Subcontracting partial material

[Former Member]

Several of you contributed to an excellent post last year on "subcontracting" - threadID 427179. We are trying to do a variation and having a challenge. We want to send out a partially completed material to a local vendor to do some work on it (e.g., if our tool is broken), then return it and finish the job:

For material X:

- operation 10: some processing toward X on machine A (BOM component, input, was raw material Y)

- operation 20: subcontract to vendor 123 (we'll send him the pile of partially complete X, which is not yet in inventory; he'll return it)

- operation 30: final processing toward X on machine C (we'll do GR on X)

With that other post, and some other insights, I have an external contracting operation on the routing, and a Purch Info Record with no material; the production order does allow the time for operation 20 based on the PIR; a Purch Req is proposed by the production order.

But two issues:

1. The PR can't be converted - something about no BOM components

2. If I recursively add X to it's own BOM, it doesn't help: I can get the PR to a PO, but I can't do a 541 movement from ME2o - there is no "inventory" anywhere yet (at least no material X's).

Any thoughts on how I might (a) have a 3rd party work on a material, and (b) account for the fact that a not-yet-complete material has been sent off sight and returned?

Thanks for any wisdom!

Thomas.

[Former Member · Accepted solution]

hay thomas,

u want to send some material to subcontracter, which is not inventories at ur palce??

i am not able to understand , functionaly... forget about SAP.

why u want to call it subcontracting, create a service PO, and put addition cost, in ur externally processed cost.

now if u say, u are actaully sending some material, i will say what that material is?? since there is not name in SAP for that, no inventory for that??

does it make some sense to you what i wanted to tell u..... i will be happy to help u. once you clear my dobuts.

when u transfer mateial A, and receive material B, u will call it subcontracting.

when u send A and receive A, i wont its subcontracting, functionaly...somechanges must be done to material A, may be repair or something....it may be change of mateiral fully for you...but its change..:)

Regards,

Pravin Mukkawar

Edited by: pravin mukkawar on Oct 1, 2008 5:18 AM

[Former Member · Accepted solution]

Thanks for the response - a service PO - that sounds like the kind of thing I'll need, but I still need to have the routing account for the expected time at the service vendor, and I still need to get the material there and back.

Let me try to do a better job of explaining the functionality: Suppose we're building a metal casting - like an engine block (material X). When we're done, we'll just have that one piece of metal. We start with a rough block of metal (raw material Y).

Operation 0010, we do some machining on a big milling machine; but we don't bring the result into inventory yet.

Operation 0020, that big piece of metal has to go into a special oven to heat treat it; ours is full, so we want to send the big piece of metal down the street to a vendor who has a similar oven; he treats it and sends it back

Operation 0030, we now take that heat treated piece of metal and do some final milling on it, the result of which is a block we can put into inventory (as a sub component of some other assembly.

Usually, we have capacity in our oven, so it is easy to have one material go through those 3 operations. That way we just have one routing, one BOM for that component, one production order. All of our other BOMs which need that casting (e.g., to make various other sub-assemblies) expect the completed casting to be material X.

Does that make sense? Thank you for your interest!

Thomas.

[Former Member · Accepted solution]

hi Thomas Mueller ,

i think u should go ahead with the service PO and put cost to order.

or if it is possible to break the orders, eg level...like Y, Y1 and then X. then you can have 2 orders.

like first Y then opeariton 10 and u will get Y1

y1 will be subconcreated

and then y1 to Y to get your finished X.

but it will make ur user system, more complex, since ppl must be using from earlier time.

adn no of key strokes also increses, more orders, extra work..etc etc..

so go ahead with service PO..

there is one good news for you, but its still in development yet not released by SAP.

if you find enahncement package 4 by SAP. they will be giving badi to send material in external opeartion scenario...but i am not sure how much it will work to u since, (no inventory)

Regards,

PRavin Mukkawar

TCS canada

[Former Member · Accepted solution]

The service PO makes sense. I don't really have the option (or am trying like heck to avoid the option) of splitting the order into two, especially if it involves adding more material numbers to the scenario. I haven't figured out yet how to do that, but am still looking. When I use a Vendor Info Record without a material, and don't have any component, on the BOM, the PR can't be converted to a PO because there are no materials. I've seen that "D" type meaning Service (rather than "L" meaning sub-contracting), but can't find a way to get it into play except through a contract. But then when I try to create a production order, I get errors when I reference a contract (outline agreement) with an item that has a type D - something about incompatible item types between the PR and the contract; it lets me create the production order, but it does not create a purch req. Any hints at how to tell the routing that the purch req is to be a service req would be appreciated; if we can tie a service PO's cost to the order, we can live without the formal tracking of the not-yet-finished material down the street and back.

Thanks for any additional thoughts you have.

Thomas.

[Former Member]

Hi,

We are doing implementation for Casting Industry.

There are many stages in the process.

1) raw material is converted into molten metal in the furnace

2) batch no is generated

3) sample is tested in lab

4) if required charge addition is done which is in percentage

5) quality inspection is done at this stage may one or more pieces can be break during testing

suppose batch if of 500kg then 50 FG each of wt 10kg is produced

Can any one guide me for following.

1.how to create BOM for this

2.how to do production order confirmation

Please advice,

Ramesh

[Former Member]

Hello thomas,

As per my understanding, you need to sub contract the 20 th operation based on the available capacity in your end. In that case i would suggest one solution for your problem.

since you already have intermediate code for partial material X, why donot you go for material sub contracting instead of op sub contracting .if you wish,

Create BOM for A with component X and one operation (30 ) in routing for A.

Then Create BOM for X , with bom component Y and having two operations in routing for X.

Select the Procurement type as X (Bot alowed) for Component X at Mrp View.

Based on the demand of A you will get some planned order for component X, if you have capacity convert the planned order to production order, else you don't have capacity inhouse partially convert the planted order to PR at Md14.Then while converting to PO select the category as sub contracting L , now bom will be exploded. Now you can do the GR for X.

I hope i tried to fix your problem some little bit , otherwise please ignore.

Regards

Pradeep kumar

[Former Member]

hi,

have read about external processing scenario? i think u need the same

May be i m right

You just first do some prerequisites

1)Material:-finish&row

2) Bom

3)Vendor& vendor info record without material

4) In routing

10

20

30 oprations.

5) now if u r sending material to sub contractor after completion of operation 10 i.e.for operation 20 and again receipt it for operation 30 at your own premises.

So in operation 20 control key should be pp03 (with sub contracting) also in the same go inside the operation _tick* the subcontracting* indicator_ and give the inforecord number which u have been created earliar.

6) mrp run

7) It will create plann. order for finish& p.r. for row

😎 migo -

---

row stock

9)finish material plann ord-----prod ord. at the same time in prod ord u get PR without material

(confirm operation 10 with co11n but don't do goods movement)

10) ME58 PR ___PO

11) Ref to this PO ME2O (541) send it to subcontractor it will show in sub contractor stock .

(confirm operation 30 with co11n but do goods movement)

MIGO (101) at the same time system will do 543mov type backup for reducing subcontractor stock.

12) your finish stock will be maintained.

Tarachand

Edited by: tarachand bhapkar on Oct 1, 2008 7:54 PM

[Former Member]

hi tarachannd

as per ur step 11,

Ref to this PO ME2O (541) send it to subcontractor it will show in sub contractor stock .
(confirm operation 30 with co11n but do goods movement)

which stock will be in vendor location? since u will be consuming stock in the first opeartion, physically and functionally.

[Former Member]

Hi pravin,

If u ve not maintained any intermediate bom level between finish & raw. then functionally u r consuming all row stock for operation 10,then send it this same material to subcontractor for doing operation 20. means same row material is sending to sub contractor for external processing. At that time in md04 of row material u get new segment i.e. sub cont stock.

After confirmation of operation 30 again sub cont. stock will get reduce and increase your finish material stock.

Regards

tarachand

Edited by: tarachand bhapkar on Oct 2, 2008 9:44 AM

[Former Member]

thats means , physically material is consumed, but not shown in the system.

if that works, for him, then definetly he can go ahead...u r right!

atleast i wont suggest such things...

Pravin Mukkawar

[Former Member]

Hi Pravin,

As per his(Thomas) que. he is looking for single operation sub contracting thats why i suggest him for external processing.

And in that case system also show the consumption of row material( it will show row stock=0) after consumption for operation 10.

Now for operation 20 you r sending it to subcontractor physically in that case system will show stock at subcontractor inventory( mov type:-541) as per you r doing physically, your row stock at your premises will remain zero.i.e. physically u r consuming row stock for operation 10 from your inventory and send it to sub contractor.

This sub contractor stock will be consumed for operation 30, when you confirm last operation 30 and do GR (101) for finish material then system will automatically consume it (background movement type 543) from subcontractor inventory.

As you suggested him, same i have mapped on my sandbox server and its running successfully but i thought Mr. Thomas is not looking for that that's why i suggest him external processing.

Thank for your valuable opinion

Tarachand

[Former Member]

To all - thank you very much for your insight. I have some clues now on where to proceed. I apologize for seemingly dropping the ball. I took off on vacation and am just now getting back to it. I'll try parts of several of the above and see how it works for me!