SERVICES IN SUBCONTRACTING

DEAR EXPERTS,
I Craetaed a po for services,giving,item category L and a.assignment K, and short text only given.components enterd for what we are suppling to the vendor,because it is a service item i have not entered the finished material number( using non valuated material)
But in PO item details , services and limits tabs are not appeared.is it possible to post MIGO.
is the process ok or not
Thanks &Regards
V.Ramakrishna

Hai,
If u want to send the goods for the service vendor, then follow the process
1.Create the non valuated material by UNBW material type.
2.Create the service PO for the service to be performed with acct *** category K or U & item category D - services.
3.Do the MB1C with 502 or 512 mvt type to send the goods to service vendor.
4.Create the service entry sheet by ML81N.
5.Do the MB1C with 501 or 511 mvt type to get back the material from the service vendor.
6.Do the LIV for the Service PO.
Here note that by material doc by 502 & 501 u can track the material movements.This is only for tracking purpose.

Similar Messages

Service Internal Subcontracting (Toll Processing)

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? :roll:
Moreover we implement material ledger
Thanks in advance,
Subur

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? :roll:
Moreover we implement material ledger
Thanks in advance,
Subur

Need service process for offsite vendor repair of goods

Hi,
Our vendor repair process is as follows, and needs to be mapped to SRM.
The vendor repair business process starts when an estimate for a repair is taken from the vendor for repair of a product . If the estimate is acceptable, a PO is created and sent to vendor.The goods are sent out to vendor for repair. Vendor returns the product after repair and product is given back to the cost center for use. Material tracking is done when it is sent out and when it is received back, and the cost centre needs to confirm the service having being done successfully , in order to pay.
How can this be mapped to SRM and ECC
1. During cart creation, how can an estimate be taken from the vendor , before creating a PO
2. How can goods be tracked in such purchasing, i.e how can goods be issued to vendor and received back.
3. How can the requester create confirmation , since GR is already being done when goods come back after repair.
Rgds
Sumendra

Hi Virendra,
Thanks for the answer.
requisitioner also wants a vendor estimate ( for the repair of the material ) at the time of shopping cart . We have proposed the functionality of 'request' in the service shopping cart. requester can request estimates from various vendors using the request form in SRM service procurement, and then accept 1 bid to trigger a shopping cart, approval, and then PO.
my questions are:
1. Is this design OK
2. If this design for getting vendor estimates is OK, then we cannot go ahead with the subcontracting SRM cart/subcontracting PO that you proposed .
according to me only 1 of the following can be used , please confirm my understanding
- a service procurement with request functionality , etc which creates a service PO in SRM and ECC. In this case goods cannot be sent against the service PO , so goods have to be tracked in a spreadsheet ( is there any other way to track vendor repair goods against a service PO)
- subcontracting PO in SRM and ECC ( which you proposed)
sumendra

Sub Contracting Service PO - Reg.

Dear All,
I want send the Equipment or Gauge (Having Material Code - Stock or non stock Item) to the outside vendor for repairing or calibaration purpose through RTP(returnable Gate Pass) and for that Service charge and Tax I need to provide in the PO.
Here Service and Subcontracting is coming together for the same material, Kindly inform how to handle this situation.
Regards
Srinivasan

Hi
Sub-Contracting http://help.sap.com/bp_blv1600/V5600/BBLibrary/HTML/138_EN_IN.htm
Regards
Ram

Changing Service Masters in to Service Materials (DIEN) any complications,

Hello SAP Gurus,
We are dealing with a Construction Based Client and along with Materials we also mainly require services,
We right now have created Service Masters for catering our Service requirements, doing service entry sheets,
But the major Issue with going by Service Masters is this Service masters could not be included them in BOM and we could not run MRP for there requirements,
Basically for completing any Construction activity we require Material and also services to be performed but the service masters could not be included in MRP, also the delivery cost cannot be handled going by Service masters,
so we are planning to convert our Service Masters in to Service Materials to accomplish this requirements. any issues going by the same, and any precautions to be followed please suggest. have any one run there service requirements by using Service Materials instead of Service Masters / service activity please throw some light.
Awaiting your suggestions
Thanks and regards
Kumar

Hi,
Thanks for your reply,
The BADI and the info you have explained details about activating Services for Subcontracting Procedure, where in it requires to maintain Material Masters as required for managing and running Subcontracting process,
But our company have already created 1000s of Service masters for managing there Service Activities ( only problem being cannot run MRP for Service masters and Specify Delivery cost for Service POs)
now as to get MRP we should make a huge shift from Service Masters to Subcontracting Materials with BOM Values and should be well planned. i will definitely try to work on it and see how it goes.
but also is there any way to use the existing Service Masters for running MRP, or including in BOM, or any how to Plan services,
Thanks and Regards,
Kumar

Crm_order_maintain---insert a partner

Hi guys, I've got a problem with crm_order_maintain!
I want to create a new service contract (subcontract from a master contract) but I don't know how to insert a sold-to-party because in the table et_partner there isn't the field 'MODE'.
Someone can halp me to resolve my problem?
Thanks,
Lorenzo
Message was edited by:
        Lorenzo Nevi

Hi Nevi,
Refer the following piece of code to insert the partner on the basis of partner_fct field in et_partner :
* Sold to Party
MOVE: lv_header_guid TO wa_partner-ref_guid,
        'A'      TO wa_partner-ref_kind,
        '0001'          TO wa_partner-ref_partner_handle,
        lc_stp         TO wa_partner-partner_fct,
                          "lc_stp is partner function for sold to party
        gv_partner   TO wa_partner-partner_no,
        'BP'            TO wa_partner-no_type,
        'BP'            TO wa_partner-display_type,
        lc_true        TO wa_partner-mainpartner.
APPEND wa_partner TO lit_partner.
CLEAR wa_partner.
* Fill input fields
MOVE: lv_header_guid TO wa_inputfields-ref_guid,
        lc_header              TO wa_inputfields-ref_kind,
        '0001'                    TO wa_inputfields-logical_key,
        lc_partner              TO wa_inputfields-objectname.
MOVE lc_partner_fct TO wa_inputfields-fieldname.
APPEND wa_inputfields TO lit_inputfields.
Pass these tables to BAPI_BUSPROCESSND_CHANGEMULTI along with header and item tables. This BAPI internally calls CRM_ORDER_MAINTAIN.
<b>Reward points if it helps.</b>

Use of Resource field on CK74N Additive Cost

We would like to enter an outside vendor code (not in SAP, so can't be validated) into the Resource field of a CK74N and be able to then see that carried over into the CK13N cost estimate display. Does anyone know what Item category could be used for this? Seems the Resource field has different uses based on the Item category.

The various item categories and what they represent. If you are considering buying material from the outside vendor, <b>you may use M</b>.
M (Material) B (Base planning object)
N (Service) L (Subcontracting)
E (Internal activity) F (External activity)
V (Variable item) S (Total)
I (Delivery costs) A (Co-product)
T (Text) P (Process costs manually)
G (Overhead - calculated automatically)
X (Process costs - calculated automatically)

Define new Item cetogories in purchasing

Hi All
i want to define new item cetogories in purchase document.
that is we are having the item cetogories like D - Service , L- Subcontracting.
Where SAP is defined and what is the t - code.
Regards
M S K

Hi,
"Please note that the table of item categories is an SAP system table.
Its content must not be changed by customers.
Even in change mode, you can only display the characteristics of the item categories."
You may read this note in SPRO node MM >> Purchasing >> Define External Representation of Item Categories
However you can change the external representation in the above node
for example standard setting for Service is "D".... you can change to any other single letter alphabet of your choice (excluding the ones that are already used).
Regards,

Transfer of stock

Hi,
My industry sector is Health care. We have one department there called CSSD. This the dept where we issue the materials for cleaning and washing , and once it is cleaned CSSD sends it back to the dept. again for the usage and vice versa.
1) Each material will have some Usage life suppose 10 times, after this I cannot reuse it: How can I map this in SAP?
2) Now, please let me know which movement type I have to use for this process, as every time when I am using it in department , CSSD cost need to be captured: How can I map it in SAP ?
Pl help
Uts

hi
the washing is done by any vendor ?
is it in house or subcontracting
did u want to add the ashing cost in the material cost ?
i dont think it is need ful
u just make direct invoice in FB60 for value ,like 300 inr in text maintain the quantity and material
now
once u have use ur material 10 times u just scrap it as follows
Then do Goods Issue > Others (In MIGO, use movement type "551" - GI for Scrapping, Specify a Cost Center against with expense is to be booked)
During this material movement, following A/c Entry will get generated; (from OBYC)
(BSX) RM Stock A/c - Cr
(GBB-VNG) Scrap Expense A/c - Dr
if ur vndor and material both to be come in picture then u have to go for SERVICE or SUBCONTRACTING scenario
hope it clears
regards
KI

Processing scenario

Hello All,
My client has the following scenario and I need to help him with an appropriate solution for it:
The client manufactures some materials. But apart from this it also provides services to external customers by processing their materials.
1) How do I inward these materials sent from the customers?
2) How do I send these materials back to the customer?
3) What are the excise implications and how should they be treated?
Regards,
Manoj

Hi,
1. The material manufactured by your client should be created with FERT material type
i) Such material at the time of Sale will hit the RG1 register
2. The material received from customers
i) Suppose it is a customer return, then it is the material manufactured by your client (already created withFERT material type).
RG 23 A register will hit at this time.
ii) If it is not the material manufactured by your client (just coming to your client for servicing or subcontracting) then it should be created with UNBW (non valuated) material type.
There will not be any Excise register hitting in this case.
Award points if helpful
Regards,

Subcontracting: Picking Relevancy of service Line Item in Inbound Delivery

Hi experts
I have a challenge. There is a Subcontracting PO having 2 line items, 1st one is Trading product which is the physical finished product & 2nd line item is service line item( service material type). So Can we create a Inbound Delivery wrt PO having Service Line item to do receipt?
I tried creating Inbound but failed, error is : material ( service line item) is not extended to Warehouse. But my requirement is: it shouldnu2019t be extended to WM views so that it only appears in Inbound delivery as line item & it should not be relevant for Picking.
Any idea how can we do this?
Rgds
Ram

Hi
No delivery is possible for item catageory D or material type ( DIEN)
Edited by: Sanjay Shah on Sep 20, 2010 3:50 PM

Goods Receipt and Subcontract/Service confirmation

Dear SAP Guru,
I have one scenario to map.
Some waste will be generated because of nature of FG production and processing of this waste will be carried out within factory premises by sub-contractor. As material issued will be waste, no weighing of material issue is done. But after sub-contractor process it, it is supplied back as SFG which has some value and hence weighing is done.
Now my question is how to mapp it:
1) Standard Sub-contracting scenario: Its not possible as weight of material supplied to sub-contractor is not known as its not feasible considering that its waste material. Or can we have sub-contracting without any material issue to vendor but only GR for SFG?
2) Service Contract: Service order can be created and against that service entry sheet can be used for service provided by sub-contractor on the basis of weight of SFG received from sub-contractor. And SFG material can be received as by-product against FG order by seperate transaction.
3) An extra operation can be defined in recipe of FG as external processing but then what details should be sub-contracting or service (which info record standard/sub-contracting) and how the whole cycle would be?
Please give your comments on each option.
Thanks and regards,

Hi
1. What is quantity of the waste material you get as by product? Do not you wan it to be handled as scrap? What is the %age of scrap you have defined in the BOM for the material? You wll have some data regarding this. Or else how do you arrive at decission that after subcontract processes the waste you are paying him, Is it umpsum basis or material quantity basis. The best way is to have a Subcontract PO, but for that even though you do not weigh the watse quanity you must be having so historical data for the waste quantity generated and the conversion of the sane to other SFG , definitely you can arrive that on a pro_rata basis. Have a Code for the waste mateial. Release Subcontract PO for SFG which is what you get back, and issue the components( waste) to subcontractor.
Please remember your PO intially will be for Provisional quantity if you are unable to reach a fixed quantity. Amend the PO before GR as per the actual quanity for which you wish to pay the vendor.
For the waste quanity stock updation you use 262(w/o refe to Prd order) after the FG is confirmed.
Material price updation happens cirrectly in this process.
2. You can pay the vendor as you wish by by this process but what about the price updation for the ordered material SFG. When you can receive by product in separate Txn againt FG then why can not you follow the proces no. 1?
3. I would not liketo suggest 3 rd option as that becomes much comlicated for a simple operation.
Best Regards

Subcontracting with external service / non-stock material

Hi,
I have a scenarion in subcontracting when i provided the components / raw materials to the in-house workshop (workshop treated as an internal vendor) and further more our workshop required some external services / non-stok material from third party... now how i will incured this service / non-stock material cost on finished product.
(PP moudule is not implemented on project)
Regards,
Ali

Hi,
Please refer the following links ..it may help you...
Subcontracting service to a FERT material.
http://books.google.co.in/books?id=LDyarcerUu0C&pg=PA571&lpg=PA571&dq=Subcontractingwithexternalservice/non-stockmaterialinsap+mm&source=bl&ots=vj5kUO9dto&sig=vrlCpSZ0-V0BseN96Qw9rTVhsQ0&hl=en&ei=cJKRTs5_0MmsB6rrgIsB&sa=X&oi=book_result&ct=result&resnum=10&ved=0CG4Q6AEwCQ#v=onepage&q&f=false
Regards,
Udaya

Subcontract Service PO Help

Dear all,
I have doubts in creating subcontract service PO. Here is my scenario. I have a project going on which i hire subcontractors to perform the planned activities. Thus, i created on Service Purchase Order in ME21N and listed the activities performed.
1) I need to make an advance payment of 10%. How do i make an entry in SES to allow accounts make the advance payment?
2) Sometimes, there will be partial payments. And after the project is completed, there may be late penalty for example 5%. But after doing SES for the partial payments, i am not able to modify the PO pricing conditions since it has already done SES. How do i go about this problem?
Appreciate if anyone could help.
Thanks

Hi,
you can save invoices before GR documents when you set up your system according to the information from knowledge base article 1496165.
Regarding subcontracting in service PO item, please refer to note note 634395, question 1.
Regards,
Edit

Subcontracting or service Po

Hi,
We are sending machines to a vendor for repair. Most of the times we are providing the spares- say as an example gear to the vendor. Sometimes vendor can also use this gear from his own if it is not available with us. In addition if required some other spare in the machine need to be changed, he can use his own spare.
He sends us the bills for his services and of spares if he has used any.
This scenario will fit in which process- Subcontracting or service Po?
If it is service PO than how can we issue the material to the vendor and how the accounting entries will look like?
Regards
Neeru

Hi Neeru,
In your case better is to send a subcontracting PO for the Finished component you required from the subcontractor.
and you can maintain the same value in subcontracting Info record irrespective of the material he use .
Now if he uses gears from his own which is defined in your BOM but you havent provided but vendor fited from his own
in this scenario raise a PO to that vendor for that component and provide the drop shipment info in the delivery tab
as subcontractor this will replenish the material at that vendor end. And now when you are doing ME20 you will have already material at vendor end if you have raised this PO before or if after raising subcontract PO you can provide it and it will be
in the stocks of Vendor and now at MIGO you can collectivelly do the 543 movement of this components.
This will stream line your process into two steps without faults else you will awlays have a mess ann will hard to account for.
still you can look into another options but I encountered the same situation and we adopted this method which is working well.
Cheers,
Biren Agnihotri

SERVICES IN SUBCONTRACTING

Similar Messages

Maybe you are looking for