REM-Subcontract

Hi,
How to handle operation subcontracting in repetitive manufacturing?
As in descrete PR will be created, after releasing production order..
Can any body help me?
Thanks,
Raj

I am working on similar type of scenario. REM with subcontracting and reporting point backflushing.
     Finished, semi finished and raw material are assigned as X and F in material master.
     Rate Routing is created with two operations for finished material. One internally processed and one external process and BOM component is assigned on each operation as component allocation.
     For externally processing operation all subcontracting related information is entered like, Purchasing Info Rec, Purch. Organization, Material Group, Purchasing group, Vendor, Planned Deliv. Time, Price Unit, Cost Element, ect.
     Under transaction code OKKN -> Costing Variant PREM -> Valuation Variant -> 001 Planned Valuation Mat. -> Subcontracting Tab: Net Purchase Order Price and Under Ext. Processing Tab: Price from Operation
     While creating product cost collector using transaction code KKF6N giving error..
No price could be determined for subcontracting
Message no. CK468
Diagnosis
The system could not calculate a price for the subcontracting because none of the valuation strategies in valuation variant 001 was successful.
System Response
     If the system issues a warning message or an information message, the costing item is used in the cost estimate with a zero value.
     If the system issues an error message, it sets the status KF (costed with errors).
     If the system issues a termination message, the cost estimate cannot be processed.
Procedure
If you have authorization for Customizing, check the valuation strategy for subcontracting in valuation variant 001.
Can expert suggest what I am doing wrong here?

Similar Messages

Possible to to Prod subcontracting with REM

Hi,
Like we do for Production order , is there a control key for Repetitive mfg plan order to sendout operation for subocntracting.
if yes , what are difference with Production order flow.
Thanks much in advance for help,
Jatin

Hi Jatin,
There is no any separate control key as such for REM subcontracting even I have doubt that operation sub-contracting is possible in REM scenario. I have never worked on such but in my understanding if you are using a reporting point backflush then this may be achieved.
You can use direct sub-contracting where this is possible means keep subcontracted incoming SF material as procurement type F and take the help of MM expert to show the consumable raw material if any in the PR created. In this type of scenario PR is created for subcontracting material and you can track it like a separate subcontracting material.
Also for more info refer below threads,
Operational level subcontracting in repetitive manufacturing
Repetitive manufacturing:subcontracting
Re: Subcontracting in REM
Regards,
Narresh

Operation subcontracting in REM

Hi Experts,
Can we map operation subcontracting in REM. please help me out in mapping this as i know that we cant do in REM, But client is asking to do that.
I m working with MTS REM. Please help.
Regards
Kumar

Hi,
Check the following :
1. REM profile in Material master MRP4 view.
2. Control key in the routing/rate routing.
Both must match i.e if U have specified reporting point in the REM profile & not done so in the control key or vice versa, this error will appear.
The milestone is defined in the control key in the routing. Go to the operations tab in routing. Click on the control key field. U will find a host of std control keys.
Click on any std. control key say PP01.
Click on "detailed information".
In that U will see a field "confirmation". There U will find '1' - Milestone confirmation. This is another name for reporting point confirmation.
U must specify this 1 in Ur control key.
U can choose any of the std. keys or otherwise, create Ur own control key.
Please check and confirm.
Thanks and Regards
Binoj M D

Subcontracting in REM

Hi,
Could you please describe step by step the subcontracting process from one plant to another in SAP.
Thanks in advance.

Hi
Prequisites for Sub Contracting
In MRP 2 view of material master, Special Procurement key "30"
You also need to maintain a BOM with usage Production, so that whenever PR & PO is created; the components which needs to be supplied to Vendor also gets copied.
Info record item category has to be ' 3 '
PO Item category has to be ' L'
Suppose out of 3 operations; you want to do 2nd operation as Sub Contracting i.e. send to vendor for doing something and then get back. In suc case; maintain control key PP02 in 2nd operation
Once you allocate PP02 to operation 20 ,the system will ask for the info record no & so create it
Then after you confirm opr 10 using CO11N; go to opr overview in the prod order, choose opr 20 & double click.
Get the PR no. from the ext processing tab. Then convert into a PO usning ME58
You can send the raw matrl to the contractor using ME2O or MB1B (541 mvnt).
Then after the completion of sub -contracting work receive the semi-finished material using MIGO (101 movement for subcont material & 543 for subcont components).
Then confirm oprn 20 & lastly MB31 for GR
This is all about Sub contracting
Kindly reward & close the thread if it solves your problem
Rgds

Repetitive manufacturing:subcontracting

Dear experts
              In repetitive manufacturing scenario, I have subcontracted my 4 of operations.
           Now the requirement is I want to create Automatic PR for those operations.
          So please guide me what are the necessary settings to be done.
Regards,
Sameer

Dear Sameer,
I doubt whether operation sub-contratcing is possible in REM scenario,i have not tried this,but in my understanding if you are
using a reporting point backflush this may be achieved.
In one of my project in REM scenario we used direct sub-contracting where this is possible.
Also refer this thread to explore more,
Re: Subcontracting in REM
Correct me if I'm wrong.
Regards
Mangalraj.S

REM product costing

Hi,
Would you help me out in product costing of REM scenario where HALB is given for subcontracting.Here I want to know in standard cost estimation how the cost of each activity type is incurred.
Regds,
sats.

Dear Dilip,
Whether its Discrete or REM scenario,for Semi-finished products(Sub-contracted) generally BOM is maintained along with the BOM
components and along with the Source List & Info record for sub-contracting process.
So while doing the Cost rollup for the Finished product , the standard cost for the HALB is automatically calculated.
So the price of that sub-contracted product = Raw materials cost (as per the planned price given in costing 2 view) + sub-contracting
charges (activity cost for doing the activity).
The cost calculation is done using CK40N or using CK11N+CK24.
Revert back in case of any more queries.
Regards
Mangalraj.S

REM-Costing

Hi
Have same material valuation strategy in case of REMP (Costing variant for Product cost collector) and PPC1(for costing thru CK11n).But for subcontracting info record-KKF6N is giving error"OF no source of supply found" while CK11N cost the same.Do we need to make some special settings for REM.Please help.

Dear SR,
What's your exact issue?
1. In REM product cost collectors will be created only for In-House manufactured FERT material's and
HALB materials.(Procurement Type - E).
2. For sub-contracted sub assemblies the procurement type will be F and special procurement key will
be 30.
3. The error that you are facing " No source List exists" is because for that sub-contracted material you
have not maintained any Sub-contracting Info record in ME11 and no source list in ME01.
4. So first create a source list in ME01 and then a purchase info record in ME11 with sub-contracting
processing charges.
5. Why do you want to execute CK11N for you sub-contracted items?
6. Execute CK40N instead of CK11N.
Check with this & revert back.
If you are satisfied means after assigning points please close the thread as answered.
Regards
Mangalraj.S

Report for Material at subcontract AND PO number

We are preparing for Inventory verification at subcontractors.
My boss believes it would be easier for the SC vendor if we could supply the PO number for which the material was shipped.
I haven't found such a report. Is there one?
If you know the tables and links, I can write a ABAP query
Thank you for any help that can be provided.
Althea

Hi,
ME2O works fine if you want to track which subcontracting PO's are still open and what is the current stock at vendor.
ME2ON is another version of the same basic ME2O report.
Try also MBLB - Stocks at subcontractor.
As far as PO to 541 link is concerned, I do not think it is possible to find it unless there is some specific business process being followed which is supported by custom code.
The reason is that when you issue against 541, you are simply providing materials to vendor that the vendor needs.
There might be multiple open SC POs for same material/batch and there is no point in tracking against a particluar PO. Its the same material/batch the vendor receives.
When you post a PGR for a SC PO, then the stock from vendor premises is consumed by 543 and the track to your SC PO is maintained.
I tried maintaining EBELN as required in OMJJ for 541 but still no MSEG-EBELN is populated. Maybe I am missing something.

Subcontract Opening and closing stock and program

Dear All,
Is there any standard program for subcontract stock for which i can give previous date range and get the stock on older date to older date for the vendor (example like in MB5B for inhouse stock)
also we need to insert this details in custom report program so can anybody have developed such program or any function module is available for this
Pl suggest
Regards,
Vimlesh

dear sir.
Tcode : S_P00_07000140 - inventory and raw material for special stock report.
in selection-field give the special stock indicator O. and give the selection Date : Date on which u and to see the stock at vendor.
and exective it will show the stock on date.
in selection-fields we have an option for vendor and material also.
regards
jrp

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

Error while posting GR for subcontracting process

Dear Friends,
while creating a GR for a subcontracting PO, I get the following error. please suggest what to do. i checked the configuration for the movement type and could not come up with the solution.
Fld selectn for mvmt type 543 / acct 7449990 differs for Vendor goods movement (014)
Message no. M7093
Diagnosis
Comparison of the field selection strings from movement type 543 and G/L account 7449990 has revealed that there is an incompatible field selection combination at one or more points.
Field for which the field selection is different: Vendor goods movement
Example
On the movement type screen, a given field is a mandatory-entry field, whereas on the G/L account screen, the same field is suppressed.
System Response
You cannot post this transaction, unless you have changed the field selection adequately.
Procedure
Contact your system administrator.
Action to be taken by the system administrator
Check whether any postings resulting from this movement type are to be made to the G/L account determined automatically. If you find that the G/L account is not correct, check the automatic account determination in the Customizing system for valuation.
Proceed
If the G/L account is correct, use the report RM07CUFA to compare the field selection for the movement type with the field selection for the G/L account and change the incorrect settings or the field status group of the G/L account.
Proceed

The field is mandatory in acct 7449990 and hidden in movement type 543 or vice versa. To check the field status for that movement type, you can run the program RM07CUFA
Once you execute this program and found that the field is set to mandatory, then it should be mandatory for that movement type field status also.
Alternatively, Go to txn OMJJ, click on Movement Type and execute. There double click on "Field selection (Enjoy) and see whether the movement is maintained as Required Entry or Optional Entry.
Now go to FS00, input the G/L Account 7449990 and execute. There go to tab Create/bank/interest and chech whether you have maintained any value against "Field status group" and also you have checked the box for "Post automatically only".
This should be done in consultation with FI people only if the issue is in production client.
thanks
G. Lakshmipathi

Error while releasing Billing document in Subcontract process

Hi All,
We are working on Subcontract process as explained below:
Company code X purchases the component A and sends it to Company code Y on Subcontract. Company codes X and Y belongs to one company using single operative chart of Accounts, Controlling area & operating concern. FI configuration has been maintained in OBYA by treating above company codes Inter company GLs. The component A is sent to company code Y as non value added item. Through 501 movement type, as the component is sent by Company code X.
Company code Y will add some components (like B,C and charges some expenses as service component D for preparing Finished good) and send this FG to Company code X. For this company code Y will raise a Sales order and followed by MRP run and Production order is created.
In VA02 of above Sales Order, while entering Item details, where the Settlement rule is asking for PA Transfer structure (in Account assignment tab of Item details) and giving the following error analysis:
Enter a PA transfer structure
Message no. KD 044
Diagnosis
A PA transfer structure is required for settlement to profitability analysis.
System Response
You cannot save this settlement rule.
Procedure
Enter a PA transfer structure. To do this, choose the "Parameters" function in the settlement rule. As part of customizing, you can also store a default value for the PA analysis structure, in the settlement profile. The system then uses this default value when you enter a settlement rule.
In addition to above, another issue has raised while releasing the Billing document after doing PGI. Accounting document is not getting generated and while releasing the Billing document (VF02) it is throwing an error as
Enter profitability segment as cost object for Revenue and COGS posting
Message no. ZC 001.
MM,PP,SD & FICO configuration settings maintained:
1. All required OBYC settings
2. All cost element and Cost element categories have been maintained
3. From MM side the system is generating FI & CO documents
4. Settlement profile in Production Order type is maintained (in KOT2). Allocation structure and PA transfer structure were maintained in (OK06, OK07 & KEI1). In PA transfer structure we have assigned the required Sources and Value fields and settlement cost elements.
5. In VKOA condition types KOFI and KOFK were maintained for relevant Customer & Material Account Assignment groups.
6. Required settings have maintained in OKB9.
Movement types 501 (sub contract), Received back to Company code X through Movement type 101. In spite of these settings still we are getting the above mentioned errors.
Could any one help to provide some inputs on the above issue as early as possible.
Thanks in advance.

Hi,
check in the sales order line item procurement tab . u can get the requirement type. in SPRo check the requiremnt class for the requirement type. in that requirement clas u will get settrlemnt profile for the sales order. Check that settlemnt profile there u have to maintain the PA transfer structure.
I think both problem will get solved by maintaing the PA structure..
You are doing sales order costing right....and i hope it is non vsaluated sales order costing .....
If help ful please assign points.
cheers
Prabhat

Subcontracting in scheduling agreement

Dear all,
while doing subcontracting scheduling agreement, how can we add the child components to the parent material.
in cs01 ,we maintained the bill of material for the parent material.in CS11 we are able to view it.
Regards,
velu

Hi,
If you have already maintained the BOM in CS01, you need not have to maintain the seperate BOM in Scheduling Agreement, because, the already existing BOM will get copied. The only thing you will have to do is that, define special procurement category as 30 (Sub-Contracting) in MRP2 view of the material master & then create the SchedulingAgreement with item category as L (Sub-Contracting).
Hope this clears.
Regards,
Prashant
- Pl. reward points if the answer is helpful to you

Account determination error in Subcontract PO-MIGO.?

Hi all
While doing GR, i mgetting error i "Account determination for entry LDCA BSV 0001 ___ 5010 not possible".
The above PO is subcontract PO .
Thanks
sap-m

Hi,
For subcontracting..maintain these keys..so that you will not get any problem..
BSX, BSV, WRX, PRD, FRL
Regards,
Prasath

Standard Cost Estimate for Subcontracting

Dear Sir / Madam,
We are in the process of migrating from our normal R/3 operations for Production Planning to Execution inclusive of Costing of materials by using iPPE functionality for repetitive scenario. We have our BOMs for painted body currently in R/3. The painted body falls under subcontracting scenario.
In this scenario the body in white produced from our bodyshop is sent out to the subcontractor along with certain paint items and is received as painted body and consumption of the body in white and the paint items sent needs to be shown during the goods receipt of painted body.
For this we have maintained the BOM for the painted body in iPPE. Also in the costing variant "ZD01" in order to arrive at Standard cost (CK11N) for the painted body we have maintained the following settings for Valuation variant for subcontracting :
Priority     Strategy Sequence
1          Net Quotation Price
2          Effective Price from Purchase Order
While running CK11N for the material (painted body) we are receiving the following message
Message no. 28501 : Error in dependency processing: condition 0000062388 is empty
We wanted to verify whether the message raised is normal or would it have any adverse impact.
Your assistance would be highly appreciated.
Regards,
Bhavika
Edited by: Bhavika Goyal on Feb 7, 2009 12:20 PM

Dear All,
Control Key is important for inhouse producrtion and Sub Contract. Check it once and when ever u have given the Product (semi fisished) to Sub Contractor, along with Paint.
Here one thing is important what is your process? how much portionis involced in Sub contracting. why because
Paint issue to the sub con is captured by the way for migo or miro
Payment to sub contract is capture all the cost of the Sub Con., then is there any cost is missed for this process. Let me know the remain things?
thanqu
raj

REM-Subcontract

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