In Process/Operational SubContracting

[Former Member]

Dear All,

I want the suggestion abt the subcontracting scenario which wr r trying for our client.

The scenario is of Inprocess/Operational Subcontracting.

Steps are as follows:

We are creating a production order for sub assembly A

In that order we are having 5 operations. Out of those 2nd & 4th operation are at subcontractor.

1. Confirmation of 1st operation.(CO11N)

2. Creation 2 material masters for subcontracting.(B,C)

3. From CO11N doing the goods movements of C from the production order-Operation 1.with movement type 531.

4. 2nd operation with PP02 control key,for subcontracting PR.

5. Creation of subcontracting PO for B with the component C.

6. Transfer of C to vendor from stock with movement type 541.

7. GR of PO for B,it will directly consumed to the production order.

Same steps we r doing for next subcontracting operations.

So, Now I want some suggestions/clarification on these steps.

Also tell me the costing effects on the production order.

Your valuable answers will help me a lot.

Thanks,

Sachin Patil.

[Former Member]

Hi,

Please note the following points

1) In the operation subcontract u can send the material through 541 movement but u should do the GR

against the same material number.

Its not possible to do the GR with different material number.

2) If u want to do the GR with different material number then u have to create PR separately for

subcontracting.Its not possible through production order.

3) Regarding costing things when u enter the control key as PP02 in the routing then system will ask the

net price required of that operation.

So raw material cost from the material master and machine cost from the activities and subcontracting price from net price what entered in the routing

Regards

Vijay

[Former Member]

Dear Vijay,

Thanks for your reply.

But I am not satisfied with this answer.

As the material,which we are sending to vendor is coming from the operation of the production order,it will be new material. & also the material which is coming from the vendor is also the new material.

So, for accounting & costing of material & activity we have to create new materials every time. I just wanted to know that I am using 531 movement type for taking the the material from the operation to stock. Is it correct or not?

Thanks,

Regards,

Sachin Patil.

[Former Member]

HI!,

Ya! it is Ok to take the material to be sent as a by product from the previous operation as anyway it is going to get consumed on the next operation. One thing you need to take care is that create the intermediate material asnonvaluated(material type UNBW).

Regards,

Uday