Subcontracting Assembly Process

Dear gurus,
Just want to get guidance on the process flow of Subcontracting/Outsourcing Assembly..
Our org will still plan the requirements for the materials, inform the OEM (original equipment manufacturer), and supplying the components..
Thank you.

Dear,
Within in-house production if some capacity bottleneck exists in any operations then you can assign this job to some vendors to carryout this job in his premises and supply us the semi-finished part. This can be done via control key example PP02 (external processing control key and activate the subcontracting Check box in routing).
Option1:
1) In Control key PP02 enable external processing and in the routing in the operation detail enable external processing under radio button sub contract.
2) In Order type dependent parameter T code OPL8 enable reservation / PR creation - 3 (immediate reservation / PR creation) during release / confirmation.
3) Create Info record T code ME2O only for vendor no material combination. (You are not going to issue material for the vendor through SAP) system will not allow through ME2O since it is operation subcontract.
4) Run MRP it will not create PR directly since the it is enable in OPL8 only after release.
5) Do the In-house operation then confirm the in -house operation in CO11n. Once the previous operation is confirmed PR is generated automatically.
6) Then Convert PR to P.O. In purchase order only operation description will appear. since no component is assigned. And the order type will be F.
7) Then make separate DC (Gate pass). Consult your MM guy for this.
8) If any component is assigned to the operation. Do stock transfer to Vendor storage location till such time it comes to factory again.
9) While return from vendor do MIGO against the P.O and it will come settle in prod order.
10) Payment to the vendor is through service record entry concept. Consult MM gut for this.
Option 2:
1) You have to create separate material master for that operation. Treating that it will be a different material
2) Create Vendor master with Material and Vendor combination
3) Create BOM with header material and this material as item for the header.
4) Create Routing for the header material with only one operation with control key PP02.
5) Assign the item material to this operation.
6) Run MRP this will create PR automatically. Then convert PR to PO
7) Send material to the vendor through ME2O
8) Do the GR MIGO the item will come have header material and it will automatically update in unrestricted stock.
9) Payment to the vendor will be with different as service entry concept consult MM guy for this.
Hope clear to you.
Regards,
R.Brahmankar

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Reg Assembly Process

Hi Guru,
i would like to know the assembly Process with CIN details.
please give the details regarding the above.
Thanks
BR
siva

Hi Guru,
we are using the following process.
Direct Material
Prcourement from the supplier who are coming under VAT taxation
Procurement from supplier who are coming under CST taxataion
Procurement from the supplier where C form need to be given
Procurement from the Subcontracting Suppliers
Indirect material:
Service Procurement and relevant taxation
Consignement Procurement
Procurement from the supplier with account assignement purchase
Capital Goods
Capital Goods Procurement for Machineries
Capital Procurement for Machine accessories - Grinding wheel
Import
Procurement from other Plants
Procurement of Steel from Suppliers
Procurement of Capital Goods
Service Procurement for Tool Calibration
Pricing
Domestic pricing with Tax calculation
Option to edit the Tax condition type value in the PO
Option to enter the tax condition value or % in PO
Import Pricing to include the required condition of Excise and Govt requirement
Incoming Excise Invoice
Capture Excise Invoice During GR
Option to Edit the value after Excise Invoice Capture
Returnable Excise Invoice Form
Import Duty Capture and Excise Invoice posting
Registers
RG23A - Part I and Part 2 update
RG23C - Part I and Part 2 update
Cenvat Regeister
Sales Tax Regeister
Payment of tax to central and State - Separate GR posting
CIN Configuration Check list - PTP
Excise Registration
Check Excise Registration is updated for all plants
Check Excise Reg is updated with the Excise Range Information
Check Excise reg is updated with the ECC NO for all the plants
Check Excise Reg, Division and Range is maintained in Excise Reg
Plant Settings:
Check whether Excise Registration is assigned to plant or not
Check the manufactruing plant is unchecked with Depot Indicator
Check Multiple goods receipt/Multiple Credit option is set for Manufcaturing plants
Check the Depot plant has been flagged with Depot Indicator
Check Multiple goods receipt/Multiple Credit option is set for Depot plants
Excise Group
Check Excise Groups is created for manufacturing plant
Check the outgoing Excise Invoice settings
Check Default Challan Qty from GR is flagged in Excise group
Check Depot setting are deflagged for manufacturing plant Excise Group
Check in MIGO setting of Excise group all the below
EI Create/23D deflagged for manufacturing plant
EI Capture, Post, Duty different at GR, update RG1 at MIGO are flagged.
Check Depot settings are flagged for Excise groups for Depot
Check EI Create/23D is updated with flag mark for all Depot Excise Groups
Check the assignement of Plant, Excise Registration and Excise Group
Subcontracting
Check the sub contracting attribute is maintained as per plant requirement
Check the maintain movement type group is maitained with correct movement types
Incoming Excise Invoice
Check the assigned movement type for EI and Register Updates
Maintain Rejection code to cancel the Excise Invoice
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Check SAP Script is assigned
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Thanks
siva

Rejecting subcontracting assembly to 2 or more child part vendors

Dear all
I have a problem in our quality management system of our client
Iu2019m trying to reject a subcontracting assembly (C) made from two child parts A & B
Both child parts A & B are faulty parts and since the child part vendors are certified both the parts have been in-warded to plant and are sent to subcontracting vendor.
Assembly C is made from both the parts A&B which is also in-warded in to plant.
Now I am trying to reject the part C through line rejection/ secondary rejection (QM01) but in my quality management system I can only post assembly part to only one child part.
i.e, sending the assembly part to block stock  posting the assembly stock to one child part  rejecting the child part to child part vendor.
So my question is how should I reject the assembly on both child parts and reject both the child part to their respective vendors.
Regards
NVB

In such scenarios what I understood is When can not actually reject the Child item in assembly independently ....you have to reject the whole assembly.
When you reject the assembly assembly goes by 122 mvt & child items by 542 mvt.Stock at vendor increase for child item.
Now its very much company specific process when it comes to rejection from vendor side.
you have to take help of MM guys for designing such process as Excise comes into picture.
I hope this will add some value

Assembly Process related configs..

Hi,
At Present I am working on " Assembly Processing" (i.e), A project(Project System) has to create, once I create the SO. I have done the config settings in Ps & MM. I want to know the Configs settings in SD for assembly process. ( Already I have defined the Org. Structure for SD)
If anyone know, Pls. share your ideas.
Regards
Prabu

Closed

Problem in Assembly Processing in Project System

Hello All,
My Client want to implement Assembly Processing. We have configured the system as per SAP Standard. we are testing this in Quality System along with SD & PP Modules. we have template which contain Material WBS Process WBS & Other Cost WBS But we are getting all cost of material and process cost on one Material WBS after Production order confirmation. How can we divide this cost separately for Material & Process WBS.
As SAP Standard Process we maintained activities for different process also but when we tested this we are not clear about the use of these activities. We are not getting any cost or don't have any relation in any way for these activities.
Please Help me about this Assembly Process.
Thanks
Warm Regards
Sunil

1. Create a Inquiry in VA11 --OK
*2. Create Quaotation in VA21 wrf to Inquiry*--OK
3. Create a Sales order in VA01, while creating sales order, as soon as we assign the material component in SD line item a pop will come for entering std wbs, std ntw, network profile. once we enter this at bottom we can see that scheduling is carried out. Note: if we define material/std wbs/std ntw in CN08 then pop will not come. Now check for errors and save the sales order, at bottom we can see that project order is created. Note: Project number is same as sales order no:---OK
4. in Billing plan tab at item level we can see the milestones for new project.--In sales order i don't see any milestone or any type of setting. can you please tell me about this we are not able to execute milestone billing in our case.
Ans to Query: For Milestone billing to work you need to do the following settings in SAPSD
1. Create Billing Plan in SD and assign the Billing Plan to Sales Document type you are using. Path: IMGSDBillingBilling Plan
2. In the above node , do settings for Define Billing Plan Types, Define And Assign Date Categories, Maintain Date Proposals For Billing Plan Types, Assign Billing Plan Types To Sales Document Types, Assign Billing Plan Types To Item Categories.
By doing above settings you will get an additional tab u201CBilling Planu201D in Sales order where you can get the milestones generated for new project. For exiting project you can copy milestones to SD from project.
If you want Billing Plan at sales document item level, assign the billing plan type in Item category.
5. In Sales order we can see that billing lock is set against the milestones.---Not Found
Ans to Query: By doing the above settings as in slno 4, you can see the billing block against the milestone*6.Now open the project in Cj20n and go to network we can see sales order no with line item no.*---OK
7. Now verify the mile stones in the project.--Adding milestone but no effect in billing
*Ans to Query : you can see that milestone no in Sales order and Project will be same. Note: Subject to in your standard network you should have milestones, so that we you create a sales order new milestones will get generated wrt to milestones in Std network. So when project is created you can see mile stones are also created.*8 .check the requirement list in MD04 against the Finished product we can see that requirement is generated againt project wrt to sales order.---No requirement is displayed .
To generate the requirements. Check the settings in requirement class.
9. Run MRP in MDBT/MD02/MD01, based on procurement type in MM , PR's and Pld order will generated. Note: ALL PR's and PLD Orders are account assigned to WBS.---When we execute this MRP this is not picking requirement from project. BOM created by CS01. if we assign material to activity than this MRP is picking requirement from project.
10. Now do Pr>PO>GR>(ALL all accounted against project.--OK
11. Convert Pld order to Production order> release the order> Goods issues against production order.--OK
12. Confirm the Procution order wrt routing operation one by one in CO11N.--OK but we want sageregated cost for material cost and process cost to different WBS as we have material WBS and Process WBS.
Ans to Query: This is not possible because in Assembly order processing single account assignment is only possible for the finished products, and for that finished product routing is also account assigned to the WBS assigned to Production order. So operation cost comes and sits in same WBS. If at all you want to track separately you can transfer the actual cost for process to process WBS in tcode:KB11N
Using KB11N tcode we can manual transfer cost from one WBS to another WBS.13. in cost element reports at projects we can see the cost breakup for all production activities as well as for material.--you mean CJI3 report
*Ans to query: Yes you can see in CJI3 report or in SALR_870135452 report also_*14. settle the production order.----where to settle this production order? and how?
*Ans to Query: For assembly processing account assignment is u201CQu201D so automatically in production order we can see the settlement rule is set against the WBS. So the cost from production order is settled to WBS and subsequently from project to the respective receiver as per settlement rule in project.*
15. conform all activities in Project.----OK CN25 or CJ20N
In any of the above tcodes
16. Do billing in SD as when when mile stone reaches to post actual revenues.----OK
17. run RA in KKA2 and save the RA results--OK
18. Run settlement in CJ88 ---Not using any settlement
19. set the status of Project as Teco and Clsd.---OK
Please let me know if you need more clarifications
Regards
kishore
Edited by: Virendra Pal on Jun 1, 2011 11:53 AM
Please do not use bold and underline text message short cuts etc - in future your posts will be removed
Secondly all that you are mentioning is available in SAP Help or in the wiki

Error coming while creating sales order Thru' Assembly processing.u00A0

Hi,
I am working on assembly processing. when i am creating sales order if order qty when i am giving more then 999 means if i given 1000 kg it giving an error like the exection factor in the network is reduced to 1000 to 1 kg and confimed as 1 kg only and system is giving msg *Change not accepted (execution factor in network too large)* where i have tomodify this .
In above context i would like to brief you that i can't extend quantity more then 999(Three alfabet).
All suggestions will be apreciated with good points.
Regards,
Vishal Kr. Sharma

Hi vishal
Check in MMR the following settings :
1) Base unit of measure
2) sales unit
3) Strategy group maintained in MMR ->MRP 3 view
4) Availability check(sales/general plant view in MMR ) and MRP type (MRP1 view in MMR) has been maintained or not.
5) Check the fields maintained in the MRP 3 view.
Regards
Srinath

Scenario related to Assembly Process in Depot

I have the assembly process in Depot, so I configured Depot as manufacturing plant in SAP.
1. Question is some product I will get through STO and same product will be sold to customer. How do i need to handle this scenario? Because while receiving I will update in RG23A, what is the process of selling? Please explain me the steps.
2. If the depot is doing assembly, whether we need to consider it as manufacturing plant or Depot? in SAP
Thanks,
Venkat
Edited by: venkat venkat on Oct 6, 2008 9:04 PM

not received any response

Ps assembly processing:WBS have not be created when saving the sales order

In the ps assembly processing, I want to generate a network when I create a sales order. So I did the following steps:
1-Use the TCODE cj91 to create a standard WBS "E-000007.1".
2-Use the TCODE cn01 to create a standard network "10000000" and assign the standard WBS "E-000007.1" to it.
3-Use the TCODE cn08 to config the Network Parameters from Sales Order like below:
Material number : 600000-000000-0009
Order Type      : Z301
Std network     : 10000000
Class Type      : 020
Network Profile : Z0001
MRP Controller : 001
Std WBS element : E-000007.1
4-Use the TCODE va01 to create a sales order and add an item with the material "600000-000000-0009" and save.
    When the SAP R/3 System is saving the sales order, a WBS ought to be created u2013 based on the assignment of the standard network to the standard project.But I could not found the WBS.I thought I have do all of steps and could not found the reason.
   So I need the experts give me some useful advice and reference to resolve the problem.Thank you.
Regards
Yoda

Hi,
Maintain strategy group in material master MRP tab....
If problem still persist then check is there any credit block to that customer...if it is release it in VKM3....
Once you release it will create automatically.
Regards

Subcontracting return process

Hi,
Any one can tell me Subcontracting Return Process.
a) I done Return Delivery against the Subcontracting PO
b) in J1IF01 I plan to create a Challan, its showing err..like " Document already exists for material document XXXXX"
Please guide me.
Rgs,
Priya.

HI
Follow the below steps:
Creation of Subcontracting PO (ME21N)
Transfer Posting of Components to Subcontractor (Mvmt Type - 541) (MB1B/ME2O/MIGO)
Creation of Subcontracting Challan w.r.t. Transfer Posting Doc (J1IF01)
Goods Receipt w.r.t. Subcontracting PO and Refer Subcontracting Challan at the time of GR (MIGO) {GR with 101 and auto consumption of components with 543 movement}
Reconciliation of Subcontracting Challan (J1IFQ)
Completion of Subcontracting Challan (J1IF13)
Generation of Annexure IV (J1IFR)
Note: - In this case, you have to maintain the Assessable Value for the Components to be supplied to Vendor in J1ID and also Excise Tax rates for the Chapter IDs linked with these components. So during J1IF01, system will take the Assessable Value as Excise base Value and calculates the Excise Duties by taking Excise Tax Rates.
Regards
Prasanna

Error in Assembly processing

In assembly processing, while i creating a sales order the following error is occur.
*Error when processing network
Message no:V1380
Diagnosis
A technical error has occured.On calling up the assembly interface exception 2 was triggered.The exceptions have the following meanings,
1 = External Block
2 = General Error
3 = Insufficient data for the interface
4 = Order wasnot found
5 = Update has been rejected
6 = Final document number for network is not issued
Procedure:
Inform your system administrator
Pleas anybody give the solution.
Thanks & Regards
Vijay

Hi Veera,
did u follow these pre-requisites:
1. Std. Network (which is assigned to Std. WBS)
2. Network parameters from sales order (CN08)
3. In Material Master maintain SD views and MRP Views
bye
raj

Configurable Networks in Assembly Processing

Hi Gurus,
I have implemented Assembly Processing with configurable networks. I am facing an issue here.
The requirment is to capture the Delivery time ( Z field) from quotation and apply a formula and calculate the normal duration of the activites of the network created on saving the quotation.
I have used Varaiant configuration for the same
I created following characterstics
1. PS_DEL_TIME_TEST - To capture the delivery time from quotation line item
Table Name      VBAP
Field Name      ZZ_DELTIME
2. PS_DURATION - To fill the normal duration of activity
Table Name      AFVGD
Field Name      DAUNO
3. PS_DIST_DUR_TEST- User field of activity
Table Name      AFVGD
Field Name      USR04
The Dependency that is used is
000010     $SELF.PS_DURATION = ($PARENT.PS_DEL_TIME_Test * 30)*
000020     (MDATA PS_DIST_DUR_TEST/100)
Now the problem is that the Delivery time is not captured in quotation level but is not copied to the characterstic value assignment to the network.
Can some one please help me with this?
BR

hi,
refer the below wiki about assembly processing and assignment of configured network.
http://wiki.sdn.sap.com/wiki/display/PLM/AssemblyProcessinProjectSystems
http://wiki.sdn.sap.com/wiki/display/PLM/ADemoonConfigurableNetwork
regards,
Edited by: NAG on Jul 21, 2010 1:28 PM

Querry in Assembly Processing

Hi,
I have created standard WBS E-9818.Using this WBS, I have created standard Network E-9818.Then I have created material M-9818 & made assignment in CN08.
After this when I try to create sales order using order type PS1, it is not creating sales order with no. 9818. But it is creating sales order with no. 12117.Also it creates project with no. E-2117.Ideally speaking it should create project with no.
E-9818.
Please let me know what could be the problem?
Any pointers on this will be highly appreciated.Useful answers will be rewarded with good points.
Regards
Tushar

Hi Tushar,
What the System does is correct.U have created std WBS and assigned them to the activities in STD network.So when ever the Sales order is created,it can create various order types thru assembly processing, since network is an order type 20,it creates std network first thru which it picks up the std WBS to create operative WBS.
So whatever may be your STD wbs id , as soon as a sales order is created ,a project will be created with the last four digits of the sales order as the project id and similarly for the WBS element.
thanx,
reward points if usefull.

MST BP and Periodic BP in Assembly Process

Hi Friends,
Does any one have experience in the past having two types of Billing plans in Assembly Process?.
To elaborate more on this topic is, for example sales order line itme (10) has a blling plan copied from project (this would be either value basis or %basis milestones). These milestones were billed as and when milestones were confirmed from project.
I wanted to add one more line item (20) on same sales order which has periodic billing plan. Here, the billin plan will effect monthly as maintained.
Is it possible to have such kind of process?. Please let me have your opinion on this.
Thanks in advance.
Regards,
PSR

Hi Krisap,
Thaks for your reply. Yes you are right, both lines have different item categories (which I missed to post in my thread). Pros and cons of maintance of point of view.
Waiting for few more opinions from other members on my requirement.
Regards,
PSR

Assembly Processing Error

Hi,
When I try to create a sales order for assembly processing, I get
these two errors one after the other and the Sales order creation
terminates. Does Anyone have an idea?
"Error when process Production order"
"Order type PS04 not found(check entry)"
do you know where it's looking for a production order? I don't know
what in the material master or the sales order is triggering this.
I have assigned a requirements type KMPN, requirements class 212,
strategy group 83 in the material master. Sales document type is OR
(Standard Order). I have created a standard network and WBS and
assigned them to the material master in CN08. Is there any other
setting(s) I am missing?
Regards,
Venkat.

Strategy group should be 85. Check this:
http://help.sap.com/saphelp_erp60_sp/helpdata/en/95/1613ab837b11d2b6700000e82d8bd1/content.htm
Regards

Querries about Assembly Processing

Hi,
In our scenario we planned to trigger Project thru sales order.We did the necessary setting. In standard WBS I defined one header level WBS & below it four 2nd level WBS.but the Project which generated the SD document contains only one Header level WBS n Network Header only. Can I trigger the entire project hierarchy say of @ 100 WBS & 150 networks with material thru SD document by definining a single sales material ? if yes How ? Wht should be the process flow in scenarios of Assembly processing where i hv to generate project thru Sales document. also I want to run MRP for production ?
Pl suggest.
Rgds

Hi,
It seems that you have assigned only top level WBS to standard network. Goto CN02 enter your standard neywork and click on Total tab and assign other WBS to activities.
You can create only 1 network for 1 line item, number of WBS can be more than 1 provided they are defined as standard WBS and assigned to standard network.
Refer this link thouroghly:
http://help.sap.com/saphelp_erp60_sp/helpdata/en/ab/5d4868733311d2b6600000e82d8bd1/frameset.htm
Regards

Subcontracting Assembly Process

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