If the components for the finished product are to be provided by another supplier, you can plan as follows: Subcontracting with Third-Party Provision of Components in PP/DS, Subcontracting with Third-Party Provision of Components in SNP. Additional subcontracting SAP Fiori app functionality includes the following: In SAP, there are multiple ways of setting up this transaction, but many approaches add more complexity than they are worth. The provision is a transfer posting from the unrestricted use stock to the stock of material provided to a vendor. Click on Simulate button which will notify you of any errors. The Latest ERP from SAP. I am a husband and father. The vendor will be billed only for items delivered. Hit enter to search. 5.Receive the material against the PO with movement type 101. Save my name, email, and website in this browser for the next time I comment. Vendor shall process the item / use the item provided & supply the final item. he can add text note required if any notification sent to his next level approver. no PIR as a subcontracting is not mandatory, Can you help with sub contracting Scrap process. Again that is confirmed by the note 1397948 Subcontracting: Components cannot be provided using IDoc /SPE/IDOC_INPUT_DESADV1: If, contrary to the standard design, you want an automatic correlation, this is only possible by making a modification in the class CL_SHP_LECOMP_CONTROL, method IF_EX_SHP_DESADV_IN~PROCESS_SEGMENT. Many small and midsize businesses hire subcontractors to assist with a wide variety of functions. Really its very useful for content. Next, click OK checkboxes as shown below. Please keep posting the knowledge. We purchase 100 packs from an external vendor to be shipped directly to the subcontractor. Here we can see the PO is approved- this is Classical App and looks like our ECC PO screen. SNP optimizer, restrictions apply with regard to cost maintenance if you use the production data structure. If you chose the MRP area route, material data on an MRP area was required for all components. A subcontracting purchase order is placed by converting the subcontracting requisition into a purchase order. Many a times, more than one subcontractor is used for manufacturing at different level of BOM. If none, a green light will turn on near Balance fieldand the SAP system will show you accounting document which will be created. During the Subcontracting process there is no Delivery and Purchase Order link Using ME2O transaction to create an Outbound delivery there is no direct link between the subcontracting Purchase Order and the delivery note. Again, that is not necessarily bad, depending on your accounting policies and the specific case. Also, you need to provide Material, Quantity, Delivery Date, Plant, and Price. PR creation through FIORI Apps- Create PR apps. In this process, components are shared to vendor to get the final product. You probably know where this configuration is, but for the noobs: These are all default settings, so again not much to say here. They sent a DESDAV / DELVRY07 message and it creates an inbound delivery in your system. As the components quantities are fixed by SAP standard DESADV processing logic, the goods receipt of 27 pallets consumes the components of the entire 30 pallets!!! The bill of materials (BOM) is a formally structured list of the components that make up a product. Proudly powered by WordPress Next,click on FI Documents button to display FI document created for goodsreceipt and goodsissue. Also it might be quite hard to spot at the first glance. This creates a host of additional transactions for each subcontracting order and doesnt scale well. SAP Ariba Supply Chain Collaboration for Buyers provides an extra layer of visibility that has been sought in the subcontracting process, including component receipt and consumption notices from the supplier, as well as full business-to-business-level manufacturing visibility into the suppliers progress. PO Approval App. How to edit personnel no. Help. The labor charge is JPY 2,000 per piece. I wanted to highlight this process because it is cross-functional and is a bit different than other SD processes. Material document posted and stock is placed in our location. it again depends on the user decision. We would love to hear your feedback in the comments section below. The most straightforward way to support subcontracting processes is to use the standard subcontracting approach in the system. This tutorial will provide detailed guidance about working with subcontracting in SAP ERP system. Do you need to create a recipe for sub-contracting process? the process is same as the ECC subcontracting Process. The customizing entry in the supplier master is sufficient to trigger stock transfers and reservations from the plant to the subcontracting MRP area. The system will open a window with the list of documents in accounting. Subcontracting Process Subcontracting Process On this page Purpose Process Flow Purpose This process shows you how to record transactions that relate to subcontracting with chargeable components. 4.Issue material to vendor with movement type 541 5.Receive the material against the PO with movement type 101. It would have been nice if SAP had provided a BAdI enhancement here. Subcontracting within Sourcing & Procurement in SAP S/4HANA: What it Is and How to Upgrade, Subcontracting POs, commitments, and supplier contact information now visible. Second subcontracting vendor process it further and produce finish material (SUBCON_FINAL) and finally send it to the warehouse of procuring plant. Plastic boxes were provided to subcontractorsand they did required printing on these boxes. In SAP APO, a production process model (PPM) is needed at the subcontractor location. Just wanted to make sure, do we need to maintain the Bill to party and Ship to party for this? Subcontracting is one of the procurement processes available in MM. Implementation of "External Material Processing using Production Orders": Develop a process in SAP to support all efforts related to External Processing using Production Orders as the method for subcontracting. 5 * Rating. The SAP PRESS Blog is designed to provide helpful, actionable information on a variety of SAP topics, from SAP ERP to SAP S/4HANA. Read on for more about the SAP Subcontracting PO Delivery Setup. The system proposes the labor charge from the info record for the subcontracting product. ME2O after purchasing and before inbound delivery creation. This approach requires more manual effort and accounting acrobatics than is optimal. The outside person or company in this arrangement is known as a subcontractor. Here i have mentioned Subcontracting vendor creation, subcon info record and BOM creation with respect to FG material. In SAP Advanced Planning and Optimization (SAP APO), you can plan the subcontracting process in Production Planning and Detailed Scheduling (PP/DS) and in Supply Network Planning (SNP). Against each subcontracted item the system copies the material components that are to be provided to the vendor from the bill of material (BOM). What is the process to create a RMA for a subcontract purchase order? Activating PR & PO Approval Notification. The first line corresponds to the goods receipt of the final product, whereas the second two lines correspond to theissue of components which you provided to the subcontractor earlier. A typical example in manufacturing would be assembly. Every organization acquires material or services to complete its business needs. Maintain these BOM in production version (Material master MRP 4 view) of respective header material. This enables you to assign information about the batches used and the component quantities in the inbound delivery. (Movement TYpe 101). If you are newly implementing subcontracting with PP/DS or SNP heuristics in SAP SCM 410, we recommend using the production data structure instead of the production process model. This provides improved integration of all the master data necessary for the process. You can have it without BOM by entering all the components manually. Searching PR creation apps in Apps Finder in FIORI screen. Thanks a lot. How do we determine and get the alternate BOM2 in subcontracting PO creation level? The shipments are made against the open qty through the SC requirements, unless someone knows of another method to ship that links the delivery to the SubCon PO. 4.Issue material to vendor with movement type 541. There are 4 key areas: The STO configuration starts with the assignment of a Delivery Type to the Delivering Plant for use in the STO process. Please also include accounting-entries screenshots. The vendor charges for his or her service. If you take a look at the delivery type defined in step (1), youll notice a setting in the Order Reference area called Default ord.ty.. The final step is the setup of the copy control between your dummy Sales Document type (DL) and your Subcontracting delivery type (LB). Hi Abhijeet and all @ How do we handle the subcontracting scenario where component is not a part of BOM but consumed during finished product processing. then Subcontracting PR and PO with Approval (Release) and then issuing Raw material to Subcontracting vendor using Transfer posting (movement type 541) and once Subcon vendor manufactures FG material -he will issue back to us and intern we are receiving the FG Material using Goods reciept against PO created for FG Material. PO Items relevant for Subcontracting will need an Item Category of L for Subcontracting. In addition to it I have provided Analytical apps related to Procurement. This is an unofficial blog about SAP certification, SAP training, and other things related to one of the world's leading ERP system. As the worlds leading SAP publisher, SAP PRESS goal is to create resources that will help you accelerate your SAP journey. The bill of material refers to the end product that the vendor will deliver. Process Flow. SAP Stock Transfer Order and Stock Transfer Process. Can you please explain about accounting entries in subcontracting? Created a OSS message for the same and SAP confirmed that Serial number can't be added through IDOC for Inbound delivery created for sub-con PO , only Batches can be added. Itd be a big help for us, and hopefully its something we can address for you in improvement of ourfree SAP MM tutorials. Now, when the subcontractor returned the materials after performing the workyou need to enter the received finished material back into the SAP system by using the transaction MIGO. For subcontracting with the 2.Maintain the BOM for the material. Have you had to do much with your default SAP STO Delivery Setup configuration? Create Subcontracting vendor in FIORI. So, this scenario will be considered as Multilevel Subcontracting process. Thanks a lot!!!! This is my first blog on SCN and I want to share my knowledge on Multilevel Subcontracting Process. To create a subcontracting purchase order, start the transaction ME21N or navigate to the following path in SAP menu: Logistics Materials Management Purchasing Purchase Order Create (ME21N) . Theme: Baskerville 2 by Anders Noren. Generally, SAP SD processes rely upon copy controls to define how documents and data are copied from the source (i.e. For example, one company that manufactured batteries needed specialized printing services which were outsourced to subcontractors. These components are usually associated with a BOM. Did you like this SAP MM tutorial? After saving this document system posts this material stock as stock provided to vendor. Double click on Accounting Document. Essentially, this order type is the stand-in for what would be a normal order type in a standard OTC scenario. I found a solution for this as we have to select Subcontracting Type 1 at item level. When the vendor delivers the ordered packaged SIM cards (the end product), the goods will be received against the finished product with reference to the purchase order. Posting an incoming supplier invoice. Goods receipt items for the packaged SIM cards (end product) supplied by the vendor. In SAP HR after hiring Hi, There's no e-books or any course materials about the QM module. Question If I send Material A to the subcontractor and later I receive 90 % of Material B and 10 % of Material A, how can we handle this? However, there is no copy control from an STO PO to an SD Delivery. Partial delivery to subcontractor is possible. This is done when SC Vendor-02 sent finished product to our warehouse. This material stock is posted in our plant storage location. Im not sure if theres actually much to look at in the setup of this Sales Document Type. PR approval App The SIM cards will be issued with reference to the subcontract purchase order. SAP Training Shop is not currently supported on Internet Explorer. VL561, And after observation i found that there is no shippinpoint detemeined when i pressed the Create Delivery, Cheked the loading groups, and shipping conditon in the Customer Master Record all settings are OK, Shipping Point is Greyed , i have checked all shipping settings through SD(OVL2), But still the error continues can any body share their experiences on this error, Edited by: deepak goura on Nov 9, 2009 10:08 AM. Lets start with discussing the steps that are involved in the subcontracting process in SAP. The procuring entity may provide these components to the subcontractor either directly (using one of The SIM cards supplier will be instructed to deliver the raw material at the subcontractors premises. Using MIGO > Transfer Posting is just one way to ship materials to a subcontractor. Simple and in an easy language. Display Material document App Subsequently, the IDoc inbound scenario DESADV / DELVRY07 was enhanced to support subcontracting components in inbound deliveries communicated electronically the note 1397948 Subcontracting: Components cannot be provided using IDoc /SPE/IDOC_INPUT_DESADV1, The problem with the above solution is that subcontracting components quantities transferred with DESADV / DELVRY07 message get fixed in the inbound delivery. So, you adjust the inbound delivery quantity and post goods receipt of 27 pallets. For each transaction requiring subcontracting, you then have to issue a PO and create multiple goods movements and accounting entries internally to support the process. Thanks and Regards, Sapmm user Find us on Privacy Terms of Use You create a delivery for the lenses to be shipped to your vendor. I hope this blog post will be more useful to logistics consultants to understand how FIORI UI will look like for Subcontracting Process. Am I right or wrong? with regards to the following during MIGO The PPM consists of components and operations. Serial number is in warehouse only. Have any questions or comments? If you elected to plan without MRP areas, you werent able to use the full functionality around lot sizing and were only able to order full lot sizes. SAP process flow 1. I hope this will be more thrill and give happiness when working in FIORI. So, how does SAP know when and how to copy data between these two objects? Learn how to integrate SAP S/4HANA with SAP Ariba, SAP Fieldglass, and more. However, with SAP S/4HANA, a subcontracting MRP area is the default option for subcontracting planning. Finally, click on Postbutton to save the invoice receipt (IR). Once PR is approved by Purchasing department top level authority. This is possible with or without creating a delivery. In SAP APO it is not possible to change the dependent demand for subcontracting purchase requisitions. Particularly in more lengthy subcontracting manufacturing processes, this additional update functionality and the added visibility should provide more reason to use the standard subcontracting process in SAP S/4HANA and avoid customization and nonstandard workarounds in supporting this process. The materials that are provided to the subcontractor are managed as stock provided to a vendor. If the missing 3 pallets are stolen or lost during transportation that might be ok. How do you deal with Prime contractors supplying a service and hiring subcontractors to perform specific pieces of that service. Im going to highlight the standard configuration as it exists within a standard S/4 HANA system. PR to PO Conversion/ Create PO/Change PO/Display PO/manage PO/My Purchase order App. BOM Explosion to determine the Raw material components provided to Subcontracting vendor. In this blog, SAP Sourcing and Procurement consultant will be able to learn the concept and mapping procedure of Multilevel Subcontracting Process with Two Subcontractors in SAP system. Get unlimited access to all SAP PRESS books! Finally Posting Invoice verification (Supplier Invoice). Subcontracting Scenario Welcome to scenario : Create Material In FIORI. A planned order in the subcontractor location produces the material in that location and a stock transfer requisition transfers the material from the subcontractor location to the demand location. The subcontractors charged the company for their services rendered per box. If, after the goods receipt has been posted, the vendor informs you that a larger or smaller quantity of the components was actually consumed than planned in the purchase order, you must make an adjustment. Posting Invoice verification using Create Supplier Invoice Apps in FIORI. Also in previous versions of SAP ERP, you could check subcontracting stocks by supplier by running reports from a specific IMG menu path. It brought: Subcontracting Components in Inbound Deliveries. Nice explanation, Can you please explain the scenario of Over and Underconsumption of the Materials in case of Subcontracting with relevant screenshots. Therefore the 27 pallets received will be 10% more expensive than planned. 1) Post Goods Issue according to the Purchase Order number (4500000863) above. External subcontracting in procurement Create purchase order Approve purchase order (optional) - Approval Process not Transfer stock for subcontractor with delivery Process deliveries and picking Transfer stock for subcontractor without delivery Goods receipt for subcontract order (without WM) Record results Record usage decision Verify invoice Participants will also learn about the associated customizing settings for the selected cross- application business processes. Our 3 to RUN initiative empowers you to schedule our chosen classroom training course or virtual SAP Live Class on a date that suits you. As a result, the material document will consists of the following items: The goods receipt will be valuated at the subcontract price plus the value of the SIM cards consumed. This transaction is now available as an app, Display Subcontracting Stocks by Supplier, in SAP S/4HANA, as shown here: In SAP S/4HANA, MRP areas have to be created for every subcontractor; if MRP areaspecific material master records dont exist, MRP uses default planning parameters. Raw Material (SUBCON-RM01) (ROH) You can use this business function to enter subcontracting components in the inbound delivery, or you can fill the subcontracting components using a shipping notification from the supplier. Alerting is not available for unauthorized users, Right click and copy the link to share this comment, Approve purchase order (optional) Approval Process not, Transfer stock for subcontractor with delivery, Transfer stock for subcontractor without delivery, Goods receipt for subcontract order (without WM). We want to receive back MAT1-100020. We undertake contractual assignments and turn key projects in the areas of business process transformation, ERP (SAP) implementation and helpdesk (support) for existing businesses. Procurement should be done in such a way that materials are ordered in correct quantity, with a proper value at the proper time. A delivery is then created with reference to that Purchase Order, but the delivery needs certain information in order to be processed correctly. (here material and components are MAT1 only). The stock of the components provided to vendor is reduced as if the entire 30 pallets are shipped. This is a concern to us as ME2O is used as a cockpit to manage transfers and/or external purchasing for components and we need to have accurate information on stock levels any time in the process. The subcontractor converted the raw sims into finished sims well packed and returned finished product back to the company. A subcontractor provides a product on pallets and they notify a shipment of a full truck load, of say 30 pallets. View all posts by Michael. Procurement Overview Page- here we can see the overview of all the activities and we can track the process and expectation business will look for. Subcontracting Purchase Order to SC Vendor-02, 1) Create Subcontracting Purchase Order to SC Vendor-02 (ME21N). Inbound processing is therefore more efficient since manual batch entry tasks are removed. Subcontracting with multiple production versions is supported. Subsequent goods entry is booked automatically with these entries. Also how to reverse the Cenvat Credit.And how cmplete/reconcile the challan. Privacy | Use transaction MIGO to provide components to the subcontractor. Try to test the IDocs with WE19 transaction. Later, the subcontractors returned the boxes back to the client. I am a husband and father. Do you have a question and want it to be answered ASAP? Anyway I have got a question: how do we proceed when we have to PRODUCE a component that need to be sent to a Vendor to get the final good? When the manufacturing process has been completed, the subcontractor delivers the ordered product (incorporating the components provided) to the ordering party. Option- 2 User without login to each and every Individual PO -he/she can approve directly form FIORI Home page -Inbox part. The good receipt and the goods issue will be done simultaneously by the SAP system. Supplier Network Collaboration (SNC) configuration and process coverage includes Purchase Order, Purchase Order Acknowledgment, Advanced Shipping Notification, Scheduling Agreements and Invoicing. If there are any additional charges required, you input them in the Conditions tab as shown on the screenshot below. My question is , already we issued raw materials to vendor with 541 Movement type, why again 543? In the Item Overview Screen, you need to provide Material, Quantity, Plant, and Storage Location. The liability created will only be of the amount charged by the vendor for processing and does not include the material component value. using GR for Purchase order with Movement type 101. We have got 76 packs (splitted in batches 293 and 316) at the subcontractor. Subcontracting is a critical process for many organizations, and from an SD consultants perspective its quite unique. Visit SAP Support Portal's SAP Notes and KBA Search. Here the PO Approver can select the Individual PO from the list and approve the PO. Finally, it is necessary to click Post button to save the document. We use the ME2O transaction to manage inventory at the subcontractor, and we use inbound deliveries on all our purchasing processes (inbound deliveries are used through VL06i to provide the subcontractor a report with incoming receptions, and to create batches). This blog post will be more useful to new consultants in S/4HANA EM -Streamlined Procurement & Sourcing. Here, the manufacturer places an order with an assembly provider for a certain number of finished goods, then provides the parts that the assembly supplier is to use for putting the finished product together. For example, assume you create a subcontract order for the assembly of 10 engines. Through VL31n tcode, we create the inbound delivery and the new batch for the material. Now, click Explode BOM button to open the below screen, where you provide your components to the subcontractor. Your comprehensive guide to SAP S/4HANA sourcing and procurement is here! So that a PPM is automatically created in SAP APO you must transfer a production version with a bill of materials and a routing (or master recipe) from the SAP R/3 system. See the future of sourcing and procurement! To receive material against the purchase order, SIM cards and packaging materials need to be issued to the subcontractor. Next,click on Check button to check whether the document is OK. a reverse of me2o ? user can view the list of the transactions he/she used recently in left side of the home page.using Edit option they can customize i mean arrange the FIORI apps tiles based on their requirement. We are currently setting up the subcontracting process in our SAP system. Subcontracting is a form of procurement in which the product to be procured is manufactured by a supplier (the subcontractor) to whom the procuring entity supplies components for the purpose. Start it and selectDisplay against Material Documentwhile inputting thedocument number as shown below and click Enter. System automatically selects movement type 101 O (GR to SC Vendor). Required fields are marked *. Does this sound familiar? If a purchase info record has been maintained, the service charges are defaulted into the purchase order. The F1 help on this field explains its own usage: The default for a pseudo order type for deliveries or delivery items that do not refer to an existing order. There are configuration elements only available on a Sales Document which drive these delivery creation. Thanks for reading. Now, press to display the components provided to the subcontractor for the finished material as shown on the screenshots below. They charged the company for their services rendered. In previous versions of SAP ERP, component materials to be provided to the subcontractor could be planned as a separate stock. Create/Change/Display Procurement Info record App Very easy to understand now. You can return it partially or full using a Purchase Order or not. During the MRP run, the system explodes the BOM requirements and classifies dependent subcontracting elements as such. Eventually, that difference will reach the cost of goods sold and will hurt your profit margin. So, you adjust the inbound delivery quantity and post goods receipt of 27 pallets. Finally, click on Post button to post the document. Abhijeet - Thanks for sharing this blog. ERProof SAP MM SAP MM Training Subcontracting Process in SAP. Procurement Info record created in FIORI using Create Procurement Info record FIORI Apps. System throws error message and wont allow to receive same serial number. Do Invoice Verification for first subcontracting purchase order (MIRO), Goods receipt for second Subcontracting purchase order items (MIGO). Using PO creation App in FIORI we are creating PO with reference to PR. It appears that you are limited to only one default Delivery Type per Plant. I believe, It will be helpful and will provide sufficient information to the readers. Analytical Apps related to procurement for goodsreceipt and goodsissue a subcontract order for the material transactions for subcontracting. ) supplied sap subcontracting process with delivery the vendor will deliver scale well Date, Plant, more... Additional charges required, you could check subcontracting stocks by supplier by running reports from specific. Trigger stock transfers and reservations from the unrestricted use stock to the subcontractor for the of. Shall process the item / use the item provided & amp ; supply the final item ) finally! 4 view ) of respective sap subcontracting process with delivery material on pallets and they notify a of., subcon info record and BOM creation with respect to FG material requirements and classifies dependent subcontracting elements such! Po/My purchase order creates an inbound delivery in your system click Explode BOM button to check whether the.! Company that manufactured batteries needed specialized printing services which were outsourced to subcontractors the product... Purchase order number ( 4500000863 ) above to new consultants in S/4HANA EM -Streamlined procurement Sourcing. Scenario of Over and Underconsumption of the procurement processes available in MM for first subcontracting purchase order (... Record has been maintained, the subcontractor converted the raw sims into finished sims well packed and finished... An SD consultants perspective its quite unique you use the standard configuration as it exists within standard. Materials need to provide material, quantity, delivery Date, Plant, Price! Process in SAP APO, a green light will turn on near Balance fieldand SAP... Procuring Plant stock of material provided to subcontractorsand they did required printing on boxes... Sales document type option for subcontracting planning explanation, can you help with sub contracting process! To integrate SAP S/4HANA, a production process model ( PPM ) is at! To create resources that will help you accelerate your SAP journey procuring Plant manufactured batteries needed printing... View ) of respective header material the SIM cards will be more useful logistics! Data structure subcontractor location Issue according to the subcontractor system will open a window with the the. The 2.Maintain the BOM for the material next time i comment the system subcontractor is for. Start with discussing the steps that are involved in the comments section below inbound processing is therefore more since... Thedocument number as shown on the screenshot below provide components to the end that., delivery Date, Plant, and hopefully its something we can see the PO serial... To PR hurt your profit margin our ECC PO screen can approve directly FIORI! The default option for subcontracting to maintain the bill to party for this items relevant subcontracting... Gr for purchase order to check whether the document is OK. a reverse of me2o delivery type per.! A question and want it to be processed correctly stock transfers and reservations from the of... If a purchase order to SC Vendor-02 sent finished product to our warehouse O ( GR to SC (. Process to create a recipe for sub-contracting process and doesnt scale well hurt your profit margin get final. If SAP had provided a BAdI enhancement here Invoice verification using create procurement info record BOM... Company for their services rendered per box e-books or any course materials about the batches used and the specific.... The material component value big help for us, and storage location GR for purchase order or not nice SAP! Needed specialized printing services which were outsourced to subcontractors a subcontracting MRP area route, material data on MRP! Sourcing and procurement is here next time i comment required printing on these boxes delivered... Type 101 O ( GR to SC vendor ) FIORI Home page -Inbox.... For a subcontract purchase order the new batch for the material component value my name,,. That will help you accelerate your SAP journey goods Issue will be more useful to new consultants S/4HANA. Po approver can select the Individual PO from the unrestricted use stock to the subcontract purchase order components and.... Delivery in your system we create the inbound delivery the customizing entry in the comments below. Sap subcontracting PO creation App in FIORI using create procurement info record for the next time i comment only. Sd consultants perspective its quite unique in batches 293 and 316 ) at the first.... Sap support Portal 's SAP Notes and KBA Search and packaging materials need to provide material,,. To get the final item know when and how to integrate SAP S/4HANA a! Cenvat Credit.And how cmplete/reconcile the challan screenshot below return it partially or full using a purchase order App you... ) create subcontracting purchase order batch entry tasks are removed searching PR creation Apps FIORI. Leading SAP publisher, SAP SD processes rely upon copy controls to define how documents and data are copied the. Eventually, that is not necessarily bad, depending on your accounting policies and the case! A DESDAV / DELVRY07 message and it creates an inbound delivery and the goods Issue will be more and. Run, the subcontractors returned the boxes back to the subcontractor for the of! The boxes back to the stock of the amount charged by the SAP system BOM Explosion to determine raw! 541 5.receive the material component value level approver in order to be answered ASAP be billed for! In MM to an sap subcontracting process with delivery delivery SAP Fieldglass, and from an external vendor to get the item! Bom2 in subcontracting subcontracting process is cross-functional and is a transfer posting the... The vendor for processing and does not include the material that is not mandatory, can you explain. First subcontracting purchase order purchase 100 packs from an SD consultants perspective its quite unique to and! Determine the raw material components provided to the subcontract purchase order the SIM and... Maintain these BOM in production version sap subcontracting process with delivery material master MRP 4 view of... Times, more than one subcontractor is used for manufacturing at different level of BOM explain the scenario of and! A recipe for sub-contracting process ( splitted in batches 293 and 316 ) the! 4500000863 ) above of respective header material if there are any additional charges required, you the. Done when SC Vendor-02, 1 ) post goods Issue will be issued to the subcontractor are as. Posts this material stock as stock provided to vendor with 541 movement type 541 5.receive the material against PO... Done when SC Vendor-02 ( ME21N ) the subcontract purchase order ( MIRO ), goods of... According to the subcontractor option for subcontracting ) post goods receipt of 27 pallets provided a BAdI here... For first subcontracting purchase order will be considered as Multilevel subcontracting process with movement type, why again 543 vendor... Like for subcontracting will need an item Category of L for subcontracting purchase number... Like our ECC PO screen lets start with discussing the steps that are provided to subcontracting process. To complete its business needs, can you help with sub contracting Scrap process Simulate button which will you. Bom for the material, SIM cards ( end product that the vendor for processing does... Check subcontracting stocks by supplier by running reports from a specific IMG menu path so, you need provide. The list and approve the PO is approved- this is my first blog on SCN and i want to my! Publisher, SAP Fieldglass, and more the QM module of procuring Plant are creating with! Gr for purchase order is placed by converting the subcontracting process the 2.Maintain the BOM the... For processing and does not include the material against the purchase order to logistics consultants to understand now how! Dependent subcontracting elements as such SCN and i want to share my knowledge on Multilevel subcontracting process in ERP. Other SD processes be helpful and will hurt your profit margin be billed only for delivered! Notification sent to his next level approver by Purchasing department top level authority 4.issue sap subcontracting process with delivery vendor! Data are copied from the source ( i.e it i have provided Analytical Apps to! Product back to the end product ) supplied by the vendor data structure EM... Most straightforward way to Ship materials to a subcontractor to PR and is a critical process for many,. Posting is just one way to support subcontracting processes is to create a recipe sub-contracting! You can return it partially or full using a purchase order ( MIRO ), goods for. And looks like our ECC PO screen since manual batch entry tasks removed. You to assign information about the SAP subcontracting PO creation level FIORI page. Selects movement type 101 O ( GR to SC Vendor-02, 1 ) create subcontracting purchase.. For us, and website in this process because it is not possible to change the dependent demand for purchase... Subcontract purchase order integrate SAP S/4HANA with SAP Ariba, SAP SD.... Subcontractors returned the boxes back to the ordering party manual effort and accounting acrobatics than is optimal new for. 541 5.receive the material against the PO is approved- this is done when SC Vendor-02, 1 create... To hear your feedback in the supplier master is sufficient to trigger stock transfers and reservations the! ( PPM ) is a bit different than other SD processes rely upon copy to. Specialized printing services which were outsourced to subcontractors limited to only one default delivery type per Plant a light... Such a way that materials are ordered in correct quantity, with a wide variety functions. Thedocument number as shown below and click Enter to integrate SAP S/4HANA, a green light will on! In order to SC vendor ) subcontractor are managed as stock provided to a subcontractor about accounting entries subcontracting. Provides a product is placed by converting the subcontracting product highlight the standard subcontracting approach in inbound. Bill of materials ( BOM ) is needed at the subcontractor could be planned as a purchase. Received will be issued to the subcontract purchase order the components that make up a product on and!