Subcontracting scenario - We are subcontractor.

Dear Friends,
The scenario is as follows:
If our company is doing sucontracting for other companies.
Our Company is using SAP.
In this case how to enter material came from customer and how to remove value added material from our premises.
As per knowledge, Incoming matl is raw material and outgoing material is finished material. We have to create BOM for this.
for all this process any body guide me step by step procedure.
Please respond to this issue. Its very urgent.
I had to run this scenario in front of client.
Regards,
Mahesh

We use subcontracting and here is that we do:
For the raw material we send to the supplier, we need to check the following:
Before of all check that exist a PO or Schedule agreement setup as subcontracting
1.- Material Master Basic Data 1:
Gross Weight & Net Weight must be maintained.
2.- Material master
Sales: Sales Org. Data 1
Delivering plant: XXXX
Tax classification code: 1 (Full tax)
Sales: Sales Org. Data 2
Matl statistics grp: 1 (Material VIS active)
Acct assignment grp: 02 (Parts, Materials etc)
Item Category Group: NORM
Sales: General/Plant
Trans. Grp: 0001 (Standard)
LoadingGrp: XXXX
MRP2
Special procurement  = L1
3.-In XK03, for Vendor select Control data.
In account control field, there must be a partner number as u201876u2019 + Vendor Number.
In VD03, enter u201876u2019 + vendor number as Customer.
Sales Organization 7699
Distribution Channel 99
Division 00
Vendor number must be in Control data/Vendor
4.- We send the raw material to the subcontractor via ME2O
5.- Once the delivery is created we use the LT03 to create the transfer order and complete the stock to vendor.
6.- We create a BOM for the material that we are going to receive as "dad" and the raw that we sent to the subcontracting as "child".
7.- We create a subcontracting info record
8.- Create in out case a Subcontracting schedule agreement (Item Category = L)
9.- Once the subcontracting vendor back the finish good.. use MIGO and that will post the 101 for the finish good and discount the raw material for the stock to vendor.
Hope this can helps you.

Similar Messages

  • Subcontracting Scenario -urgent

    Hi all
    our clients requires different scenario how would we map these into the SAP
    1-We send the material to Sub contracting Vendor for Machining operation suppose 100 piece. but Vendor make the some pieces faulty (Rejection) like 10 piece.
    2- by default vendor send some pieces without doing any machining operation.like  5 piece out of 100
    3- Some times we issues material defect pieces  to subcontracting  vendor by default 
    4- Component we have already received but some of them are get reject on production line but component can be rectify and for rectification we send the component back to Vendor for precessing without paying anything to vendor for this rectification
    How would we map these four scenario in SAP
    These are the scenario  please gives your valuable suggestion to map into SAP
    Thanks
    Edited by: JAM SAP on Feb 10, 2008 4:23 PM

    Dear Jam as far as my knowledge is concerned you can refer the Subcontract Scenario mentioned below :
    1) 100 Pcs sent for subcontracting ,GRN of Sucontracting PO takes Place and in Quality 10 Pcs gets rejected 90 is accepted
    In this scenario -if you are having quality check then material will be in blocked stock in quality rejection,and the material can be sent to scrap(or Rejection) stores but if you dont have quality check in that case when GRN of subcontracting PO is done for that you can do 542 movement of the raw material on which processing is done ,transaction code is MB1B and you can select the scrap(or rejection) stores during that movement.
    2)100 Pcs sent for subcontracting ,GRN of Sucontracting PO takes Place and vendor sends 90 with processed and  10 pcs without processing
    In this scenario-you can simply do 542 movement of the raw material on which processing is done ,transaction code is MB1B and you can select the Rawmaterial (which was sent to vendor for processing) stores during that movement.
    3)100 Pcs sent for subcontracting ,out of which 10 pcs of RM which was sent for processing is defective GRN of Sucontracting PO takes Place and vendor sends 90 with processed and  10 pcs without processing which are defective from our side back.
    In this scenario-you can do 542 movement of the raw material-defective pcs which was sent to vendor ,transaction code is MB1B and you can select the scrap(or rejection) stores during that movement.
    4)100 Pcs sent for subcontracting ,GRN of Sucontracting PO takes Place and  100 pcs is accepted but during processing it is found that the component which is in WIP which was received from subcontractor 10 pcs are not machined properly so it has to be reworked and to be sent back to subcontracting vendor for
    reprocessing and this processing should be w/o charges.
    Well in this case the WIP component which is found that it is not m/ced properly can be taken back into stock with 502 movement -T code-MB1C or it material to material transfer can be done ...i.e from WIP stock i am doing RM stock with 309 movement ,T Code-MB1A so that my original RM can be in stock and i can send this RM or WIP item to the vendor for reworking.
    For this you will have to make a subcontracting PO of the 10 Pcs which has to be reworked with Free Item to be ticked in PO(Because you dont want the charge of processing to be given to vendor). You will be doing the 541 movement so that in system it will show that stocks are lying with vendor , Create Challan ,
    T Code -J1if01 and after processing vendor will send it back .so you will do GRN of this subcontract PO and now the same can be utilised for further production purpose.
    WELL DEAR FRIEND HERE IN ALL THE SCENARIO I HAVE NOT MENTIONED ABT SUBCONTACTING CHALLAN RECONCILATION (J1iFq),You will have to take care of that in each of these scenarion mentioned above.
    Hope this information will be of some use to you
    Regds
    Shailesh

  • Please help with subcontracting scenario............

    Hi All,
    Can anyone please help me in dealing with subcontracting scenario with scrap taken into account. Please provide the screen shots from BOm creatio to challan closing. the requirement is urgent. please help me. all replies will be suitablly rewarded.
    regards,
    vvr sharma

    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 ?
    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. 
    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.
    - 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
    Hope this is helpful.
    Regards
    Ravi

  • Subcontracting scenario in PP

    Hi Experts,
    In subcontracting there are 2 scneraios..
    1) HALB1 has special procurement key 30- Subcontracting. Components of this HALB are supplied by main plant.SAP Help says one should maintain special procurement key - Stock Transfer from Plant to MRP Area and planning for subcontractor should be done using MRP Area segment.
    Is it obligatory to make use of MRP area planning for this scenario? If no and if we can plan it at plant level also then are we supposed to maintain special procurement key for components.
    2) HALB1 has special procurement key 30- Subcontracting. Components are supplied by third party to subcontractor. SAP help says we should define special procuremnt key - External procuremnt for componenst and should plan in MRP area.
    Is it obligatory to make use of MRP area planning for this scenario? If no and if we can plan it at plant level also then are we supposed to maintain special procurement key for components.
    Thanks

    Hi,
    If the HALB assy. is built by a sub-con vendor, then you need to maintain F-30 in MRP-2 view. This will ensure that in the PO, the children of the HALB assy. are issued to the vendor & these components will be consumed upon GR of HALB.
    MRP Areas are not required for this. In normal scenarios it is enough to work at plant level and issue the components to the vendors.
    However in some special cases you want to do planning of materials at Sub-contractor level, then you would need to setup MRP areas.
    So before setting up any MRP areas, follow the normal subcontracting flow, i.e. maintain Special procurement key as 30, create PO, issue components via ME2O, then post GR for the PO.
    If this flow is acceptable proceed with the same, but if you really want to plan components at sub-con level then you need to setup MRP areas.
    Hope it clarifies.
    Regards,
    Vivek

  • How to manage the Vendor supplied components in Subcontracting scenario.

    Hi experts ,
    I have to complete the finished product say "A" by subcontracting scenario.
    I am supplying A1, A2, A3 to the vendor as components.
    Component A4 is the item required for the final product "A" but this will be supplied by the Vendor.
    Please let me know how can I handle both the material movements and the cost of the product in this scenario thru Subcontracting PO.
    Thanks & regards,
    Rachan.

    what did your purchasing department negotiate?
    do you get billed for the component A4 separately? or is the cost for A4 inlcuded in the service charge for subcontracting?
    does your purchasing department order A4?
    is it in your bill?
    if it is in your bill and you create an extra order for this part, then you should set the SC flag in the delivery address tab of your PO along with the vendor number of your subcontractor.
    Subcontractor will then tell you when the material arrvied and you post a goods receipt, this is then directly posted into special stock at subcontractor. When you receive the finished material A and post GR with MIGO all components will be issued.
    you will then receive a bill for subcontracting fee that is posted to your subcontract order, and another bill for the component A4 that is posted to this component order.
    If costs are included in subcontract fee, then you dont need to manage inventory, do not need an extra PO and extra invoice, and dont need the A4 in your BOM
    Edited by: Jürgen L. on May 6, 2010 9:01 AM

  • We are subcontractor

    All SAP Gurus,
    I'm aware of the subcontracting cycle, which includes:
    1. creation of subcontracting PO
    2. transfer posting using 541 mvt. type
    3. creation of 57 F 4 challen
    4. Receiving goods against PO
    5. Reconcilation of subcontracting challen
    6. closing subcontracting challen
    Now, I have the reverse scenario:
    We are the subcontractor, receiving material and providing subcontracting services.
    How this scenario can be mapped?
    Please helpu2026..

    Hi,
    Here u r selling "SERVICE" to ur customer.So u can try following process
    1.To tracks customer material , you can create materials with UNBW(Nonvaluated materials ) Materila type.
    2.Create "SERVICE" materil with "DIEN" material type in MM01
    3.Cretae SO (VA01),
    4.Billing(VF04/VF01)
    Regards,
    Biju K

  • Complex Subcontract scenario

    Dear Sir,
    We have a following complec Subcontracting scenario .
    We are in the business of Machine Manufacturing . The Frame of Machine is manufactured on subcontract from outside vendor . As per the BOM of the Frame , it consist of  3 different cut-size plates in some specific profile . Depending upon the workload situtation , we some time give cut size plates to Vendor as the input material .  But some time we do not give the cut size plates , rather we give to Vendor a Full long size plate and Vendor cut the plate and fabricate the Frame . The remaining  plate is used by Vendor in the Subcontract orders which will be comming in future .  The amount is paid to Vendor based upon the weight of the Frame received .
    Pl guide us , as what steps we have to follow in SAP so that we are able to send /control the material to Vendor and make the correct payment also .
    We assure to give full marks for the suggested solution please .
    Rgds
    B Mittal

    Hello Mittal,
    You can also carry out planning for components to be provided in subcontracting using an
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    g. You can check the stocks provided to vendor using MR8
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    Regards
    R.Brahmankar

  • Subcontract Scenario

    Hi Gurus,
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    Hi Gurus,
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  • A subcontracting Scenario

    Hi ,
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    Edited by: Shreya Sinha on Dec 29, 2007 12:30 PM

    HI All,
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    Talking about subcontracting, right now we are facing some issues.We have right now what we call dismantle subcontracting,
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    thank you,
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  • Subcontracting scenario in MM-SUS

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    [Planning for Components to be Provided in Subcontracting|http://help.sap.com/erp2005_ehp_04/helpdata/EN/c4/106956ae8a11d1a6720000e83235d4/frameset.htm]
    Edited by: Peter Pallen on Jun 5, 2011 7:19 PM

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    Najam

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  • Where PI Configuration Scenario details are stored under ABAP stack Tables?

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