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Subcontracting

Hi,

what is the difference between sucontracting with and without a scheduling agreement ?

Best regards

replied

hi,

Very firstly understand the process:

1. You order the end product using a subcontract order. The components that the vendor needs to manufacture the end product are specified in the purchase order.

2. In Inventory Management, the components are posted to the stock of material provided to vendor. The components are then supplied to the vendor.

3. The vendor performs its service and delivers the ordered material (the end product). The consumption of the components is posted.

If, after the goods receipt has been posted, the vendor informs you that a larger or smaller quantity of the components was actually consumed than planned in the purchase order, you must make an adjustment.

4.The vendor charges for his or her service. The invoice is posted in Invoice Verification.

Now from above we understand that the process run all around for a end product.....

So now if in the above scenerio there is schedule agreement where it will be added??

Ofcourse, before first step, ie. i mean to say that, the scheduling agreement will have all those details all about the requirements which are required to get performed for various schedules.....

So as per this schedule agreement, the PO's will made as the process will go on....

If there is no schedule agreement, then PO's will not be made as per schedule agreement, you need to create the PO each time differently....

The process of schedule agreement, if you would like to gain services for longer scheules...

Hope it helps...

Regards

Priyanka.P

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