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How subcontracting process can be handled along with the inter company proc

Former Member
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Scenario is aas the following:

1) Company X raises a PO with L item category (Subcontracting)

2) Company X issues material to Subcontractor = Y( and Y is our sister company in a different country)

3) Y manufactures the finished product for us

4) X receives it against the same process order

How subcontracting process can be handled along with the inter company transfer process?!!!

Accepted Solutions (1)

Accepted Solutions (1)

uwe_pfisterer
Explorer

Hi Ahmad,

in SAP standard the cross-company code subcontracting process would look like this:

Preparation:

- Assign Vendor Y to plant Y in the vendor master data.

- create the components in CoCode X as valuated material. Create the components in plant Y with standardprice "0".

- etc..

1.) Create subcontracting PO in company code X, plant X and enter vendor Y as supplier.

2.) Based on this PO a sales order in plant Y should be created.

3.) Provide the components as usual to the vendor by using either ME2O or MB1B or MIGO.

4.) As soon as the components arrive in plant Y the users can post a goods receipt with movement type 501 in plant Y. As the components do not have a value in plant Y, you would only see them in the inventory overview (not in the financial area of plant Y, because the components still belong to plant X!)

5.) Plant Y consumes the (non-valuated) components and creates the finished product. This product is then shipped to plant X with reference to the sales order.

6.) When the product arrives in plant X you need to post a goods receipt with reference to the subcontracting PO. (with this step the finished product now gets in the ownership of plant X and the components are consumed automatically from plant X).

etc..

I hope this could clarify what is currently possible in an ERP standard system. If you are using our ERP DIMP system (with additional industry-specific features) there are some more functionalities available in this area...

Best regards

Uwe Pfisterer

Produkt Manager - ERP Logistics

SAP AG

Former Member
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Dear Pfisterer,

This solution is perfect . I really appreciate it and thanks a lot

Best Regards

Ahmad

Former Member
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hi

is it other way i dont create sales order, just use subcontract PO, so that Y able to do GR for raw material. pls advice. thanks

JL23
Active Contributor
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see just the first reponse in this thread from me.

roy_vanamsterdam
Explorer
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Dear Uwe,

This post has been extremely helpful to a challenge we're facing. Actually, we're hoping there is some more information on this process available nowadays, but we can't find this.. Our customer is working on an ECC6.0 system with DIMP software.

Are you still active and would you be able to guide us to further reading on this matter?

Kind regards.

Answers (2)

Answers (2)

JL23
Active Contributor

does Y work with the same SAP system?

do they usually plan and execute their production with SAP?

if that is the case, then you cannot only look from the purchasing point of view. As this purchasing scenario is good if the subcontracting vendor is an external party.

But with internal parties you have to look at the entire process. So it is usually nothing more than stock transfers and standard production, rather than a subcontracting.

Former Member
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Thank you mate

yes Y works in the same SAP (sister company), any suggestion?1

Regards

Ahmad

JL23
Active Contributor
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is it really a different company code or just another plant in the same company code?

Former Member
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it is a different company code

Physically every company code is located in different country.

Former Member
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Hi,

You can create STO and sell material from company "X" through sales route and receipt material at plant of company "Y".

Regards,

yagnesh

Former Member
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this is not possible in this case.

Can we : create new PO document type / movement type which has got the following features:

1) create PO with L item category

2) No issue to subcontractor 541 (will transfer it to Y using STO)

2)Receive the finished product with out having our stock (components decreased 543 by the system)

Former Member

Hi

Of course you can create new movement type to receipt material with reference to PO at subcontrating site And can track through material document list/MMBE.

Regards,

yagnesh bhatt

Former Member
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