Subcontracting ,Plants

Hi all
please give subcontracing process between two plant having excise registration & input & output material ia aslo exciable
whta will be the configuration steps
& what will be the steps
thanks

Hi Sachin,
Maintain Vendor Master linking to Customer Master ( Subcontracting company vendor and customer)
Vendor for expensing subcontracting charges, customer master if you want to follow SD delivery
Detail configuration is as mentioned below
1. SPRO -Materials Management -Purchasing -Purchase Order - Set up Subcontract Order
In the grid enter Supply plant code from where Input materials to subcontractor have to be delivered) and the Delivery type "LB" which is SAP Standard Subcontract delivery type
2. Shipping point definition
Spro - Enterprise structure - Definition - Logistics execution - Define copy,delete, check shipping point
3. You should have set the shipping point for that plant which is done in
Spro -Enterprise structure - Assignment - logistics execution - Assign shipping point to plant
Check the following setting are also done
4. Shipping point determination
SPRO-Logistics Execution - Shipping -Basic shipping functions -Shipping points and Goods receiving points determination - Assign shipping points
5. Delivery type definition
SPRO - Logistics Execution -Shipping- Deliveries - Define Delivery types
6. Material master should have sales1, sales2 and sales/plant view extended with necessary data like loading group, transportation group etc
7. Customer master should have been set for respective company code and sales organization
Solution 2
Create Cross company STO. Create Production order in the Subcontracting company (its plant) and capture material consumption and caputre overhead costs. Create additional STO to send finished material back.
Regards,
Nani.

Similar Messages

Plant to plant subcontracting(Under one company code)

Hi,
I need a help on one issue.
We are having multiple plants under one company code.
Material goes with 57F4 challan for subcontracting plant to plant.
How to do the subcontracting process for plant to plant.
Please explain step by step.
I know the normal process (with vendor)
Also, if I have create a subcontracting PO, how the receiving plant will come to know about this?
How will he receive the material which I have send?
How the production activities at their end?
Do I need to do the MIRO?
Please thrwo some light.
Thanks in advance,
Piyush

1) Create Subcontracting Purchase Order with `0` Cost
2) Transfer of Components to Subcontractor
3) Create Subcontracting Challan
   a)Receive the Components as non valuated Materials
   b)Process the Materials to get the SF Product
   c)Create the Outbound Delivery without Ref. To Sales Order
   d)Endorse the Subcontract Challan Manually
4) Post Goods Receipt
5) Reconcile Subcontracting Challan
6) Complete / Reversal / Re-credit SubcontractingChallan
During Reconcile the Subcontract Challan - J1IFQ,Enter Manually into the Assigned Quantity Field the Components that are actually assigned for this Subcontracting Process.
Regards,
eswarmanu...

Create Subcontracting PO using ME59 Auto PO

Hello exerts,
We have a number of materials that are subcontracted and want to automate the process as much as possible. We currently create a planned order at originating plant and create the same planned order at the subcontracting plant. We wish to create requisitions at the sub contracting plant and run auto PO for that requirement.
Thanks for your help

Hi,
My planning plant generates a planned order. This planned order is also created at the subcontracting plant (same planned order number). It is at this sub contracting plant that all of my activity occurs (PO, GR, etc) We were hoping to be able to generate a requisition at both plants instead of a planned order, however I no longer believe that this will be possible -- how could you generate a requisitionline Item with two different plants.
I believe that we will have to look at automating our process from the subcontracting plant after the requirement has been generated.
Thank you for your assistance.
Diane

Split valuation for non-valuated materials

Hi dudes,
We are implementing SAP for our Subcontractor.
our SC receive all components from our company ( on free ) but sometimes they purchase the same material themselves for other uses. so we decided to use split valuation to separate valuated and non-valuated materials.
I did configuration and created 2 valuation type ( valuated - nonvaluated )
when I create Purchase order it askes for valuation type but even when I use non-valuation type in PO it asks for price!!!!
do any of you have used split valuation for this target?
have the same problem?
what should I do actually??

Hi,
Is someone in the subcontracting plant going to do a process order on the materials you send them? Or are you only going to track the finished inventory once it reaches your plant?
In the first case:
1) Create a STO to the SC plant. This stock will have to be priced.
2) Inventory reaches SC plant. They perform production process.
3) finished inventory is sent using another STO.
2nd Case:
1) Create a SC vendor using the SC plant as a vendor.
2) Create a SC PO to this vendor using this vendor and transfer goods to him. In this case, goods are transferred for 'free' as they really belong to you and not to the SC
3) Once the production process is over and the finished product is sent back to you, do a GR. The raw material sent to the SC will be consumed.

QM Scenario for Automatic Data Transfer to Inspection Lot

Hi Experts,
I have explained one QM scenario below. And also mentioned queries that I have in this. Could you please help me out on the same?
There are 2 SAP systems, A and B.
Process works as follows:
-Delivery is created at A with B as recipient.
-Automatically an IDOC is being created and send out with the quality data of the batch/inspection lot (electronic COA)
-In the background a workflow is triggered which transfers the data to the goods receipt from production inspection lot.
In the system B, a subcontracting plant (DE08) will be created. During the subcontracting the materials provided to the subcontractor in real-life, however in SAP it will be brought to the subcontracting plant on a storage location specific to the subcontractor.
Now the subcontracting service itself will be simulated by a process order (own order type is ZSUB). During the creation of the process order, a service purchase requisition will be automatically created which is connected to the process order. This purchase order will be transferred to A.
After processing the purchase order, A will send service to B. B will do the process order confirmation. After process order confirmation an Inspection lot of type 04 will get generated automatically.
Once the service delivery from A to B is done, the IDoc incl. the QM-data will arrive. Workflow will be triggered by inspection lot status CNF (Confirmed) I0009. Now the workflow needs to identify the 04-'Goods receipt from production' of the process order and transfer the data into this inspection lot. The connection for this would be the purchase requisition number which is included in the process order. So the connection would be from purchase order number- purchase requisition-process order-inspection lot.
Workflow template: WS03100078
Business Object: BUS2045
I have following queries.
1. Do I need to create Z-business object or the standard one will do the job?
2. If I need to create Z-business object, then what changes will be required in coding?
3. If I am using standard one, what all settings need to be done?
4. What configuration needs to be done in the workflow template?
Thanks & Regards,
Mrunal

Dear Swarup,
The standard BAPI 's BAPI_INSPECTIONPLAN_CREATE Or QAPP_CUST_IP_CREATE are not fulfilling my requirement .I need to create inspectiontion lot in R/3 system , which will invoke a process for creation of sample in another subsystem.But it is not very clear to me what a sample really means in QM, as i am an XI consultant .should a sample contain the recently generated Inspection lot number and its corresponding datas ?

Plant to plant subcontracting against sales order

hi
my scenario is like this
two plants A and B under one company code, its repair scenario in this sales order come in plant b ,in this repairing we have 5 process out of which one process has to be carried out in plant 1,so for that we will do subcontracting against that sales order with plant b. so how to handle subcontracting with plant a against sales order.
Edited by: AMIT RANE on Mar 4, 2009 7:55 AM

Purpose: - Subcontracting is also possible in conjunction with sales order The subcontracting orders are account-assigned to a slaes order . Thus, the components are not transferred (using a transfer posting) to the "stock of material provided to vendor" but are directly withdrawn from the sales order stock the time of the goods receipt. The material manufactured is also posted to the SO
The cost of subcontracting is then debited to the SO.
Since the components are not transferred to the "stock of material provided to vendor", it is recommended that you use a transfer posting to transfer the provided components to a new storage location (for example, 9999). This enables you to obtain an overview of those stocks that are physically located at the subcontractor. This information is particularly important when you carry out a physical inventory of the Project stocks.
Features: -
Withdrawal from Stock of Mat. Provided for Project: -
For components that are managed in Project stock, you can define whether the components are to be withdrawn directly from each Project or from the stock of material provided to vendor. You manage this via the dependent requirements indicator for individual customer requirements and collective requirements (MARC-SBDKZ).
You can maintain this indicator in the following places:
In the MRP view of the material master record (MRP 4)
In the explosion types for the BOM item (in Customizing for Production in the step Basic Data -> Bill of Material -> Item Data -> Define explosion types)
Configuring the explosion types has priority over the configuration in Inventory Management.
If the indicator is set at Collective requirements only (2), the materials are withdrawn from the stock of material provided to vendor. If this indicator is set any other way, the system withdraws materials from Project stock.
Regarding Subcontracting Challan: -
Go to OMJJ, select the field "movement type" and press enter
Enter movement type "311" and double click on "Field selection (Enjoy)" under Dialog Structure on left side.
here "New Entries" and add field "LIFNR" (Vendor- plant as vendor )
Now in MIGO, at the time of transfer posting of components using movement type "311 E", specify the vendor code of the Subcontracting PO (i.e. Subcontractor)
Now create Subcontracting Challan in J1IF01 for material document of 311 E movement type.
Also check in SPRO > Logistics - General > Tax on Goods Movements > India > Business Transactions > Subcontracting > Maintain Movement Type Groups > here for Movement Type Group "0001", Movement Type "311 E" should be maintained.
Then do GR against PO and refer the Subcontracting Challan here.
And then do reconciliation in J1IFQ for the GR Document against Subcontracting Challan.
Also check in SPRO > Logistics - General > Tax on Goods Movements > India > Business Transactions > Subcontracting > Maintain Movement Type Groups > here for Movement Type Group "0002", Movement Type "543 E" should be maintained.
Follow the below mentioned process;
Process Steps: -
1. OX09 - Create Storage Location as "9999" for Subcontractor Location
2. MB1B - Do Transfer Posting of material from RM Warehouse to this Storage Location via movement type "311 E" (Instead of doing 541)
3. Now go to J1IF01 - here use material document of movement type "311 E" and create Subcontracting challan. (If required)
Prerequisite: - In SPRO > Logistics - General > Tax on Goods Movements > India > Business Transactions > Subcontracting > Maintain Movement Type Groups > Here for Movement Type Group "0001" (For issues), maintain movement type "311 E" also along with 541.
Rest all; refer subcontracting challan during GR and then reconciliation and completion, etc... Will be same as usual.
Note: - At the time of GR, consume components from storage location "9999" (for 543 movement type)
regards
KI

SUBCONTRACTING PALNT TO PLANT - URGENT

Dear SAP Gurus,
Plant to plant subcontracting withing comapany code,
Plant A will supply raw material to other plant B will receive Raw material with subcontracting challan,
Plant B will process it and sent back to Plant A with Job work invoice by SD.
My Query is How to Receive a Raw material in Plant B, Since the same material exist in the same plant A and same processing they are doing for the same material ( Splitting of Production process in both Plants )
Please kindly give me any kind of solution in this regards,
Regards,
Vinod

Hi,
You cann't process the Subcontracting process b/w Plant to Plant within company code.
For this you need to process the STO process.
send the Raw material from Plant A to Plant B (Create STO from Plant B) through 351 mvt type and Plant B will recieve the material and process the material through PP in Plant B so that Finished material will be updated using the raw materials consumption through PP process.
Then Create the STO from plant A to plant B then send the finished material to Plant B if the process needs the delivery & invoiceing create the STO with delivery for this finished material through SD process you can send the material.
rgds
Chidanand

Subcontracting and plants abroad

Dear all,
I am facing the following problem:
My customer are using plant abroad functionality. They are VAT registered and have plants in almost all contries within European Union. The will start using subcontracting functionality in SAP and they have the following flow:
Material A and B in plant 1107 in HUngary (where we are VAT registedred) are sent to subcontracting vendor in Netherlands. The subcontractor are creating material C out of material A and B and are sending material C to our plant 1107 in Austria (where we also are VAT registered). How is this flow handled from a plant abroad perspective?
IN plant 1107 in Austria we will receive an invoice from subcontracting vendor and will use tax indicator for reverse charge (input and output EC VAT posted in the same time when registering the invoice) but how do we handle when sending material A and B to subcontracting vendor? I suppose this should be reported as 0 % EC output VAT in Hungary but how can this be made? We are not having any WIA invoice?
Best regards, Åsa

hi Sunil,
"1. Create a Belgian plant as Plant abroad. That will change a lot. Can anyone answer what exactly? Will we be able to use MWST condition?"
==> I wonder if it would work the way you want to... but it is very difficult to tell without trying...
"2. Use 2 tax procedures for US company code. TAXUS and TAXBE. Is this posible using any config?"
==> this is definetly not possible
What I would do is to create a separate company code and assign the belgian tax processes to it. If it is not a separate legal entity you have to set up some cross-company processes.
hope this helps
ec

Plant to plant subcontracting

Dear experts
i am working on plant to plant sub contracting scenerio for example in plant 1101 i am creating SUB Con PO and vendor as plant 1102 . In palnt 1102 i am Receving material with sales order refrence movment type 101 E it only valuate quantity not value upto this it is ok. In plant 1102 i am creating produn order with refrence to sales order and release and save.
but client requirment is at the of issuing RAW materials to production order NO FI documents are generated and also at the time of reciept also. they only pay processing charges with FICO.
i am sugesting Non valuated material but dont accepect this. i try with account assignment category IN REQUIRMENT CLASS FOR COSTING AND ACCOUNT ASSIGNMENT. Is it an other solution Please revert back.
Other than non valuated material u can suggest the scenerio.
Regards
Avinash
PP consultant

Hi Avinash,
Going the way you took with subcontracting purchase order and sales order in the other plant will get you in trouble when both plants belong to the same CC.
I suggest that you take a look at a totaly different scenario, WITHDRAWAL FROM ALTERNATIVE PLANT. Here's the page from the documentation:
Withdrawal from Alternative Plant
Implementation Options
You can specify for an assembly that the components required to build the assembly are to be withdrawn from a different plant from the planning plant (that is, the issuing plant). Dependent requirements for these components are directly created in the issuing plant. You can use withdrawal from alternative plant for both components produced in-house and procured externally. A special procurement key is defined for both procedures.
This procedure provides an alternative to using stock transport orders and is especially useful when plants are close together.
Prerequisites
In Customizing for MRP, in the IMG activity Define special procurement type, you have maintained a special procurement key for Withdrawal from alternative plant and you have entered the issuing plant there.
You have assigned the component, which is to be withdrawn from an alternative plant, to this special procurement key in the material master of the planning plant (MRP 2 view).
In the withdrawal plant, you have created a material master for the component to be withdrawn.
Process Flow
The following example shows the steps involved in withdrawing material from another plant:
An assembly in plant 0001 contains two components. Component 2 in plant 0001 has the special procurement key Withdrawal from alternative plant with the issuing plant 0002. This defines that this component is to be withdrawn from plant 0002. Therefore, when producing the assembly in plant 0001, component 2 is withdrawn from the plant 0002 but the other components are withdrawn from plant 0001.
You carry out the planning run in the planning plant, that is, in plant 0001. During the planning run, the system creates a planned order for the assembly in plant 0001, if this is necessary.
The system creates a dependent requirement for component 2 in plant 0001. A dependent requirement is created in the issuing plant, that is, in plant 0002, for the component 2 with the special procurement Withdrawal from alternative plant.
When the planned order for the assembly is converted into a production order, the dependent requirements of the components are automatically converted into dependent reservations. The withdrawal for the production order is carried out in plant 0001 for the component 1 and in plant 0002 for component 2.
Regards,
Mario
P.S. There's also PRODUCTION IN ALTERNATIVE PLANT. See which suits you better.

Plant A supplying material to plant B, plant B supplying it for subcontract

All SAP Gurus,
Here are two plants: A and B
Plant A is EOU (Export Oriented unit)
Plant B: Domestic Plant
Plant A is providing material to Plant B, 57 F 4 challan is created.
Plant B simplying passing on this material to subcontractor, and creating one more subcontracting challen.
Subcontractor supplying material to plant B.
Plant B supplying the material back to plant A.
How this scenario can be mapped.
Please help.
Regards

Please do not create a challan from Plant A to B, Instead create a STO & if necessary an EI while transferring the material from A to B. A subcontracting challan can be created when the material is sent from B to the Vendor because reconciliation can take place here.
Then another EI can be created when the material is eventually sent from B to A again via stock transfer.

Subcontracting process plant to plant

Dear SAP consultants,
I have the following issue.
There are 2 plants . A material is being sent from one plant to another plant via 57f4 challan for subcontracting operation.
I want to map this in SAP. Please guide.
Regards,
Aaditya

Check this forum discussion it's helpful
[subcontracting|Sub Contracting between two plants.;

Inter Plant Subcontracting (Subcontracting between 2 plants of same company

Hello Friends,
In my current project, there is a scenario of interplant subcontracting.I mean suppose to manufacture a product they have to perform say 8 operations on the raw material.FIrst 4 operations happens in the Plant 1were requirement for the finished material gets generated, than they transfer that intermediate material to plant 2 (of same company code), there they do one operation on it and again it come back to the Plant 1, were remaining operations gets performed on it and gets dispatched from there.
Now if you do the manual process i mean manually to created production order and rest of the process than its not difficult to map.
But with MRP Run, it seems difficult to map.
Guys do you have any idea related to this scenario, if yes than please share.
Thanks and Regards,
Jitendra Chauhan.

Hi,
If you want to map it through MRP, then I would suggest that you add 2 levels in the BOM, and break the original structure like this:
Original structure: BOM father FG1, components MAT(1...n), Routing for FG1 op 1 to 8, all this in plant 1.
New structure:
-BOM 1 in plant 1 for FG1 (father), SFG1 (son in this BOM). SFG1 has special procurement key "stock transfer from plant 2". Routing for FG1 only op 6 to 8.
-BOM in plant 2 for SFG1 father, SFG2 son. SFG2 has special procurement key "stock transfer from plant 1". Routing for SFG1 in plant 2, only op 5.
- BOM in plant 1 for SFG2 father, MAT(1..n) sons, routing for SFG2 only op. 1 to 4.
Run MRP with scope of planning that include both plants.
In this process you'll have 3 production orders, and 2 STOs.
Regards,
Mario

Subcontracting between intracompany plants

Hi All
Can anybody tells me the configuration required for subcontracting between plants belogs to same company.
Suppose A Plant sents material for job work to B Plant which, belongs to same company. We have created a vendor code for plant B and send the material thru subcontracting cycle. Now problem coming with Plant B. How Plant B prepares the invoice and stock reduces from Plant B.
Needs Config setting.
Thanks
Asim

Hi
there is no standard scenario for Plant to Plant subcontracting in SAP
we have faced the same problem and now doing the same STO for Plant to Plant Subcontracting
what SAP suggest Do STO (Intraplant)
there is no other solution
all configuration is same for This scenario
Thanks

Subcontracting between intercompany plants

Dear Experts,
Can anybody tells me the configuration required for subcontracting between plants belogs to different company.
Suppose A Plant sents material for job work to B Plant which, belongs to different company. We have created a vendor code for plant B and send the material thru subcontracting cycle. Now problem coming with Plant B. How Plant B prepares the invoice and stock reduces from Plant B.
Needs Config setting. Full Points will be given for helping answers.
Thanks
GR

Friend
Two solution can be thought of as two solutions
solution 1
Sucontracting company does not want to track inventory and caputre subcontracting costs incured then follow the following
Maintian vendor master linking to customer master ( subcontrancting comapny vendor and customer)
Vendor for expensing subcontracting charges, customer master if you want to follow SD delivery
Detail configuration is as mentioned below
1. SPRO -Materials Management -Purchasing -Purchase Order - Set up Subcontract Order
In the grid enter Supply plant code from where Input materials to subcontractor have to be delivered) and the Delivery type "LB" which is SAP Standard Subcontract delivery type
2. Shipping point definition
Spro - Enterprise structure - Definition - Logistics executin - Define copy,delete, check shipping point
3. You should have set the shipping point for that plant which is done in
Spro -Enterprise structure - Assignment - logistics execution - Assign shipping point to plant
Check the following setting are also done
4. Shipping point determination
SPRO-Logistics Execution - Shipping -Basic shipping functions -Shipping points and Goods receiving points determination - Assign shipping points
5. Delivery type definition
SPRO - Logistics Execution -Shipping- Deliveries - Define Delivery types
Last but not the least
6. Material master should have sales1, sales2 and sales/plant view extened with necessary data like loading group, transportation group etc
7. Customer master should have been set for respective company code and sales organisation
Solution 2
Create Cross company STO. Create Production order in the Subcontracting company (its plant) and capture material consumption and caputre overhead costs. Create additional STO to send finished material back.
ENJOY SAP
Regards
Edited by: Gopal SP on Apr 2, 2008 12:39 PM

Subcontracting location as a plant

Dear all,
Please guide how we can map the following process requirement in SAP:
1) Supply of raw material to ext vendor for processing.
2) Production of finish material at subcontractors location.Production process is very complicated and involves various steps.
3) Sale of this finish material directly from subcontractors location with our invoice.
4) Payment to vendor based on finish production work done.
All material are excisable and process needs excise rules and constraints to be followed.
Regards,
Manoj

Hi,
Check with Chargeable Subcontracting , whether this is possible
[http://help.sap.com/bp_autov1600/Auto_JP/html/A68_EN_JP.htm]
Regards,
Vikas

Subcontracting ,Plants

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