Sub-contracting through Production Order

Hai..
We have a routing with 8 operations. The 6th operation is an external operation (PP02 control key). When the production order is released a Purchase Requisition is created. It is a subcontracting PR. But the PR does not have any component assigned to it. Also the PR line item is blank. It just shows the operation description in the Mtrl description field.
Now am not sure what item is sent to the subcontractor and what item is received back.
Please advice.
Regards
Sampath

Hi,
There is no real difference between purchasinf an item directly from the vendor and purchasing it through a subcontract order. The only real difference is that you have to indicate that it is a subcontract PO and not a normal one and you need the BOM to be set up for the material to be subcontracted (to list the component/s that you will be sending to the vendor).
If you have set it to get this item from stock, be careful, because if you have these items in stock, it will simply expect a stock transfer. If you don't have them in stock then MRP will try to source them for you and this will need to use the special procurement key to ensure that a subcontract PO is created instead of a normal one.
Perhaps you would be better indicating that it is a non-stock item and have the requirement (PR) generated automatically from the PP order.
My PP is a bit rusty and so I am not able to be specific as to which entries you would need to make and where but bascally the PP order needs to be set up to procure it directly from the vendor as a subcontract item.
The MM process then takes over and (normally using transaction ME2o) manages the issue of the item/s to the subcontractor and the GR of the finished product into stock.
Steve B
Steve B

Similar Messages

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    https://forums.sdn.sap.com/click.jspa?searchID=7109743&messageID=4056008
    https://forums.sdn.sap.com/click.jspa?searchID=7109743&messageID=4480137
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    HI,
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    Reward proper points if the answer is helpful.
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  • Sub contracting and production time

    Hello Experts,
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  • Sub Contracting: CO product is lying with vendor instead fo own

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  • AFS Third Party Sub-contracting Through MRP

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    Edited by: R Brahmankar on Jan 19, 2011 5:56 PM

  • Creation of Production order for FInished Product through Project

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  • Delivery order for sub-contract processing scenario

    Hi experts,
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  • Regarding Costing in External processing operation in production Order

    Hi Everybody,
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    Dear Srikanth,
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    Regards,
    Angshuman Kar

  • Serial Number. Production Order Confirmation. GR. UD. Sales Delivery

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