayout=true
Kuber

Customer subcontract

All,
Follwoing is my flow to handle customer subcontract using sales stock & Make-To-Order concept. We are given a Semi-FG say "F02" from customer in which "F02" is the product we sold to them before. They subcont us to add colour to the "F02" and make it to FG as "F01" and ship it back to them and charge then an added-value cost (not full price including the cost of "F02")
I encountered the problem as follows:
1. In sales order how to differentiate between normal price and added-value price for F01 as when doing billing, we only want to charge the added-value price in subcontracting case, and charging full price for normal sales ordering (in which we make F02 for customer also).
2. Any report other than MD04 to see make-to-stock S.O as in MTO scenario, Md04 wont shows the Sales order at all
******************Here is the config and flow**********************
a).     Create Sales Order, in procurement tab "Requirement Class" = KEV and Schedule Line cat to BN
b).     MIGO -> GR->Others -> 501-E -> for F02 (Customer Supplied Material), provideSales Order/Item#
i)MMBEyou will see the stock is being show as Sales Stock (NOT Inventory stock)
ii)Md04 for F45684XX4915FR3102 è you will see the stock as Sales Order stockè means customer owns the stock
iii)MB51 for material doc for this GR è No account document means this GR stock does not affect the Balance sheet account on FI, but affect the MM (as it generate material document)
c)CO08 to create Prod Order from Sales Order è use F01 (The FG to customer) è in Prod Order component view add component F45684XX4915FR3102 (op# = 10) è release $ Save go to MD04 you will see the S.O and cutomer Stock show
d). MIGO GI--> Order# --> 261E
i)Md04 è Sales Stock customer entry is gone
ii)MB51 è material document has no accounting document è since the stock does not belongs to company (GR/GI of F02 does not affect FI, only MM)
e).GR-> Order -> 521 E in where tab è use 101-E
i)md04 è Prod Order Entry gone, only Cust Stock entry remain with stock quantity
ii)MB51 è Accounting Document Inventory/Fact Output equal to EK02 cost value * qty
f).     Sales order no need to confirm stock, since it is MTO, the confirm field is auto assign with qty
g.     Open DN è Vl01n è input pick qty è Save the DN (without PGI)
MD04 è Delvry entry is shown
h.     VL02n è PGI
MD04 à All item are vanished
i) VF01 -- create Billing
price being chare equal to the normal price (NOT added-value price)

"Dependent requirements ind. for individual and coll. reqmts" (MARC-SBDKZ) on MRP4 of material master is used to control whether the components are managed in the special stock segment or not in MTO environment.
(Discussed many times on the forum.)

Sub contracting Process ( MTO)

Dear All,
One of the my client using Sub contractig process MTO.Defined process like
1. Create process order based on Sales order ( Auto PR generate)
2. Sub contracting purchase order creation agaisnt PR
3. Material consumption againt 261 Movement
4. GR for service expenses
5. Process settlement for 101 Finished goods.
Now my business would want consumption posting along with GR ! But we sre unable to transfer goods ( Sales order assigned stock ) to Vendor SC stock through 541 Movement type. Is there any special way to transfer the same ?
Rgds
Suma

Hi,
The process we have used is and suggested by SAP is-
Prerequisite:
-Create vendor's place as a storage location.
-assign 311 E,312E, 543 E to movt type grouping for subcontracting challan.
- Make vendor field(LIFNR) mandatory at MB1B 311 E .
Process:
1 Create PO for material. with item category L
2 transfer the goods through 311 E to storage location created for vendor's stock.
3 Create Subcontracting challan with reference to 311E material document.
4 Make GR after goods recieved from vendor.
5 Consumption will follow from storage location against PO.(need to give vendor's storage location for consuming material)
regards,
sujit borse
Edited by: SNB on Dec 13, 2010 10:18 AM

Subcontracting Purchase order with Sales order Reference

Hi friends,
I am facing a problem during GR of Purchase order with Acc. Assignment E and Item Cat L i.e. purchase order is MTO and of Subcontracting.
During GR, system is purposing movement type 543 E instead of 543 O for BOM components. Please suggest how can I get the correct movement type during GR. I would like to appreciate for your kind response.
Kraheja.

Hi
Go to SPRO->Logistic general->Tax on goods movement->India->Movement types.
Here you will find the group of movement types check which movement types is mantained for the out side movement groups or inward movement.
also check the Material Master in MRP view if the collective requirements (02) is mantained.
Regards
Sujoy

Subcontracting PO for account assignment M & E

Need Urgent help....
Dear Gurus,
Require your expertise for the following senario:-
While running MRP for MTO sale order , The planned orders created with account assignment category M.
We do have one Planned order for Subcontracting as well and is created with Account assignment category M and Item Category L .
The combination of M & L is alreday defined in SPRO .
Now while creating PO with M & L for subcontracting , its creates subcontracting PO for sales order reference .
After creating PO , there is no requirements gte generated for trasferring componenets to sub-contacting Vendor , as the components also shows special stock indicator E,
And even after transferring Componenets to Vendor manually through MType- 541, while doinh GR against PO ....the Consumption of components is shown with 543-E , and not 543-O.....and which in turn...doesn't really complete the subcontracting cycle......
So....Combination of M & L is possible or not and if yes what settings need to be done and where ?
Will appreciate your advise
Thanks & Regards
Ashwin Jain

Dear Baskaran,
Thanks a lot for your update ...The senario is like this :-
The sales order is for Finish goods as MTO and under this Finish good in BOM we have one Semi Finish item which we are getting processed through subcontracting.
And under the semi finish we have one raw material which is acting as component for Semi finish item.
The Account assignment category is "M" and Item Category is "L"
The PO for Semifinish Subcontracting is having reference of sales Order and the components for this semi finish is also having the reference of same sales order .
Now while doing GR components gets consumed from sale order stock from our own stock ....and not from Stcok provided to vendor....Actually after creating PO with M & L it doesn't creates any requirements for Transferring components to Subcontracting Vendor ....and in this case how can we trace the Subcontracting Process.
As you said threre is no need to send components to Subcontracting Vendor if PO & Components are having the same Sales order no reference ....Need more clarification on this and then in this case how we will trace the cycle as we r not sending any componenets to Vendor through system but in Actual we need to send the componenets to Vendor to convert them in to Semi Finish Goods .....
Please advise at your earliest ...
Regards
Ashwin Jain

Internal Subcontracting (Toll Manufacturing)

Dear SAP Expert,
We have requirement that our sister company is doing subcontracting to us (toll manufacturing).
Basically our sister company is supplying us the main raw material and then
we add our company own material plus some overhead.
The problem is we need our company to recognize the COGS during we produce
in the same period.
Example: in April we produce 1000 CTN, we dispatch the goods to customer (sister company) 800,
we want to recognize the COGS on April based on 1000 CTN (not based on 800). The remaining
200 we just need to record quantity.
My question is:
- What is SAP best practice of internal subcont (toll manufacturing)?
- Any idea how to recognize COGS in produced quantity?
something cross in our mind is we sell all right after we produced and receive remaining qty in virtual Plant non valuated.
That means once 1000 CTN is produced we sell it immediately (to recognize 1000 CTN as COGS),
then remaining stock of 200 CTN (physical dispatched 800 CTN) we need to GR again in different plant (which is non valuated)
or
Is there any idea to simplify this process?
Moreover we implement material ledger
Thanks in advance,
Subur

Hi Subur
Dont worry.. Its quite a common scenario and I have myself implemented it in the past...
The main challenge in this case is that for your Company its a Non valuated stuff.. however, for the Sister Company, its a valuated stuff.... With right kind of settings, you can achieve it....
The way I have implemented is as below
1. Use MTO scenario where Sales Order is the CO object...
2. IMG Settings
a. Create a requirement class in IMG > CO > Prod Cost Contr > Cost Obj Contr > Product cost by Sales order > Control of Sales-Order-Related Production/Product Cost by Sales Order > Check Req Class
Assign Account Assignment Catg = E; Valuation Field = Blank; And a Settlement Profile
b. Assign this requirement class to your requirement type and hand it over to your SD guy... The SD guy needs to assign this Req Type to his item category and always determine this Item category in the Inter Company Sub contracting Sales order...
Its advisable you create a separate sales order type for it
3. Process
a. Create a Sales order in Company A (Company B is the Sister Concern)
It may have 2 materials i.e. One material will be the FG and another will be service material for Sub contracting charges
b. Receive the raw material supplied by Company B against the sales order... Mvt Type 501 E.... (This would receive the stock in your books as Non valuated i.e. @ Zero value)
c. Create a Production order for the FG associated with the Sales order.. (CO08)
d. Issue the goods to the prod order / Confirm the operations
e. Do the GR from prod order... The GR will be Non valuated in Company A.... Only Qty will be updated in the stock.. No Value
f. At period end, settle the Prod order upon sales order.... With this, the total cost of 1000 will be settled to Sales order
g. Do the billing, which will also post to the Sales order....
h. Settle the sales order from VA88... This will settle the total cost of 1000 CNT to COPA....
4. Ensure that the Item Category / Req Class you use in this process for Company A, should not be used for Company B.. Else, it would also be treated as Non valuated GR in Company B as well
br, Ajay M

Raw Stock For Subcontracting

Hi All,
We are using MTO scenario for our mould plant. For finish mould we run MRP with respect to sales order(MD50). After mrp run requirement create for raw and sfg. We are doing Subcontracting for SFG material for external processing.
Now my question is that , when am procured raw materail it gets autometically consume from stock . And when we go for subcontracting we explode the BOM in P.O at this time system ask stock of RAW Materail.
Pls give me correct solution,
Thanks,
Vishal

i m using accountassignment F here i mean Purch. Requisition is create autometic by mrp with account assignment catagory F & L for subcontracting.
Edited by: vishal Patil on Jun 12, 2008 2:25 PM
Edited by: vishal Patil on Jun 12, 2008 2:28 PM

MTO cost getting wrongly charged

Hi,
I am doing MTO with sub contracting. The following cost is getting captured against Sales Order-
Cost Of Raw material
COGS
Following component is not getting captured against sales oreder-
Sub contracting Charges
COGM
Due to this the cost of raw material is getting captured twice. I want to captured the -
1. Cost of raw material
2. Sub contracting charges
as and when it is booked.
Sales order is taking cost center as compulsory field and even if I am entering the Sales order in subcontracting charges GR, it is taking it as statistical and booking charges on cost center. Please note nowhere filed status is issue..
How can I book the correct cost as per requirement.
Thanks & Regards

Hi,
In SAP the cost of goods manufactured is composed of material and production costs, process costs and overhead.
Based on your statement "Due to this the cost of raw material is getting captured twice."
Based on my project experiences , few possible reason could be happen as below :
1) Incorrect production execution confirmation due to double confirmation again the order.
2) Incorrect BOM structure - duplicate line item for raw material.
To calculate the COGM and COGS for materials, you can execute a material cost estimate
What you using should be Material Cost Estimate with Quantity Structure.
Choose Accounting --> Controlling --> Product Cost Controlling --> Product Cost Planning --> Material Costing --> Edit Costing Run.
Hope can help you.

MTO-Subcontracting

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