Operation subcontracting - excess component issue to vendor

Hi gurus,
Operation subcontracting
Issue of component to operation subcontractor with excess material.
After goods receipt from subcontracting what is the impact at subcontractor vendor stock , costing and financial for excess issue stock.
example
As per BOM component qty (suppose to issue) is 10
After altering in PO issue component qty will be issued 15
At the time of receivable of subcontracting (GRN) where and what is the status of 5 qty?
Regards,
RAM

Do MB1B - Matl Movement Type - 542 w.ref. to P.O(excess 5 qty).
Check stock of subcon. using MBLB.

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Scrap of material in subcontract and Excess material issue

Hi,
         I want to know is there any setting such that , for mfg. a finish good material, some qty. of raw material is scrap   the qty which is scrap i have add as negative qty in BOM and but after making the GR for Finish material , all positive qty. are consume by deduction of qty which i have mention as negative but scrap is not done automatically, i am doing scrap sepearetely so it is possible whenevr i make the GR for finish good material then , the material for which i have maiatain as negative should get automatically scrap, as the raw maetria are consum using 543 materials,
second thing the negative qty of material i have mention in BOM of finish good but insted of maiatining -ve qty in BOM is it possible   to add the excess qty in PO as -Ve qty because when we select the finish material in Subcontract PO all BOM components appear in PO   but there there is no option to add some addition material in PO.
can we make the above settings
regards,
    zafar

Hi,
Thanks for your reply.
Just want to know one more think, as in subcontract we are issue the material as per BOm, as suppose, total qty of one raw material required is 4500, which is to be consume for making the finish good but due to std. packing of raw material i want to issue the qty 5000, but while making the GR only 4500 should be consume and the reamining 500 should be shown as in vendor stock after getting material back we will take that as 542 movement.
regards,
    zafar

Subcontracting Component Issue Error

HI,
i am creating Sub contracting Purchase order.component qty is issued for unlimited, accepted for PO.
my option is Po Parent qty against Component issued Excess qty not Allowed.
Purchase Order Qty A: 100Pc
Child Qty B : 100PC
Issued qty B :150 Pc is Allowed.
this Child qty are maintained for BOM.
Plz, Explain and Advise the Issue.
By,
Jeevan

Dear,
You can not issue the quanity more than the BOM component quantity with respective to the PO.
Transaction ME2O uses the component quantities from the individual purchase order items. However, it does not set up a stock based on purchase orders (POs). The system therefore does not assign POs directly to quantities either. The evaluation of the SC stock is therefore always a cumulative analysis of all the requirements of a material over time. The "Closing Stock" for each material displays whether there is excess stock or a stock undercoverage at that time, or whether requirements and stock are balanced.
You can set up the SC stock with larger quantities than component requirements exist at that time. This option is often used if, for example, you want to set up buffer stocks for the subcontractor for subcontracting works that frequently recur.
Hop clear to you.
Regards,
R.Brahmankar
Edited by: R Brahmankar on May 19, 2009 12:26 PM

Report for Issued component Quantity vs Subcontracting PO component qntity

Dear Expert,
My client wants to know a report on issued Component quantity (what is issued against a Sub- contraction PO) with PO component quantity (what is maintained in a subcontracting PO component).
Is there any standard report available for the same?
Please suggest if any query report can be built or not.
Thanks in Advance
Regards
Rajib Debnath

Do you change child qty consumption in p.o BOM ?
Check it in mb51 541 mvmt for material for issued component quantity.
Also check reports MBLB,ME2O.
Can you explain term
Report for Issued component Quantity vs Subcontracting PO component qntity

PR to PO conversion in operation subcontracting

Dear friends,
We are trying this scenario of operation subcontracting.
I have a semi - finish material SM01 on which i m carrying 5 operations. The 20th operation is sub contracting. I do not want to maintain a separate material for this operation. I have done all the necessary settings which are required. I m also getting a PR when a Production order is generated for operation 20.
Now the problem is when i go to convert this PR to PO in ME58 the system gives me an error, "Not possible to determine any components".
I do not understand where i have gone wrong.
The PR document type that is created is NB.
The PO does not take any material even if I try to maintain one.
What can be the possible solution.
Thanking all you for your kind assistance.

Hi pankaj
The concept is like that. You need to send a material out with gate pass to the vendor for that particular P.O.
You might have issued the material from stock for the previous operation so that you will not have a component for that operation. There may be two options.
Options 1) Create a dummy material with MRP type ND so that the planning will not happen and no plan order. keep stock through a movement type update. Allocate this component to the operation in your routing. If the external operations is pre defined.
Option 2 ) Create a dummy material with MRP type ND so that the planning will not happen and no plan order. keep stock through a movement type update. Include this component in P.O while converting from PR. If the external operations is not pre defined.
The component will now appear in ME 2O
Hope this is clear
Regards
J . Saravan

GR of subcontracting items without issuing components

Hi all
I am facing a problem regarding subcontracting. In a PO of material X (item category L (subcontracting)) of required quantity 10, a component Y quantity 50 to make X is to be given to the vendor. The problem I am facing is that I am able to post GR of all material X without issuing any Y to the vendor. I should not be able to do this until all the component quantity (50) has been issued to the vendor. If I issue 5 Y then I should only be able to receive 1 X at max or not even 1 X. When I issue some quantity of Y it stays in subcontracting stock as seen by transaction ME2O.
How to settle this stock with subcontractor and what should be done to not be able to MIGO all 10 X until 50 Y has been issued to vendor or or to be able to do it proportionally ?
Also fine tune my concepts in this regard.
Thnx

Yes receiving is a physical activity not a computer activity but what I want to say is that even if X is physically received, the user should not be able to MIGO it if the components issued (subcontractor stock) is not settled. When I MIGO the received items and enter 0 quantity for the issued component the system lets it be. Instead the system should issue an error implying that all components have not been issued to vendor, so you can not receive X until you have issued all Y.
Try to understand my point. I know physically the vendor will send the product only when he has received all components from us but on the system, I am able to receive all X without even issuing a single Y. This is important for me because if some receiver does this without settling the subcontractor stock, it will become an odd case because the movement type 543 which does this component settling is not selectable. It is automatic for subcontracting component line item. Kindly test this scenario on your system. Make a subcontracting PO, do not issue a single component to vendor and then MIGO this PO it with 0 component quantity. I am able to post the GR which i should not be able to because the shipper has not issued a component and the receiver is able to receive on the system. I just want the system to not receive until all the components have been shipped.

IST OPERATION SUBCONTRACTED WITH REFERENCE TO ORDER

Hello SAP Experts,
i am doing operation subcontractiing. My first operation is subcontracted. So, I have assigned PP02 control key to first operation and maintained external processing data for opration in routing. When i saved the order, for that operation PR gets generated.
Now, I converted PR into PO and assigned raw material that has to be send to vendor. By 541 mvt. type material is issued to vendor. When i do goods receipt in MIGO, system is not showing storage location field. I dont find material in stock anywhere.
But i can see quantity received in external processing tab of first operation in routing overveiw in order.HERE P.O is generated with reference to order.& it is in cost center.while confirming the second operation system will ask for storage location of material received from vendor.it ie not seen in mmbe.iam creating new code and it is assigned to second operation .
Then how can i issue the material from storage for second operation if it is not in stock?
How can i get stock of subcontracted material by MIGO?
Please help me.
regards,
RAHUL

Hi!,
When you say operation subcontracting, in SAP it is considered as a service you are recieving and hence there is no material movement involved in that because you are sending a WIP material and recieving a WIP material back. But as per indian requirements whenever a material is sent out side the factory premises, you need to send a challan alongwith that. To print a challan you need to have a material movement. This movement (541) happens in normal material subcontracting but not in operation subcontracting. To generate a material doc, you can send the raw material with 541 movement but on GR of the processed material just reverse that movement so that raw material will again come in the stock. Then issue that raw material on order with 261 movement.
I hope this will help in resolving your problem.
Regards,
Uday

Operation SubContracting

Hi Folks,
We use Operation Subcontracting ( sending A & getting A back with some marking / coating ect ) PO (doc typ POIN ) without item cat L but with A/c assignement cat F against prod ord followed by MIGO -->103 , 104 if scrapping , 105 to receive the high-quality serviced items back.
Item in the PO doesnt contain any material only Mat group "Sublet Mach & Fab"..
Now today MIGO threw error "Part1 will not be done: TH BLANKS FOR BLACKENING -M/S MIKRON TOO does not exist Material Chapter ID table .....with E (Error) Message class 4F (Message class for India localization) Message number 167 " , while doing 105 unusually.
But if we receive the same with MB01 , it goes through without any error !!!!
What could go wrong in the process ? Any pointers would be highly appreciated....
Out of curiosity ,,,cant we achieve the same with Normal SubContracting ?? ...we are on a Support & Maint environment & above was set up by else...
Regards
Jamna

Hello,
If Material and chapter Id is not maintained in J1ID , then system will issue given error in MIGO.
You your creating Std PO for Sub vendor and receiving the goods , this means the perticular vendor can send material you,
Check "Exception Material excise rate " in J1ID,
maintain Plant , Blank material and Vendor in J1ID and check the process.
Regards
Mahesh Naik.

Component issue in routing

Hi Experts,
I have 2 operations, 1 is cutting and 2 nd milling(sub-contracting), but I have only one raw material I far as I know we can only issue it to only one operation.
if I issue it to 1 st operation while sub-contracting I see it has no material is sent , but I am sending 10 pieces after cutting.
Please suggest me how to issue to both operations.
Thanks
Satya

HI
sub contracting
Operation subcontracting: Within in-house production if some capacity bottlenecks exists in any operations then you can this job to some vendors to carryout this job at his premises and supply us the semi-finished part. This can be done via control key example PP02 (external processing).
Assembly subcontracting: Total product can be given for subcontracting. We have to give the raw materials to vendors and they would supply the assembly. This can be done with special procurement type 30 with procurement type F.
Assign the BOM material to first operation and then for second operation go for operation sub contracting
Check and revert
Regards
Anupam Sharma

Operation Subcontracting involving special stock

Hi All,
We have a business scenario as below.
Operation Subcontracting process involved in a Project. The Components send to Vendor is a project stock. As already there a Special stock Indicator, we cannot send the material to Subcontractor. Any integration with PP-MM is possible ?What is the best solution for such situation?
Regards
Divya

IS the component is in project stock, then You can send to subcontractor, check Whether the stock is in project stock, or unrestricted,

Operation subcontracting (one operation outside scenario)

Hi
I am desperately looking for an answer to this scenario regarding operation subcontracting one operation outside, how will be the BOM, Work center, Routing pl provide docs pdf.
Thanks in advance

Please follow below.
1. In Routing assign PP02 control key for second operation.
2. It will create PR while order release.
3.Create PO for wrt PR with item cat " L"and do Component Posting to vendor wrt PO(MB1B-541)
4.DO GR for that PO movement 101
5.AT the time of GR 543 movement will be done and stock will be consumed from Vendor end( IN SAP it will reduce from stock provided to vendor in MMBE).
6. If Components which you are sending outside are excisable then you required CIN consultant also, check below steps(It can be without payment of duty and full payment of Duty).
check below transactions
7. Creation of Subcontracting Challan w.r.t. Transfer Posting Doc ()
8. - Reconciliation of Subcontracting Challan (J1IFQ)
9. - Completion of Subcontracting Challan (J1IF13).
10.- Generation of Annexure IV (J1IFR)
Thanks
Neeraj Dixit

Subcontracting Processing charge Issue.

Dear All,
With regards to one of my subcontracting scenario, I would like to post the following issue.
We have one finished Material "D" for making D we provide the component "A".Subcon vendor process their side A to B, B to C and C to D.Finally we got the product D from subcon vendor with the Processing charge Rs.6.00 (each activity having Rs.2.00). In some cases we provide Component B or C (In house produced) to subcon vendor directly to make finished product "D".For that we only charge either Rs.4.00 (from B to D) or Rs.2.00 (from C to D).
But here we found the problem that all the activity price coming from Inforecord (Subcon) only and in Inforecod I can only maintain one price.So kindly help me to address this issue ??
Regards
AKS

Hi AKS,
You can do it in two ways.
1. You can maintain the BOM for the finished material with A B C and explode the BOM when you are providing all the materials to the SC vendor. In PO you are mentioning the price against D (FG) only and you have the option to enter the price of your choice depending on which components you are providing.
2. You can do it without BOM, and in PO you should mention only those components being provided to the SC vendor and enter the charges as said above.
You should maintain two PIRs, 1 with all the components and the other with limited components.
Hope it helps
Revert if needed..
Regards
Shiva

Excess material issue against RSQ

Hi Gurus,
We are using repetitive manufacturing in our organization (Automotive Industry), the material staging is done based on the plan order with pull list as per the BOM, but in case excess components are required how can we stage this excess material?
Scenario-In BOM we are having steel washers as 4units (staged against pull list printout) and during operation 2 units got scrapped, how can we stage this additional requirements of 2units at production supply area?Against which document this additional requirement can be staged in REM?
Regards
cs

Hi Antony,
Thanks for your reply..
Yes I agree it can be done with component scrap during MFBF transaction,requirement here is the printout of required excess material issue,against which the store guy will stage the material.
The store department want to record against which plan order this excess material has been issued.
Please advice.
Regards
cs

Error while creating PO in operation subcontracting

I am getting an Error while creating PO in operation subcontracting.When I'm trying to convert the purchase requisition for the operation in the routing into a Purchase order it gives me the error "Not possible to determine any components".Please guide me why I am getting this error. I have already assigned the component to the operation in the routing. I also have this component in stock. But no Idea why I'm getting this error

Hi Sam,
please check ,
Assign a recursive BOM for the material for which you want to create the purchase order .ie. create a BOM of mat say X having a component X and marking the indicator recursive ticked.
Please create the BOM which is valid much before the date of creating a purchase requisition .
And proceed for the creation of subcontract purchase requisition.
Please Revert back, if the problem is solved.
OMKAR

Operational subcontracting scenario

We have a requirement in operation subcontracting.
In our production process some of the routing operations we are doing outside (external procurement). But the customer doesnu2019t want to create a Purchase Order for this process (each subcontracting requires a order and release). Since the number of operation level of subcontracting is more per day and they have contract with the subcontractor for the price for a year. Further they will send the order quantity by different schedule
Please suggest for the above situation which process we need to follow and what are all the master data requirement and the transaction data requirement in a frequent manner.
Regards
Sridharan

Create a Contract and then create a Subcontracting PO with reference to contract ( for a year )and assign the Component to be sent( Mostly Dummy Material)
And give the material description Similar to subcontractiong process.
& IN OPL8, Production order dependent parameter : Set The dependent reqmt/.reservation - Never, in General valid setting tab, this will restrict to create a PR while releasing Production order.
and follow the same process as per the existing process.
Note: IF you go to scheduling agreement for subcontracting You can't able to assign the component.
Edited by: Sundaresan . E. V on Oct 5, 2010 11:29 AM

Operation subcontracting - excess component issue to vendor

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