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subcontracting

Former Member
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Scenario, Make-to-order sucontracting,

Materials,

A - finish product strategy 20

B - Semifinish Subcontracting

C - Raw material Reorder point planning

Now when the system creats the PR for the raw material 'C' with reorder point planning in background. then in the MRP of finish product, system is not considering the PR (receipt) for the 'C' b'coz this is not a sales order specific PR.

And if i maintain the collective indicator for the raw material then the material 'C' (with normal stock) will not get consumed to the PO of subcontracting.

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Answers (4)

Answers (4)

Former Member
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..

Former Member
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Dear,

You are closing the thread without any remark..did you get the solution or not?

Former Member
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Hi Vijaysigh,

please gothrough these step for subcontracting

Subcontracting step by step method :

There are two types of subcontracting relevant for PP module:

1. Operation subcontracting

2. Assembly subcontracting.

Operation subcontracting: Within in-house production if some capacity bottlenecks exists in any operations then you can assign this job to some vendors to carryout this job in his premises and supply us the semi-finished part. This can be done via control key example PP02 (external processing control key and activate the subcontracting Check box in routing ).

Assembly subcontracting: Total product can be given for subcontracting. We have to give the raw materials to vendors and they would supply the assembly. This can be done with special procurement type 30 with procurement type F.

For operation subcontracting:

Option1:

1) In Control key PP02 enable external processing and in the routing in the operation detail enable external processing under radio button sub contract.

2) In Order type dependent parameter T code OPL8 enable reservation / PR creation - 3

( immediate reservation / PR creation ) during release / confirmation .

3) Create Info record T code ME2O only for vendor no material combination. (You are not going to issue material for the vendor through SAP) system will not allow through ME2O since it is operation subcontract.

4) Run MRP it will not create PR directly since the it is enable in OPL8 only after release.

5) Do the In -house operation then confirm the in -house operation in CO11n. Once the previous operation is confirmed PR is generated automatically.

6) Then Convert PR to P.O. In purchase order only operation description will appear. since no component is assigned. And the order type will be F.

7) Then make separate DC (Gate pass). Consult your MM guy for this.

😎 If any component is assigned to the operation. Do stock transfer to Vendor storage location till such time it comes to factory again.

9) While return from vendor do MIGO against the P.O and it will come settle in prod order.

10) Payment to the vendor is through service record entry concept. Consult MM gut for this.

Option 2:

1) You have to create separate material master for that operation. Treating that it will be a different material

2) Create Vendor master with Material and Vendor combination

2) Create BOM with header material and this material as item for the header.

3) Create Routing for the header material with only one operation with control key PP02.

4) Assign the item material to this operation.

5) Run MRP this will create PR automatically. Then convert PR to PO

6) Send material to the vendor through ME 2O

7) Do GR MIGO the item will come have header material and it will automatically update in unrestricted stock.

😎 Payment to the vendor will be with different not as service entry concept consult MM guy for this

I think your scenario is like this

you are sending semifinished Product to vendor and he inturn sending Finished product Is n't it

when you Run MRP system will create PR for " C " according to the Reorder point and you should give

the Minimum qty in MRP view when you send SF to vendor the stock could me maintained using ME2o

pl come back if there is any query,

Balaji

Edited by: balaji on Sep 19, 2008 8:13 AM

Former Member
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When the system creats the PR for the raw material 'C' with reorder point planning in background.after that, in the MRP of finish product, system is not considering the PR (receipt) for the 'C' b'coz this is not a sales order specific PR.

And for the considration of this receipt (PR/PO), if i maintain the collective indicator for the raw material then the material 'C' (with normal stock) will not get consumed to the PO of subcontracting.

Former Member
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Dear,

You cannot have reorder point planning with sales order requirement.

Reorder point planning works on consumption based MRP concept and not requirement based MRP...You are getting confused with above two.

Former Member
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Mr. Rajesh,

You are not getting my question, you are thinking very primery things that is consumption based and requirement based planning,

Try to run the scenario MTO (finish material) + sucontracting(semifinish) + consumption based planning (BOM item for semifinish). And then try to reply me....

Former Member
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Dear Vijay

A is MTO, B is also MTO (individual indicator in MRP), C is collective (MTS). For any reqmt of A from Sales order, system will create order specific plan order for A and B with profile KD and for C it will create a normal MTS PR (profile LA) if the stock falls below the reorder level otherwise no PR. Convert to PO for B, send material C through 541 to vendor against the PO. When B is received do MIGO for B against the PO, system will consume stock for C.

This is the steps as per the scene described by u. Hope it is clear now.

Former Member
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Dear,

May be I am wrong in understanding your requirement.

As I understood

A is MTO,B is MTO and C is MTS

When you RUN MRP for A, system will create Planned order for A(sales order specific), For B, SC Planned order, For C dependent requirement from B.

Is it happening in your system? What type of reorder point planning you are using i mean What is the MRP type?

Former Member
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Hi

As u said this should be collective indicator only in order to consider. Now when u sent to vendor, the stock is still lying with vendor and not yet consumed (check ME2O). After that when u receive the PO for material B through MIGO, then C stock will reduce from system.

Former Member
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Dear,

What is required for you is not clear.

If you are planning rAW material with ROP planning, thne it is sure that it is not specific to sales order.

Re order point planning as a concept is working based on consumption and not on requirement from SC PO hence you should not think about SC requirement to RM C.

Henece you have colletive requiurement for C. For B it shoud be individual.

Hence when you Create a PO for B, and issue the material to SC PO through 541 with special stock indicator O in MB1B, system will issue the material C and then during the next MRP run if the stock of C reaches below Reorder point creates PR required to get the stock above reorder point stock.

I hope you understond the concept.