Subcontracting Component Dropship

[Former Member]

Hi,

Here is my scenario:

1. Finished Product M requires components X, Y and Z.

2. Vendor A provides component X and ships it directly to subcontractor B.

3. On this PO, on the Delivery address tab we have entered subcontractor B as the vendor and set the 'SC vend' checkbox.

4. When the GR for the drop-ship PO is performed, the quantity is rightly posted to 'stock provided to subcontractor B'.

5. Components Y and Z are shipped to B from existing inventory via regular subcontract PO.

The problem is, when GR for the subcontract PO is performed, the system does not post an automatic goods issue for component X (this is not surprising since component X is not entered as a component on the subcontract PO). As a result component X stays in 'stock provided to subcontractor'... and the value of component X does not get included in the value of the finished product M when the GR for it is posted.

What am I missing? Should the drop-ship PO be linked to the subcontract PO somehow? How does the system know that component X also needs to be issued when the GR for the subcontract PO is performed?

Please advise.

Thanks!

Anisha.

[Former Member · Accepted solution]

hello

the work around which I feel is

your BOM structure should be like this

M- fully assembled

M1- assemebly of <prod name>

Component X - Qty 1

Component Y - Qty 1

Component Z - Qty 1

You create a subcon PO on vendor B for Part M1

when vendor A send component X- Mvt 541 say 10

you send component Y and Z from you rinventory - then Y- 541- say 10 and Z-541-10

your vendor B assemble X + Y+ Z and send you 10 assmebled part on part number M1

you make the GR for M1 for 10 ea.

all X , Y and Z will have 543 for 10 ea

and then you can make a program to convert M1 into M which your BOM component

Hope this logic / process helps you in fixing the issue.

thanks

[Former Member · Accepted solution]

Deshamol,

Thanks for you reply... but I am not sure I understand the solution you have proposed.

When I create the subcontract PO, what materials do I enter as components?

Just X and Y? Or, X, Y and Z?

I don't want to enter Z as a component on the subcontract PO since it then gets included in the outbound delivery. I don't want that since Z is being dropshipped.

Also, what is the different between M and M1?

Thanks for your help!

Anisha.

[Former Member · Accepted solution]

M1 is a interim assembly part # for costing purpose which comprises of

Raw material cost of X + subcon charges of Vendor B + price of Y + Price of Z

you will create a PO on vendor B for M1

when you will enter the GR for M1 all three component will get consumed 543 and your finish prod costing will also be correct in that case.

How we can mapped this , pl read below-

I have created a BOM for Finish prod A

A - Finsih prod

---M - assembly

-

---

M1- interim assembly

-

---

R2- machined forged part

-

---

R1- forged componenet

-

---

Y - bearing

-

---

Z -pin

I am sending Forging(X) R1 directly to vendor B for machining. After machining , finish part is R2

At the same time I am sending Bearing (Y) and Pin (Z)

Vendor B, assembles R 2 + Bearing + Pin and send to me as assembly part (M1)

[Former Member · Accepted solution]

Will the components section of the subcontract PO for the finished product have the drop-ship material X on it as well?

If yes, the system will include it in the outbound delivery. That will not make sense.

If no, the cost will not get included in the finished product when GR is performed for the PO.

Please reread my original question. I apologize if I am not understanding your solution, but I think you are making it more complicated.

I think you are suggesting that X, Y and Z are all components on the sub-contract PO, but then the question is how do I exclude X from the outbound delivery?

By the way, we are not using BOMs. We are typing the materials directly in the components section of the subcontract PO.

Thanks,

Anisha.

[JL23 · Accepted solution]

the components section of the subcontract PO for the finished product will and must have the drop-ship material X on it as well, to secure a correct valuation of the finished material.

What is taken into the delivery to send the components to the subcontractor is a user decision.

In ME2O you select the materials that you need to send with a delivery yourself.

the delivery has no link to the PO, hence the delivery cannot be created by SAP itself.

[Former Member · Accepted solution]

Jurgen: Thanks. All materials on the component screen of the subcon PO show up in ME2O. Yes, I can pick and choose which materials I want to include in the outbound delivery. The material that is to be drop-shipped will not be included in the outbound delivery... but then it will remain on the ME2O report forever... right? That would not be a good thing for us. Am I still missing something?

Anisha.

[JL23 · Accepted solution]

Read the description in the header of ME2O transaction. It is not called delivery due list, it is named subcontract stock monitoring vendor.

In other words it is the MMBE per vendor.

Once you do the MIGO for the dropshipment, the number in ME2O will change.

[Former Member]

You add X also as a component in the BOM.

As at the time of GR anyway your X will show under Stock with Subcon Vendor.

When you will do the GR for the whole finished goods with 543 it will consume.