Sub-Contracting third Party

Hello friends,
I have one scenario,
One customer sent me a sales order. To make that product I need send sub-components to one of my vendors to make finished product. After making that product my vendor has to send that directly to my customer.
How to map this scenario in SAP.
Thanks,
Bhairav

Hello,
Create a Sale Order for the Finished Product.
Create a BOM for the Finished Product
With sale order reference create a PO for the finished product
do the normal Sub contracting process
Do the receipt of the finished product by consuming the Components.
Stock will available
Do the PGI .
Hope this clarifies you!!
Regards,
Kumar

Similar Messages

Can I add a third party filter (ASFROC) to the filter sub-folder of Photoshop Elements 13?

I have been using a third party filter (Applied Science fiction R-O-C (now Kodak)) with Photoshop elements 9. After upgrading to Elements 13 I would like to continue using the ASFROC plug-in filter. Can I just add it to the Filter sub-folder in Elements 13?

I believe the problem is those filters are 32 bit filters and you most likely have the 64 bit version of photoshop elements 13.
The 64 bit version of pse 13 requires 64 bit filters, so you wouldn't be able to use the Kodak filters in pse 13
Which operating system are you using?
If windows, is your windows system 32 or 64 bit?
(the mac version of pse 13 is always 64 bit)

Maintaining Time in Cats for Third Party Contract Employees

Hi ,
Can u please guide me how we can maintain Time recording in Cats for 3rd party contractual employees.
My client has one unique no per #rd party contractual employee.
We need to record his time followed by posting process for different service orders.
Kindlly guide how can we maintain, Do we need to crate any employee master data or like how we can go ahead with this.
Will really appreciate your early response.. Thanks

Thanks , my question was :
do I have to maintain a contract using standard item category. will system understand during source determination and assign the vendor from contract that it is meant for third party processing when purchase requisitions are created automatically from sales order in third party deal.
For third party, the settings are as per what you said.

Third party contract

I have a contract with the vendor who will supply my customer directly. vendor will invocie me and i in turn will bill the customer.
This basically third party sale processing.
Now I have to create a contract for third party. But there is no item category third party S in the case of contracts. In std sap in ME31K following items categories are given:
1. Standard
2. subcontracting
3. service
4. material unknown
5. material group.
do I have to maintain a contract using standard item category. will system understand during source determination and assign the vendor from contract that it is meant for third party processing when purchase requisitions are created automatically from sales order in third party deal.

Thanks , my question was :
do I have to maintain a contract using standard item category. will system understand during source determination and assign the vendor from contract that it is meant for third party processing when purchase requisitions are created automatically from sales order in third party deal.
For third party, the settings are as per what you said.

Third Party Signature on contract

I've developed a contract and need a third party to sign it. Would like to use a digital signature idea - or a "click-through" accept.
I found how to create a digital signature for myself.
Does anyone know how to save the form then allow and require the person you send the form to to sign it?
Thanks.

You would have to add a digital signature field to the document and then Reader-enable the document, assuming it has to work with Reader. The user would have to have a digital ID, which they can create in Reader. You cannot force the user to sign it before viewing the document, if that's what you wanted.

Consignment, contract, pipeline, third-party.

Hi all,
I am new to SAP. can any one explain the below topics with examples.
1. consignment,
2. contract,
3. pipeline,
4 .third-party.
thanks in advance,
raghul

HI,
RTP - Returnable transport packaging (RTP) is a multi-trip packaging medium (for example, pallets or containers) in which goods can be transported more than once between vendors and customers.
Returnable transport packaging from a vendor that is stored at a location on your premises is managed as special stock and clearly assigned as belonging to the vendor. It is the property of the vendor and is therefore not included in the customeru2019s valuated stock.
What Type of Stock is This?
RTP stocks from vendors are externally owned and are not valuated.
RTP stock is always unrestricted-use stock. The stock can neither be in quality inspection nor blocked
1.We can use any material for RTP or we can use LEIH material type for a material of RTP type.
2.During GR we do it with respect to PO so the material ordered within the PO displays as default. In order to get the RTP material we add a separate material with 501 M mvt type. The order material will have 101 mvt type.
3Initial Entry for RTP is also possible with MB1C 561 M.
4.Transfer posting of RTP material from one storage location to another can also me done with the mvt type 311 M.
5.You post a return with reversal movement types 502 M and 562 M.
Consignments - In consignment processing, the vendor provides materials and stores them on your premises. The vendor remains the legal owner of the material until you withdraw materials from the consignment stores. Only then does the vendor require payment. The invoice is due at set periods of time, for example, monthly. In addition, you can also arrange with the vendor that you take over ownership of the remaining consignment material after a certain period of time.
1.Created a material as GENERAL1 u2013 MM01
2.Created a Vendor as GENERAL u2013 XK01
3.Created a consignment info record for the above material and vendor combination u2013 ME11.
4.Created a PR with ITEM CATEGORY as K u2013 Consignments. u2013 ME51N
5.Created a PO wrt this PR u2013 ME21N
6.GR can be done with respect to PO or without PO
7.Transferring Consignment stock to Own Stock = MB1B 411 K
8.Consignment Settlements can be done by MRKO
Pipeline - A 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.
1. Creating a Pipeline Material - MM01 - PIPE
2. Creating a Pipeline Info Record - ME11
3. Maintaining the Source List - ME01
4. Posting Goods Issue from the Pipeline - MIGO
5. Settling Pipeline Liabilities - MRKO
Third Party - In third-party processing, you place a purchase order with a vendor to deliver goods or perform a service for a third party (for example, for a customer).
This means that your company does not deliver the material. You forward the order to an external vendor instead, who then sends the material directly to the customer and invoices you.
Refer this link
http://help.sap.com/saphelp_47x200/helpdata/en/4d/4b9036dfe4b703e10000009b38f889/frameset.htm
Thanks & Regards,
Kiran

TS3694 I went to my phone network at the end of my contract to unlock my iphone 3G so it could take another network sim, they instead of unlocking it sent me to a third party who has unlocked it but also 'jail broken' it. Error code 1015 when trying to re

Help with Error Code 1015 during restoring iphone 3G?

Sorry, but we cannot help you with jailbroken iPhones in this forum. You will probably need to go back to this "third party" who jailbroke your iPhone and ask for assistance.
Note that even if you can get the iPhone restored, that will almost certainly remove the unlock. Only if an iPhone is offically unlocked by the cell carrier can you restore or upgrade the operating system and have the iPhone remain unlocked.
Regards.

Swap between two different item categories in sales orders for sub-contracting

Dear gurus,
my requirement is to have the ability to swap between two different item categories for sales orders for sub-contracting.
This should be controlled by a combination of the material and a value maintained the Usage field in the Customer Material Info Record (for example by entering a ‘V’). A combination of Sales Doc Type, Item Cat Group and Usage should result in the creation of a purchase requisition.
In the event that a process order is required instead of a purchase requisition (i.e. the product is to be manufactured in-house instead of sub-contracted) the user must have the ability to change the Item Category within the sales order to produce a process order.
The user would just change the item category within the sales order, and the system would automatically remove the purchase requisition assigned to the SO, and create a process order and assign it to the SO.
Can you suggest any possible solution?
Thank you in advance.

Hi Majlo,
In my system, I checked. First created sales order with third party line item and then changed item category to normal item category.
Till Purchase order not created, I can change Item category of my sales order line item.
In this case SAP inform by log and once save delete purchase requisition of that line item .
For this you need to assign another item category as an manual item category in SPRO Item category assignment.
After this user can manually change item category to other one manually, if PO do not exist.
Please let me know if your query is different.
Regards

Third party for subcontractor

Hi,
Kindly help me to map below scenario:
I have 2 company codes AAAA and BBBB.BBBB is a customer to AAAA.
BBBB place a order to AAAA,AAAA in turn place an order to its sub-contracting vendor XXXX.
AAAA sends component material to XXXX and ask him to deliver the FG directly to BBBB.
Kindly let me know if I can map through third party process as vendor is subcontracting vendor.
How goods receipt is handled in this.
Please let me know if any other way to map this.
Regards,
Venkatesh

HI
Customer : BBBB , Vendor : XXXXX in Company Code : AAAAA
1. Create BBBB as a Customer with Company code AAAA
2. Raise a Sale order for the customer (BBBB) with Company Code AAAA (Like Third part Sales ). once you save the Sale order system will generate automatically PR number
3. WIth reference of PR number will raise the PO with Vendor XXXXX
4.Vendor XXXXX will delivery the Goods to BBBB
5. AAAA will raise the Bil to BBBB (Customer )
I hope you Understand
Regards,
Prasannna

ME59N - Intercompany Third party subcontracting Process

Hi Experts,
In Intercompany third party subcontracting process, PR is created from the sales order. PR has the account assignment category X and Item Category L.
Fixed source of supply exists. Subcontracting Info record has been created.
Material components icon has been deactivated as it is generating from Sales order.
While using ME59N, it throws Requisition could not be converted. One of our collegues told that if the subcontracting item has been automatically generated from SD Module, then ME59N will not convert the PR to PO.
Please let me know if there are any settings needs to be done. Or standard ME59N will not convert the above scenario.
by
Prabhu

There is no restrication that Automatic PO will not be created if the PR is created from the Sales Order.
Please elobarate on the exact error you are getting.
However please follow & check if these general settings are in place.
1.Material has the auto PO checked in Material Master.
2. Vendor has the Auto PO checked in Vendor Master.
3.Source list is maintained if material master has source list checked.
4.Valid conditions exist in the Sub Contracting info record.
5.Right variant ex - doctype,Plant etc exist or are entered in ME59N.

Third Party Subcontracting process

How to configure Third party sales for Sub Contracting orders.
(Scenario: Sub contracting orders should deliver at Customer place)
Please suggest
Thanks
SUNIL

Hi Sunil
Follow these steps
If components to be provided to a vendor are supplied not by your company but by a third-party, you can order the components from the third-party and specify the subcontractor in the purchase order as the delivery address. At goods receipt the components are posted directly to the stock of the material provided to vendor.
Entering a Purchase Order for Components
To order components for a subcontract order from a vendor and have them delivered direct to the subcontractor, enter a standard purchase order with a different delivery address:
From the Purchasing menu, choose Purchase order ® Create ® Vendor known.
Maintain the data on the initial screen. Make sure you enter the vendor of the components and the plant concerned.
Enter the items.
Then choose Item ® More functions ® Delivery address.
A dialog box appears in which you enter the delivery address.
In the field Vendor enter the number of the subcontractor and select the SC vendor box.
Selecting the box causes the components at goods receipt to be posted directly to the stock of the material provided to vendor when the goods receipt is posted.
Save the purchase order.
Posting the Goods Receipt of the Components
If the subcontractor lets you know that the components have arrived, you can enter the goods receipt for the purchase order. The components are posted directly to the stock of the material provided to vendor.
Stock Update
A goods receipt posting has the following results in the system:
the stock of material provided to vendor at plant level is increased. The stock of material provided to vendor is not managed at storage location level, since the stock is no longer stored at your company.
Valuated stock at plant level increases.
Documents
An accounting document is created for the material document.
After this normal subcontracting order for finished product.
Reward if useful
Shawn

How to calculate or capture the Sub-Contracting Charges

In CK13N, How the Sub-Contract rate is derived.
Kindly the tell the derivation methodlogy for SubContract Rate.
Thanks in advance
K.Natarajan

Dear Natarajan,
1.For Sub-sontracted products ,the cost of that product = Raw-materials cost (which are sent to the third
party) + External processing cost(as per the cost mantained in ME11 for sub-contracting).So if the raw
materials cost is Rs 10 & the processing charges are Rs 25 means then the sub-contracted product cost
= 10+25 = Rs 35.
2. For sub-contracted Product you will be getting only the sub-contracting cost and not the manufacturing
cost.It will be having only raw material cost and sub-contracting charges.
Or do you want in this way?say X is a sub-contracted part and its made up of raw materials X1 & X2 and
once X is received ,its used for manufacturing Y ,So if you check the cost of Y it will having the sub-
contacted item (X) cost + Internal processing cost (operation cost for producing Y),so if you check for Y it
should show the split up of internal activity cost + sub-contracting charges +raw materials cost ?
3.For your information,if you check CK13N for your finished product which is produced using the Sub-
contracted product,then after giving the input and press enter ,then press F5,now you will get the exact
split up in which you were looking for.like processing cost ,conversion cost + material cost.
check the link - [Product Costing for Sub Contracted material|Re: Product Costing for Sub Contracted material]
Check & Revert back.
Regards
Mangalraj.S

Sub contract in sales

I need sub contract in sales.
Ex:
Customer sent material to plant they need some process in our plant for that I need scenario and configuration.
How we allow customer material into plant?
After finished work how to deliver products to customer and billing also.
Please help me any one

Hi Dharmananda rao
Sub Contracting Cycle :
(1) You have a material that can be procured externally, and you have maintained BOM with components. Any waste generated and received during subcontracting process can be maintained as component with negative quantity.
(2) You create a subcontracting PO (PO with Item Category L). You can also maintain Purchase Info Record for Subcontract category for material and subcontractor.
(3) You make a transfer posting to issue components for SC PO. Material is sent to subcontractor. As material remains under your ownership, system does not make any value entry. But quantity is shown as "Material Provided to Vendor"
(4) You receive finished material against SC-PO. You also specify components consumed in manufacturing of finished goods. Additionally, if you have negative components in BOM, now you'll also receive subcontracting by-products. There are three events, so three accounting entries are generated:
DR FG Stock/ SC By-Product Stock
CR Change in Stock (FG/ SC By-Product )
(for finished goods received)
DR Subcontracting Charges
CR GR/IR Clg
(for moneys payable to Subcontractor)
DR Consumption (Components)
CR Change in Stock (FG/ SC By-Product )
(material provided to Vendor is now charged to expense)
5) You do the IV for SC Invoice, and the process is complete.
Process of Subcontract in MM :
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.
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 becreated for the material(2) calling for material(1)
4. Inforecord 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:
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
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).
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.
When you print the purchase order, the components are printed per order item
Subcontracting - Key Points
Special Procurement Process.
Item category: L
Order type: NB
In info record vendor should be maintained as subcontractor.
Vendor (Subcontractor) receives the components used to manufacture a finished product directly from your company or through third party.
Your company should place a purchase order for the finished product. In this manually you can enter the required individual components or it can be determined via the explosion of BOM (if exists).
Stock check at vendor level: ME2O
Company stock check: MMBE
GR for individual components through movement type: 501 or 561 (if with out PO or without reference).
GI to subcontracting vendor: through movement type 541.
GR from sub contracting vendor: through movement type: 101
Movement type 543 is displayed to cancel the material cost account.
If the subcontracting order has to be generated through materials planning,the special procurement key has to be set in MRP 2 screen.
- To create the Subcon Info Record : Tcode ME11 - Info Category - Click Subcontracting
- To create Material BOM : Tcode CS01
- With the Info and Material Setup, you can then create the Purchase Order in Tcode ME21N
Reward if useful to u

Trading with Sub-Contracting Scenario

Dear All,
I have one requirement of Traded Material Scenario, where the material is delivered by Sub-Contractor directly to Customer.
The details are -
Sub-Contractor delivers material A to customer.
The material A has BOM maintained, where component B is maintained in the BOM.
My company purchases B from another Vendor & which is again directly supplied to Sub-Contractor. Sub-Contractor processes the component B to manufacture material A & delivers the same to my Customer.
The following issues need to be addressed -
1) Item category is L in Sub-Contracting, where as it is S in Third Party scenario. How can I have two item categories in same line item of Order.
2) Excise paid by Vendor (supplier of component B) can be availed by Sub-Contractor as set-off & I have to debit the same to Sub-Contractor, as payment to Vendor for component B is done by me.
3) Excise paid by Sub-Contractor is to be inventorized at my end (as it is cost to me) & can be availed for set-off by the customer.
Can anybody has any input for this?
Regards,
Prashant

I think this process was earlier called as 52 A operations.
This is what we had done 52A did not have requirement of jobwork challan)
1: Create the Subcontractor' Location as a "non excisable-Plant " in SAP.( The subcontract vendor was supposed to maintain his own excise records)
2.PO for raw material /Component will be raised from Subcon Plant .
3.The Excise in the PO will have to be configured as a Condition similar to VAT Deductible(so that during MIRO it is sent to another GL account for tracking and further FI-debit note to recover from jobworker )
4. The Production of the Main FG can be shown by Subcontracting PO .
5. There has to be another Virtual Plant ( A RG23D registerd depot normally) which will depict your companys local office near the Subcontractors Location , as the Final SALES Invoice should be from your companys Name.
6. Goods will first be sent by a STO to this Virtual Plant , here in This STO you can also add the Excise Duty condition types for Inventorization purpose.
7. Create Sales Invoice (and if RD23D then Depot invoice) from your Virtual Plant .( Excise invoice will be created by the subcontracting vendor , against which your customer can claim Modvat)
I have mentioned the Process above , for config settings of each process you can check many threads here in SDN.

Subcontracting third party

Hello!
We want to implement a third party subcontracting.
I mean a subcontractor (S) has to create material A for us, and he will get the raw material (B) form vendor (V).
I implemented a contract for vendor V and material B and added as delivery address S and marked there the flag SC-vendor.
I maintained the source list including the contract and marked it as FIX and MRP-relevant.
MRP is creating a purchase requisition (Material B) but the Source Determination is not working. i.e.: it is for me not possible to get the fixed vendor (V) and the delivery address of vendor (S) including flag SC-vendor automatically into the purchase requisition.
I would greatly appreciate every assistance and every idea.
thanks
Flo

Hi,
In Purchase Order/Release Order, you need to enter manually subcontract Vendor(S) .
As you have contract with main vendor (V), Create a contract with main vendor (V) with raw material (B) and then caretae a release order/ Purchase Order WRT contract & delivery address tab of release order line item, flag the subcontracting Vendor & maintain the Vendor Number (S) . So when you do the GR , the material(B) in the system will be shown as dispatched to subcontract Vendor(S)
Now you can create one Sub-Contract Purchase Order to Subcontract Vendor(S) with material (A ){ Earlier you should have maintained BOM for material (A ) where you have taken component as material (B)} & then once material (A ) produced you can do GR.
Regards,
Biju K

Sub-Contracting third Party

Similar Messages

Maybe you are looking for