Subcontracting process in PS

[Former Member]

Dear All

In my client requirement they are giving material to do Subcontracting work for vender Through project how to map in sap by which activity i want do this please help me sir

Regards

Raj

[Former Member]

Hello Raj,

1. Make a proper WBS structure, by which you want to control cost and budget. based on the WBS structure you can assign certain WBS to subcontractor. This is done through raising PO to a vendor and account assignment to WBS element.

The same way services also can be sub contracted, but in services we have to use service activity, service entry sheet and billing can be done through the amount of time spent or time booking.

2. In subcontracting, vendor (the subcontractor) receives components from the company from which he produces a product. The product is then ordered by company through a purchase order. The components required by the vendor to manufacture the ordered product are listed in the purchase order and provided to the subcontractor. The components can be determined by the system via a bill of material.

2. If the assembly is inhouse manufacturing, components are manufactured at vendor, then

purchase of components

Goods receipt for purchase order

Goods issues to productin order

Production

Delivery production order

Goods issue to network activity or consumption.

Hope this helps

Thanks,

Srihari.G