Partial Production & Partial Sub contracting for halb material

Hi,
we have fert 1000 with halb 2000 and roh 3000. It's MTO Process and for fert i have selected collective indicator 2 and MRP Run with MD50. If halb 2000 stock is available it will be show as stock in md04 screen and if stock is not available we run mrp md03 for halb to genereate planned order. My client wants here to check the capacity availability to produce that halb..if it is available for say qty 1 then partially production order will be created and rest another qty say 1 more will be given to sub contract. In material master i have taken X as procurement type. when i am converting the planned order to purchase requsition i entered the item category as L with out any account assignment. I am not able to take goods receipt for sub contracted material because system is throwing error as account requires and assignment to co object. I also tried using account ssignment M but if do so the received sub contract material is shown against the sales order number stock..so again from there i need to trasfer to unrestriced for using to the header fert production order. I want the halb production order cost and subcontract cost to be accounted to sales order.
Some one Please help me. Answers will be rewarded.
John

Hi,
I believe your solution may be:
1) make settings that while you release the production order system checks the capacity availability, if there then release the order otherwise do not release the order.
2) I think you can go for production version option too where you can either go for external subcontracting or inhouse production.
3) I think you have project systems there. So the cost will definately go to the project if the requirement is against a WBS elememnt for the project & the settings in FICO module have done by your Fi person.

Similar Messages

Sub Contracting for Production Order

Hi All,
Scenario is like this, I release Production order & deicde to sent it to sub contracting & PO Created is wth Acct assignment F with no material master.
after this how do i account sub-contacting bills with MIGO i'm not able to make a GR.
should i maintain a material master in purchase order, how do i send material to sub-contractor.
Regards

Hi,
You have to maintain material master for both - Ordered Material & the material in the BOM of ordered material. Also you have to maintain procurement key as X - Both procurement types possible. When the planned order is created for the final product, you can convert the Planned order to PR with item category L - Sub Contracting, system prompts the material to be supplied to subcontractor in Material Component list (BOM Material). You may transfer the material to the sub-contractor via transfer posting (MB1B) movement type 541. When you post GR for final product, the BOM material is consumed for the Final product via movement 543.
Hope the query is fulfiled.
Reward proper points if the answer is helpful.
Regards,
Prashant Kolhatkar

Sub-contracting for the Customer

Friends,
Here is one scenario where I need your suggestions
Scenario
Client A is subcontractor for their customer B
B receives 10 Components from A along with a subcontracting order from B to assemble material X (consisting of the 10 components supplied by Customer).
Part Number of the 10 components are also used by B for their other finished products which are sold against Customer Purchase Orders. This means they are Quantity and Value managed material. They are valuated material for them
Q1. How does B receive 10 components from A (T Code and movement type)
Q2. How do we prevent valuation of these 10 components in my plant. (Because the same part numbers are used by me and valuated in my plant)
Q3. Is there any implication if I include them in the BOM and the cost roll will not include the cost of those 10 components.
Thanks in advance for your response.

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.
Note:: At the Time of GR 543 Mvt is up dated for Raw Material.
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 be created for the material(2) calling for material(1)
4. Info record 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:
u2013 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
u2013 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).
u2013 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.
Q1. How does B receive 10 components from A (T Code and movement type)
see above
Q2. How do we prevent valuation of these 10 components in my plant. (Because the same part numbers are used by me and valuated in my plant)
Use split valuation so for sub contracting compenent will be one valuation and other component is other value
Q3. Is there any implication if I include them in the BOM and the cost roll will not include the cost of those 10 components.
No, costing is depend how you do costing

Refurb sub contract PO one material two line items

Hi we have the following scenario:
We have a sub contract (item category L) for a rotable spare. We create a service PO for the MATERIAL. When the invoice comes in there are two line items as we charged for materials used to repair the item at one tax rate, and the service to replair the item at another rate.
How do we goods reciept / SES this to ensure that we only get stock of one coming back in from the vendor but capture two lines in the invoice to ensure that the invoice doesn't block? So we can't create a two line item PO as the goods reciept would book two into stock.
Any suggestions?
Thanks hope this makes sence.
Other things that might help:
Single item recursive BOM
Goods issued to vendor via ME20
Legal requirement to have two lines as we are paying two rates of tax

Tracey Durkin wrote:Hi,
So we can't create a two line item PO as the goods reciept would book two into stock.
>
When you have one PO line item for Recursive BOM , and one for service, this will not book two in to stock
One will be material into stock and other will be service payments, not stock as no material is involved in service
So you can do recursive BOM for same item , at this item you can capture material used by vendor
And at the second line with item category "D" you do service entry both can have different tax codes
Thanks
Diwakar

Sub-Contracting for Make to Order

Hi all
We are having Make to Order Scenario. We have created a sales order and some materials for BOM have to send for Sub-Contracting Process.
I have created a PO with Acct Assignment "E - Ind. cust. w. KD-CO" and Item Category as "L".
But as per Standard SAP Acct Assgnmt "E" and Item Category "L" is not possible.
Consider the Header material is "X " and Component is "Y".
I am having Material "Y " in Sale Order Stock. Now when i do MB1B using 541 mvmgt type the system is not allowing me to post .
please suggest me this scenario how to proceed.
<b>For a Make to Order scenario how to do Sub-contracting Process.</b>
Regards
Kumar

Hi,
For transfering sale order stock to sub-contractor the movement type is 311-E. Here, you have to create the sub-contractor storage location & then transfer the stock (of BOM material) to sub-contractor storage location by movement type 311-E in transaction MB1B. While posting GRN of the upper material, system posts the consumption of the BOM material against the upper material.
Hope this works.
Regards,
Prashant
- Reward points if answer is helpful

Schedule lines are not coming after MRP run for HALB material

Dear All,
I am not getting schedule line after mrp run, inspite of all required setting only purchase requisitions are coming.
Material type is HALB and involve a subcontracting process (30). For raw material I am getting the schedule line but in the case of HALB, it is not coming.
Pls let me know if I am missing something and guide me further on this.
Thanks & Regards
Kundan Kumar

Dear All,
I am closing this thread. As the vendor mentioned in scheduling agreement is not a subcontracting vendor. Its a individual vendor.
Thanks for all the reply.
Thanks & Regards'
Kundan Kumar

Value Contract for a material group

It is possible to create a contract on value basis for a particular material group without material masters.
Thanks
Sanjeev

Hi,
You can create contract value basis for a particular material group without material masters like for example creating contract for service where you can use item category D but you should use always account assignment category U ( contract without stock material ) & later in creating contract release order or call-off WRT contract, you can change account assignment category U to account assignment category K or as required.
Regards,
Biju K

Reconcillation of by product during sub contracting

Dear Experts ,
I have a question regarding by product received from Sub Contractor .
I send material A & B , and receive material C along with by product X .
I do the normal sub con process & receive material from sub contractor , afetr recieving the Material B from sub cont. I do reconcillation of the sub con challan , in this transaction only child material A & B is visible the by prioduct X is not listed in it.
My question is ,should the by product appear in the challan during reconcillation or it shouldnt.
Kindly clarify my doubt .
Thanks

By product is end result of process along with material B.
You are not sending by product while issuing material to vendor using 57F4 Challan.
So it wont' appear in challan reconcillation.

Need actual production order operation details for specific material list.

Hi all.
I am looking to generate a report containing all of the FSTD and MSTD activity for a material list that I will prescribe, as well as within a specific date range that I will provide. Is there a T-Code to generate this report? Thank you in advance. -Steve

Hi,
Explore the standard report COOIS..
Thanks
Kumar

Partial conversion of planned order for AFS material

Hi,
I cant able to convert partially the planned order in to production order for the AFS material. Has any one has faced this problem? Is there is anything i need to do in IMG?
Regards / US

Hi,
Which version of AFS you are working only AFS 6.03 has given with this facility. Pl check if it is AFS 6.00 you have update the patch level.
Regards
Mohan

Offseting entry to inven posting for finished product in sub contracting

When we post goods receipt in subcontracting inventory account is debited with finished product.What is the account name to which offsetting entry is made & how to configure this in automatic account determination.
1) Same question was already asked and moved to T&P form.
2) Basic question.
3) Points will be unassigned.
Edited by: Csaba Szommer on Apr 16, 2011 7:58 AM

Hi,
If Material has Price Control as "V" (MAP)
(BSX) Stock A/c of Assembly - Dr
(BSV) Change in Subcon Stock - Cr
(FRL) Subcontracting Charges - Dr
(WRX) GR/IR Clearing A/c - Cr
(BSX) Stock A/c of Components - Cr
(GBB-VBO) Consumption A/c of Components - Dr
If Material has Price Control as "S" (Std. Price)
If Material is having Price Control as "S" then Price Difference A/c will also in picture.
This depends on configuration; SPRO > MM > Inventory Management and Physical Inventory > Goods Receipt > Price Differences for Subcontract Orders at Goods Receipt
Price Differences for Subcontract Orders at Goods Receipt
In this step, you configure for each valuation area whether price differences are generated for a Subcontract order at the time of a goods receipt if the manufactured material is managed at standard price and the standard price varies from the receipt value (externally performed service + value of components + delivery costs).
Example
Finished product: $400 (value at standard price)
Subcontract order:
o Ext. service : $250
o Components : $100
Posting schema without price differences:
Stock account FERT : 400 +
Stock change : 400 -
GR/IR clearing acct : 250 -
External service acct : 250 +
Compon. stock account : 100 -
Consumption account : 100 +
Posting schema with price differences:
Stock account FERT : 400 +
Stock change : 350 -
Price difference : 50 -
GR/IR clearing acct : 250 -
External service acct : 250 +
Compon. stock account : 100 -
Consumption account : 100 +
And cost center is mandatory for subcontracting process
the accounts for the BSX FRL and GBB-VOB needs the cost elements
Thanks
Diwakar

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

H ow toTrack the "UOM" & RM details during sub contracting..

Hello experts,
There is a scenario where in like am facing with my clients,
my client company is a manufacturing company, as if now 75% of job was done through sub-contract only, and 25 % of job was done in their own warehouse,so they want to tack their item which is going out for sub-contracting, (for example) they are transferring their raw materials in "KILOGRAM" to sub-contractors, while receiving as semi finished they get in "Numbers". so i want to Track the "UOM" as well consuming of raw materials also.
kindly advice how to map this scenario..
Regards
chandru
Edited by: chandrasekhar Subramaniam on May 15, 2009 8:00 AM
Edited by: chandrasekhar Subramaniam on May 15, 2009 8:02 AM

Hi Chandrashekhar,
You need to create BOM-Bills of material for that activity (changing RM item to Semi Finished item) and complete the production process.
In BOM definition you need to mention Semi finished item as Parent Item and RM as Child Item.By doing this you will have the different UOM as both the items are different.
You can create new warehouse with name of sub-contractor, and use in above process to track material lying with sub contractor.
You will have to track other commercial activities separately, like creating Purchase Order on the name of Sub-contractor for services, and completing the Purchase cycle there. Where as stock level transactions are to be create by posting BOM,Production Order,Issue for Production(RM in KG to Sub contractor whare house),Receipt from Production(Semin finished item in No. to main ware house).
Hope by following above steps you can do the desired functionality.
BR
Samir Gandhi

MIGO Error against SUB-Contract LB031

Hi Expert,
i have a Sub-contract scenario, both material and component under this material are managed with HU.
step is:
1. Create a sub-contract PO ME21N
2. Create a delivery to Vendor for this component via ME2O
3. G/R against this sub-contract PO MIGO
4. Create a TO against the inbound Delivery Note which create in Step 3 LT0F;
5. Confirm TO LT11;
6. Post good receipt against Delivery note which create in Step 3 VL32N
then there is a error message "Of the required quantity of material H000003786, 2.000 EA remain(s) open
Message no. LB031"
I checked there is enough component stock under vendor in MMBE.
Can anybody help me?
Much appreciate.
Rocky

Hi All,
Thanks for your reply.
+"what is the PO quantity? what is the receipt quantity? is H000003786 the material you ordered or the material that is consumed?
what is the percentage of this material in your BOM if it is the component?"
PO is 5000EA, and receipt quantity is 1 EA.
BOM structure is:
1EA F0000007677 map 1EA H000003786 (Include 2% component scrap)
So 1 EA F00007677 G/R requires 2 EA H0000003786. And i need to backflush 2EA H0000003786.
You are talking about PGI and saying you have created TO in LT0F !! (which is for inbound delivery Putaway) !! Iam asking you to create a TO in LT03 and confirm. How do you issue your goods in IM? You have to create and confirm the TO for the same transaction. Pls be clear and revert.
When i do G/R, only Inbound Delivery note is generated, so i can only to create TO via LT0F. How can i create outbound Delivery Note during MIGO transaction?
Thank
Rocky

Po for pipeline material

Hi guys,
Can we create a purchase order or contract for pipeline material?

Hi,
Pipeline material is a material that flows directly into the production process from a pipeline (for example, oil), from a pipe (for example, tap water), or from another similar source (for example, electricity). A material from the pipeline is always available; i.e. it can be withdrawn from the pipeline at any time and in any quantity. Consumption of the material is settled with the vendor on a regular basis
1. Cretae Pipeline material with material type Pipeline
2. Cretae Source list,
3. Cretae Info record and maintain Price,
po etc is not genrated u can directly do the good issue
The Accounting Generated After GI/Settlement are:
1. Goods Issue
Consumption A/C: DR
A/c Payable For Pipeline : CR
2. Pipeline Settlement
A/c Payable For Pipeline : DR
Vendor Account A/C: CR
Reward points if helpful,
Regards,
Archit

Partial Production & Partial Sub contracting for halb material

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