Subcontracting material posting

Hi friends,
We issued 4 raw materials to subcontractor for job work. He produced 2 finished goods with 2 raw materials.
He gave materials to us finished goods2 and raw materials 2 ( return raw materials 2 as it is ).
Now how to i post entries in migo for finished goods 2 and raw materials 2.
give me suggestions.
Regards,
Basha.

Hi
He gave materials to us finished goods2 and raw materials 2 ( return raw materials 2 as it is ).
When you give row material to vendor ,he produce finished goods and utilize your row material
Now he sending material to you finished material and row ( as per you) but i think it should be consider as scrap
check following link
[Scrap generated in subcontracting;
revert back if any query
Regards
kailas Ugale
Edited by: kailasugale on Nov 16, 2011 3:11 PM

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Hi all-
We have some material that we subcontract out and the material has QI inspect required on it. The material was received into a subcontractor and we are now having a bit of an issue getting it out of QI/blocked stock.
I am not seeing an inspection lot for the material that we can release, nor can I cancel the receipt of the material, and I am unable to do a transfer posting from block to unrestricted since I do not have a storage location. Can I get some guidance on what I may be missing?
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Larry

hi,
You are doing the subcontracting process totally wrong....this is because for VENDOR Subcontractor we have only Unrestricted stock type to which you post via 541....
The reason for having one stock type is because the reason you have given above....Ie. it has no storage location...
So, that's the reason we valuated the subcontracting material at plant level only....
Now you should try to cancel the posting...and try to make the new one...
I hope you understand the reason....
Regards
Priyanka.P

Returnable transport packaging for Subcontracting material

Dear All,
I have a doubt regarding a new process to be followed in our company. We need to issue raw material to our subcontractor for processing. We also intend to send packaging material to the subcontractor along with the raw material. Ie We are sending the raw material to the subcontractor along with the packaging material ( say, in boxes).
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What We tried
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But is there any standard process for sending "our" packaging to a subcontractor and receiving it back from them ?
We also tried including the packaging material in BOM, and sending it through 541 movement but in this case, when we perform Goods receipt ( 101 movement of the parent material ), the packaging material gets consumed, which should not happen. We want them back in stock.
We also tried using the option "Non - Ordered item" for the packaging material while performing Goods Receipt of the parent material. But this would increase the stock of the packaging material without us even issuing the same to the vendor initially. ie More stock will be there than is actually present.
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Hi Velu,
This scenario can be automated as well in BOM.
While maintaining the BOM for the subcontracting material, include the packaging component as twice, but one with negative quantity. PFB screen shot.
Also turn of the costing relevancy indicator and maintain material provision indicator as "K"(customer material) for both the line item.
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Regards,
Chinna

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Hello,
Is it possible to mark labour costs on a subcontracting Material as cost not relevant during costing valuation on a per material basis? We would like to implement subcontracting, but keep the ability to mark the labour as cost not relevant for some materials.
Any suggestions appreciated.
M

Hi
Welcome to SDN!
Lab cost relevant or not is decided at Cost Comp Structure Level in OKTZ... This applies to the Plant / Comp Code as a whole
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Hi all,
I have an issue while doing material posting through Usage Decision. Please find below the details.
Inspection Lot 10000604689
Material        1730PCPBS.0031
Batch           QP611097      GQ02
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To sample usage                         2
Following error appears,
Deficit of SL Stck.in qual.insp 1,638 NO : 1730PCPBS.0031 62GQ GQ02 QP611097
Message no. M7021
Diagnosis
Shortfall below the specified stock level or quantity amounting to 1,638 NO.
System Response
If the message is an error message (E), the above is not allowed.
If the message is a warning message (W), the system will allow your input, but the warning is intended to prevent you entering a wrong quantity.
Procedure
In the case of a warning message, check the quantity entered.
In the case of an error message, change the quantity or terminate processing.
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Hi Brijesh,
What is the status of inspection lot?
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Moving average price of subcontracted material not picked for Cost estimation

Hi Experts
I have the below scenario:
Finshed Product A has components B, C.
C is a subcontacted material and it has its own BOM with components D & E.
We are maintaining moving average price for the subcontracted material C, (because the subcontracter is adding X & Y in addtion to the components D and E, which are sent from us).
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I maintained the below valuation variant settings.
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Please advice.
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Bala

Hi Big choi
Thanks for your response.
I understand.
1. if we maintain spl. procureent key 30, system calculates standard cost based on raw material and service charges.
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Hello friends,
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Thanks in advance!

Kiran,
Since your scenario is Subcontract of operations, you will not find a material referance in your PR/PO, so there is no GR of Material happening, in this Scenario GR means delivery of the operation.
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Hi,
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Diagnosis
Handling unit 2001422 contains more than one item. The goods movement posts the items to storage locations with different HU-management strategies. The stock contained in one handling unit can be located either only in HU-managed storage locations or only in non-HU storage locations.
Procedure
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Post all items to a non-HU storage location
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I am not sure what in configuration is missing opr what master data is not set up correctly.
Please help.
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Kalyan

Hi,
different cases can cause the error message hugeneral327. In most cases this error message is shown when stock determination is used together with handling unit management. This is not supported in standard.
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Ely

HU items' material posting is inconsistent

Outbound delivery confirmations IDOCs are failing when the material has a stock determation rule and is assigned to a Handling Unit.
I reviewed SAP notes 550289, 605629, 952440.
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HU items' material posting is inconsistent
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Diagnosis
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Logistics General>HUM>General>MM>IM-->HU Requirement for Storage Locations and Default Values for
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Hello,
I am having the same problem when I want to use stock determination and HUM in the delivery GI. The add-on solution that SAP wants to get paid does not apply to the US country yet. So I am not sure if SAP has solution available.
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Thanks,

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Guru

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Hello Gurus,
There is scheduling agreement with subcontracted material.
While maintaining the schdule with ME38 , I want to make the warning message of "Please create components" ME114 as error message. I went into configuration and set this message as " E" . But still while maintaining the schdule with ME38 , I am getting this message as Warning only and not error message.
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Thank you for your reply.
By going into the T code OBMSG , and doing the needful config., still result is not achieved.
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thank u in advance

Hi Ram
Nobody is getting your requirement. Please explain your question.
Thanks & Regards
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Subcontract material

Hi Experts,
Please tell me following.
1. In costing variant --- Valuation variant -
Overhead , there is check box for Overhead on subcontracted material
I want to know what & where do I get its effect if I mark or unmark this check box.
2. I have fully processed on process order till GR,in which I did not issue extra raw material quantity. Status of order now is REL CNF DLV PRC BASC BCRQ GMPS MACM . where I found Total target cost for component is 1040.70 & Total actual cost 1041.00
& Target/Actual varience is 0.30. Why system showing this variances as I issued only planned quantity.
Regards,

Hi,
Pasting SAP help, guess it is quite descriptive & should answer your query, else revert.
Regards,
Vivek
Overhead on Subcontracted Materials
Indicator specifying whether, in respect of materials subject to subcontracting, overhead is applied in accordance with the costing sheet in the valuation variant.
Use
Set this indicator if you want to apply overhead to subcontracted materials (for example, to include material and administrative overhead).
Note
The application of overhead to subcontracted materials is included in material costing as well in unit costing on a manual basis for any subcontracting items entered.
Dependencies
When a material cost estimate is transferred to a unit cost estimate, items are flagged as Do not apply overhead if the indicator is not set in the valuation variant of the receiving object.

Subcontracting Material MRP.

Hi friends,
Here is my issue,
We have a material 'A' which is a subcontracting material and its subrequired material is 'B'.
when we run MRP (MD04) for the material 'A', here it generating the PR's as required. but when we run
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Why it is generating the pldOrd for the material B
Please explain why it is happening and how it should be corrected.
Regards,
Mohan.

Hi,
Check the below settings
1. For Matrl A Ensure the MRP2 , Procurement key is F and spl.proc.key is 30
2.For Matrl B ensure the MRP2 has the Proc key F if you are buying this product externally
Hope you would have maintained BOM as Matrl A header and Matrl B as lower material
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Material posting to GL

I don't know much about FICO or Accounting, but if I want to set to which GL account a specific material must post to, where do I do that. The process starts with a Sales Order, then a Billing document, and the Billing Doc automatically generates an Accounting Document. this specific material post to the wrong GL, wheredo I change it and direct the posting to the correct GL.

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Subcontracting material posting

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