Types of subcontracting

dear gurus,
            what are all the types of subcontracting in sap?how it has been mapped in standard sap system?
           what is mean by internal and external subcontarcting/
     in which subontracting we will be using special procurement key 30 for subcontarcting
                                                                   -gideon

Many Organizations will outsource few of its Manufacturing, Finishing, Packaging operations to external vendors. These vendors are called as Sub contractors. These Subcontractors are charged for the services they have provided through their operations. There are different kind of Business Scenarios that are operational with respect to Subcontracting. The choice and applicability of a particular scenario depends on different parameters. Some of these Parameters are:
Does the company manufactures the Raw Materials required for manufacturing the finished products at its own facilities or procures them from external vendors
Inventory of Raw materials at own facilities
Lead times at sub contractor location
Procurement Lead times from the external Vendor
Logistics (Distance, cost, etc) planning wrt to Sub contracting Vendor
The Raw materials provided to Vendor are normally termed as "Material Provided to Vendor". This stock is physically located at Vendor location but is owned by the company itself. This stock is treated as consumption only when the finished products are received into the Plant.
You use the special procurement key as 30 in the MRP 2 view of MM of the material which is subcontracted.You can specify the plant from which this material is procured in customizing.You can also create your own special procurement type.

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Standard O/P Type for Subcontract Challan PO

Hi,
For Subcontract Challan print out we have a made a seperate transaction code , but i want to know which is the std. o/p type for Taking the print out of Subcontract challan, like for po NEU is there , so which is the o/p type is for taing the subcontarct challan print out can u give the program name and form which is use for it.
regards,
zafar

Hi,
Standard Output type for SUBCONTRACT CHALLAN is J1IF
You can give the Print for the subcontract challen in J1IF01 transaction, enter the Excise group and series group
In the next screen you can find print parameters
regards,
santosh

Z movement types for subcontracting

Hi Experts
I am creating zmovement types for my subcontracting process,941,942,943.i am successfulyy send the material with subcontracting vendor with 941 movement.when i am doing GR for with 101movement type for subcontracting material.the 543 movement type is triggering automaticaly...but i need 943 movement type to be triggered.please sugest me..
Thanks in Advance...
Varun

Hi
Some of the movemnts cannot be replaced by Z- Movemnt types.
543 - is such a movemnt whcih gets triggered and determined based on the Value string, qunatity string and item category derivation rules.
So you cannot replace the 543 movemnt type
I would like to know ...the reason for changing the 543 movement type.
Thanks & Regards
Kishore

Movement type for subcontracting jobs

Hello,
tool room - dies manufacturing
3types of subcontracting is done.
1. wirecut
2. heat treatment.
3. Machining
I issue the material on weight basis.
for heat treatment the subcontractor charges according to weight of the material i.e (weight before H.T - weight after H.T ) X cost per unit weight.
for wirecut and machining the subcontractor charges on hourly basis. where as i have issued the material on weight basis.
how the Purchase Order can be created for this situation
What movement types can be floowed for GI and GR for subcontracting jobs.
Moderator message:
Locked. Reason: subcontracting topic has been discussed many times.
Points will be unassigned.
Edited by: Csaba Szommer on Jun 27, 2011 1:54 PM

does this unit of issue of material have anything to do with the payment settlement while creating purchase order.
We are facing problem with the material movement for wirecut and machining subcontracting jobs. The PO created are not able to settle the subcontractor payment. So while goods receipt, we are cancelling the PO, in result the material comes and sits in our stock as it is, as if no operation has been done on the materials.
Scrap valuation is not being done due to the same case.
What u suggest??

Move type in subcontract

please explain about the movement types used in subcontract procurement cycle.

Hi
assuming that you have done all of these
Master Data
u2022     MM01- Material Masters for Components and FG
u2022     XK01 - Vendor Master (Subcontractor - L)
u2022     CS01 - BOM for FG
u2022     ME11 - Purchase Info record for Subcontracting
Process :-
u2022Creation of Subcontracting PO with Item Category L (ME21N) , exlode the BOM in line item details of PO
u2022Transfer Posting of Components to Subcontractor
(Mvmt Type - 541) (MB1B/ME2O/MIGO)
u2022Goods Receipt w.r.t. Subcontracting PO (MIGO)
(GR with 101 and auto consumption of
components with 543 O movement}
u2022u2022     Post Invoice (MIRO)
when configuring pl. take of reversal
Mvmt types -- 542
thanks
Prasanna

Transfer posting of subcontracting stock with mvt type 541 from project stk

Hi,
we run project MRP and the requirement is raised for subcontracting item also ,after converting the PR into PO when I try to transfer post material in MB1B using 541 ,system shows Error Purchase order does not contain any item even I have material in my project stock,what may be the reason?
Regards
Kantha

Hello Kantha,
The components which you provide for a vendor are manged in a vendor-related special stock, O. This stock is updated at plant level, becuase material is actually not in your plant. If you want to provide stock to vendor the avialble stock types in subcontracting are from un restricted use and in quality inspection.
When you provide componets to vendor via transfer posting this needs to go from only unrestricted use stock to the stock of material provide to vendor movement type is 541.
So to execute the transfer posting for the stock of material provided to the vendor, you have to specify special indicator O, if not the transfer posting will not differ from normal transfer posting.
Also T-code MBLB will help you in evaluating the stock of material provided. So you need to transfer the stock from project stock to unrestricted stock to carry out the transfer.
Br,
Tushar

LSMW - create Scheduling Agreement for subcontracting position type

Hi all,
I want to use LSMW to create a scheduling agreement with position type L (subcontracting).
I'm using Business Object Method BAPI with
Business Object      BUS2013
Method               CREATE
Message Type         PURSAG_CREATE
Basic Type           PURSAG_CREATE01
The LSMW creates the scheduling agreement with the list of material I inserted in my file but with position type 'blank'.
any ideas?
i read that the standard program RM06EEI0 don't support subcontracting, this is the reason of BAPI.
thanks, MG

Hi gurus!
I forgot to put 'X' in E1BPMEOUTITEMX-ITEM_CAT so, even if i mapped the field, it was not updated.
thanks a lot.
problem solved.
MG

O/P type configuration for Subcontracting challan

Hi,
As per our requirement we have created a separate print transaction for Subcontracting challan print out but i want to know what is the T. Code for taking print out of subcontrating challan also what is the standard o/p type for subconracing challn print out how to configure it and how to assign it to Plant and default printer.
regards,
zafar

Please confgure an output device in transaction OMJ3 for the output type
J1IF. Do not maintain any storage location for the plant, you may leave
the SLOC column blank.
These are the settings you will have to check:
> Check if you have assigned the output type to the Output Determination
> Check if the output type has been assigned in the subcontracting
challan attributes. The output type for subcontracting challan is J1IF.
> Maintained the condition records.
> Set the partner function, medium of print etc in Maintain Output
types.
> In transaction OMJ3 you have not maintained printer determination
for J1IF for plant and storage location. Please maintain one for all
the relevant plants & a blank storage location.
Maitain the following data:
J1IF > 2100 > Blank > output device > j1if
I hope this helps
Vijayesh V V

2 Valuation Class - Same Material Type

Hi ,
I have 2 Valuation class 9001 & 9003 for ZPAC Materil Type .
9001 - Packaging & 9003 Casing .
Where i can find the difference between this Valuation class in Material Master.
I have 2 Material with different Valuation class with same Material type.
I Could nt able to find the difference in between this 2 material.
Like Packaging & Casing where i can find this,
Pl suggest.
Thanks
Ram

Hi,
Go to OMWC, there click on "Global Categories", here position cursor on the Valuation category (which is maintained for Material Master) and click on "Change" button, here check have you entered any Valuation type in field "Default: val.type ext.procure."
This defaults the Valuation Type in Purchasing Documents.
In MIGO, if you don't want to enter valuation types manually then use concept of Batch Determination if your materials are batch managed.
Procedure for Batch Determination: -
1. Go to OMCG and here put Batch Search Strategy "ME0001" against Movement Types 541 and 543 O
2. Now in MBC1 - Maintain condition record for Strategy Type "ME02" and here keep Selection Type as "O"
After doing the above settings, system will not determine the batch and valuation type during Subcontracting PO, but at the time of Transfer Posting (MB1B) and Consumption of Components (MIGO), system will determine batches and corresponding valuation type
If materials are not batch managed then go for "Stock Determination Procedure"
1. OSPX - Define Strategies for Stock Determination
Here take a copy of Stock Determination group "0001" and create a new and assign to your plant.
After maintaining Stock Determination group and rule go to "Stock Determination Item Table", here enter stock type as "F", Storage Location (if required, otherwise keep it blank), enter priority as 1, 2, 3 and valuation types against that in which sequence you want these to be determined.
Now in SPRO > MM > Inventory Management and Physical Inventory > Stock Determination > Assign Stock Determination Rule in the Applications > Inventory Management > Here assign Stock Determination Rule to 541 and 543
Now assign Stock determ. group in MM02, under "Plant data / stor.2" view of material master
Now in MIGO - Click on "Stock Determination" button to get the valuation types automatically.

Differentiating subcontracting & purchasing Quantities and Amounts in LIS

Dear MM GURUs
My client is procuring material from one vendor. He is also procuring the same material from the same vendor through subcontracting. When he is doing analysis for the vendor using LIS reports like MCE3, he could not differentiate the qty procured directly w/o subcontracting and qty procured through subcontracting. Is there any way to do this? Please suggest.
I appreciate quick answer.
Thanks
Ravi D

Dear All
I found one option for this. Under Switch Drilldown in MCE3 with my customised infostructure S912, there is an option to drilldown by Info Record Category. This is giving analysis by Info record type Standard/Subcontracting.
I am closing this thread.
Thanks
Ravi

Message type " " is unknown

Hi Masters
When i try to cancel the subcontracting challan in T code J1IF13, it throws a run time error "Message type " " is unknown" .We discussed with the ABAPer regarding this error.He told that we have to maintain the message type in configuration. Where to maintain the message type for subcontracting challan?
Regards
Mohanraj.C

Use
The subcontracting attributes help determine conditions for a combination of an excise group, a transaction type, and a subtransaction type.
The conditions such as the number of excise items per subcontracting challan, if the nonexciseable materials have to be filtered or not when the subcontracting challan is created, the movement type groups for issues and receipts and the hierarchy of determining the excise base value are mentioned here.
Requirements
Before you continue with this activity, work through the following activities:
Materials Management -> Inventory Management and Physical Inventory -> Goods Issue / Transfer Postings -> Define Screen Layout.
For the movement type 541, maintain the field Purchase Order as an optional entry or as a required entry.
Materials Management -> Inventory Management and Physical Inventory -> Output Determination -> Maintain Output Types.
Maintain the output type. On the Default Values tab, maintain the dispatch time and the transmission medium. Maintain the print parameter on the Print tab. This output type has to be maintained in this activity here.
Materials Management -> Inventory Management and Physical Inventory -> Output Determination -> Assign Forms and Programs.
Maintain the Program, FORM routine, and the form for the output type.
Materials Management -> Inventory Management and Physical Inventory -> Output Determination -> Printer Determination -> Printer Determination by Plant / Storage Location.
Enter the output device that you use.

Problem in issuing RM's in spcl stock to vendor in subcontracting scenario

Hi all,
Scenario:
I am working with Make to order scenario. In this scenario, the client is sending 2 raw materials to the vendor and the vendor is adding 2 more raw materials and assembles all the RM's to manufacture semi finished product. After that, our client will do GR for that semi finished and use that SFG for finished goods production. I will run MRP against sales order in MD50 so that all the raw materials procured will come under special stock.
Issue:
Now my problem is i am not able to issue the raw materials under special stock to the vendor. Is there anything to do from PP point of view to solve it.
Please let me know in case of any clarifications.
Regards,
Krishna Chandra

Hello,
You can use operation subcontracting.
Please find the the link below to see operation subcontracting in detail:
http://www.sap-img.com/production/two-types-of-subcontracting-relevant-for-pp.htm
Regards,
Alok Tiwari

Subcontracting regularization after 180 days

Dear Sir,
We have a scenario where we had sent a material for outside processing using SUBCONTRACTING PRCEDURE .
We had done the following activities :
   a) Created a Subcontract Purchase Order
   b) Transfer the required Material to Vendor Stock
   c) Generated a Subcontract Challan
Since from challan date , 180 days have been elapsed . After 180 days , now we have received the Processed Material from Vendor .
SAP System is not allowing now GR as 180 days have been elapsed .
Kindly guide us as what steps need to be performed , so that GR and Challan regulrization can be exercised .
Rgds
Sonia Agarwal

Hello,
If the allotted number of days elapses and the subcontractor has not returned some or any of the materials in the challan (status: Posted or Assigned), you must reverse the excise duty that you have credited to your CENVAT account.
If a subcontractor returns materials after the return date, you can recredit the excise duty credit that you have reversed.
Completing Subcontracting Challans :
1. From the SAP Easy Access screen, choose Indirect Taxes - Procurement - Subcontracting - Subcontracting Challans - Complete/Reverse/Recredit.
2. Enter the challan number and year.
3. Choose This graphic is explained in the accompanying text.
4. Select Complete Challan.
5. Save the challan.
The Excise transaction type for subcontracting challan is 57NR. The G/L accounts has to be assigned to the transaction type and excise group combination is SPRO-LO Gen - Tax on goods movement
Regards

Conversion of planned order into subcontracting order

Hello Gurus,
my problem concerns a subcontracted material.
This material may be produced internally (managed with production order) OR produced externally (managed with subcontracting order) depending on the available capacity of the production line.
For this material MRP must generate planned orders, so the planner can choose either to produce either to subcontract.
The planned order is then converted manually into production order or into purchase request.
With procurement type = X, it is possible to do so. However when I convert my planned order into purchase request, my item category is NOT automatically set up to L.
So I have to enter the item category manually even if I have only one purchasing info record (with record category = 3).
Do you think it is possible to create automatically a "subcontracting request" from the planned order ?
Many thanks for your help
regards
Amaury

Hello,
I am afraid that when I enter procurement type=X & special procurement=30 in material master data, planned orders created by MRP have then a order type = NB (standard purchase order) and special produrement type = 3 (subcontracting).
So this kind of planned orders can only be converted into purchase request and NOT into production order.
It looks like it is not standard to do so in SAP and that I will have to manage subcontracting in prodution order; 1 routing for internal operation and 1 routing for subcontracting.
Thanks
Amaury

Special Procurement using External Procurement & Subcontracting

Hello everyone!
We currently have a material that is set up as "F" Procurement Type (External) with Special Procurement Type "30" (Subcontracting). We have active scheduling agreements for subcontracting procurement of this material. User also needs to be able to create scheduling agreements for this material where the special procurement type will be "20" (External) to be able to purchase directly from a different vendor.
We know that we can only assign one special procurement method (i.e. subcontract (L)) to a special procurement type for MRP. Therefore, my challenge to all of you is to help me find a way to procure as an external part . Is there a process which will allow this?
I am trying to create new sched. agreements but the system is validating the procurement type we settled for the material as type 30. We know that we can modify the message to a "w" type, but actually i there any problem expect if we doing it? It is that all that we have to do?
Any help will be appreciate it .

In this case, you should look at only keeping Procurement type as "F" and Special procurement key as "blank" which give you the flexibility to do both, subcontracting as well as direct procurement.
Also is your MRP run resulting in schedule lines being created in the scheduling agreement?

Types of subcontracting

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