Subcontracting Release

Hi,
In subcontracting PO when i am transferring material to SC by MB1B system allows me to transfer even if PO is not released,
but while accepting i.e at time of GRN it doesn't allow me to do GRN system says PO not released.
Why does system allow me to do MB1B even if PO is not released. I want that system should not allow me to do MB1B if PO is not released.
What needs to be done,I've release procedure for all doc.types.

hi
see even when you do it w.r.t PO it just helps you get the quantity which you adopt from the PO, but it is not linked to the PO, neither it updates the PO.
Let say the PO has 2 materials as BOM it would adopt both along with the quantity required for them.
Thanks
Ankit

Similar Messages

  • Error while releasing Billing document in Subcontract process

    Hi All,
    We are working on Subcontract process as explained below:
    Company code X purchases the component A and sends it to Company code Y on Subcontract. Company codes X and Y belongs to one company using single operative chart of Accounts, Controlling area & operating concern. FI configuration has been maintained in OBYA by treating above company codes Inter company GLs. The component A is sent to company code Y as non value added item. Through 501 movement type, as the component is sent by Company code X.
    Company code Y will add some components (like B,C and charges some expenses as service component D for preparing Finished good) and send this FG to Company code X. For this company code Y will raise a Sales order and followed by MRP run and Production order is created.
    In VA02 of above Sales Order, while entering Item details, where the Settlement rule is asking for PA Transfer structure (in Account assignment tab of Item details) and giving the following error analysis:
    Enter a PA transfer structure
    Message no. KD 044
    Diagnosis
    A PA transfer structure is required for settlement to profitability analysis.
    System Response
    You cannot save this settlement rule.
    Procedure
    Enter a PA transfer structure. To do this, choose the "Parameters" function in the settlement rule. As part of customizing, you can also store a default value for the PA analysis structure, in the settlement profile. The system then uses this default value when you enter a settlement rule.
    In addition to above, another issue has raised while releasing the Billing document after doing PGI. Accounting document is not getting generated and while releasing the Billing document (VF02) it is throwing an error as
    “Enter profitability segment as cost object for Revenue and COGS posting”
    Message no. ZC 001.
    MM,PP,SD & FICO configuration settings maintained:
    1. All required OBYC settings
    2. All cost element and Cost element categories have been maintained
    3. From MM side the system is generating FI & CO documents
    4. Settlement profile in Production Order type is maintained (in KOT2). Allocation structure and PA transfer structure were maintained in (OK06, OK07 & KEI1).  In PA transfer structure we have assigned the required Sources and Value fields and settlement cost elements.
    5. In VKOA condition types KOFI and KOFK were maintained for relevant Customer & Material Account Assignment groups.
    6. Required settings have maintained in OKB9.
    Movement types 501 (sub contract), Received back to Company code X through Movement  type 101. In spite of these settings still we are getting the above mentioned errors.
    Could any one help to provide some inputs on the above issue as early as possible.
    Thanks in advance.

    Hi,
    check  in the sales order line item procurement tab . u can get the requirement type. in SPRo check the requiremnt class for the requirement type. in that requirement clas u will get settrlemnt profile for the sales order. Check that settlemnt profile there u have to maintain the PA transfer structure.
    I think both problem will get solved by maintaing the PA structure..
    You are doing sales order costing right....and i hope it is non vsaluated sales order costing .....
    If help ful please assign points.
    cheers
    Prabhat

  • Subcontract purchase order release strategy

    Iu2019m trying to customize a release strategy for subcontract purchase order (SC) but PO document is not taking any release strategy.
    Now Iu2019m not sure about SAP standard allows to have a release strategy for subcontract purchase orders (SC)?
    Thanks for your help.

    Hi,
    1. Please check this link (it is for PR but I think might be useful):
    http://www.sap123.com/showthread.php?t=59
    2. Remark: You can use user exit EXIT_SAPLEBND_002, M06E0004 if you want to make your release startegy sensitive for item category - however this was not question.
    3. On additonal data tab of the characteristics (assigned to the class), can you see table CEKKO and its field name in the suitable fileds? (CT04)
    4. Does your strategy work for other purchase orders (with other document types)?
    5. Please check classification settings under your release startegy, whether the values defiend there are in harmony with the values defined in the subcon-PO (I mean purch doc. category, purchasing group, order type, plant). SPRO > MM > Purchasing > PO > Release procedure for POs > Define Release Procedure for POs - here choose release strategies...
    Regards,
    Csaba

  • Subcontracting after order release

    we have two plant P001 and P002, P001 send finished goods A to plant P002,in plant P002, A is not valuated。 in plant P002,finished product B is produced and using A and other raw materials。
    we now create production order for material B in P002, we want subcontracting PO in P001 to be generated automatically after
    we release production order in plant P001, how to do this?
    in plant P002, do we need to create costing BOM for material B? in production order master data, we can see production BOM for material B, when is costing BOM being used in material B?thanks
    by the way, we donu2018t use material ledger

    Dear Srini,
    In my understanding this is not possible as this does not seems like a sub-contracting or stock transfer from alternative plant or
    production in alternative plant.come back with your further queries.
    Regards
    Mangalraj.S

  • 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 Using Scheduling agreement

    I am trying to carry out subcontracting using Scheduling Agreement, but not able to achieve the same. Please let me know stepwise porocedure to carry out the same.

    Hi,
    Please cehck the following,
    Requirement – Subcontracting Orders to be generated as schedule line using MRP.
    Solution is as follows.
    Step 1
    Transaction Code: MM01
    Path Logistics  Materials Management  Material Master  Material  Create (general)  Immediately
    Create Material Master with source list marked in Purchasing view and Special Procurement type is 30 in MRP2 View.
    Source List to be marked in Purcahsing data view of material master record.
    Procurement type in F
    In MRP-2 view, Special procurement 30 – Subcontract
    Step 2.
    Create Q-Info Records.
    Transaction: QI01
    Menu Path: Logistics  Quality Management  Quality Planning  Logistics Master Data  Q-Info Record: Procurement  Create
    Step 3.
    Create a Scheduling Agreement (Doc. type LP).
    Enter the firm zone: Zone in which the requirement should be converted to Schedule lines.
    Save the document
    Step 4.
    Create Source List
    Transaction: ME01
    Path: Logistics  Materials Management  Purchasing  Master Data  Source List  Maintain
    In ME01,
    Enter the valid from and to date, vendor, purchasing organization, agreement created in STEP 3, and MRP indicator as 2 = Record relevant to MRP. Sched. lines generated automatically.  SAVE the record
    STEP 5
    RUN MRP.
    Transaction is MD02.
    Path: Logistics  Production  MRP  Planning  Single item, multi level
    Control. Parameter to be used for schedule lines is 2, This will ensure that requirement in the firm zone is converted to schedule lines rest will be converted to planned order.
    Next is the solution for splitting the requirement in two vendors.
    step-6
    The splitting of requirement will be handled using quota arrangement.
    Following are the steps to be followed:
    Step 1. Customizing settings
    Transaction: OMI4 (Define Lot sizing procedures), Choose MRP Lot Size
    Mark the Splitting quota.
    The Splitting will enable the requirement to be split between two vendors. The following are the details of the same.
    Step 2. Change the Material Master
    Change views
    View to be changed is Purchasing
    Input the Quota arr. Usage as 3 (MRP relevant).
    Step 3. Create Info Records.
    Transaction: ME11
    Choose Subcontracting and create the info record.
    Step 4. Maintain the Source List
    Transaction: ME01
    To add the next vendor
    Step 5. Create Quota Arrangement
    Transaction: MEQ1
    Path: Logistics  Materials Management  Purchasing  Master Data  Quota arrangement  Maintain
    Input the material and plant and press enter.
    Input the Valid to date and Min. qty splitting (If the requirement is greater than Min qty Splitting only then the requirement will be split else it will be allocated to only one vendor based on the Quota
    Enter the following details
    Procurement type as F = External procurement
    Special procurement as L = Subcontract
    Vendors for which splitting is to take place.
    Calculating the Quota Rating
    The system assigns a quota rating to each source of supply. The quota rating is calculated as follows:
    Quota-allocated quantity + Quota base quantity
    = Quota rating
    Quota
    where
    •     Quota-allocated quantity
    = Total quantity from all purchase requisitions, purchase orders, release orders, and scheduling agreement schedules allocated to a given source of supply. (The quantities of quota-allocated planned orders are also taken into account.)
    •     Quota base quantity
    = Quantity used to control the quota arrangement when new sources of supply are included.
    •     Quota
    = A number specifying which portion of a total requirement should be obtained from a certain source.
    The source with the lowest quota rating represents the valid source, even if it has a quota rating of 0 (that is, the quota-allocated quantity and the quota base quantity have the value 0). If more than one source of supply has a quota rating of 0, the item with the highest quota is the valid source of supply.
    According to the formula, the following applies: The higher the quota, the lower the quota rating and the higher the likelihood that the relevant source will be determined as the valid source.
    But in case of splitting SAP will not go on the basis of Quota it will purely split the requirement quantity between two or more vendor on the basis of Quota %.
    Step5. RUN MRP
    Remember to choose the schedule lines control indicator to 2.
    Please try this.
    Don't forget to reward, if found to be useful.
    Regards,
    Varma

  • Customer subcontract

    All,
    Follwoing is my flow to handle customer subcontract using sales stock & Make-To-Order concept. We are given a Semi-FG say "F02" from customer in which "F02" is the product we sold to them before.  They subcont us to add colour to the "F02" and make it to FG as "F01" and ship it back to them and charge then an added-value cost (not full price including the cost of "F02")
    I encountered the problem as follows:
    1. In sales order how to differentiate between normal price and added-value price for F01 as when doing billing, we only want to charge the added-value price in subcontracting case, and charging full price for normal sales ordering (in which we make F02 for customer also).
    2. Any report other than MD04 to see make-to-stock S.O as in MTO scenario, Md04 wont shows the Sales order at all
    ******************Here is the config and flow**********************
    a).     Create Sales Order, in procurement tab "Requirement Class" = “KEV” and Schedule Line cat to “BN”
    b).     MIGO -> GR->Others -> 501-E -> for F02 (Customer Supplied Material), provideSales Order/Item#
    i)MMBEyou will see the stock is being show as “Sales Stock” (NOT Inventory stock)
    ii)Md04 for F45684XX4915FR3102 è you will see the stock as Sales Order stockè means customer owns the stock
    iii)MB51 for material doc for this GR è No account document means this GR stock does not affect the Balance sheet account on FI, but affect the MM (as it generate material document)
    c)CO08 to create Prod Order from Sales Order è use F01 (The FG to customer) è in Prod Order component view add component F45684XX4915FR3102 (op# = 10) è release $ Save go to MD04 you will see the S.O and cutomer Stock show
    d). MIGO GI--> Order# --> 261E
    i)Md04 è Sales Stock customer entry is gone
    ii)MB51 è material document has no accounting document è since the stock does not belongs to company (GR/GI of F02 does not affect FI, only MM)
    e).GR-> Order -> 521 E in where tab è use 101-E
    i)md04 è Prod Order Entry gone, only Cust Stock entry remain with stock quantity
    ii)MB51 è Accounting Document  Inventory/Fact Output equal to EK02 cost value * qty
    f).     Sales order no need to confirm stock, since it is MTO, the confirm field is auto assign with qty
    g.     Open DN è Vl01n è input pick qty è Save the DN (without PGI)
    MD04 è Delvry entry is shown
    h.     VL02n è PGI
    MD04 à All item are vanished
    i) VF01 -- create Billing
    price being chare equal to the normal price (NOT added-value price)

    "Dependent requirements ind. for individual and coll. reqmts" (MARC-SBDKZ) on MRP4 of material master is used to control whether the components are managed in the special stock segment or not in MTO environment.
    (Discussed many times on the forum.)

  • User Exit for Purchase Order Release Strategy

    Hi,
    I am a little new to this, how do I search for a user exit for purchase order release strategy (TCode ME29N).
    Thanks in advance.
    Mick

    Hi
    Check the following Exits and BADI for Pur Requisition
    Enhancement
    MEVME001 WE default quantity calc. and over/ underdelivery tolerance
    MM06E001 User exits for EDI inbound and outbound purchasing documents
    MM06E003 Number range and document number
    MM06E004 Control import data screens in purchase order
    MM06E005 Customer fields in purchasing document
    MM06E007 Change document for requisitions upon conversion into PO
    MM06E008 Monitoring of contr. target value in case of release orders
    MM06E009 Relevant texts for "Texts exist" indicator
    MM06E010 Field selection for vendor address
    MM06E011 Activate PReq Block
    MMAL0001 ALE source list distribution: Outbound processing
    MMAL0002 ALE source list distribution: Inbound processing
    MMAL0003 ALE purcasing info record distribution: Outbound processing
    MMAL0004 ALE purchasing info record distribution: Inbound processing
    MMDA0001 Default delivery addresses
    MMFAB001 User exit for generation of release order
    MRFLB001 Control Items for Contract Release Order
    AMPL0001 User subscreen for additional data on AMPL
    LMEDR001 Enhancements to print program
    LMELA002 Adopt batch no. from shipping notification when posting a GR
    LMELA010 Inbound shipping notification: Transfer item data from IDOC
    LMEQR001 User exit for source determination
    LMEXF001 Conditions in Purchasing Documents Without Invoice Receipt
    LWSUS001 Customer-Specific Source Determination in Retail
    M06B0001 Role determination for purchase requisition release
    M06B0002 Changes to comm. structure for purchase requisition release
    M06B0003 Number range and document number
    MEQUERY1 Enhancement to Document Overview ME21N/ME51N
    MELAB001 Gen. forecast delivery schedules: Transfer schedule implem.
    MEFLD004 Determine earliest delivery date f. check w. GR (only PO)
    MEETA001 Define schedule line type (backlog, immed. req., preview)
    ME590001 Grouping of requsitions for PO split in ME59
    M06E0005 Role determination for release of purchasing documents
    M06E0004 Changes to communication structure for release purch. doc.
    M06B0005 Changes to comm. structure for overall release of requisn.
    M06B0004 Number range and document number
    Business Add-in
    ME_PROCESS_REQ_CUST Enhancements for Processing Enjoy PReqs: Customer
    ME_PROCESS_REQ Enhancements for Processing Enjoy PReqs: Internal
    ME_PROCESS_PO_CUST Enhancements for Processing Enjoy Purchase Order: Customer
    ME_PROCESS_PO Enhancements for Processing Enjoy Purchase Order: Intern.
    ME_PROCESS_COMP Processing of Component Default Data at Time of GR: Custome
    ME_PO_SC_SRV BAdI: Service Tab Page for Subcontracting
    ME_PO_PRICING_CUST Enhancements to Price Determination: Customer
    ME_PO_PRICING Enhancements to Price Determination: Internal
    ME_INFOREC_SEND Capture/Send Purchase Info Record Changes - Internal Use
    ME_HOLD_PO Hold Enjoy Purchase Orders: Activation/Deactivation
    ME_GUI_PO_CUST Customer's Own Screens in Enjoy Purchase Order
    ME_FIELDSTATUS_STOCK FM Account Assignment Behavior for Stock PR/PO
    ME_DP_CLEARING Clearing (Offsetting) of Down Payments and Payment Requests
    ME_PURCHDOC_POSTED Purchasing Document Posted
    SMOD_MRFLB001 Control Items for Contract Release Order
    EXTENSION_US_TAXES Extended Tax Calculation with Additional Data
    ARC_MM_EKKO_WRITE BAdI: Enhancement of Scope of Archiving (MM_EKKO)
    ARC_MM_EKKO_CHECK BAdI: Enhancement of Archivability Check (MM_EKKO)
    MM_EDI_DESADV_IN Supplementation of Delivery Interface from Purchase Order
    MM_DELIVERY_ADDR_SAP Determination of Delivery Address
    ME_WRF_STD_DNG PO Controlling Reminder: Extension to Standard Reminder
    ME_TRIGGER_ATP Triggers New ATP for Changes in EKKO, EKPO, EKPV
    ME_TRF_RULE_CUST_OFF BADI for Deactivation of Field T161V-REVFE
    ME_TAX_FROM_ADDRESS Tax jurisdiction code taken from address
    ME_REQ_POSTED Purchase Requisition Posted
    ME_REQ_OI_EXT Commitment Update in the Case of External Requisitions
    ME_RELEASE_CREATE BAdI: Release Creation for Sched.Agrmts with Release Docu.
    ME_DEFINE_CALCTYPE Control of Pricing Type: Additional Fields
    ME_CHANGE_OUTTAB Enrich ALV Output Table in Purchasing
    ME_CHANGE_CHARACTER Customer-Specific Characteristics for Product Allocation
    ME_CCP_DEL_DURATION Calc. of Delivery Duration in CCP Process (Not in Standard)
    ME_CCP_BESWK_AUTH_CH BAdI for authorization checks for procuring plant
    ME_CCP_ACTIVE_CHECK BAdI to check whether CCP process is active
    ME_BSART_DET Change document type for automatically generated POs
    ME_BAPI_PR_CREATE_02
    ME_BAPI_PR_CREATE_01
    ME_BAPI_PO_CREATE_02
    ME_BAPI_PO_CREATE_01
    ME_BADI_DISPLAY_DOC BAdI for Internal Control of Transaction to be Invoked
    ME_ACTV_CANCEL_PO BAdI for Activating the Cancel Function at Header Level
    MEGUI_LAYOUT BAdI for Enjoy Purchasing GUI
    ME_CHECK_ALL_ITEMS Run Through Items Again in the Event of Changes in EKKO
    ME_COMMTMNT_REQ_RE_C Check of Commitment Relevance of Purchase Requisitions
    ME_COMMTMNT_REQ_RELE Check of Commitment Relevance of Purchase Requisitions
    ME_COMMTMNT_PO_REL_C Check for Commitment-Relevance of Purchase Orders
    ME_COMMTMNT_PO_RELEV Check for Commitment-Relevance of Purchase Orders
    ME_COMMITMENT_STO_CH BadI for checking if commitments for STOs are active
    ME_COMMITMENT_RETURN Commitment for return item
    ME_CIP_REF_CHAR Enables Reference Characteristics in Purchasing
    ME_CIP_ALLOW_CHANGE Configuration in Purchasing: Changeability Control
    ME_CIN_MM06EFKO Copy PO data for use by Country version India
    ME_CIN_LEINRF2V BADI for LEINRF03 excise_invoice_details
    ME_CIN_LEINRF2R BADI for CIN India - Delivery charges
    ME_CHECK_SOURCES Additional Checks in Source Determination/Checking
    ME_CHECK_OA Check BAdI for Contracts
    Reward points if useful
    Rgds,
    Naren

  • Cross company production with subcontracting

    Hello Experts,
    I have two company codes say C1 & C2. When I get the requirement of 1000 nos of FG X, all material will be procured in C1 & 1st operation will be performed in C1. Due to capacity issue, 2nd operation have 1 production line in C1 & 1 production line in C2.  So the 2nd operation for 700 nos will be carried out in C1 & 300 nos will be carried out in C2. All materials required on prod line in C2 will be send by 57F4.
    How to go for this scenario? 
    Regards,
    Sagar

    Hi Sagar,
    Create 2 level of BoM in C1 like FG = X and SFG = Y.
    Here, the output of SFG  = Y will be called Input for FG in Plant C1 and as an Input again for Plant C2.
    Say you need 1000 SFG to manufacture 1000 FG. You have got capacity constraints for producing 1000 FG in Plant C1, the please follow the below process,
    1. Create, Release, Issue RMs and GR a Production/ Process order for SFG for 1000 in Plant C1.
    2. Create, Release, Issue SFG and other required RM and GR a Production/ Process order for FG for 700 in Plant C1. Here you will consume 700 SFG.
    3. Create a subcontracting PO for 300 FG. With the Subcontracting PO transfer 300 SFG to Plant C2. You need to show Sales Purchase for SFG 300.
    4. Create, Release, Issue SFG and other required RM and GR a Production/ Process order for FG for 300 in Plant C2. Here you will consume 300 SFG.
    I think the decision of how much to be transferred to Plant C2 is totally depedant upon capacity available in Plant C1. The Production Planner or the Line Scheduler is the right person to decide how much quantity to be subcontracted to Plant C2.
    The SD and MM processes are pretty straight but as far as Excise configuration and requirements are concern the composite meetings and decision by PP, MM, SD and CO team would really help you.
    Regards,
    Shoyeb
    Edited by: Shoyeb A on Dec 12, 2011 12:55 PM
    Edited by: Shoyeb A on Dec 12, 2011 1:03 PM

  • 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

  • Subcontracting Assembly Process

    Dear gurus,
    Just want to get guidance on the process flow of Subcontracting/Outsourcing Assembly..
    Our org will still plan the requirements for the materials, inform the OEM (original equipment manufacturer), and supplying the components..
    Thank you.

    Dear,
    Within in-house production if some capacity bottleneck exists in any operations then you can assign this job to some vendors to carryout this job in his premises and supply us the semi-finished part. This can be done via control key example PP02 (external processing control key and activate the subcontracting Check box in routing).
    Option1:
    1) In Control key PP02 enable external processing and in the routing in the operation detail enable external processing under radio button sub contract.
    2) In Order type dependent parameter T code OPL8 enable reservation / PR creation - 3 (immediate reservation / PR creation) during release / confirmation.
    3) Create Info record T code ME2O only for vendor no material combination. (You are not going to issue material for the vendor through SAP) system will not allow through ME2O since it is operation subcontract.
    4) Run MRP it will not create PR directly since the it is enable in OPL8 only after release.
    5) Do the In-house operation then confirm the in -house operation in CO11n. Once the previous operation is confirmed PR is generated automatically.
    6) Then Convert PR to P.O. In purchase order only operation description will appear. since no component is assigned. And the order type will be F.
    7) Then make separate DC (Gate pass). Consult your MM guy for this.
    8) If any component is assigned to the operation. Do stock transfer to Vendor storage location till such time it comes to factory again.
    9) While return from vendor do MIGO against the P.O and it will come settle in prod order.
    10) Payment to the vendor is through service record entry concept. Consult MM gut for this.
    Option 2:
    1) You have to create separate material master for that operation. Treating that it will be a different material
    2) Create Vendor master with Material and Vendor combination
    3) Create BOM with header material and this material as item for the header.
    4) Create Routing for the header material with only one operation with control key PP02.
    5) Assign the item material to this operation.
    6) Run MRP this will create PR automatically. Then convert PR to PO
    7) Send material to the vendor through ME2O
    8) Do the GR MIGO the item will come have header material and it will automatically update in unrestricted stock.
    9) Payment to the vendor will be with different as service entry concept consult MM guy for this.
    Hope clear to you.
    Regards,
    R.Brahmankar

  • Operational subcontracting scenario

    We have a requirement in operation subcontracting.
    In our production process some of the routing operations we are doing outside (external procurement). But the customer doesnu2019t want to create a Purchase Order for this process (each subcontracting requires a order and release). Since the number of operation level of subcontracting is more per day and they have contract with the subcontractor for the price for a year. Further they will send the order quantity by different schedule
    Please suggest for the above situation which process we need to follow and what are all the master data requirement and the transaction data requirement in a frequent manner.
    Regards
    Sridharan

    Create a  Contract and then create a Subcontracting PO  with reference to contract ( for a year )and assign the Component to be sent( Mostly  Dummy Material)
    And give the material description Similar to subcontractiong process.
    & IN OPL8, Production order dependent parameter : Set The dependent reqmt/.reservation - Never,  in General valid setting tab, this will restrict to create a PR while releasing Production order.
    and follow the same process as per the existing process.
    Note: IF you go to scheduling agreement for subcontracting You can't able to assign the component.
    Edited by: Sundaresan . E. V on Oct 5, 2010 11:29 AM

  • 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

  • Subcontracting challan issue for end product with scrap.

    Hi All,
    I have one issue let me know how the system act in case of subcontracting challan process,
    In our company we use one component and received two end product( one is final product and other one is scrap product)
    My problem is how to treat this scrap in challan process.
    Pl help me out.
    Regards,
    Zafina

    Hi, Please use the exit to define how you want the system to consider Scrap in the subcontracting process.
    Refer below exit for your problem,
    1084323 USER-EXIT to update challan status if scrap is calculated
    1103537 Correction to note 1084323 for ECC 6.0 Release
    Please note the user exit will be accessed only if you were to write a code for it and you assigned/made 545 O as relevant to subcontracting
    subcontracting scrap will work if the scrap percentage is defined for the component which is sent to the job worker. If you have a completely new material for scrap then this is not going to work as the system will never be able to assign the qty (mismatch of material code between the scrap material & the challan material).

  • MRP for subcontracting

    hi thr ,
    here we r using planing strategy 10 .we have BOM like HALB A conatains ROH B
    and that ROH B is send outsidefor subcontracting for cutting operation .
    when i am taking planning run it is not generating DepReq for ROH B .
    i have maintained spl procurement key 30 in HALB A in MRP 2 view .
    why it not linking the ROH material .
    and what r the setting to be mainatained for such scenario .
    routing for the HALB contains only one operation Cutting and we have maintained PUR info record in the Routing for the same .
    plz guide for the same above .

    Ajay,
    Routing is not required as you are subcontracting HALB A (as mentioned by you only one operation representing external processing).
    1. Maintain HALB A - Special Procurement - F & 30
    2. Maintain BOM for HALB A with usage 1 - Production and status relevant for all. See that your BOM is within the valid date range of the required date. Here component ROH B should be assigned.
    3. Maintain Inforecord of Subcontracting type for HALB A.
    With this run MRP you should get Subcontract Req generated for ROH B.
    In your present case you have maintained external operation, which will get triggered only during creating/release of Production order. I think you will be having a planned order only for HALB A, please convert it into production/process order and check, then system will create subcontract requirement.
    Regards,
    Prasobh

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