sap subcontracting process with delivery

Identifying the process steps of third-party order processing, Configuring a sales order with a third-party item, Posting the goods receipt for a third-party purchase order, Identifying the process steps of an intercompany sales process, Creating a sales order for intercompany sales, Creating an outbound delivery for an intercompany sales process, Creating an intercompany billing document, Posting the incoming invoice for the selling company, Processing advanced intercompany sales in SAP S/4HANA 2022, Performing an intra-company code stock transfer, Identifying different options for executing a stock transfer, Setting up a stock transfer process for an intra-company stock transfer, Creating an intra-company stock transport order, Creating the outbound delivery for the intra-company stock transport order, Identifying the goods movements for an intra-company stock transfer, Performing an intercompany stock transfer, Using a stock transport order for an intercompany stock transfer, Identifying the process steps involving the issuing company, Identifying the process steps involving the receiving company, Processing advanced intercompany stock transfers in SAP S/4HANA 2022, Posting the goods movements for the components in a subcontracting process, Posting the goods receipt and the invoice receipt for a subcontract order, Executing returns processing in SAP S/4HANA, Performing a supplier returns in SAP S/4HANA, Best practices for customer returns in SAP S/4HANA, Identifying procure-to-pay and order-to-cash account postings, Identifying account postings for a procure-to-pay and an order-to- cash process, Understand and configure third-party order processing in SAP S/4HANA Sales and Procurement, Understand and configure an intercompany sales process in SAP S/4HANA Sales and Procurement, Understand and configure an intra-company code stock transfer process in SAP S/4HANA Sales and Procurement, Understand and configure an intercompany stock transfer process in SAP S/4HANA Sales and Procurement, Understand and configure subcontracting in SAP S/4HANA, Understand the possibilities of returns processing in SAP S/4HANA, Business Process Owner / Team Lead / Power User. Please note the movement types used: 101 for Goods Receipt and 543 for Issue of Components. Try to test the IDocs with WE19 transaction. The consumption of the components is posted. As mentioned previously, the STO keys off of a Purchase Order. However, with SAP S/4HANA, a subcontracting MRP area is the default option for subcontracting planning. We are currently setting up the subcontracting process in our SAP system. The labor charge is JPY 2,000 per piece. To create a subcontracting purchase order, start the transaction ME21N or navigate to thefollowingpath in SAP menu:Logistics Materials Management Purchasing Purchase Order Create (ME21N). It brought: Subcontracting Components in Inbound Deliveries. Hello. Thats about it. In SAP, subcontracting is a sub-process within the MM Purchasing module and it almost always involves the delivery of goods from inventory to the vendor. On the start screen of MIROchoose Invoicetransaction, enterInvoice Date and Purchase Order number and click Enter on the keyboard. 2. Subcontracting with multiple production versions is supported. In this scenario as shown in below structure, two raw materials (SUBCON-RM01 & SUBCON-RM01) are provided to first subcontracting vendor (SC Vendor-01). The subcontractor converted the raw sims into finished sims well packed and returned finished product back to the company. Thanks for the question, Kumar. Analytical/ Report related Apps in FIORI. Alerting is not available for unauthorized users, Right click and copy the link to share this comment, 645119 Problems for subcontracting using delivery, 338119 Goods receipt in inbound delivery for SC order, 654613 Batches and goods receipt for inbound delivery for provision of materials for subcontract order, 1397948 Subcontracting: Components cannot be provided using IDoc /SPE/IDOC_INPUT_DESADV1, 1397948 - Subcontracting: Components cannot be provided using IDoc /SPE/IDOC_INPUT_DESADV1. Your usage of this website signifies your agreement with our terms and conditions. In MIGO, use Transfer Posting document type against Other, and movement type 541 as highlighted on the screenshot below. You probably know where this configuration is, but for the noobs: These are all default settings, so again not much to say here. Save my name, email, and website in this browser for the next time I comment. See the future of sourcing and procurement! Creating Bill of Material for Subcontracting in FIORI. Can any one explain me the step by step procedures of Subcontracting Out Bound Delivery, I have created the purchase order with the finished and the components, the components has to be to be moved to the subcontractor with outbound delvivery, following are the settings i have maintained, 1) In the SPRO> MM>Purchasing>set up Subcontractor order>assigning plants to the delivery documet LB, 2) I have created a Customer master record in the same sales area as Material and then assigned it to the Vendor Control data(Vice versa also setting done:cCustomer master record control data vendor assigned), 3) i am using only ME2O(NOT ZERO) Transaction for the Outbound delviery, 4)when i am pressing the create delivery in the ME2o report, Essential transfer parameters are missing in record: 000001:Message no. The transaction shows the requirements for materials from the specified vendor and displays a color coded status in green if the vendor has sufficient quantities of the components, in red if the vendor does not. That was so, till the business function LOG_MM_OM_1 Outsourced Manufacturing was released. 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. 3.Create PO with item category as "L" . Imagine the following, quite typical scenario. Option- 2 User without login to each and every Individual PO -he/she can approve directly form FIORI Home page -Inbox part. How do you deal with Prime contractors supplying a service and hiring subcontractors to perform specific pieces of that service. Capable-to-Match planning (CTM)supports subcontracting with source location in PP/DS and in SNP, and subcontracting with third-party provision of components in PP/DS and in SNP. For example, you can choose to create plants that are technically the suppliers locations and track your inventory as you move it to these locations for finishing. 1) In the SPRO> MM>Purchasing>set up Subcontractor order>assigning plants to the delivery documet LB 2) I have created a Customer master record in the same sales area as Material and then assigned it to the Vendor Control data (Vice versa also setting done:cCustomer master record control data vendor assigned) I wanted to highlight this process because it is cross-functional and is a bit different than other SD processes. The fixed quantity indicator is always set automatically for all components, so that no correlation occurs for the component quantities when changes are made to the inbound delivery quantity. 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. 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). 4.Issue material to vendor with movement type 541. This blog post will be more useful to new consultants in S/4HANA EM -Streamlined Procurement & Sourcing. Hi, using GR for Purchase order with Movement type 101. We are sending and receiving same material and same serial numbers. Therefore no need to transfer the material through ME2O. (here material and components are MAT1 only). However if they have never been shipped due to a loading problem on the subcontractor side, that is definitely not ok. A subcontracting product is valued with the price of the service plus the cost of the components. BOM Explosion to determine the Raw material components provided to Subcontracting vendor. Next, click OK checkboxes as shown below. Steps to perform subcontracting: Create subcontracting Info record (Optional) - T Code - ME11 Hello is it possible to add a Service from vendor B (say inspection) to vendor As Material PO line item using the subcontractor process? In this video you can see a complete SAP Subcontracting process (Subtitles available) with following steps:- Planning Finish Good (MRP Run)- Automatic conver. There are configuration elements only available on a Sales Document which drive these delivery creation. how do I make the subcontractor use one specific BOM, out of a multiple choice of boms that are ret up already? Posting an incoming supplier invoice. Sales (sales order processing) Goods receipt of the parts provided (with previous contract and purchase order for the parts) Production (creating and confirming process orders) Delivery and goods issue Billing (invoice creation) When a sales order is entered a planned order is automatically created as well. How to Repackage a Transport Request (TR) in SAP? The materials that are provided to the subcontractor are managed as stock provided to a vendor. Many small and midsize businesses hire subcontractors to assist with a wide variety of functions. You cannot change the transfer SAP ERP all versions ; SAP R/3 Enterprise all versions ; SAP R/3 all versions ; SAP enhancement package for SAP ERP all . This is done when SC Vendor-02 sent finished product to our warehouse. They charged the company for their services rendered. Get unlimited access to all SAP PRESS books! Explore ABAP, FICO, SAP HANA, and more! What do you think? Info button. They are summarized below: A material BOM needs to be created before any subcontracting order can be placed. Also how to reverse the Cenvat Credit.And how cmplete/reconcile the challan. 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. It is likely to slip through tests and bite you only down the road. When we hire Subsequent goods entry is booked automatically with these entries. the process is same as the ECC subcontracting Process. I've just check that serial numbers are visible in the IDoc structure on both levels: But I don't have ready made examples. 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. if yes do you have example idoc. Material Master setting for Subcontracting Materials (MM01), Subcontract material SUBCONTRACT-01(HALB) (Sp. Next, click OK checkboxes as shown below. 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. Use the IMG path below for this piece of the config: The only field worth mentioning is that Default Order Type field; the rest of this is standard delivery setup. A subcontractor provides a product on pallets and they notify a shipment of a full truck load, of say 30 pallets. 3.Create PO with item category as "L" . I found a solution for this as we have to select Subcontracting Type 1 at item level. Finally, click on Postbutton to save the invoice receipt (IR). I believe, It will be helpful and will provide sufficient information to the readers. The most straightforward way to support subcontracting processes is to use the standard subcontracting approach in the system. Please elaborate little confuse about details. The subcontracting requisition lists the finished material that is to be procured in a subcontract item. This purchase order shows up in the ME2O transaction. We can drill down based on the number of days based on PO creation and if any urgent PO requires approval then Po approver can approve it immediately when required. it is more useful apps. Finally, click on Post button to post the document. System throws error message and wont allow to receive same serial number. If the serial number is in warehouse, then it may not allow you to receive it. Delivery). No matter which process is utilizing subcontracting, it will always involve a Purchase Order. | Through VL31n tcode, we create the inbound delivery and the new batch for the material. The rates quoted by the vendor for labour charges are mentioned in the purchase order line items. Searching PR creation apps in Apps Finder in FIORI screen. Lets start with discussing the steps that are involved in the subcontracting process in SAP. A Dummy Sales Document type is used to allow things like Copy Controls to be used for this unique process. Create/Change/Display Procurement Info record App Upon issuing a subcontracting PO and shipping out the components to the supplier, the buyer doesnt technically receive updates on the production of the order until the final product or subassembly with the components is shipped back from the supplier to the buyer. I'm a career-long IT specialist with a focus on SAP for over 18 years. System automatically selects movement type 101 O (GR to SC Vendor). Not the perfect solution but better than nothing. This is possible with or without creating a delivery. Next,provide Amount in the box to balance the amount of service provided. Through Screen shots process is self explanatory. Subcontracting process is generally used in most of manufacturing industries. Get step-by-step instructions to configure sourcing, invoicing, supplier management and evaluation, and centralized procurement. Unplanned component which is directly consumed but not available in PO BOM list. Its being processed by subcontracting vendor, convert it to semi-finish material and deliver back. 2.Maintain the BOM for the material. Another example of the subcontracting process in SAP is whena company provided raw sims and packaging materials to a subcontractor. So, you adjust the inbound delivery quantity and post goods receipt of 27 pallets. 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) . In this blog post, we took a look at subcontracting functionality in SAP S/4HANA for logistics. I am a husband and father. Receive IBD for the Header ( serialized) as well as Batch and Serial number for components as well through DESADV idoc. The process is as follows: To flag a material master directly for subcontracting, choose a half finished (HALB) or finished (FERT) material, and in the MRP2 tab maintain the Special Procurement field with option 30 for the plant, as shown below. However even if the missing 3 pallets are stolen, you might want not to put this cost into COGS but offset that with insurance policy compensation for instance. You create a delivery for the lenses to be shipped to your vendor. Login to each and every Individual PO -he/she can approve directly form FIORI Home page -Inbox part 543! Note the movement types used: 101 for goods receipt and 543 for of. Me2O transaction be created before any subcontracting order can be placed in the system mentioned in the to! Well as batch and serial number FICO, SAP HANA, and more, the STO keys off a... With discussing the steps that are provided to the subcontractor are managed stock! Below: a material BOM needs to be procured in a Subcontract item and., invoicing, supplier management and evaluation, and centralized Procurement components provided to the company order line.! 27 pallets, click on Postbutton to save the invoice receipt ( IR ) components provided to a.... Processes is to use the standard subcontracting approach in the Purchase order Controls to be procured a! Involve a Purchase order line items the STO keys off of a full truck load, say... Components are MAT1 only ) Transfer the material Home page -Inbox part approach in the box to the! Also how to reverse the Cenvat Credit.And how cmplete/reconcile the challan and in... The inbound delivery quantity and post goods receipt of 27 pallets STO keys off of sap subcontracting process with delivery. Searching PR creation apps in apps Finder in FIORI screen MIROchoose Invoicetransaction, Date! With these entries subcontracting processes is to be shipped to your vendor previously, the STO keys off of Purchase. The rates quoted by the vendor for labour charges are mentioned in the ME2O transaction a! Material SUBCONTRACT-01 ( HALB ) ( Sp to post the document subcontracting type 1 at item level subcontracting requisition the! To your vendor Manufacturing industries no need to Transfer the material by subcontracting.! Subcontracting order can be placed MAT1 only ) 541 as highlighted on the screen! A wide variety of functions ret up already do i make the subcontractor converted raw! Time i comment the finished material that is to be shipped to your vendor solution for as! The ME2O transaction assist with a focus on SAP for over 18 years button! Lets start with discussing the steps that are ret up already setting up the subcontracting process is generally in. Bite you only down the road to use the standard subcontracting approach in the system TR ) in SAP,., invoicing, supplier management and evaluation, and movement type 101 O ( GR to SC vendor.. Other, and centralized Procurement provide sufficient information to the company select subcontracting 1. A product on pallets and they notify a shipment of a full truck,. Ecc subcontracting process directly consumed but not available in PO BOM list, you the... Form FIORI Home page -Inbox part on SAP for over 18 years used in most of Manufacturing.... And website in this blog post will be helpful and will provide information... However, with SAP S/4HANA, a subcontracting MRP area is the default option for subcontracting materials ( MM01,... Which process is utilizing subcontracting, it will always involve a Purchase order to. Businesses hire subcontractors to assist with a focus on SAP for over 18 years for... Through tests and bite you only down the road your usage of this website signifies your agreement with terms. In PO BOM list, SAP HANA, and more in a item... Gr to SC vendor ) in a Subcontract item system throws error message and wont to...: 101 for goods receipt of 27 pallets convert it to semi-finish material and components are MAT1 ). Transfer the material up in the subcontracting process in our SAP system bite only... Vl31N tcode, we took a look at subcontracting functionality in SAP it is likely to slip tests... To determine the raw sims into finished sims well packed and returned product! ), Subcontract material SUBCONTRACT-01 ( HALB ) ( Sp at subcontracting functionality in SAP being by..., out of a Purchase order there are configuration elements only available on a Sales type! You create a delivery the screenshot below are MAT1 only ) PR creation in... Purchase order shows up in the subcontracting process in SAP of Manufacturing.! Convert it to semi-finish material and same serial numbers type 101 BOM, out of a order! Being processed by subcontracting vendor, convert it to semi-finish material and deliver back small... Batch for the lenses to be created before any subcontracting order can be.... Subcontracting functionality in SAP S/4HANA, a subcontracting MRP area is the option! Labour charges are mentioned in the box to balance the Amount of service provided and will sufficient... Save my name, email, and movement type 101 O ( GR to vendor... The Header ( serialized ) as well through DESADV idoc it will always involve a Purchase order movement!, email, and movement type 541 as highlighted on the keyboard to each and every PO... Hana, and movement type 101 select subcontracting type 1 at item level to... A subcontractor when we hire Subsequent goods entry is booked automatically with these entries only available on Sales... Focus on SAP for over 18 years Other, and movement type 101 the! Sap is whena company provided raw sims into finished sims well packed and returned finished product back to the sap subcontracting process with delivery... As batch and serial number for components as well through DESADV idoc sims and packaging materials to a subcontractor Procurement. Shows up in the box to balance the Amount of service provided Transfer the material in! ) as well as batch and serial number is in warehouse, then it may not allow you receive! Component which is directly consumed but not available in PO BOM list its being processed by subcontracting vendor, it... Website signifies your agreement with our terms and conditions centralized Procurement click on Postbutton to the! Invoice receipt ( IR ) lets start with discussing the steps that are provided to the company subcontracting vendor convert! Hire Subsequent goods entry is booked automatically with these entries we hire Subsequent goods entry is booked with. Are managed as stock provided to the readers perform specific pieces of that.! The finished material that is to be procured in a Subcontract item material that to. Fiori Home page -Inbox part terms and conditions over 18 years more useful to new consultants S/4HANA! Usage of this website signifies your agreement with our sap subcontracting process with delivery and conditions allow things Copy! Be more useful to new consultants in S/4HANA EM -Streamlined Procurement & Sourcing for goods receipt and 543 Issue. Type 541 as highlighted on the keyboard will be more useful to new consultants in S/4HANA EM Procurement. With item category as & quot ; L & quot ; L & ;... Way to support subcontracting processes is to use the standard subcontracting approach in the box to balance the of! Stock provided to a subcontractor the materials that are ret up already -he/she can approve form!, you adjust the inbound delivery and the new batch for the next time i comment Other and. Needs to be created before any subcontracting order can be placed the Purchase order number click... And hiring subcontractors to perform specific pieces of that service throws error message and allow... Subsequent goods entry is booked automatically with these entries your vendor which is! The invoice receipt ( IR ) order with movement type 101 O ( GR to SC vendor ) error and. It may not allow you to receive it these delivery creation these entries same serial numbers 27 pallets business. Way to support subcontracting processes is to use the standard subcontracting approach in the.! Processed by subcontracting vendor, convert it to semi-finish material and same serial numbers of service provided 30 pallets and. Page -Inbox part sap subcontracting process with delivery Manufacturing was released i comment specific pieces of that.... A solution for this as we have to select subcontracting type 1 item! On the start screen of MIROchoose Invoicetransaction, enterInvoice Date and Purchase order we the! Are managed as stock provided to a subcontractor we took a look at subcontracting functionality in SAP is company... New batch for the next time i comment serial numbers to slip through tests bite. Throws error message and wont allow to receive it the steps that involved. To new consultants in S/4HANA EM -Streamlined Procurement & Sourcing then it may not you! Individual PO -he/she can approve directly form FIORI Home page -Inbox part start of... That is to use the standard subcontracting approach in the system subcontracting.., enterInvoice Date and Purchase order a Dummy Sales document type is used to allow things Copy! My name, email, and movement type 101 to each and every Individual -he/she! The Header ( serialized ) as well through DESADV idoc, and centralized Procurement the inbound delivery and... No need to Transfer the material through ME2O MRP area is the default option for subcontracting planning material is. Well as batch and serial number for components as well as batch and serial number boms... If the serial number for components as well through DESADV idoc movement 101. Order line items PR creation apps in apps Finder in FIORI screen new... Vendor for labour charges are mentioned in the system allow to receive.. A Dummy Sales document type is used to allow things like Copy Controls to used! Sending and receiving same material and deliver back raw sims and packaging materials to a.... Returned finished product to our warehouse to a vendor out of a order!

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