Multi-level sub-contracting involving multiple vendors

I need complete process to understand for following sub-contracting scenarios.
Customer is purchaseing materials from vendor1 with an instruction to supply it to vendor2 for further processinng. Vendor2 returns the materials to customer. Customer needs to create PO to vendor1 and subcontracting PO to vendor2 so that their payment can be settled through IR from vendors.

->1-> Your Plant will raise Raw material PO on vendor V1 . This PO must have "SC vendor" ticked along with the V2 vendor specified in the Delivery Address tab in PO item .
-> 2: Your Plant will raise a Subcontracting PO -item category L , to Vendor V2 . (this PO will have the Parent component which the V2 vendor is going to give back to you. ) . the BOM of the Parent component will have the Chile specified as the Raw material you buy from V1.
->3-> When V1 delivers material to V2, you(or someone at V2 location with system access) will do MIGO against the Raw material PO . this will generate a material document with movement type 101-O , and the raw materials will be avaiable at "Suncontractors stock " with special stock "O" which can be seen in MBLB .
-> Create jobwork challan against the 101-O material document in J1IF01.
->4-> when the V2 processes the components and sends you the Parent material , you will do MIGO against the subcontracting PO .
->5-> Reconcile Jobwork challan in j1IFQ against above MIGO Doc number.

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How to pick consignment stock @ FIFO method when involved multiple vendors

Dear Guru s ,
I need some information/ logic on how to pick consignment stock @ FIFO method when involved multiple vendors (who supplies consignement goods) .
1)We have tried to determine the vendor @ FIFO method from the material document date & time with 101 K mvmt type
2) when we check MSEG table we are unable to get the current stock updates .For example Vendor A stock is showing 60 KG in MMBE , but MSEG is showing only 45 KG for the same vendor & storage location .
Can anyone provide me the logic / info on the same.
Thanks
Anil

Hi Anil
MMBE will show you total stock, your logic is correct , you can go for MSEG , but you need to add opening stock for that material for the period.
Suppose you are looking for report between 2nd august to 10 august , then you need to take opening stock on 2nd august and then add all goods receipt( 101 k) between 2nd to 10th and you will get correct stock on 10th ( same as MMBE)
Note : I am assuming that current date is 10th august. If you want to see stocks on particular date then go for MB5B.
Now as per your requirement , you can identify goods movement based on FIFO , follow same logic , pick time and date from MSEG for 101 k movement type.
Regards
Ravi.

Track multiple contracts with multiple vendors

I am currently looking to track all my HP CarePacks and be alerted when they are expiring. I see that you can create a vendor and you can create a start and end date, but dont see how to make say a contract or anything under the vendor that has a start and end date, am i missing something?
This topic first appeared in the Spiceworks Community

I am currently looking to track all my HP CarePacks and be alerted when they are expiring. I see that you can create a vendor and you can create a start and end date, but dont see how to make say a contract or anything under the vendor that has a start and end date, am i missing something?
This topic first appeared in the Spiceworks Community

MTO Discrete Manufacturing with multiple plants and sub-contracting

Dear PP Gurus,
I am facing a problem, pl. help me out.
My Scenario is as follows:
I am having 4 plants with Make-To-Order Discrete Manufacturing scenarieo .
Suppose to manufacture a particular Product , there are 10 operations.The first 4 operations are carried out in Plant A, 5th and 6th carried out in Plant B, Operations 7 is Sub-contracted to a Vendor. After the job-work from Vendor, the job returns back to Plant A and the remaining operations are carried out in Plant A.
The whole scenario has to be mapped into SAP. Please guide me from the very beginning( Masterdata maintenance). Also, what shud be the MRP( Single-item multilevel or anything else)
Your help is highly required by me.
Thanks in advance,
Soumyendu

Hi Sadhukhan,
For external processing in different company code, u need to specify PP02 in the routing for external vendor. In PP02 control key indicator must be set in external opn. Before that create purchase info record. Enter subcontract info record in routing. After running MRP , convert the PR to PO. Send the material by MB1B by 541 mvt. Receive the material by MIGO by 101 mvt.
Reward if useful.
Keerthi

Error while doing MIGO for a sub-contracted item

Hello to Everybody,
I am facing below problem -
Error : Incorrect CCtr <Cost Center Code> with this account (CCtr category must=D) for
<Item Code> , while doing MIGO. (for receiving sub-contracted item from vendor).
May I request for possible solution to above error ?
regards,

Dear Sanjay,
You can determine the cost object for the posting of the costs in the transaction OKB9.
Following thread should resolve this issue:
Re: cost of subcontracting
Regards,
Naveen.

Sub Contracting Query

Hi PP Gurus,
I am working on a Sub-Contracting Scenario.
Here we have a routing with 3 processes of which 2nd process is being sent outside to the vendor for processing. I have made following settings for the sub-contracting to take place.
1.     Purchasing view maintained for the components which are to be sent outside.
2.     Vendor details are available, including the Info record.
3.     Control key maintained PP02 for the 2nd Operation.
4.     In routing, in 2nd opn. I have maintained specific component which is assigned.
5.     IN MRP2 view of that material, have maintained Procurement Type u2018Xu2019 and Special procurement key as u201830u2019.
After releasing and saving the Production order it is not generating any Purchase Requisitions (PR) for me to create a PO for that.
Please help me understand that why is the sub-contracting not taking place based on the information mentioned above.
Thanks in advance,
Harris

Sir,
Thanks for the reply; it has helped me understand the scenario.
Just would like your explanation in my wordsu2026
My scenario
Suppose I have a FERT to be made say name:     FG1
It has BOM components:               SF1 & SF2
Routing it follows is:                    10 u2013 20 u2013 30
Opn 20 is to be Sub Contracted for Component SF2
As per your explanation
Mtrl master for component SF2 before opn 10 = SF2A
Mtrl master for component SF2 after opn 10    = SF2B (with Sub Contrc. F30 with Info Rec. and Vendor details)
BOM to be crtd. For SF2B calling SF2A.
BOM components for FG1 would now contain SF1 & SF2B
PO to be released for SF2B with material SF2A would be issued to the vendor.
Sub-contracting processes at Vendor
GR
Also, will the PR be generated for SF2B after I save the Production Order for FG1.
Kindly confirm the above. So that I can proceed as per your information.
Thanks sir,
Harris

Subcontracting (Multiple Vendors Involved) and Production Version's

Hello all,
I would like to know more about this stuff. So do share your valuable thoughts.
I was trying out a sub contracting scenario with multiple Vendors and Production Versions involved. The production version is designated in such a way that lot size/quantity of the requirement determines which of the available version's to be taken into consideration whilst generating procurement proposal via MRP.
#1. Production Version:
5 Version's of the BOM are assigned to various lot sizes.
#2. I had 5 different info records created for the material-Vendor combination. Each one of them were assigned with a Prod version to it.
Sample:
#3. Post these settings i had a MRP run executed. Well !!! the results were different off-course. I neither did see the procurement proposals classified based on the prod version nor the first prod version assigned to the procurement proposals ( i meant i had a different prod version(version 4) assigned to the procurement proposals generated).
Questions:
#1. Well the first thing that did strike my mind was how could i get the source list work for such scenario's ? I guess i can't go with quota arrangement coz which would split the procurement proposals into many halves and assign's it accordingly to the vendor.
#2. How come production version 4 given the top priority here ?
Source List state:
                         a. I had an item (tried the others as well) checked with fixed vendor indicator but the info record of the material-vendor combination had a different Prod. Version in it (well not PR4, i can guarantee you on that)
                         b. I had nothing marked with fixed vendor indicator. Results post MRP still did pick the same prod version (Version 4).
#3. Last but not the least how can i get this thing to work ?
Please do help out.
PS: MRP 4 selection Method: 2 - Selection by Prod.Version
Regards,
Rahul

Hello Rajen,
Well as per your comment "
Regarding the splitting, Not Always.
There are two types of quota arrangement - Allocation quota and splitting quota."
so meaning that allocation quota doesn't split the procurement proposal is it ? If so how are they assigned to vendors ? any other criteria being used up here
Anyhow i had a new lot size method created with the splitting quota field unchecked. So how do i proceed from here ? meaning that how should i manage my quota file to not have my procurement proposals split ?
Please do help out.
Regards,
Rahul

Single BOM across multiple plants in sub-contracting

We have a single purchasing organisation managing sub-contracting for around 17 plants. This organisaiton purchases sub-contracted items for all the plants.
The problem we are facing is having to maintain the same BOM for all the 17 plants.
The central purchasing org is going to create the PO with multiple lines - requesting delivery from the vendor to the different plants.
How can we avoid having to create the same BOM in every plant?
Regards,
Praveen.

hi
u can avoid by choosing the recurrcive allowed for BOM can avoid it
kishore reddy

Gneration of multiple Production Order from multi level BOM

Hi Experts,
My customer has multi level BOM. meaning child item also has its own BOM - 4 Level.
FG-Pack - Make
      FG - Make
           SFG - Make
                RM - Buy
Their process is once they create Production Order for final Finished Good, System should also create Production order for child which it self are of make type and has own BOM defined in system.
They wish that once the create Production order for FG-Pack, system should automatic generate production order for FG and SFG as both of these has BOM defined and are of procurement type Make.
So first they will close the chile production order and receives qty. in ware house, they will issue this child qty. against main production order, and then completes the main production order.
So they remains informed about the child item stock.
My question is SAP Business One supports creation of multiple Production Order?
BR
Samir Gandhi

Hi Samir Gandhi,
There is no build-in function for this task. You need add-on or SDK for the job.
If the sub level BOM items are phantom, you can create a big production order including all sub BOM components. That is system supported.
Thanks,
Gordon

Sub-Contracting material Issued to Vendor and balance to be Issud

Hi,
Sub-Contracting material Issued to Vendor and balance to be issued against the Sub-contracting Purchase Order.
Please suggest T.Code for the same. (Same Like ME2O, but PO number should be an input parameter)
For example I have Created PO with header Material for 1 quantity which having one child item and qty say 20 numbers, and issued child material to vendor 10 numbers (541) and balance is to be issued to vendor is 10 numbers, now I want a report which gives PO number, Header item with qty, total requirement of qty for the child item with line item number, issued child item with qty and balance to be issued child item with qty.
Thanks
Ramesh.G

Report MB51 is there. Here you have to input your Purchase order number and execute but, it will show only material issued to subcontractor through 541. It will not show the balance quantities.
And there is no such standard report which will show information how much issued to subcontractor and how much is balance based on Purchase order.
You can develop a z report with the help of abaper.

Sub-contracting at two different vendors directly monitored by the company.

Initially the raw material is supplied to a sub-contracting vendor A by the company to process it. After vendor A finishes processing it, the material will be shipped by vendor A to vendor B on behalf of the company for further processing which marks the end. The material carries the same name X throughout the process flow. The company should be able to monitor the stock at both the sub-contractors A and B at any given point of time. However, the company pays both the vendors A and B through separate invoices.
How do we realize this in SAP MM.

I'm not sure what you mean by the material having the same name, but the process is like this:
BOM 1: Header=FG, son=SFG (assembled by vendor A)
BOM3: Header=SFG, son=RawMaterial
FG: Procurement type F, Special procurement=30 (subcontracting)
SFG: same
Create subcontracting info records for both FG and SFG.
Then either from MRP or manually create PR\PO for both vendors.
Move stock of RM to A (transfer to subcontracting stock).
Do Goods Receipt of SFG into YOUR STOCK (even if the material doesn't really arrive), then move SFG to B (in the system). Physically material moves directly from A to B.
Last step, when FG arrives, you do again GR into your stock.

Sub Contracting Order & Vendor Return

Hi,
We use to send Materials to our Sub Contracting Vendor (MB1B - Mov. Type 541).
Now in one of the cases, we had to cancel all the Orders given to the Vendor, and we want the Materials back from the Vendor.
The Materials need to move to Quality also, as per our requirement from the Quality Department.
Should we take back the Materials with Mov. Type 542 or is there any other Movement Type for the same.
What all changed needs to be done in MM& QM.
Also requested to send me the List of Movement Types.
Thanks & Regards,
P K Karn

Hello Srinivas
I have the same requirement, I was going through the process you mention but I was unable to find the Inspection lot origin 08
(stock transfer) in OMJJ transaction.
Please Can you eloborate on this.
Thanks in Advance
With regards
Srikanth
Edited by: Srikanth Pusian on Aug 27, 2008 8:15 PM

Sub-Contracting Vendor

Could a normal vendor (supplying material / services) be a Subcontracting vendor ?
i yes , then how? are there any settings?

Hi There
Create the sub contracting info record for that vendor with the material you are going to get the Services/Value addition process from them,
Thanks
Senthil

Sub contracting vendor returns

Hi,
We have an issue that,
when we return to vendor a sub contract Finished goods from Quality Inspection
(T code QA32).System will return components(mvmt 544) also along with FG
but my clients want only the FG should be returned to Vendor not components
(becaz it is difficult to track all the components and becaz of excise recon-
cilation issues also)
What will be the solution.
Pl help
Thanks
Prasad

Hi,
We have an issue that,
when we return to vendor a sub contract Finished goods from Quality Inspection
(T code QA32).System will return components(mvmt 544) also along with FG
but my clients want only the FG should be returned to Vendor not components
(becaz it is difficult to track all the components and becaz of excise recon-
cilation issues also)
What will be the solution.
Pl help
Thanks
Prasad

Sub-contracting Vendor - De-activate

Hi All,
In Sub-contracting, after creating the Sub-contrating PO, I am trying to transfer the BOM to vendor, but right now the material provide to vendor is manadatory field(i.e Vendor)
The requirement that while transfering the BOM to Vendor, the system should not ask the vendor. Where to make the filed optional.

Hi,
Actually Vendor must be maintained during Transfer Posting with 541
But you can go to OMBW
Here double click on 541 movement type
Now double click on "Materials management" and mark Vendor as optional.

Multi-level sub-contracting involving multiple vendors

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