Subcontracting material rejected at vendor location

Hello,
My client has sent material to subcontractor.he has created subcontracting challen with respect to material document.at vendor location two materials has rejected.How to reduce these materials in already issued challen.please do the needful.

Hi
Lets say by 541 movement you have sent the material to vendor and if it got rejected at vendor end then you ask vendor to send it back and in system by MB11 use movement type 542 to book the rejected qty first and then move to block stock.
Please check
Kishor

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Subcontracted material in storage location

Dear gurus,
I did a 101 movement in MIGO and the system did a 543 for the components to relieve the material from vendor but I can't see the material at our storage location.
With best regards and Happy Diwali to all my friends.
Syed

Hi Syed,
Subcontracting PO concept itself is this -
You will provide some components to vendor (using 541 mvt type before hand)
Vendor completes manufacture of the finished product for you. This FG you will enter as item to be procured from the vendor in the pO with item category L
The bom maintained in CS03 provides components list to be sent to vendor (you may find within the PO at the item -->Material Data tab...click the higherarchy icon on the right side within this tab.
Now, when you receive finished product from your subcon vendor, it posts with 101 for FG and components are consumed automatically with 543. Hope, it is clear now...
Regards

How to clear the stock of material provided to vendor(subcontracting stock)

Hi SAP Gurus,
Please let me know how to clear the stock of material provided to vendor(subcontracting stock) and need your help in what senario this stock will show in " Matl prov. to vendor "
Thanks and Regards,
SHARAN.

Hi Sharan,
Matl Povided to Vendor stock will appear in Subcontracting scenario.
If at all you have given some material to a subcontractor , this will be consumed automaticaly when you will recieve the ordered material from subcontractor.that is 543 movement will take place in the backgroung when u do the GR.
In case if u need to clear the stock u can do 542 and take the stock back to unrestricted.
Edited by: Donsandy on Jan 21, 2009 6:19 PM

MM Subcontracting with material applied by vendor

Dear all ,
I have to input into Subcontrating Purchase order a new line to represent the material applied by vendor. The problem of this scenario is that I must put the value of this material applied(second line of PO) as part of costs of main item.
I could not use condition at pricing to simulate this into the MIRO.
Does anyone know this scenario ? How could I do that in this way ?
best regards,
Ale

Hi dear Charlie !
thx for your reply !
Well I could not use delivery costs conditions at pricing because after that I must use by one brazilian fiscal requirement use the additional item at PO to open at "Nota fiscal" that is a fiscal document valid here in Brazil , and I use it on MIRO.
Thx for your quick reply.
best regards,
Ale

Goods receipt for subcontracting material

Hello friends,
i am doing operation subcontractiing. My first operation is subcontracted. So, I have assigned PP02 control key to first operation (external processing and no auto goods receipt indicator) and maintained external processing data for opration in routing. When i saved the order, for that operation PR gets generated.
Now, I converted PR into PO and assigned raw material that has to be send to vendor. By 541 mvt. type material is issued to vendor. When i do goods receipt in MIGO, system is not showing storage location field. I dont find material in stock anywhere.
But i can see quantity received in external processing tab of first operation in routing overveiw in order.
Then how can i issue the material from storage for second operation if it is not in stock?
How can i get stock of subcontracted material by MIGO?
Please help me.
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.
If you really want to track, then you need to create an additional material number and assign that material number with Special Procurement key "30", here in this case you can recieve the product after subcontract as this is product sub contract process. In this case Production order is not relevant.
Regards,
Prasobh

MB1B Transfer posting 311Q ( Material provided to vendor ) ......

Hello
Subcontracting process useing movement type (311 Q)
in the trasaction MB1B. i wold like to fetch the components from the PO , like 541.
error "Combination of movement type 311 Q and function selected not possible "
please help me

you cannot consume with 543 if you have not move any stock with 541, even you created a storage location.
The storage location is useless for the consumption, except you use the PP subcontracting process instead of the MM subcontracting process.
A storage location for the subcontractor is usually on created for the case that you send materials directly from subcontractor to customer. in this case you receive the finished material into that location, but for consumption in MM subcontracting process no storage location is involved. the material has to be in special stock O and is only monitored at plant level, instead of storage location the vendor is shon in stock overview MMBE.
In PP subcontracting process, you create a production order yourself to consume the materials, only the service fee is ordered via a PO that is linked to this production order. the calculation of the finished material is made from the production order. you then have to receive twice, you do MIGO to confirm that you got the service, and you receive the quantity to the production order.

Subcontracting material in Blocked QI stock

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?
Thxs.
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

Plants inventory at Vendor Location

Hi All,
This is something interesting I came to know from my client. Here is the current business process
There is a vendor who we subcontract work to but all the parts are inventoried at the vendor location even before the contract work begins. Until then, the inventory is owned by the plant and the vendor need to cut a Purchase Order everytime they want to consume
This can be well explained as an opposite scenario for vendor consignment. In vendor consignment scenario, plant stocks material that belongs to vendor and cut a PO when required to consume.
Can someone please explain if you ever faced a scenario(underlined above) and how to deal with it in SAP?
Thanks in Advance,
MG

Hi Sridhar,
Thanks for replying. I didn't quite understand your answer. May be my question is not clear.
There is only one plant and one vendor. This vendor is setup to do subcontracting work. But, the materials required for performing the work is already stocked at vendor's own site. This stock is owned by the plant not by the vendor.
Once the plant gets a request to make a product from a customer, the materials stored at the vendor location are then sold to vendor (then those materials are owned by vendor and taken off the ledger in the plant).
How can we set this up in SAP?
Thanks,
MG

How do we manage own stock stored at a vendors location?

Hello all,
We have a number of inventory items that we have purchased but due to the vendor maintaining optimum storage conditions we have stored at the vendor.
This is sort of an opposite scenaro to the consignment process.
Is there a way of holding valuated stock against a vendor ?
- The obvious is a separate plant or storage location, but ideally we'd like to use the vendor number is a similar way to consigment stock only that the inventory would be valuated (and therefore paid for upfront and not on consumption).
We'll likely incurr a cost to transfer from the vendor's site to our site which suggests a seperate plant is appropriate as a transfer PO could be used with a freight condition to get the correct material value at our site.
All suggestions and comments welcome.
thank you
Steve.

Steve,
Check whether the below process will work for you.
As Jurgen suggested store the Stock as SC stock (Subcontracting stock at vendor location). By doing so the Stocks will be stored under the vendor number (as prefrerred by you). In order to handle the transportation cost during the tranfer of stocks to own site use Subcontracting PO and in BOM/ componenets maintain the material as a recursive item. If required you can maintain it as a free item (as there is no actual subcontacting charges involved). By doing a GR for the Subcon PO you can receive the stock at your own site and the SC stock would get consumed. The transportation costs too will be handled appropraitely by given them as the Header condition in the Subcon PO.
And as Jurgen indicated to optimize the process when the procurment is made for these materials the delivery address can be maintained as the Vendors addresss with the SC indicator checked.By doing so you can purchase and receive the Materials directly as SC stock.
Regards,
Kathir
Edited by: Kathiravan Jegatheesan on Apr 16, 2010 11:37 AM

Rejection to vendor

Hi All,
I have procured raw material (MAT1) from vendor A. After making GR, MAT1 is sent to vendor B for further processing (to convert it to MAT2 which is HALB). During processing (i.e after completing 50% of the machining), Vendor B reports that there is a defect in MAT1 (example Blow hole). At this point Vendor B stops machining & sends back the material, which is 50% machined.
Now I have to make payment for vendor B for 50% of the machining & reject the material back to vendor A.
How to map this scenario in SAP ?
Regards,
Krishna A S V

Hi,
The subcontract process has NOT been completed so I would not suggest receiving the subcontract PO in any way. After all I assume that you still want the item you requested originally and so the PO is still fully open.
There is no fully automatic process for this and so some manual effort will be required.
Firstly you have to bring back the stock of the component into your stock (with a 542 o movement)and then return this to the original vendor for credit or replacement. This will bring your stock quantities into line with the real situation. You then have to wait for the replacement (or repaired item to come back from the vendor and then continue the process again (unless you have another item in your stock that you can send to the subcontractor).
This leaves the problem of how to pay 50% of the cost to the subcontractor. I would simply raise a new, normal PO (cost assigned but referencing the finished item material number so that the costs can be reflected in this, if you want them to be). This should then sort out the money you owe the subcontractor.
Any solution for this is not going to be a simple one and so you have to choose the solution with the least complexity that solves the problem and also retains the correct stock, accounting and audit trail.
Steve B

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).
I would like to know how to address this issue.
What We tried
Standard SAP is allowing the vendor's Packaging material to be "received" from the vendor when we Purchase material from the vendor using movement type 501 'M'. After this, we are able to see this as a "special stock" as RTP ( Returnable Transport Packaging ) in T code MMBE. After this we can issue the packaging material back to the vendor using movement type 502 'M' . There is also a provision to send " our" packaging material to a customer through a Sale order, and receive it back from them.
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.
So how else do we address this issue ?
Regards,
Velu

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.
So while doing GR for the sub contracting, system post automatically 543 and 545. Hope this is useful, if it is so, your rewards are awaited .
Regards,
Chinna

Material issued towards vendor

Hi
1.Stores material issued towards vendor which can be deducted from his invoice.
2.Vendor involves in a activity/work
Eg. Construction
3. Cement bag cost should be bare by vendor, but he avails it from stores, which can be settled against his bill
Question
1.How to capture the goods issue in MIGO to control the vendor invoice.
Note : Vendor is one time.
Please guide.
Regards
Sr

It not clear ? Why u give mat to venmdor . Iis it Subcontracting Process .If not proceed as follows
U need to create the vendor as a customer , Do delivery and PGI, Bill the customer , and when customet gives the amout , clear the customer .
OR
1.Stores material issued towards vendor which can be deducted from his invoice.( CREATE SEPERATE CR MEMO FOR THE SAME - INVOIVE POST AND CREATE CR MEMO)
2.Vendor involves in a activity/work
Eg. Construction
3. Cement bag cost should be bare by vendor, but he avails it from stores, which can be settled against his bill
Question
1.How to capture the goods issue in MIGO to control the vendor invoice.(CREATE RETURN PO - ITEM TICKED RETURN, DO MIGO -161 MVT TYPE , cr memo)
Note : Vendor is one time.
Please guide.
Regards
Sr
rewdzzz

Material Modification external vendor

Dear Experts,
Please render advise,
Scenario: One of our client is to modify its material from external vendor. However only particular material is supplied without components. The additional component(s) is used on this particular material by the vendor itself and then modified material is delivered back to the our client along with the additional services and component charges on invoice.
How this scenario is going to be catered in SAP?
Thanks in advance!

This will be a subcontracting scenario even though you dont send the material to vendor and vendor buys its own material.
You can raise a PO with two line items or may be create two PO's.
1. 1st line item will be for the material that will be procured by the vendor and in the delivery address tab tick SC vendor with vendor code as as ordering vendor since in your case its same. Create the PO for the component which will be directly supplied to sub contractor.( it can be same PO with different line items or different po)
2. 2nd line item will be for material that will be received back by you as value addition. The Sub contracting PO has to be created with all the child components including the which will be directly delivered from other vendor.
3. When the 101 O goods receipt document is created through MIGO for the direct delivery material, the Sub contracting challans has to be created for the sub contractor. In case cenvat also has to be received you will have to DO GR with not excise entry else you will have problem in reconciallation of challan. And if there is a cenvatable credit available for the 101 O goods then it has to be availed through J1IEX with EWPO method.
4. God goods received for the line item 2
Regards
Sangeeta

Packaging material given to vendor

Hi ..
We have a business case where our client is supplying packaging material (pallets) to suppliers and they pack their material in those packaging and supply to our client.
Expenses incurred for such packaging are expensed off but my client wants to track the inventory of packaging material lying with each vendor.
Client is procuring these packaging material based on ROP.
How can I map this business process
regards
Suresh/-

Hello
You can do so by;
Pre condition:
Create two material master
a) First material is stock material (ROH, HALB, HAWA, etc.)
b) Second material (RTP material) should be created as material type UNBW
PR creation for only the stock material (lextest1)
Initial stock status MMBE
PO for only the stock material
MIGO
1st stage (inward only for the stock material)
MIGO
2nd stage
In the same screen
The scrren will appear like this
The above screen at the item level for the second item asking for the input of material without purchase order
Input the RTP material code
Input the qty of the RTP material
Movement type 501 will come as default. Input the special stock indictor M (Ret. Trans pkg vendor), Input the plant and storage location
Input vendor code (if the same vendor is supplying the RTP material then input his code, otherwise input the vendor code from whom u receive the material this will facilitate if u want to send the RTP material to different vendor)
Material doc number will be as follows
Stock overview will be as follows
Showing RTP material belongs to vendor 26657
Sending back the RTP material to Vendor
T.code : MB1C
Input the vendor code, Material code, Qty
Material doc number for returning to vendor
Teh above documents contains screenshots, you can send your mail id to my mail id. I can send it teh Doc file.
My id is
[email protected]
regards
Murali

PROBLEM -MATERIAL REJECTION

Our client has purchased material through OLD ERP system.Now,we want to return the material to supplier due to rejection. It is to be sent through SAP.I have tested the following scenario-
1) Created return PO.
2) Made MIGO . For excise challan , I have put the original Suppliers challan no..& excise amount (delers excise)
3) Posted the excise challan through J1IEX.
4) Created outgoing excise challan through J1IS.
5) Posted MIRO.
Step No.2 (MIGO) Created debit entry in RG23A Part 1.
Step No. 3 (J1IEX) posted credit entry in RG23A Part 2 .
Step No.4 (J1IS) Created debit entry in RG23A Part 2.
Without Step No.3,entries of excise in MIRO are not appearing.
Is the above scenario & postings correct? Pl.comment & suggest. Rewards points will be awarded.

Hi,
As per the business requirement, now you should return the HALB Material only because the Physical existance of ROH Material is vanished. And Practically also HALB Material should get returned to Vendor.
Create Return Delivery to Vendor w.r.t. GR Document in MIGO. During this transaction, remove "Item OK" indicator for the components i.e. ROH Materials and keep it active only for HALB Material.
And when you get the HALB material back from vendor after repair then do GR only for HALB material and remove the "Item OK" indicator for ROH Materials.

Subcontracting material rejected at vendor location

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