Subcontracting and Co Product

[Former Member]

Hi

Can a material 123 be marked as Procurement type - X (Inhouse Produced or External procurement) with Special Procurement key - 30 (Subcontracting)

Along with this material 123 be marked as Co-Product to get material 456 when produced at subcontracting location.

Basically question is does SAP support Subcontracting and Co-product combination together. If yes how.

Best Regards

Rajeshwari

[former_member740051 · Accepted solution]

Hi,

Yes it is possible. It is mandatory to maintain the sub-con material 123 as X or E procurement type in MRP 2 view. You need to activate "Co-Product" Indicator in Cost estimate 1 view for the material 456. In this case, you must need to maintain the BOM components in CS01 t code for 123 material. In 123 material BOM, maintain 456 material as component with (-)quantity. For example, while producing 100 nos of 123, if you get 100nos 456, then maintain 456 material in the 123 BOM with quanity(100-).

FYI, You can run std cost estimate also for Co-Product materials. Since, 456 values are in MINUS, while performing cost estimate value for 123, this value will get - figure and product cost of 123 will get the impact of - .

I hope, it helps!

[Former Member · Accepted solution]

This message was moderated.

[Former Member · Accepted solution]

Hi,

Thanks for reply again...

All the above steps are done , but the moment you link 'Subcontracting Purchase Info record' to the leading material 123 and you cost the material it gives you a error.

I have found the resolution that if in transaction OKKN --> Valuation variant of costing varinat --> in tab 'Overhead' --> If you check field ' Overhead on Subcontracted Material' ..... then it works and no error is displayed.

Is any one aware of the importance / impact of the field 'Overhead on Subcontracted Material' ?

Thanks & Best Regards

[former_member740051 · Accepted solution]

Hi,

Its nice work around may be. Actually, that button says, over heads are permitted for sub-con material also and over head should be calculated according to material type while performing my std cost estimate. For example, if my sub-con material type is sub assembly, then system will consider the cost sheet mentioned in " over head for finished and semi finished materials".

Hope, it helps!