Subcontracting within company code

Hi
We have scenario of subcontracting as follows
We have two plants in SAP one is Manufacturing Plant (1001) &
other is Power Plant (1009)
Plant 1001 is having excise registration & 1009 is not excise
registered. We are supplying coal which is excisable from 1001 to
1009 as a raw material & receiving power from Power plant as finish
product. But in SAP how can we achieve this. Following are some doubt
regarding the same
1. Subcontracting from one plant to another plant is not accepting
in PO
(Massage is coming: Subcontracting as stock transfer within a company
code not possible
Message no. ME645)
2. How we can send material from one plant to another plant fro
subcontracting
3. What will be the behavior of inventory of COAL in power plant
in case of Valuation & Costing of Power?
4. How the costing of Power will be done
5. If we create Power plant as different vendor rather than plant
vendor , how power plant will receive material & effect of the same
in inventory & costing of power
6. Also business want to create subcontracting challan & other
legal documents
Is there in other Work around solution for the same
Please provide suggestions on the same
Regards

Hi Advait,
I have the following to share regarding your scenerio.
1] Create the power plant as Jobwork Vendor.
2] You will supply the coal to this Jobwork vendor against 57f4 document(Jobwork basis).
You can also use MoT 541 and 542
3] Power plant(Jobwork vendor) will receive this coal as a Non-Valuated materail. He will receive the coal on a UNBW material code.
4] Power plant can easily consume this coal against the power generated.
5] Definitely there will be a mechanism with you to measure how many power you have received from the power plant.
6] Power plant will charge only labour charges against the power provided to your plant as he has already consumed your coal to generate this power.
7] In this way the coal at your end will be valuated for you but simultaneously non-valued for power plant.
I think this is what your management requires.
Hope this will help you.
Best Regards,
Amol

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Subcontracting cross company code

Hello,
I didn´t find a standard way to handle the following scenario:
Plant A creates an intercompany purchasing document item category L for subcontracting with header material S and supplier 1 which is intercompany for Plant B (another company code).
Plant A provides material P to Plant B with transaction ME2O and delivery.
The goods issue with reference to delivery creates special stock material provided to supplier on plant level for plant level (quantity and value).
Works all fine so far -->standard subcontracting procedure
My Question:
How should Plant B post goods receipt:
Background:
The goods receipt would lead to doubling material quantity (stock available in Plant A and in Plant B) and double valuation.
Plant B needs to create production order to produce S and P as component.
Any Ideas ?
Your help is very apreciated
Cheers
Thomas

Hi,
But if the two plants are in different company codes then the STO can use Billing and profits etc. so that the revenue can be managed as you need it.
By using STOs with billing, the system treats the supplying plant as a vendor and the reciving plant as a customer anyway. But the whole process is much easier because you treat them as stock transafers and yet get the benefit of the profit / loss and billing functions.
You rellay do need to read up on the use of STOs cross-company (too much detail for this thread). There may even be some help on the first thread on this forum.
I think that you will be pleasantly surprised at the benefits to the whole process if you explore this option fully. The STOs are "easy" to maintain, the movements and consumptions etc. also follow basic real-world logic and the accounting is DEFINITELY as the auditors would want to see it.
If your plants were set up incorrectly and were within the same company code, then these options would not be available to you (because the SAP system does not allow you to break financial rules and cause audit problems, you cannot have a profit from a transfer within the same legal entity). But is your case you have got the structure correct (many people don't) and so I would recommend that you exploit this standard SAP functionality to your benefit.
Short or long-term, you will realise the benefits, go down the suncontracting route for this solution and your users will have messy functions and will not have the kind of reporting and exnquiries that they will definitely need.
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Dear,
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Hi All,
We are making a Stock Transfer betweeen 2 plants( A to B) WITHIN a company code.
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Edited by: terrence jn on Mar 10, 2008 10:36 AM

See thread:
Re: BAPIs for asset transfer
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Stock Transfer Report from Plants within company code

Dear SAP Experts,
We have posted nearly 50 MIGO of stock transfer from our different plants within the same co. code since last 45 days. Now we want to take report of all stock tranfer receipt in our plant. (Like MIGO No. date, material code qty supplying plant etc.)
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Thanks in Advance.
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Hi Ishu,
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Hi All,
Please provide me the procedure how to transfer an asset from one plant to another.
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Edited by: siva prasd on Oct 19, 2011 7:11 AM

Dear,
Please check: Re: asset transfer within company code from one plant to another using STO
Re: how to transfer an asset from one plant to another plant within comp code
http://sap.ittoolbox.com/groups/technical-functional/sap-acct/asset-transfer-237416
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Hi ,
I want to transfer assets from one company code located in India to another company code located in the US. The existing configuration is as under.
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(2) shall we have identical depreciation areas in both COD's
(3) what would be transaction variant should we use? and the its mapping the transaction types in "Define Transfer Variants" node?
Moderator: Please, avoid asking basic questions

Dear,
Please check: Re: asset transfer within company code from one plant to another using STO
Re: how to transfer an asset from one plant to another plant within comp code
http://sap.ittoolbox.com/groups/technical-functional/sap-acct/asset-transfer-237416
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Transfer with in same Company code with a fixed mark up

HI gurus,
here is the situation ,we purchase some unlabelled packing materials form vendor in the distribution center , then pack them up into many smaller packages with our own label , after that ,the DC transfer packed material to store for sales .
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Edited by: deyi chen on Jul 1, 2010 9:21 AM

Dear Friend,
your scenario look like STO within company code
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Stock transfer across company code

Hello Expert,
I have one business requirement that is to transfer the stock from plant belongs to compnay code "A" to plant belongs to compnay code B. Stock transfer within company code from one plant to other is possible but is there any way to transfer the stock from one compnay code to other company code plant?
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Wih Best Regards,
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Dear Experts,
I want to map one scenario in sap mm.
We have 3 company codes within the client. Company A and Company B we have already implemented.
Now we are going to do Implementation for the third company C. Company C mainly doing a job work (service) only. Both the companies A and B are giving the job work to the Company C. Currently we are considering company C as a vendor. Company A and B will create a PO, Subcontract Challan and MIGO. PP process also we need to include in company C. If we implement SAP in company C how to map the Process.

Hi,
You can use subcontracting STO between plants that belong to company codes (intercompany STO with subcontracting):
Re: Subcontract
But in my opinion it is not the best solution in SAP because raw material flow is very dummy (you can transfer the components to the subcontracting special stock segment of the plant vendor - no component transfer between plants).
I would suggest you to check multi plant / multi site planning as alternative solution:
http://help.sap.com/erp2005_ehp_04/helpdata/EN/f4/7d2d4d44af11d182b40000e829fbfe/frameset.htm
Reagrds,
Csaba
Edited by: Csaba Szommer on Sep 29, 2009 9:03 PM

STO - Two plants within Different Company Codes

Hello,
Kindly help me out with this case, i want to create a STO for two plants within DIFFERENT company codes, so i've created all the required configuration and master data including creating the supplying plant as a vendor and the ordering plant as a customer, also all master data is maintained in both plants and i tried the scenario on the IDES system and it works okay so i know i'm on the right procedures. The problem is that i create the PO, but when i go to Transaction Code VL10B to create the delivery it gives me an error ( Delivery with no Line item not allowed ) even though there is more than enough stock in the storage location. Kindly help me out.

17.01.2010     Stock                            10.500,000      0,000      10.300,000
13.01.2010     Order     Totals record     100,000-     100,000      10.300,000
13.01.2010     Deliv.     Totals record     100,000-     100,000      10.300,000
17.01.2010     StLcSt     SLFR     10.500,000      0,000      10.300,000
13.01.2010     Order     Totals record     100,000-     100,000      10.300,000
13.01.2010     Deliv.     Totals record     100,000-     100,000      10.300,000
17.01.2010     BtchSt     123     10.500,000      0,000      10.400,000
13.01.2010     Deliv.     Totals record     100,000-     100,000      10.400,000
17.01.2010     BStLoc     123       /SLFR     10.500,000      0,000      10.400,000
13.01.2010     Deliv.     Totals record     100,000-     100,000      10.400,000
This is the whole table.
This is what i got. i believe that it is an availability check problem, i just can't see what is the solution.
SLFR is the Storage location of the issuing plant.

STO processing within Same Company Code with Billing/Invoice

Hello Guru's, I have been asked by our finance department to look at having billing/prices associated with our STO (UB) movements of stock within the same company code. We currently use a UB order type but obviously no billing is associated with the delivery type NL. We do have inter company STO's (order type NB) and have prices and billing associated with the delivery type NLCC.
I wanted to take a copy of the NB order type (copy to ZB) and attached to relevant elements in the IMG (assign doc type & define delivery types). I have done this in an open DEV client and have got a new PO created (ZB) and created a delivery, picked and confirmed the picking. I have got to a point of PGI and i get the following message ' Purchase order 45########## does not contain items for a stock transfer'
Firstly, do any of you trade via STO within the same company code and associate a billing document? The reason we want to is that our manufacturing plants want to charge a premium to the packing and distribution warehouse for the goods to get profit visibility. At the moment the standard cost of goods manufactured at our manufacturing plants transfers to our distribution plant at the same value.
If any of you have any ideas then please let me know.

Hi,
Pricing configuration for STO: -
In SPRO > MM > Purchasing > Conditions > Define Price Determination Process > Define Schema Determination > Determine Schema for Stock Transport Orders > Here assign Calculation Schema "RM2000" i.e. Stock Transfer Document to Schema Grp Pur. Org, STO Type (For e.g. UB) and Supplying Plant.
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At the time of PGI, following accounting entry will get generated;
Stock A/c - Dr - 110 INR (Receiving Plant)
Stock A/c - Cr - 100 INR (Supplying Plant)
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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...

Subcontracting within company code

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