Subcontracting and inhouse

Dear sir
this is mto scenaoir. first we produce fabricated structure(box) like electrical panel . after manufacturing the box, i have to do painting and final box manufactured i will started assembly with different components . and finally it become say a panel.
i have only simple bom. and only one final operation in routing . first i will issue the material to order , when complete the finished product , i will do conformation , and goods receipt for that order.
if iwant to give subcontracting forcomplite fabricated structure like box i will assigned the exteranal operation , the pr will creates for subcontracting operation , i will provide material to vendor by mb51 for manicuring box. when i do gr for sub contracting
this box will be posted against order. this is ok
but i will give 50% order qty to subcontracting and remaing 50% i will manufacure in house. for box manufacture.for inhouse
manufactuoreed fabricated box i will send for painting to subcontracting vendor for painting operation . for this i will send the box and paint .
pl tell me how to map in the system.
regards
Baswaraj

Hi,
First I suggest that for the entire subcontracting you use the other business process, with purchasing and item category "L" for subcontracting in the purchase order.
Then you can use the quota arrangement definition to split 50% of the orders to that, and the other 50% to inhouse production. If you have an external operation in the inhouse production routing it's OK, it is still considered as an overall internal production process, since it is done within the framework of a production order.
Regards,
Mario

Similar Messages

Report for Material at subcontract AND PO number

We are preparing for Inventory verification at subcontractors.
My boss believes it would be easier for the SC vendor if we could supply the PO number for which the material was shipped.
I haven't found such a report. Is there one?
If you know the tables and links, I can write a ABAP query
Thank you for any help that can be provided.
Althea

Hi,
ME2O works fine if you want to track which subcontracting PO's are still open and what is the current stock at vendor.
ME2ON is another version of the same basic ME2O report.
Try also MBLB - Stocks at subcontractor.
As far as PO to 541 link is concerned, I do not think it is possible to find it unless there is some specific business process being followed which is supported by custom code.
The reason is that when you issue against 541, you are simply providing materials to vendor that the vendor needs.
There might be multiple open SC POs for same material/batch and there is no point in tracking against a particluar PO. Its the same material/batch the vendor receives.
When you post a PGR for a SC PO, then the stock from vendor premises is consumed by 543 and the track to your SC PO is maintained.
I tried maintaining EBELN as required in OMJJ for 541 but still no MSEG-EBELN is populated. Maybe I am missing something.

Scrap of material in subcontract and Excess material issue

Hi,
         I want to know is there any setting such that , for mfg. a finish good material, some qty. of raw material is scrap   the qty which is scrap i have add as negative qty in BOM and but after making the GR for Finish material , all positive qty. are consume by deduction of qty which i have mention as negative but scrap is not done automatically, i am doing scrap sepearetely so it is possible whenevr i make the GR for finish good material then , the material for which i have maiatain as negative should get automatically scrap, as the raw maetria are consum using 543 materials,
second thing the negative qty of material i have mention in BOM of finish good but insted of maiatining -ve qty in BOM is it possible   to add the excess qty in PO as -Ve qty because when we select the finish material in Subcontract PO all BOM components appear in PO   but there there is no option to add some addition material in PO.
can we make the above settings
regards,
    zafar

Hi,
Thanks for your reply.
Just want to know one more think, as in subcontract we are issue the material as per BOm, as suppose, total qty of one raw material required is 4500, which is to be consume for making the finish good but due to std. packing of raw material i want to issue the qty 5000, but while making the GR only 4500 should be consume and the reamining 500 should be shown as in vendor stock after getting material back we will take that as 542 movement.
regards,
    zafar

Subcontracting and 311 Q

Dear All,
For subcontracting scenerio for excisable material we are planing to use movement type 311 Q.
as per sap help. in material master we need to specify some indicator so that at the time of GRN system consumes the quantity from project stock .
so basically system is consuming the quantity by movement type 543 even though we have not done 541. I want to know that indicator in material master.

If your material (component) is planned in project stock segment then system should automatically use it in the proper way.
For this basically you need two things:
- purchase order item (parent material) should have the proper item category and assignment (WBS)
- component should have the proper indicator in MARC-SBDKZ (individual / collective requirement indicator)
You can find in SAP online help and on the net many resources about the meaning of this indicator.as well as about this subcontracting scenario.

Subcontracting and atp check

hi
has anyone out there found an error or questionable conduct by ATP in a Subcontractor PO, ie partial deliveries with the change of BOM afterwards and a new ATP ????
Does SAP SubContracting work 100%?

Refer note 323991.

Subcontracting and PM orders

Hello,
I have activated business function LOG_EAM_ROTSUB for subcontracting.
When trying to go through process where returned material is different then the one sent to subcontractor
Iu2019m getting following error message when trying to convert PR into P.O. : Material number 10000766 does not equal material number 10000170 of order item
Message no. AD_SUBCON013
In the maintenance order I have two materials assigned into subcontracting operation:
Material 10000170 with MPI Rework material to subcontractor
Material 10000766 with MPI Rework material from subcontractor (with negative value)
Do you have any suggestion what causes above mentioned error message?
Many thanks for your clues
Grzegorz

Hello Raj,
There is one thing which makes me wonderu2026
Do I understand you well? Do you mean that material with changed material number (with MPI u2013 u2018Xu2019) should have Item Category u2013 u2018Nu2019 u2013 why you are saying so?
When I try to maintain non stock material for subcontracted operation Iu2019m getting following: Item category N is not allowed for subcontracting Message no. AD_SUBCON097
My understanding isu2026 if subcontractor for some reason sends us material with changed material number then mentioned material with Material Provision Indicator u2013 u2018Xu2019 needs to be assigned into subcontracted operation in advance.
Also material which is about to be repair needs to be marked with indicator u2018Su2019.
Automatically created PReqs and then P.O. will have an item with material marked as X.
Then by calling MB1B we transfer material (with indicator S) which needs to be repair to subcontractor (movement type 541). When making GR via MB01 we receive given by vendor material with indicator X (movement type 101)
Please point out if my understanding is wrong.
Many thanks
Grzegorz

Subcontracting and plants abroad

Dear all,
I am facing the following problem:
My customer are using plant abroad functionality. They are VAT registered and have plants in almost all contries within European Union. The will start using subcontracting functionality in SAP and they have the following flow:
Material A and B in plant 1107 in HUngary (where we are VAT registedred) are sent to subcontracting vendor in Netherlands. The subcontractor are creating material C out of material A and B and are sending material C to our plant 1107 in Austria (where we also are VAT registered). How is this flow handled from a plant abroad perspective?
IN plant 1107 in Austria we will receive an invoice from subcontracting vendor and will use tax indicator for reverse charge (input and output EC VAT posted in the same time when registering the invoice) but how do we handle when sending material A and B to subcontracting vendor? I suppose this should be reported as 0 % EC output VAT in Hungary but how can this be made? We are not having any WIA invoice?
Best regards, Åsa

hi Sunil,
"1. Create a Belgian plant as Plant abroad. That will change a lot. Can anyone answer what exactly? Will we be able to use MWST condition?"
==> I wonder if it would work the way you want to... but it is very difficult to tell without trying...
"2. Use 2 tax procedures for US company code. TAXUS and TAXBE. Is this posible using any config?"
==> this is definetly not possible
What I would do is to create a separate company code and assign the belgian tax processes to it. If it is not a separate legal entity you have to set up some cross-company processes.
hope this helps
ec

Subcontracting and Return Delivery

Our Company has a subcontractor and send it some components. we have a third party that send other components to that SC.
when SC wants to return some components ( by quality reasons for example) to our company I proposed MB1B -> MvT. 542 to change materials from provided to vendor to our SLOC.
but when SC wants to return components to our Third Party, I have NO solution
(We Create PO for that third party. when SC recieves components, we do GR so those components go to provided to vendor).
Does SAP has any solution?
thanks in advance

Daniel,
As Jürgen mentioned above searching for content and I would add to this testing in your sandbox should be done before starting to post questions like this. You best learn things by researching and testing. Then ask when you are really stuck and can't find any answer.
Here some help for you.
If you want to return directly from the subcontractor's location and thus return directly from subcontract stock you create a standard return PO and put into the delivery tab section of the item the vendor number for the subcontractor and check the SC vendor check box.
When you then process the return PO via say MIGO_GR the return will happen directly from the subcontractor.

Subcontracting and two Production Versions

Dear Friends,
I'm having captioned scenario with details like this:
Product: P1,
Subcontractor: V1,
Distribution Center: DC1,
Components: comp1 and comp2,
I have maintained two production versions for P1 with different BOMs:
Production Version 1 with comp1 is valid from past to 31.08.2008;
Production Version 2 with comp2 is valid from 01.09.2008 to far in the future.
In order to create PDS for product on subcontractor, I have to create subcontracting purchase info record for P1, V1, DC1. However, I found I could only create one info record with connection to one production version.
Does anybody know how to solve this? Or if you have any suggestion for better setup?
Thanks all!

Hi,
up to SCM 5.0 it is only possible to have one production version for subcontracting for each vendor.
With SCM 5.1 you also can have one than one.
So today the only solution is to use subcontracting PDS and have different validity dates for the components as already suggested.
Regards.
Hubert

Subcontracting and PPV Scenario

HI Gurus,
I have a scenario where I cant find a feasible solution.
- Assembly A consist of Engine E and Component C
- We buy the Engine E from Vendor A in and get shipped to Vendor B in for Assembly so we get the invoice for it and we pay them
- Vendor B uses some components c AND Assembles and ships it as Assembly A and he send the invoice for Assembly and components
- In our system Assembly A has a std cost of 100 and Engine E cost 50 dollars and Component C cost 35 dollars
Sol -1
I can create 3 different purchase orders separately so everything will be resolved.
sol -2
One PO for Engine for Vendor A and other PO for Assembly and have the po price as assembly price 35 dollars from vendor b because thats what the vendor sends the invoice for but this one hits the PPV and i dont want the PPV.
Is there any other solution that could possible be easier to run this process down/
Any help would be appreciated.
thanks

I presume that your PO with vendor B is subcontract PO where-in consumption of Engine is working fine, but the component C is not working fine hence this issue.
Does your BOM includes Component C, if so how the related inventory is handled. Provided inventory of Component C is not handled by your company then this is typical tolling process solution for which SAP doesn't have standard solution. So you have to go either pick Sol-1 or create a user exit solution to get your account postings correct.

Subcontracting process - partially subcontracted and partially in-house

Hello,
I have a scenario where one of my BoM items is produced in-house as well as sub-contracted. If my lines are loaded, then I perform material subcontracting. How do I map this in SAP? Thanks.
Regards

Since procurement type "X" is defaulted as production, MDUM would probably not work in this case. There a need for manual intervention to tell the system that a certain planned order is to converted into a PR. You can use MD16, or other transaction where you can manually choose the planned orders, and manually make a conversion decition.
There could be an alternative way, more automated, using quota arrangement. Then already at MRP level the system generates the right type of procurement element. The only thing is that this may work only if you have a kind of predefined pattern to split between production and subcontracting. For this you will also need to use production versions.
Mario

Any combined scenario for Subcontracting and DropShipment

Hello Experts,
Requirement is to drive Sales Order to create Subcon order and push the processed semi finished goods from SC to Customer end and unprocessed scrap back to supplying plant. Transport from SC to Customer will be arranged and paid by supplying plant hence not a challenge. Is there any combined process to address SO driven Subcon and Drop Shipment? I thought of use of contract manufacturing but it suits majorly for big volume and finished product.

If you are on ECC 6 with enhancement pack 5 or higher then you might want to look that the following:
Third party order processing with subcontracting
It's included in EHP6.05 function LOG_MM_OM_2.

Subcontracting and Make to Order

Hi Gurus,
I have a question for You....
I have a subcontracting process in which I want to forward a material, managed in order stock, to a subcontractor of mine.
I had an old release and I could not manage the material I send to a subcontractor in a MTO way. Now I have upgraded to 6.0 and I'm looking for a way that allows to do this.
can 6.0 help me? Have I manage in the same way?
Thanks a lot.
P.S. I sent a material code and I receive another code.

Dear Rajesha,
I supposed the answer was this....
I think to have understood SAP way, but I hoped SAP had developped something to do what I need and fit for the process.
Example: I built a boat but I have not machinary to weld kell's parts and to manufacture some high-tech tasks. I must to produce in project stock the parts of the kell and I have to forward those parts to a subcontractor to weld them and to do other operations. Then the kell returns to my plant.
To perform this in SAP, I can't use project or order stock till the kell has not returned from the subcontractor. Is It right?
Thanks a lot.

How to account trading and inhouse products when it is same

Dear sir,
We are doing trading and manufacturing of same product with different part codes. This because trading item input item is 1:1 , where as inhouse manufacturing contains multiple input raw material for same product.
Please tell or explain is there any other way we can take stock into single part code for both inhouse manufacturing and trading of same product.
Regards
Lokesh
bangalore

is there any other way we can take stock into single part code
Yes you can have with one material code. In material master, in Accounting1 view, you have a field "Valuation Category". Explore this field through which you can have two values; one for trading and another one for manufacturing. Consult with your FI colleagues.
thanks
G. Lakshmipathi

Subcontract and scheduling agreement

gurus can u tell n detail reg the subcontract n scheduling agreement followed during real time?

Hi,
Sub Contracting Cycle are:
(1) You have a material (Finished Goods) that can be procured externally, and you have maintained BOM (CS01) with components (Raw Materials). Any waste generated and received during subcontracting process can be maintained as component with negative quantity in the BOM.
(2) You create a subcontracting PO (ME21N, Item Category L with different document type ie.. from std one). Maintain Purchase Info Record for Subcontract category for material and subcontractor.
(3) You make a transfer posting to issue components for SC PO(In ME2O directly or by MB1B with 541 Movement type). 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" .So no accounting document generated by supplying raw material to Sub Contracting Vendor.
(4) You receive (MIGO) 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:
(5) Invoice Verification (MIRO) for SC Invoice.
(6) Payment in F-53
The accounting entries are:
FG BSX acc. Debit Acc.
GR/IR Cle.acc. WRX acc. Credit Acc.
FRL Acc. Debit Acc.
BSV acc. Credit Acc.
BSX acc. of components Credit Acc.
GBB - VBO Acc. Debit acc.
PRD acc. Some time Credit &
Some time Debit
If you are activate Price Diff. Acc. for SC-Vendor in....
OLMB -
> GR -
> Price diff. acc.for SC order while you do GR for your Plant......then Price Diff. Acc. also will be trigered...
Scheduling agreement is a long term purchase agreement, where you will keep issuing the delivery schedules whenever there is a change in requirement or at predetermined time intervals. The delivery schedule can be on hour/daily/weekly/monthly basis. SA is also an agreement with the vendor for the supply of matl, may be a quanity or value. The delivery dates will be maintained in ME38 ref the SA which are called delivery schedules.So you can maintain the delivery schedule and communicate the vendor on Forecase basis or JIT basis. And when you need some more matl then will only create SA deliveries using ME38. SA could be of 2 types:- without release documentation-system will transmit the delivery info to the vendor once you save the document.
With release documentation- after creating the delivery schedules you need to create SA release using ME84.So Process are ME01, ME11, ME31K with aggnrement type, ME38 & MIGO,
For more follow the link;
http://esoadocu.sap.com/socoview(bD1lbiZjPTgwMCZkPW1pbg==)/render.asp?packageid=DBBB6D8AA3B382F191E0000F20F64781&id=EB65A89F1AFD4C46AB61C6161BAF
Regards,
Biju K
Edited by: Bijay Kumar Barik on Apr 23, 2008 7:00 AM

Subcontracting and inhouse

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