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Subcontracting process flow for Automobile industry

Hi ,

Would you please tell me how subcontracting process flow and particular movement types will occur in SAP when Customer want to send CAR assembly to subcontractor and get the

dis assembled parts into warehouse .Customer will pay for the services of disassemblinfg of CAR assembly.

Also please help me to understand the configuration of this scenario.



Former Member


make code for ur finished major product as B and other products as C D ur raw mat will be A (car )

create bom of B here pur A as main component and C and D with -ve quantity (byproduct)

like B 1 no

A 1 no

C -1 no

D -1 no

then u will get C and D as by product with +ve quantity at time of final ge (101)

process will be as follows

Process Flow

This scenario consists of the following steps on goods delivery:

Purchase order creation based on a scheduled purchase requisition created by last MRP run

Optional: manual purchase order creation

Purchase order approval (if required)

Components of the Material sent to the subcontractor through a Transfer Posting

Creation of Subcontracting Challan

This scenario consists of the following steps on goods receipt:

Goods receipt for purchase order delivered by subcontractor

Component reservations and consumption of component quantities as provision of material

Reconciliation of Challan

Completion of Challan

Invoice receipt by line item

Invoice verification and validation of tax expenses

Outgoing payment

hope it clears



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