SUBCONTRACTING(BY-PRODUCT)

HI,
I wnt to map following scenario :-
We are having a bar of length of 5000mm(A)
We want to cut it in two bar 3000mm(B) and 2000mm(C)
Material master for all 3 material were created.
I am creating a PO for 3000mm (B) with item cat L
In component I am mentioning material 5000mm (A)
and 2000mm(C) in negative quantity.
with MB1B material 5000mm bar (A) is supplied to vendor
at the time of GR Stock of 3000mm (B) is update with mvt typ 101 stock of 5000mm (A) is consumed
and stock of 2000mm (C) is showing at vendor for this material mvt typ 545-O is generated automatically.
how can I transfer that stock or is it possible to change that automatic movement 545-O
Thanks
Prakash

Hi
Once GR is done then the by product will update at the vendor side with 545-O mvt type.
these By Product can be transfered to the Plant from vendor using MB1B 542 mvt type.
This is the option you have to get the material transfer to plant.
From there you can proceed the material as per that -- Scrap or use for other purpose.
rgds
gsc

Similar Messages

Subcontracting in Production, 2 subcontracting vendors involved

Hi,
We have a scenario where in production 4 operations needs to be performed, one of which is a external process [subcontracting]
Process 1 - Drilling
Process 2 & 3 - Subcontracting [External process] u2013 2 processes
Process 4 u2013 Finishing
After drilling process, material is sent to subcontractor A for cutting, after this is done Vendor A will sent product to Vendor B directly for further operation . Once this is done We receive from Vendor B
Then it will go to Process 4 [Finishing]
Can you please help in mapping this scenario in SAP
If there is only one vendor involved then I believe process will be like one subcontract PR [system creates automatically], we issue goods and we receive finished goods
In this case Subcontract vendor A sends directly to Vendor B
Both Vendor A and B sends invoice to US
Any pointers in this regards will be of great help
Thanks

Hi ,
While raising the subcontracting order for vendor A enter Delivery address vendor B address & save.
Raise one more P.O(subcontracting ) with vendor B
when vendor supplied material to vendor do the migo.
then in sap stock will increase at vendor B.
when material recieved from vendor B do migo stock will increaes in respective plant.
you can procees invoice with P.O wise
Try this one & let me know
Rgds
venkat

Subcontracting Semifinished Product, without providing component to Subcon.

Dear all
I have the following scenario for subcontracting, all involvoing placing Subcon PO for Semifinished Product, GI raw materials and GR Semifnished Product back for further production processing in the own factory.
Scenario:
My factory places a subcon PO for chroming a raw metal (FG = Chromed Metal). We only provide the raw metal but do not provide the Chroming paint (GI only raw metal to subcontractor), Subcontractor will use their own Chroming paint. After chroming the raw metal, we will perform a GR for Chromed Metal from the subcontractor.
My question, how do we tackle this in subcontracting? As we never provide the Chroming Paint. Does it mean I create a single item single level bom and at the time of Invoice verification, I will put in 2 lines item Subcon Service + Chroming Paint?
Please advise.

Sorry, YMREDDY, I just want to confirm.
Hi
Question: In that case, I just changed the BOM Header to put HALB (Chromed Metal) and Component as ROH?
Question: In that case, I will only GI Raw Metal (ROH Material in BOM Component) and then GR the HALB, that is it?
If you are doing as above , you can as well go ahead with subcon it self ?
And you include the cost of chrome paint in your subcontrating cost.
Pl. try.
Regards
YMREDDY
You put a question mark at "you can as well go ahead with subcon itself?". What does it mean? Is my previous 2 quesions set the correct logic?
Thanks.

Subcontracting in Production Planning

hi all,
I have to configure a matl for sub-contracting for some operations. plz help me what r the configurations to be done?
thanks in advance

Hi Suresh
Since you will do 3rd & 4th operation at subcontarctors end, keep control key PP02 viz meant for ext processing in opr 30& 40 in the routing. (PP02 is maintained in OPJ8)
Once you allocate PP02 to operations ,the system will ask for the info record no as below (which is displayed when you create info record using ME11 under category "subcontracting")
Then after you confirm opr 20 using CO11N, the ext processing has to be started.
Go to opr overview in the prod order, choose opr 30 / 40 & double click.
Get the PR no. from the ext processing tab. Then convert into a PO usning ME58
You can send the raw matrl to the contractor using ME2O or MB1B (541 mvnt).
Then after the completion of sub -contracting work receive the semi-finished material using MIGO (101 movement for subcont material)
Lastly MB31 for GR Posting
Close the thread if resolved
Rgds

Subcontracting thru production order

Hi,
When the control key PP02 is assigned for external processing, the order automatically generates a purchase requisition. If the sub-contracting check box is checked in external processing tab, the PR has item category "L".
But I need to know whether it is possible to create a "service PR" through PP order.
Regards
Sampath

Hello,
I think this is possible through maintenence orders..not from production orders.
Regards
TAJUDDIN

What are the accounts generated in subcontracting in MM module?

I want the account transactions which are debitd and credited in subcontracting transaction from MM point of view?

Hi Srinivas
Here is the Complete Sub Contracting Cycle and Accounts
(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.
Thanks

Subcontracting with discontinued parts

We use discontinuations all the time but now we are fully subcontracting some products and the discontinuation is not being planned for either the old part or the new part. SAP help clearly says that subreq discontinuation is not planned but with several parts at any one time on boms of over 200 parts, we just can't manually manage this.
I don't believe we are the only one with this problem but I am unable to find any solution - please help!
Thanks

Hi Krishna,
Thanks for your reply but I don't understand how safety stock would work. Are you suggesting loading safety stock against the new part?
We have 12+ weeks lead times and constantly changing forecasts. The discontinuation worked very well in managing the old part down to zero stock with all the variables involved but safety stock is a fixed figure?
Please advise.
Donna

Subcontracting b/n two company codes

Hi friends
i have caome across the subcontracting scenario which takes place between two company code with their respective plants, Please Provide best way to map the scenario
Thanks
Regards
Deepak.Goura
SAP-Consultant

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 ?
Vijay
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.
B.N.Rao
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.
SAP MM Tips by : Sundaramoorthi
Email : [email protected]
Editor Note:
- 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

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.

Purchase Order of Subcontract process

how do you raise a Purchase Order for a subcontract process. In JDEdwards, we use OX type to create a requirement to generate a PO on a line in the Routing. Not sure how it works in SAP

Hi,
Check the below links...
Subcontracting process in Production
Assembly Subcontracting in Production
Thanks
Kumar

Subcontracting Process

Hi
If any one can explain in detail about scenario material vendor posting directly to subcontracting vendor
It 's very urgent
Thanks & Regards,
Sadhish

Hi Sadhish,
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
Hope it wud have answered ur question
Reward if useful
Aasif

Please help with subcontracting scenario............

Hi All,
Can anyone please help me in dealing with subcontracting scenario with scrap taken into account. Please provide the screen shots from BOm creatio to challan closing. the requirement is urgent. please help me. all replies will be suitablly rewarded.
regards,
vvr sharma

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
Hope this is helpful.
Regards
Ravi

Selection of bom manually in subcontracting order

hi experts,
I have to do some of the products externally.
we are maintaining 3- 4 alternative boms for each product.
They dont want any selection options.
They have to select bom manually when creating subcontracting order.
Is it possible ,pls guide me
thanks
K.Bhuvaneswaran

Dear Bhuvaneswaran,
check this
[Subcontracting with Production Version |http://help.sap.com/saphelp_46c/helpdata/en/b2/fa1ed4d51d11d1a69e0000e83235d4/frameset.htm]
Regards
Mangalraj.S

Vendor product relation not transfered from ECC to APO

Hi,
I am new to APO.
We are transferring the info records(me13n) details from ECC to APO by CIF .
But in APO system , when I check the product for the location(/sapapo/mat1) it says the product is not created for vendor.
but this details are present in info records in ECC.
Hence currently, we are manually creating the products for vendor.
Is there any BADI where all vendor-product link can be transferred

Hi Rachel,
You can use BAdI: /SAPAPO/CIF_ENHANCE_TPSRC (method CHANGE).
Take a look at SAP Note:
1873917 - CIF Purchasing Info Record - Product does not exist at
Vendor location
I never used that BAdI, but we made something similar. We made an enhancement some time ago to extend the Product at the Vendor Location. This was done for subcontracting at the time the PPM was transferred. I am not sure if this is your case, because you just mentioned that you needed for a vendor. If it applies, please check here:
483358
- Subcontracting: creating product masters automatically
Kind Regards,
Mariano

Cofiguration step for SubContracting Order Cycle (SCO)

Pls,provide me the the configuration steps of SCO(Suncontracting Order Cycle)

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. (special procurement type should be 30 in material MRP2 view for the mateiral you are getting back from subcontractor)
(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.

SUBCONTRACTING(BY-PRODUCT)

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