Subcontract Process in MM

Hi All,
I have to map the following scenario in SAP.
There are three materials A, B & C.
We send material B to the vendor.
Vendor purchases material C.
Vendor adds material B to material C and sends us material A.
We pay vendor for material C and labour charges.
Now I want to achieve the above process by using the subcontracting process in SAP. I maintained a BOM for material A with material B as the component.Price of material A in PO = service charges for producing A + cost of matrl B. I could run the process this way.
But my client wants to have material C also in the BOM (even though they do not purchase the same).They say they want it for costing of material A. So material C must be in the BOM with matrl B.
So is it possible to have two seperate BOM's for material A , one for costing(matrl B + matrl C) and the other for using in the subcontract process (only matrl B)? And if we can have it that way how do I ensure that the BOM which contains only Matrl B gets selected when I create a subcontract PO?
Any help would be really appreciated.
Regards,
V S

Hi:
It is possible to have the two separate BOM one is costing BOM and other is your regular production BOM.
However while creating these two BOM select BOM Usage as 6 for costing BOM and 1 for production BOM so in subcontract PO system always select production BOM which must be having only one child component which you wanted to issue.
And ask you controlling to use costing BOM for the costing purposes which would have two child components.In controlling there is a provision to proritise the BOM usage.
Hope this would helps you.
Cheers
Rahul.
Awards plz. if helpful.

Similar Messages

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

Goods Receipt in Subcontracting process

Hi,
I am beginner in SAP.
This is regarding Goods Receipt in Subcontracting process.
I have provided raw material Quantity = 100 Nos. to subcontracting vendor.
Subcontracting vendor done machining on 80 Quantity, and we have done Goods Receipt for 80 Quantity as Finished Parts.
Subcontracting vendor found 20 Quantity as Defected.
Shall I take back 20 Quantity by Movement Type 542.
OR
Shall I do Goods Receipt of 20 Quantity as Finished Product and price = 0. & then stock transfer of Finished to Raw Material.
Please reply.

Hi,
It depends on what you want your subcontractor to do with the faulty raw material stock - if you want them to scrap it you can scrap stock from subcontractor stock using movement type 551 and special stock "O" (the system should prompt you to enter the vendor code). If you want it returned for you to scrap it - movement 542 to return it then scrap it from your own stock.
You shouldn't receive an additional 20 of the finished parts - as you only received 80 not 100. Close the purchase order off to close off the balance of 20 remaining.
Thanks

Error M7019 BAPI_GOODSMVT_CREATE - Subcontracting process

Hi,
I am developing a subcontracting process and using the BAPI_GOODSMVT_CREATE to return the goods, but when I do the low inputs (mov 543) the BAPI returns the following message.
TYPE       E
ID               M7
NUMBER      19
MESSAGE Combination of movement type 543 and function selected not possible
LOG_NO
LOG_MSG_NO     0
MESSAGE_V1        543
MESSAGE_V2
MESSAGE_V3
MESSAGE_V4
PARAMETER            GOODSMVT_ITEM
I'm using GOODSMVT_CODE = "07" (MB04).
When I run the same procedure via transaction MB04 I can create the document.
Has anyone experienced this? Would have any suggestions?
Thanks
Sandra Avila

Hi,
Successfully execute the BAPI using the help of SAP
http://wiki.sdn.sap.com/wiki/display/ERPSCM/HowToGoodsMovementswith+BAPI#HowToGoodsMovementswithBAPI-MoreinformationonLINEIDandPARENTID
Thanks to all
Sandra Avila

Serial numbers for subcontracting process

Hello Experts,
We are using SAP ECC 6.0 and trying to implement the subcontracting process with serial numbers. This scenario is focused on those materials that we need to keep track on how many times it has gone to repair (for example, a motor) by specific item. Suppose there's a material called "Material A". However, there are MANY "Motor A"'s, and thus, the need for serial number to keep track on the number of repairs each one has had.
So, having said that, the scenario is working so far. However, the user CAN'T type in the serial number of the material at the REQUISITION LEVEL. This can be done at the PO level and at the goods receipt level.
This brings a problem since the Purchasing dept. doesn't know the serial number. This information is known by the user, but there's "serial number" functionality in the requisition. Is there a configuration for this? Could it be possible for the serial number to be in the requisition and then inherit it to the PO?
We want this in order to automate the process.
The configuration we made was in the "Plant Maintenance and Customer Service" section, using procedures MMSL "Maintain goods receipt and issue doc." and POSL "Serial numbers in purchase orders". There's no procedure for purchase requisitions. If this can be also done from a Work Order, that will be just fine.
Let me know if it is possible or if you have any idea on how to do this.
Regards,
Gilberto Gallardo.

Hi,
Serial no can be used for the following business transactions.
1. Goods Receipt/Goods isssue and other inventory postings.
2.sales orders and delivery notes
3.maintenance orders
4.production orders.
Settings:
1. create a serial number profile in customising.
2. Assign the serial number profile in the material master record in work
scheduling view for fert and raw material in plant data / stor2 view..
Business procedures may be assigned in configuration to a serial number profile.
The assignment to the serial number profile determines if serial numbers are required , can be assigned, must be assigned,are assigned automatically
MMSL : Goods issue , receipts,stockj transfers,stock transport orders
Thanks
nandha

Third Party Subcontracting Process doubt

Hello all Gurus,
I have one doubt regarding the third party subcontracting process. I have created a PO with delivery address as that of SC vendor.
Now how to do the GR for components if the SC vendor lets me know that he has received the materials from the 3rd party vendor??
Can someone tell me the process after a PO is created for this scenario???
Thanks and Regards,
Umakanth.

Hi,
As I perceive you are speaking about the provision of subcontracting components from one of your vendor directly to another one,
In this case you did well if you wrote the vendorID in the suitable field on 'Delivery address' tab of your PO. 'SC Vendor' thickbox should be also checked. This is not the subcontracting PO itself, it is only a PO to procure the components for subcontracting - your SC vendor receive the components directly. That's why there's no point in speaking about 'L' item category.
After getting information from your SC vendor about the arrival of the goods (components) the only thing you have to do is to do a GR against your PO. The goods will get to your SC vendor's special stock via mvt 101 + 'O'.
That's all.
BR
Csaba

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.

Subcontract Process with vendor supplied component

Hi,
We have a subcontracting process, when we send 3 components to the vendor, the vendor apply another component and return the semi finished to me.
I have a BOM of this semi finished Good that includes all the 4 components.
We sent the 3 components via mb1b.
We create a PO of the Semi Finished Good if we verified the components the 4 components are there.
When we try to receive via MIGO and click in verify The 3 itens that I send is OK ... But the item that is supplied by the vendor show me an error message that there is no stock.
What should I do to receive the component supplied by the vendor ?

Hello,
1. Create subcontracting with item category "L" and second line item in same PO enter with Item cateogroy means STD.
2. Item level of the Delivery address tab, tick SC Vendor and enter the same Vendor code there.
3.Go for GR for only for 2nd line item first. This stock will automatically picks 101 O Mvt, and u can view this stock as Vendor stock.
Check MMBE stock overview , Material is showing provided to Vendor at plant level.
4. Provide other 3 components with MB1B- 541 Mvt.
5. Go for second GR for finished Product.
4th Material shown as Material provided to Vendor in stock overview. if you want to get back that same material to your stock. reverse that stock use t code MB1B with help of Movement type 542.
Or else.
Through subsequnet settelement you can send the 4th Material to your subcontrcator MB04.
Regards
Mahesh Naik

Tables for subcontracting process

Hi All,
Pls tell the tables for components in subcontracting process.
Regards
Sunil

Hi
After creating a subcontacting po, it will update the following tables
RESB , EKET , EKKO, EKPO
Join the two tables RESB and EKET with RSNUM , PO NUmber, Line item as the linking field, if u pass the PO Number in the EKET Table then you can able to see all the components that you have mentioned in the PO for the Final Product. This component is not from the Material BOM , its from what you have maintained in the PO.
Pls clarify in your query , completing means closing the PO with GR,IR or just PO creation.
Regards
Amuthan M.
Edited by: Amuthan M on Nov 3, 2009 2:28 PM

G/L accounts updation in subcontracting process

Hi,
i request you provide details of G/L accounts while ;1) updation while we supply materials to vendor
2) while we recieve the finshed product.3) And while settlement to vendor.
Thanks & Regards,
Ramesh kumar.

Hi,
If Material has Price Control as "V" (MAP)
(BSX) Stock A/c of Assembly - Dr
(BSV) Change in Subcon Stock - Cr
(FRL) Subcontracting Charges - Dr
(WRX) GR/IR Clearing A/c - Cr
(BSX) Stock A/c of Components - Cr
(GBB-VBO) Consumption A/c of Components - Dr
If Material has Price Control as "S" (Std. Price)
If Material is having Price Control as "S" then Price Difference A/c will also in picture.
This depends on configuration; SPRO > MM > Inventory Management and Physical Inventory > Goods Receipt > Price Differences for Subcontract Orders at Goods Receipt
Price Differences for Subcontract Orders at Goods Receipt
In this step, you configure for each valuation area whether price differences are generated for a Subcontract order at the time of a goods receipt if the manufactured material is managed at standard price and the standard price varies from the receipt value (externally performed service + value of components + delivery costs).
Example
Finished product: $400 (value at standard price)
Subcontract order:
o Ext. service : $250
o Components : $100
Posting schema without price differences:
Stock account FERT : 400 +
Stock change : 400 -
GR/IR clearing acct : 250 -
External service acct : 250 +
Compon. stock account : 100 -
Consumption account : 100 +
Posting schema with price differences:
Stock account FERT : 400 +
Stock change : 350 -
Price difference : 50 -
GR/IR clearing acct : 250 -
External service acct : 250 +
Compon. stock account : 100 -
Consumption account : 100 +
And cost center is mandatory for subcontracting process
the accounts for the BSX FRL and GBB-VOB needs the cost elements
Sometimes if you have freight the key FRN also gets used.
Edited by: venkatesh kumar on May 11, 2010 12:46 PM

Options in excise tab ( subcontracting Process)

HI,
Subcontracting business process
i am getting No excise duty, Create RG23D, and create RG23D for existing excise invoice options in Excise invoice tab at MIGO.
i have checked above settings in the system...but still the same error
please suggest
Regards,
Girish

Hi,
If you are making a process of Subcontracting , then you should be able to get Refer Subcontracting Challan in MIGO , for that in CIN--> Plant Setting you should REMOVE Tick from Depot against that plant also check that for the Excise Group if it is a subcontracting process Depot Setting should NOT be there.
If you put a tick against Depot in CIN --> Plant Setting and Depot Setting for the Excise Group, you will get RG23D tabs in MIGO
Regards,
Vikas

Excise treatment during subcontracting process with excise duty

Dear all,
Iam aware of the subcontracting process STEPS, but my query is while dealing with Excise in Subcontracting process, will the Excise duties captured in J1IS(create outgoing excise invoice) be RECONCILED with excise duties captured in J1IEX(subcontractor's excise invoice). As per my scenario both the duties are different unlike reconciliation process in the process without excise duty. My questions are
1.Do both excise duties during j1is and j1iex should be same or can it be different (since in j1is we capture Duties on raw material's assesable value where as in j1iex we capture duties semi finished goods given by sub contractor.)
2.Kindly eloborate treatment of excise duties captured in these steps.
Revert if you didnt understand this scenarion.
Regards,
Sravanthi.Y

Hi,
57fc challan will be issued when we send raw materials to subcontractors WITHOUT EXISE DUTY.Hence not relevant in my case. But my case is WITH excise duty.we send subcontractor the excise invoice by using j1is. later he will process these raw materials and will give back the semi finished goods along with excise invoice(which we will capture n post using j1iex). so my question will excise duties differ in j1is(excise invoice TO subcontractor) and in j1iex(excise duty FROM subcontractor)?

New requirement in Subcontracting process

Hi All,
There is a requirement related to indian excise, in Subcontracting process is it possible to merge below 2 steps 1)transfer posting to vendor stock and
2)creating subcontracting challan
That mean to say SC challan has to be created for some qty of material and transfer posting has to happen simultaneously for the same qty with 541 mov type.
This requirement may looks strange..!!
Do you think,it is possible in SAP..??by any means...
Pls confirm
Regds

Hi,
Normal pratice whenever you are sending material to sub contractor .Please count the material load inthe vehicle then raise document.
In you case instead of 10 nos document created and physically you have sent 5 nos only
You can do subsequent settlement
use t.code : MB04 enter the Purchase order no and enter the qty and save .
5 nos will be deducted from the vendor stock
I have tried just now. Please try
G.Ganesh Kumar

Account hitting in Subcontracting process during GR and IR.

Dear All,
Could you please help me with the scenario of account hitting in Subcontracting process during GR and IR?
There are three scenarios to be considered:
1) Moving average price
2) Standard price control without price difference.
3) Standard price control with price difference.
I would give full points if you can help me.
Regards,
Ranjan

1) moving average
When doing GR for finished product
BSX- stock account finished -
1000(+)
BSV- change in stock -
1000(-)
FRL-external service----
200(+)
WRXGR/IR clearing acct--
200(-)
GBB_VBO- consumption acct raw material sent to vendor-----800(+)
BSX- stock account--
800(-)
2) with Proce diff
When doing GR for finished product
BSX- stock account finished -
1000(+)
BSV- change in stock -
1000(-)
FRL-external service----
200(+)
PRD price diff
WRXGR/IR clearing acct--
200(-)
GBB_VBO- consumption acct raw material sent to vendor-----800(+)
BSX- stock account--
800(-)
3) no price diff
When doing GR for finished product
BSX- stock account finished -
1000(+)
BSV- change in stock -
1000(-)
FRL-external service----
200(+)
WRXGR/IR clearing acct--
200(-)
GBB_VBO- consumption acct raw material sent to vendor-----800(+)
BSX- stock account--
800(-)

Steps in Subcontracting Process

Dear Experts,
In Subcontracting process if the subcontracting period of 180 days is completed and if material is still with Vendor, how to complete the process.
Also how to reverse the Cenvat Credit.And how cmplete/reconcile the challan.
Please explain detail steps and Tcode.
Thanks and Regards,
Sapmm user

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 ) 0
(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.
Note:: At the Time of GR 543 Mvt is up dated for Raw Material.
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 be created for the material(2) calling for material(1)
4. Info record 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:
u2013 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
u2013 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).
u2013 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.

Returns in subcontracting process

In subcontracting Process once materials is delivered by vendor and if the material has to be sent back to vendor whatis the Procedure? If the company is in bangalore and vendor in Mumbai what are the documents needed for return?

Hi,
If material is excise and Returnable(by vendor) plz follow this procedure..
a) Issue Mb1B with 541 mov type and create Challan in J1if01make 541 mov type doc as Delivery note Doc
If material is excise and Non-Returnable(by vendor) plz follow this procedure..
b) create return PO(ME21N) and do GR 161 mov type..
regards,
Priya

Subcontract Process in MM

Similar Messages

Maybe you are looking for