Sub-contracting in routing

Hi,
i have one routing for my finished good with some 10 operations.the bom is simple with bar as input & Finished goods as output.
The first 3 & the 8th operation are mandatory sub-contracting operations & the rest could be in-house or external depending upon available capacity .
i have done the neceassary settings for mandatory s/c operations.
since the routing is for only one material,the MM Module is objecting as they need some material identification as it involves excise etc.My s/c operation is only for my operation,yes it involves material.But in single routing material codification cannot be done for wip stages.
Is this possible with 1 routing? or should i go with routing in each stage?
please advise
regards
afroz

Hi afroz
As ou need WIP at each stage and also involving excise and subcontracting I suggest you go for different Routing and BOMs.
for the first 3 and the 8th operation maintain the BOM for each operation with part identification at each level( different part nos) for operation 4-7 maintain 1 routing and BOM. You can get the WIP when you carryout operation wise confirmation. for the remaining operations you can have 1 Routing and BOM for Inhouse and also alternate BOMs at each level for subcontracting and maintatin the proc type X and maintain quota arrangement.
hope this helps
Regards
SK

Similar Messages

Sub-contracting P.O

Hi All,
We have created sub-contracting P.O and while doing ME2O- create delivery. We are getting below error msg.
    Depending on the category of the delivery being created, the system needs the following transfer data:
    o   Outbound delivery
        -   Shipping point, Sales organization,Distribution channel
             Division,Material number,Delivery quantity,Ship-to party
              Base unit of measure
Inbound delivery
Base unit of measure,Conversion factors for converting base and sales units (not for creating/replicating an inbound delivery in a decentralized Warehouse Management system)
Goods receiving point (shipping point) when a delivery is
    created in decentralized WM
Outbound and inbound deliveries from goods movements
Shipping point
      -   Sales organization,Distribution channel,Division,Material number,Delivery quantity,Ship-to party,Base unit of measure
Plant and sales unit transfer data is always mandatory.
Please Anybody can tell me what configuration we have to do.
Thanks and Regards
Chandru

You have to set up the shipping details just as you would do for a stock transport order with transfer posting happening through SD route. You have to set the delivery type for this document and the material should have sales/shipping data. Only then will the system be able to pick up the delivery type & thus create a delivery.
This is given in detail in help.sap.com -
From SC Stock Monitoring for Vendor as a Delivery via Shipping
From the SC Stock Monitoring for Vendor list, you can also create a delivery via Shipping. The advantage of this procedure is that you have shipping documents and delivery notes for the shipment of the materials to be provided to the subcontractor (refer to Goods Movements via Shipping)
To create a delivery, the following data has to be maintained in the system:
the plant must be assigned a sales organization, a distribution channel, and a division. You can define this in Customizing for Purchasing, in the step Set Up Stock Transport Order.
A delivery type has to be defined for the plant from which the items are to be delivered. You can define this in Customizing for Purchasing, in the step Set Up Subcontract Order.
If you want to reference a reservation when you create a delivery, you also have to set the Predecessor necessary indicator to L (Provision to subcontractor necessary) when defining the delivery type. This means that the requirements generated by the reservations can be correctly offset against the deliveries created. You can define this in Customizing for Shipping, in the step Define Delivery Types.
The vendor for the stock with subcontractor must be entered as the customer in the organizational units in the delivering plant, such as sales organization, distribution channel, and division.
The material to be provided has to be entered for the organizational units in the delivering plant, such as sales organization, distribution channel, and division.
The combination of shipping condition (from the subcontractoru2019s customer master record), loading group (from the material master record for the components to be provided), and the plant have to be assigned to a shipping point. You can define this in Customizing for Shipping, in the step Assign Shipping Points.
To create a delivery, choose Edit ® Create delivery. A dialog box appears, in which you can enter the data required to post the delivery. The system posts the delivery in the background and, after posting, it informs you in a dialog box how many items were posted.

Problem in BOM explosion for a operation Sub Contract.

Hi All,
Please advise how to explode a BOM or Assign component in a Purchase order with Item category (L) for a Operation SubContract External Processing oriented material for which no material code is created from a Series Operation production order .
Actually in my scenario, no raw material component will send to the Sub -Contract Vendor. Only Assembled operation material lets say operation 20 from a routing ( which is not having material code ) from an In - house production from a shopfloor has to be sent to the vendor to create a operation 30 material , which is also not having a material code." How to explode a BOM or component allocation for the Non- codified Item in a PO".
regards,
YK

Hi
Change the control key of the operation to PP02. System will prompt u to PR data screen where u have to tick on Subcontracting checkbox. Enter other mandatory field like material grp, cost element, purchasing grp etc. On saving system will create PR with line items. System will trigger the components reqmt based on the assignment to operation. Example if for operation 20, materials M1 & M2 are assigned, then in the PR u will find M1, M2 in the component screen which u have to send to the vendor.
Hope it is clear to u.

Sub-contracting: difference in Accounting

Hi guys,
I am using release 4.7 and we are discussing about 2 different ways to proceed sub-contracting.
1. Sub-contracting is handled only in MM: PR>PO>GR
2. Sub-contracting is handled as an external operation in routing:
Prod.Order>PR>PO>GR>Confirmation of Prod.Order
In particular we would like to understand the different impact these two ways of managing Sub-contracting have in accounting especially in Cost of production and in cost of goods sold.
Could you kindly give me some clarifications?
Thanks in advance
Vir

Hi Sunil,
there is a particular thing I forgot to say that is Material Ledger. In my company we implemented it and all stock materials are managed with standard control key.
So at the end of month there is Variances Analysis and Distribution to materials with multi-level strategy.
What I want to know is if both methods of Sub-contracting fullfil the requirements of cost of production and cost of goods sold reconciliation .
Your precious answer is grateful
Vir

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

Sub-contracting operation.

Hi, we have one sub-contracting operation in between in-house production order operations. For sub-contracting operation only the in-process semi finished material which is the result of previous operation will be sent to vendor. While I am trying to convert pr into po, gives the message that u201Cno component assignedu201D. Please note that no roh will be sent to vendor except that previous operation completed material for which we do not do gr for the previous operation. Please advise how to handle this. Thank you.

HI Raju,
Subcontracting: Operation Wise:
10, 20 & 30 total 3 operations. 10& 30 are internal, i.e., in-house and Operation 20 is External i.e. sending material for external processing u2013 subcontracting
The control key PP02 meant for external processing is to be allocated to the operation 20 in the routing.
Once you allocate PP02, in the operation detail screen Activate Subcontracting, then system will ask for the Purchase info record no.
(Create Purchase Info Record TC: ME11, Give Details of Vendor, Purchase Organization, Plant and Select Subcontracting Press ENTER, maintain the required data)
Next MD61, MD02, MD04. Then after confirm Operation 10,
Then external processing has to be started.
Go to operation overview in the prod order, choose operation 20 & double click.
Get the Purchase Requisition number from the external processing tab. Then convert into Purchase Order. (Using TC: ME58)
Send the Material to the Subcontractor using TC: ME2O or TC: MB1B with Movement Type: 541.
Then receive Material from Subcontracting Vendor by using TC: MIGO with Movement Type: 101.
(Goods Receipt with Reference to Purchase Order)
Then confirm Operation 20 &
Continue with Operation 30, Confirm Operation 30. Do GR by TC: MB31 Movement Type: 101.
Regards,
Jagadeesh K

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

Sub-contracting inforecord

Dear All,
I have a scenario where, after an operation in a routing, the next operation is sent for sub-contracting.After the operation is done by the sub-contracting vendor and the semifinished component is received,the operation cost is only to be captured for the s/c vendor.I have done this by creating an info record wihout material.But I need to send more than one components to the same s/c vendor and capture the operation cost,in this case could you suggest me way out,
Thanks in advance
Regards
Prasad Mulukutla

Hi
are you referring to SRM or MM? Is this process routed thru SRM?
Rgds
Kiran

Sub contract procedure

Hi ,
Please explain me the following scenario for that what are the things to be done
1.The finished material is subcontracted
2. Only one operation of the manufacturing process is sub contracting process?
Explain the material master setting , bom and routing setting.
Regards
Thamizhchelvan G

Hi
Since u r doing second operation as subcontracting; maintain control key in 2nd operation i.e. control key PP02 to be assigned in 2nd operation
Once you allocate PP02 to operation 20 ,the system will ask for the info record no (which is displayed when you create info record using ME11 under category "subcontracting")
Then after you confirm opr 10 using CO11N, the ext processing has to be started.
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)
Then confirm oprn 20 & lastly MB31 for GR Posting
Reward & close if solved
Rgds

Operation Sub-contracting

Hi Experts,
I need some clarity on operation sub-contracting.
My input material is A and out put material is B.
I have to do 4 operations to get B from A.
The second operation i am doing at sub-contractor's end.
I have assigned PP02 control key in the routing and i have given all Purchase info record details and cost element details.
I have created a production order during which Purchase Requisition has been created for the 2nd operation.
I have confirmed the first operation, the status updated in the production order.
When i am trying to convert the Pur. Req. to Purchase order, system is giving the error " No components could be found".
here my dought is,
1. Whether i need to create a seperate material code for the 2nd operation which is done outside.
2. When the first operation is confirmed, how will i get the stock to send the material outside?
Please thro' some light on this.
Thanks & Regards
Bala

Dear,
Please check MRP2 view - Procurement type as X and Spl.procurement as 30?
Steps are as,
1.Create Purchase Info Record using T code ME11.(Vendor & material combination).
2.While creating routing for that header material and defining operation ,For the 20th operation(2nd operation)for which outsourcing is given set the control key as PP02.After entering the control key as PP02 ,press enter -the system asks you for the purchasing info record no & check the tick mark for Sub-contracting.Here give the number which u obtained while using T code ME11.
3.After confirming 2nd operation using CO11N,now goto the production order in change mode using T code CO02,for operation no -2,double click on that & get the PR No.(from the external processing tab).
4.Convert this PR(Purchase requsition) into PO(Purchase order) using T code ME58 .
5.Send the material to the vendor using T code MB1B - Movement type - 541-Transfer posting to stock with Sub-contractor from unrestricted use stock.
6.Recieve the material from vendor using T code MIGO Movement type 101 -Good's Receipt for Purchase order into Warehouse/Stores.
7.Now you can confirm the 2nd operation & proceed for your other operation.
operation.
Regards,
R.Brahmankar

Sub Contract (operations) Cost Capturing in Product cost

Hi Guys,
I have a problem in cost capturing for sub contract opertaions.
Scenario is : I am working on product Costing. I want to caputure the cost of various product for various opeations, this I achived through activty type. But my problem is some of operations (for making the product) has been given to outsourcing through open PO and the payment to contractor is paying by unit rate(price rates are different for different operations).
Could anybody explain me the process or settings required to capture the cost of the product which my client is paying to outsource contractor.
Regards
Srinivas

Hi,
1. Please define that particular activity as external operation in routing
2. Flag it as subcontracting
3. Assign a Material Info record to this operation. Because the cost is picked up from Material info record in this scenario.
Just talk to your PP folks. They will definitely will guide you in Routing settings in this regard
Please award points suitably
Best Regards
Surya

Inter Plant sub-contracting Issue

Dear All,
I have the following scenario to be mapped.
Under one company code i have two plants(Plant 1000 & 1100)
Material 'A' is manufactured at Plant 1000 except one operation.
Material 'A' has 5 operations in the routing. Operation 1 to 3 will be performed in Plant 1000, 4th operation will be performed in Plant 1100 and the last operation will be done in Plant 1000.
In the 4th operation of routing, i have given the Plant as 1100 and the work center available at 1100 so that the capacity requirement will be booked at plant 1100.
My problem is how to track the Material movement from one plant to other plant. The material movements are as follows:
1. Sending the material from plant 1000 to 1100
2. Making sub-contracting challan for excise purpose.
3. Receiving the material at plant 1100
4. Sending back the material from plant 1100 after processing
5. Receiving the material at plant 1000
Please guide me to solve the issue.
Thanks & Regards
Bala

Hi Raj,
Thanks for your quick reply.
I tried the same, but problem is the receiving plant 1100 is not having any entries of Goods receipt and returning the goods to the plant 1000.
What i did was,
1. I created the plant 1100 as a vendor and assinged in the routing operation no. 4 with the control key PP02.
2. System has generated a Pur Req in the operation, then i did the regular External processing.
The problems in the above method are,
1. i am not able book the capacity of the plant 1100 since i am giving the control key PP02, system is not accepting the other plant and its work center in the routing.
2. There is no entry of the goods receipt and goods issue from the plant 1100 to Plant 1000.
Please suggest me a solution.
Thanks & Regards
Bala

Creation of Sub Contracting PO through Maintenance Order

Dear All,
I am aware of the sub contracting indicator to be cliked in the maintenance order in order for the system to generate a Sub Contracting PO through Maintenance Order. However I am unable to see this indicator in maintenance order fields.
Is there anything that I am missing in customising settings or is this related to activation of any business function sets.
I am working in ECC 6.0 EhP 5.0.
Need your help / inputs so as to resolve my issue.
Thanks in advance.
JK

Hi Tehsin,
Thanks for ur response.
However this is something I am aware of. The settings suggested by you will automatically generate a PR with Account Assignemnt Category as 'Order' (F) & Item Category as 'Service' (D) combination.
I am looking for the auto generation of PR through the maintenance order with Account Assignemnt Category as 'Order' (F) & Item Category as 'Sub Contracting' (L) combination.
Looking forward to hear from all.
Thanks in advance
JK.

Report For Sub Contract Material

Dear Experts,
Is there any standard report for finding the details of the subcontract.
I tried through ME2O, MBLB where I am not getting the report I wanted.
I want to take a montly report for all the subcontract work given to the vendor. (The work is completed )
Please help. Thanks

Thanks,
In ME2L I am able to get the details, but the problem is;
I want to get a report which will give me the full details of the Sub COntract PO.
Example. I created a Sub COntract PO for Fineshed Material A. For makng Material A I need to supply Material B, Material C to the Sub Contract Vendor.
I want to know by the end of the month
1) The Subcontract PO
2) Final Material (Material A)
3) Raw materials Supplied to vendor (Material B & Material C)
4) Status of the order
5) Material A given back to me
6) remaining Material (Material A)
Please help.

Sub contract

my client running fg sub contracting (electro plating )cycle through the MRP
after return from vendor with mvt type 105 (543) i check document list with MB51. i found following g/l account effects :
SFG consumption for sub contract account = 602026
Gr/IR Clearing Account = 164335
SFG-inventory account = 323055
for sub contract account = 602130
Inventory account = 320010
Costs of goods mfg = 602200
but if do whole sub contracting cycle without MRP i can see effect in following G/L a/C:
Manual Cycle .
Inventory account = 320010
Gr/IR Clearing Account = 164335
Price Differance Account = 602155
change in stock = 603010
Sub Contract expense = 603000
SFG-inventory account = 323055
SFG consumption for sub contract account = 602026
my question is why this differance comes ?
if i want gl accounts hit by manual process in MRP process what changes to be made ?

Hi,
Price diffrences arise during valuation @ GR if the material is managed at standard price in MMR.
Also there is one more setting in customizing that for a plant that price differences should or not be posted during GR.
spro-IMGMMInv MGmtGR--price differences for subcontracting at GR
Regards,
Deepak.

Sub-contracting in routing

Similar Messages

Maybe you are looking for