Subcontracting or service Po

Hi,
We are sending machines to a vendor for repair. Most of the times we are providing the spares- say as an example gear to the vendor. Sometimes vendor can also use this gear from his own if it is not available with us. In addition if required some other spare in the machine need to be changed, he can use his own spare.
He sends us the bills for his services and of spares if he has used any.
This scenario will fit in which process- Subcontracting or service Po?
If it is service PO than how can we issue the material to the vendor and how the accounting entries will look like?
Regards
Neeru

Hi Neeru,
In your case better is to send a subcontracting PO for the Finished component you required from the subcontractor.
and you can maintain the same value in subcontracting Info record irrespective of the material he use .
Now if he uses gears from his own which is defined in your BOM but you havent provided but vendor fited from his own
in this scenario raise a PO to that vendor for that component and provide the drop shipment info in the delivery tab
as subcontractor this will replenish the material at that vendor end. And now when you are doing ME20 you will have already material at vendor end if you have raised this PO before or if after raising subcontract PO you can provide it and it will be
in the stocks of Vendor and now at MIGO you can collectivelly do the 543 movement of this components.
This will stream line your process into two steps without faults else you will awlays have a mess ann will hard to account for.
still you can look into another options but I encountered the same situation and we adopted this method which is working well.
Cheers,
Biren Agnihotri

Similar Messages

Subcontracting - combining services and components

Hi,
I've also posted this thread in the EAM forum but as this is a general topic - subcontracting - it is also posted here:
Is it possible to send components on a PM03 (external services) operation for subcontracting?
To be more clear: we've defined the following starting scenario's:
1) send an item for an analysis - positiontype L / PM02 operation
2) send an item for a modification directly - position type L / PM02 operation
Ad1:
The subcontractor might report back that the item sent needs to be overhauled or should be modified. In any way, a certain service (modification) should be carried out. This service is predefined in the system in a service master record. We currently process this service as a PM03 operation in the PM order and stipulates a service preq and PO. So send the item on PM02, add another line - PM03 - to handle to service. We do a GR on the PM02 operation and do a service entry sheet receipt for the service performed.
Ad2)
The item will be modified and shipped back. Only PM02 is applicable and only a GR will be performed.
The service / modification will be handled as a PM03 operation as the item is already at the subcontractor. Would it also be possible to only use a PM03 and add send the item on this PM03 operation as well? I.e. somehow combine position type S and L?
Or would material type Service (DIEN) be suitable for this?
Thanks for the suggestions.

how about some sample code... from you, I mean, but here's what I would do:
public class MyPanel extends JPane {
   public void paintComponent(Graphics g) {
      super.paintComponent(g);
      // add custom painting code here
}And just add components to the panel with the add method. I'm not sure what you are doing, but I see no reason that won't work.
However there could easily be issues with alignment of components vs what's drawn on the panel. Furthermore, many components, like textfields are not going to be transparent and the bounds of the component may not be quite what you think, thus causing overlap issues.

Subcontract Service PO Help

Dear all,
I have doubts in creating subcontract service PO. Here is my scenario. I have a project going on which i hire subcontractors to perform the planned activities. Thus, i created on Service Purchase Order in ME21N and listed the activities performed.
1) I need to make an advance payment of 10%. How do i make an entry in SES to allow accounts make the advance payment?
2) Sometimes, there will be partial payments. And after the project is completed, there may be late penalty for example 5%. But after doing SES for the partial payments, i am not able to modify the PO pricing conditions since it has already done SES. How do i go about this problem?
Appreciate if anyone could help.
Thanks

Hi,
you can save invoices before GR documents when you set up your system according to the information from knowledge base article 1496165.
Regarding subcontracting in service PO item, please refer to note note 634395, question 1.
Regards,
Edit

Subcontracting services to repair the customer material

Hello,
I need your help to the following scenario:
1. Company 1: I receive from our customer a material (the material belongs to him) to repair. Then I need to post it and the material needs to appear in the stock as material of the third partner in our company. The Nota Fiscal has the CFOP 5949, no taxes.
2. Company 1: Then, I pick up this material and send out to our supplier to make the repair. Nota Fiscal CFOP 5940, no taxes.
3. Company 2: As I'm also the supplier in another plant, I receive this material, make the repair and send it back to the customer, in the step 2. Nota Fiscal CFOP 5949, no taxes.
3.1. How to bill the aggregated costs? Because I needed to put new components and labour to make the repair.
4. Company 1: I receive the material repaired from the company 2.
5. Company 1: I send it back to the original customer and bill the service.
Overview:
Customer -> Company 1 -> Company 2 -
> Company 1 -
> Customer
material A / material A / material A + service X / material A + service X + Y
So, have you seeing this scenario before? How to do it in SAP? Which transactions? Process?
It is not industrialization process, due the fiscal incentives...
Thanks a lot by your help.
Selma
Edited by: Selma Moraes on Sep 28, 2011 8:33 PM
Edited by: Selma Moraes on Sep 28, 2011 8:37 PM

Hi,
There are two scenarios in your case. ONE is subcontracting and service procurement. First thing is you will receive material and get it repaired by another vendor send it to customer. In this you do GR for the material and raise subcontracting PO and send to the vendor. Receive the material after repair and send it to customer. You can do settings that the vendor itself can send the material directly to customer when the SC vedor box selected in PO.
Reseiving materiall and get it repaired and send back to customer can be treated as service procurement scenario. You can pay the tax for the service provided by you. For that you need to do some settings in Tax procedure. Thanking you.

Sub contracting service Process

Hi,
In my scenario I am sending material i.e Shirts ( item) for ironing process to the vendor as subcontracting ironing service through order. I would like to get back the material from vendor w.r.t PO order and payment to made to service performed throgh invoice verification w.r.t service entry sheet.
My thought up on the process to create subcontracting PO on subcontracting vendor along with articles. Article will be received to vendor as subcon article w.r. t subcon PO. After completion of service it will be return to our end w.r. t PO. GRN will be performed. Since it is regular practice, I would like to create service master for repective services and will be treated /incorporated in PO similar to service purchase order. Based on this purchase order SES will be created and payment of service will be settled through invoice verification w.r.t service entry sheet.
Please let me know whether my thinking are in line or not. if not please suggest the alternative.you can reach through phone also.
Thanks & regards,
Sanjay Rahangdale
09327162228

Thanks.. In IS retails system , I want to send Shirt for Reprocessing vendor and get it back after reprocessing . After receipt of the same I will process the payment process for Service provided by the vendor.
For example
Shirt 30001001,qty 100 sending to vendor ABC for refinishing( ironing ) and after Refinish proceess I will get back the 100 qty .
Charges of refinishing is Rs2/ per unit.. I have to pay 200/- to vendor. and settle the bills.
At the same time I want to know the inventory stock at vendor end as vendor is supplying /returning shirts in incremental process.
Please revert.
Sanjay rahangdale

Subcon service Purchase order

Hi,
In my scenario I am sending material i.e Shirts ( item) for ironing process to the vendor as subcontracting ironing service through order. I would like to get back the material from vendor w.r.t PO order and payment to made to service performed throgh invoice verification w.r.t service entry sheet.
My thought up on the process to create subcontracting PO on subcontracting vendor along with articles. Article will be received to vendor as subcon article w.r. t subcon PO. After completion of service it will be return to our end w.r. t PO. GRN will be performed. Since it is regular practice, I would like to create service master for repective services and will be treated /incorporated in PO similar to service purchase order. Based on this purchase order SES will be created and payment of service will be settled through invoice verification w.r.t service entry sheet.
Please let me know whether my thinking are in line or not. if not please suggest the alternative.you can reach through phone also.
Thanks & regards,
Sanjay Rahangdale
09327162228

ok

Profit center of service material

Hi Friends,
Need quick help on following :
What profit center is attributed to a service material?
Is the profit center static ?
Can you please help me ASAP in this regard.
Regards,
Isha.

Yes, to define a service you can use the material master with material type DIEN
The purchasing process will be: PO - Good receipt - Invoice
If you use de service master the process will be PO - Service entry sheet (approval of the SEE) - Invoice. The purchasing process are different, service master with SEE sometimes is used when you subcontract a service e.g. maintenance of machines (PM), training and you need to detail more at the moment the service has given to the company.

Third party PO issue

Hello Friends,
I have scenario as below:
I am purchasing packing material X (with value say Rs 5)from a vendorA & deliver it directly to vendor B ,from whom I am purchasing material Y (say value Rs 100) & which is packed in material X.
The client wants to receive the material back material Y packed in X , and pay him only Rs 100 , but the value updation of this should get as Rs 105.
If required I can make a new material master for the packed material received from the client.
Kindly guide me in mapping this scenario.
Thanks in Advance

Yes, it is again third party processing but with a difference, no item category, no account assignment category and no sales order is required. In subcontracting process normally components are delivered from the companyu2019s warehouse. But sometimes to meet some business specific requirement, a purchase order is placed to vendor with instruction that the components to be delivered at an address of subcontracting vendor instead of the companyu2019s warehouse address. On receipt of the purchase order, the vendor will deliver the goods/components directly to subcontractor address.
Purchase Order for Components
Under this process a standard purchase order with a different delivery address is created. In the delivery address dialog box the vendor number is entered and the SC vendor box is checked. Checking the box is the deciding factor for the components that these are posted to subcontractor stock at the time of goods receipt.
Goods Receipt of the Components
On receipt of the confirmation from the subcontractor that the components have arrived at his address, goods receipt can be entered for the purchase order. On entering the goods receipt, the components are posted directly to the stock of the material provided to vendor at plant level. Quantity and value are also updated at plant level.
Goods Receipt for End Products
On receipt of end product from subcontractor, a goods receipt for the subcontract order is entered in the same way as for a standard purchase order. But this good receipt will be again different from the good receipt for a standard purchase order as it covers following two types of goods movements.
Goods receipt items for the materials supplied by the vendor Goods issue items for the components
Valuation The goods receipt is valuated at the subcontract price (services charges) plus the value of the components consumed.

Diference between STO and Shipment order?

Hi All ,
There are two plants , one is manufacturing and other is sales . In sales plant sales order is created and after MRP run Purchase requisition is created(for getting materisl from production plant) . In me59 we convert this Preq to shipment order.
1)Can oyu please tell me whant is diference between STO and shipment order?
2) Can you tell me what is the configuration to avoid creation of shipment order and system will only create the STO from Preq after executing Me59?
Thanks
Rohit Chavan

Hi Chavan,
Starting with "Shipmnt Order" definition => (from SAP Help):
   An order to a transportation service provider to ship goods from a shipper to a single consignee with agreed terms and conditions. The corresponding confirmation from the transportation service provider is also part of the business object.
   You can use this business object to subcontract the transportation of goods from a shipper to a single consignee if you cannot fulfill a shipment request yourself or if you regularly subcontract transportation services.
   You can also use this business object in the process of transportation service provider selection and tendering. The aim of both processes is to assign a suitable transportation service provider (TSP) to a shipment order.
http://help.sap.com/saphelp_tm60/helpdata/en/66/dda98bb6b64c30b925f031bb0a2023/content.htm
STO is just Stock Transport Order => functionality to move stock from one plant to another plant in two steps( inclidung GI in the sending plant and GR in the receiving plant).
Usuall documnt flow in the STO process => PO(UB or NB order type), delivery, GI -> GR (done via migo for example).
I believe that you can avoid cration of the Shipmnt order via correct selection on ME59 screen. Just something what is characteristic for STO and not for Shipmnt Orders.
Best Regadrs,
Tomek.

Third party contract

I have a contract with the vendor who will supply my customer directly. vendor will invocie me and i in turn will bill the customer.
This basically third party sale processing.
Now I have to create a contract for third party. But there is no item category third party S in the case of contracts. In std sap in ME31K following items categories are given:
1. Standard
2. subcontracting
3. service
4. material unknown
5. material group.
do I have to maintain a contract using standard item category. will system understand during source determination and assign the vendor from contract that it is meant for third party processing when purchase requisitions are created automatically from sales order in third party deal.

Thanks , my question was :
do I have to maintain a contract using standard item category. will system understand during source determination and assign the vendor from contract that it is meant for third party processing when purchase requisitions are created automatically from sales order in third party deal.
For third party, the settings are as per what you said.

Looking Forward to kickstart a career in LabVIEW

I am a B Tech Graduate in Instrumentation (2008-2012) from Cochin University of Science And Technology (CUSAT),Kerala. I have a keen interest in NI labVIEW and associated products from National Instruments. I have experience using labVIEW as a software tool during the course of my mini project(simulation of boiler control) and academic main project (Design and Automated Testing of a miniature Hydrophone). I am looking forward to enrich my knowledge base in LabVIEW and enhance my career by exploring the wide possibilities of NI,LabVIEW in Instrumentation by working with a labVIEW client.
Please see my resume here
Attachments:
Akhil Kumar,Resume.doc ‏68 KB

Hi Ajay,
SAP MM Consists of the following topics.You need to be acquainted with the following topics in training.
1. Procurement Process (++)
Purchase Requisitions
Purchase Orders
Request for Quotation
Stock Purchases
Consumable Purchases
Subcontracting
External Services
Reporting
2. Master Data
Material Master
Vendor Master
Info Records
Source List
Quota Arrangement
Messages
3. Purchasing Optimization (++)
Contracts
Scheduling Agreements
Invoicing Plans
Release Procedures
Purchasing Document Configuration
4. Inventory Management (+++)
Goods Receipts
Goods Issues
Stock Transfers
Reservations
Consignment
Physical Inventory
Availability Check
Movement Type Configuration
Messages
5. Valuation and Account Determination
Material Valuation
Price Control
Account Determination
Split Valuation
6. Material Requirements Planning
Reorder Point Planning
Lot u2013Size Calculation
Planning Run
Planning Results
7. Logistics Invoice Verification (++)
Invoices
Credit Memos
Automatic Settlement
Invoice Verification in Background
Subsequent Adjustments
Freight Invoices
Blocked Invoices
GR/IR Account Maintenance
8. Configuration of Organizational Structures and Material Master
MM-Organization Structures
Material Type
Field Selection
9. Solution Manager
Solution Manager Overview
10. Experiences from Implementations (Case Study or Project)*
Setting Up Company Structures (organizational units in mySAP Business Suite)
Integration and Dependencies.
I believe taking MM training will be the best option for your career.
Assign Points if helpful.
Thanks and Regards,
Naveen Dasari.

Exam Content & Weighting Information

Dear Gurus
while taking the SD certification exams , we had a section called
"Exam Content & Weighting Information", which gives in terms of "++" the weightage of a category. where :-
Weighting Key in the Test:
+ = 1 - 10%
++ = 11 - 20%
+++ = over 20%
Can anyone post the same for a MM certification please.
Regards
Manoj

i got it from this link H:my documentspersonalCertification Requirements Documentation.htm
reward if helpful
SAP Consultant Certification
Solution Consultant SCM - Procurement with mySAP ERP 2005
Software components: SAP Enterprise Central Component (ECC) 6.0
Certification exam is included in course TSCM52 and is also offered in separate certification events at many SAP locations.
Certification ID (Booking code): C_TSCM52_05
Certification duration: 3 hours
Number of certification questions: 80
Required certificates for participation in this certification test: None
Consultant Academy courses for certification preparation: TSCM50 (Procurement I), TSCM52 (Procurement II (incl. Case Study)) and the e-learning courses SAP125 (Navigation), ERP001 (Management empowered by mySAP ERP), SAP210 (Procure to Pay), SM001 (Solution Manager Overwiew)
Alternative Project Team Training courses for certification preparation: SCM500 (External Procurement Processes), SCM525 (Consumption-Based Planning), SCM520 (Purchasing), SCM515 (Invoice Verification), SCM510 (Inventory Management and Physical Inventory),SCM550 (Customizing in Materials Management) and case studies from TSCM52 (Procurement II (incl. Case Study)) and the e-learning courses SAP125 (Navigation), ERP001 (Management empowered by mySAP ERP), SAP210 (Procure to Pay), SM001 (Solution Manager Overwiew)
Please note that you are not allowed to use any reference materials during the certification test (no access to online documentation or to any SAP system).
The certification test Solution Consultant SCM - Procurement with mySAP ERP 2005 verifies the knowledge in the area of the Procurement] for the consultant profile. This certificate proves that the candidate has a basic understanding within this consultant profile, and can implement this knowledge practically in projects.
The certification test consists of questions from the areas specified below:
Topic Areas
1. SAP Overview
SAP navigation
Management Empowered by mySAP ERP
Procure-to-pay
2. Procurement Process (++)
Purchase requisitions
Purchase orders
Requests for quotations
Procurement for stock
Procurement for direct consumption
Subcontracting
External services
Reporting
3. Master Data
Material master
Vendor master
Purchasing info records
Source list
Quota arrangement
Messages
4. Purchasing Optimization (++)
Contracts
Scheduling agreements
Invoicing plans
Document release procedure
Purchasing document configuration
5. Inventory Management (+++)
Goods receipts
Goods issues
Stock transfers
Reservations
Consignments
Physical inventory
Availability check
Transaction types
Messages
6. Valuation and Account Determination
Material valuation
Price control
Account determination
Split valuation
7. Material Requirements Planning
Reorder point planning
Lot-size calculation
Planning run
Planning result
8. Logistics Invoice Verification (++)
Invoices
Credit memos
Automatic settlement
Invoice verification in the background
Adjustments
Freight invoices
Blocked invoices
GR/IR clearing account maintenance
9. Configuration of the Enterprise Structure and the Material Master
MM organizational levels
Material type
Field selection
10. Solution Manager
Overview of the Solution Manager
11. Experience from Implementation (Case Study or Project)*
Design of enterprise structures (organizational levels in mySAP Business Suite)
Integration and dependencies
= Cross-subject implementation and integration knowledge is tested in subject area 11. Implementation and integration knowledge referring to a special subject (such as goods receipt) is tested in the relevant subject (such as inventory management).
Amount of questions by topic (as a percentage of the test):
+              = 1 - 10%
++            = 11 - 20%
+++          = over 20%
No responsibility is taken for the correctness of this information. Copyright © SAP AG 2006.

Subcontracting: Picking Relevancy of service Line Item in Inbound Delivery

Hi experts
I have a challenge. There is a Subcontracting PO having 2 line items, 1st one is Trading product which is the physical finished product & 2nd line item is service line item( service material type). So Can we create a Inbound Delivery wrt PO having Service Line item to do receipt?
I tried creating Inbound but failed, error is : material ( service line item) is not extended to Warehouse. But my requirement is: it shouldnu2019t be extended to WM views so that it only appears in Inbound delivery as line item & it should not be relevant for Picking.
Any idea how can we do this?
Rgds
Ram

Hi
No delivery is possible for item catageory D or material type ( DIEN)
Edited by: Sanjay Shah on Sep 20, 2010 3:50 PM

Goods Receipt and Subcontract/Service confirmation

Dear SAP Guru,
I have one scenario to map.
Some waste will be generated because of nature of FG production and processing of this waste will be carried out within factory premises by sub-contractor. As material issued will be waste, no weighing of material issue is done. But after sub-contractor process it, it is supplied back as SFG which has some value and hence weighing is done.
Now my question is how to mapp it:
1) Standard Sub-contracting scenario: Its not possible as weight of material supplied to sub-contractor is not known as its not feasible considering that its waste material. Or can we have sub-contracting without any material issue to vendor but only GR for SFG?
2) Service Contract: Service order can be created and against that service entry sheet can be used for service provided by sub-contractor on the basis of weight of SFG received from sub-contractor. And SFG material can be received as by-product against FG order by seperate transaction.
3) An extra operation can be defined in recipe of FG as external processing but then what details should be sub-contracting or service (which info record standard/sub-contracting) and how the whole cycle would be?
Please give your comments on each option.
Thanks and regards,

Hi
1. What is quantity of the waste material you get as by product? Do not you wan it to be handled as scrap? What is the %age of scrap you have defined in the BOM for the material? You wll have some data regarding this. Or else how do you arrive at decission that after subcontract processes the waste you are paying him, Is it umpsum basis or material quantity basis. The best way is to have a Subcontract PO, but for that even though you do not weigh the watse quanity you must be having so historical data for the waste quantity generated and the conversion of the sane to other SFG , definitely you can arrive that on a pro_rata basis. Have a Code for the waste mateial. Release Subcontract PO for SFG which is what you get back, and issue the components( waste) to subcontractor.
Please remember your PO intially will be for Provisional quantity if you are unable to reach a fixed quantity. Amend the PO before GR as per the actual quanity for which you wish to pay the vendor.
For the waste quanity stock updation you use 262(w/o refe to Prd order) after the FG is confirmed.
Material price updation happens cirrectly in this process.
2. You can pay the vendor as you wish by by this process but what about the price updation for the ordered material SFG. When you can receive by product in separate Txn againt FG then why can not you follow the proces no. 1?
3. I would not liketo suggest 3 rd option as that becomes much comlicated for a simple operation.
Best Regards

Subcontracting with external service / non-stock material

Hi,
I have a scenarion in subcontracting when i provided the components / raw materials to the in-house workshop (workshop treated as an internal vendor) and further more our workshop required some external services / non-stok material from third party... now how i will incured this service / non-stock material cost on finished product.
(PP moudule is not implemented on project)
Regards,
Ali

Hi,
Please refer the following links ..it may help you...
Subcontracting service to a FERT material.
http://books.google.co.in/books?id=LDyarcerUu0C&pg=PA571&lpg=PA571&dq=Subcontractingwithexternalservice/non-stockmaterialinsap+mm&source=bl&ots=vj5kUO9dto&sig=vrlCpSZ0-V0BseN96Qw9rTVhsQ0&hl=en&ei=cJKRTs5_0MmsB6rrgIsB&sa=X&oi=book_result&ct=result&resnum=10&ved=0CG4Q6AEwCQ#v=onepage&q&f=false
Regards,
Udaya

Subcontracting or service Po

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