SAP PP- routing operations

[Former Member]

Hello SAP-Guruu2019s

If we have several operations to produce a component say 0010 to 0090.

In this sequence operations 0010 & 0020 are carried in-house,

and after this is sent for Sub-contractor for processing 0030 & 0040.

Then materials received fm Sub-contractor & operations 0050 to 0090 are carried again in-house .

So pls tell me how this situation is handled in PP( if possible mention the Goods movements also)

Thanks in advance

[former_member196398 · Accepted solution]

Niranjan,

It is better to break the material into multiple materials based on the value addition, so that it becomes easy for controlling and monitoring the Inventory.

In your example

Material A is converted to Material B - Operation 10 and 20. - Production Order.

Material B is converted to Material C - Subcontract Purchase order.

Material C is converted to Final Product - Operation 50 to 90. Production order.

You can alternatively assign Control Key PP02 for creating external processing operation for 30 to 40, and for remaning operations normal Inhouse production control key.

Regards,

Prasobh.

[Former Member]

Hi,

Check up this thread for the Subcontracting scenario for your requirement:

[Operation Subcontracting|;

-Thaila Shree

[Former Member]

HI

For the operations related to subcontracting you need to select the operation control key as PP02.

so sytem will create an Purchse req automatically.

Convert purchase requisition to purchase orderME21N

Goods receipt MIGO

when you do GR for SUb contrct PO sytem will do 101 for operations and for componets it 543

-ashok