Subcontracting Operation in MTO

[Former Member]

I have the following scenario

BOM Header: Material A (MTO)

Component: Material B (MTO)

Material A is produced in-house with one operation subcontracted.

Operation 1: In-house

Operation 2: Subcontracted

Operation 3: In-house

When the Sales order is created for Material A, MTO demand generated for both Material A & Material B.

After the MRP run, convert Planned Order for Material A to production order. No a new purchase req. is generated for Material B which is non MTO. There are two purchase req for material B- one is MTO and the other is MTS. Any reasons why this is happening.

[Former Member · Accepted solution]

Hi Arvind

Is this component used in any other BOM? are you running MD02?

I think this material : B is maintained as components in other BOM and while running MD02 PRs are being generated.

Please check and revert.

[Former Member · Accepted solution]

Addy,

If the material B is assigned to another Material does it matter. I am getting two PR against the same header material, one is MTO and the other is MTS.

Thanks in advance,

Arvind

[Former Member · Accepted solution]

Hi Arvind

If the BOM component is assigned to another header and in MRP 4 view the individual/Col indicator is maintained as 1 then there is a possiblity of you getting PRs for each of the header ( Eg.Material A and Mateiral X has Material B as components, then while running MRP(MD01) you will get PRs for Material B for the header materials A & X)

Coming back to the issue we have in hand, what is the planning strategy that you are using? check whether the Planning strategy is changed recently in material master changes history? I am asking because you might have created a demand based on MTS and after that would have changed the strategy and created a sales order, this happend in our pervious Project.

Please check and revert.

[Former Member · Accepted solution]

Material B is used by 8 header materials in there respective BOMs. All these 8 materials are MTO (strategy 20 or 50). There are no PIR for any of these materials as well as the component.

I still don't understand why I am getting two PR generated for the component. This only happens when I convert the header material planned order into Production Order.

[Former Member · Accepted solution]

Guys,

I think I have found the reason, but need some help to find the solution.

In the routing, the component material is assigned to the external processing operation, so its copying in the production order with movement type 543 instead of 261(E). This is causing the MTS demand getting triggered after the planned order is converted to production order.

Can someone suggest a work around against this. We want to keep the component material as MTO and MTS (sales order valuation). Need some suggestions from the experts on this.

Thanks in advance,

Arvind

[former_member196530 · Accepted solution]

Dear ,

Please try with below steps :

1.Remove the Individual/Collective Indicator in BOM Componenet if its set as 1 .

2.Run MRP with the following setting in MD02 SINGLE ITEM MULTI LEVEL :

Processing Key : NETCH

Create PR : 2 it will create Planned Order for FG and PR for shortage Qty of the BOM compoenet based on the stock and Procurement Type.

Delivery Schedule : 1

Create MRP List :3

Planning Mode :3

Scheduling : 2

Click Diplay result before SAVE

3.Check in Routing External Operation Tab : Subcontracted is Ticked with Purchasing Info Recrd ,Cost Elenemt because based on thsi information system will generete PR for that operation .

Revert back once u did

Regards

JH

Edited by: Jiaul Haque on Apr 7, 2010 8:53 AM

[Former Member · Accepted solution]

JH,

I don't think it will solve the issue on hand, see when the MRP is run either MD50 or MD02 I am getting one planned order for the header material and one purchase req for the component both with account assignment as E. Now when I convert the header material Planned Order to production order, a new MTS demand gets generated for the component. It seems there is no 543 E movement type in SAP so, SAP creates a new demand for MTS, while keeping the original MTO demand. For the buyers its creating an issue since they are getting two PR for the same material. One is MTO and one is MTS. I don't know how to eliminate the MTS demand from the component.

Arvind

[Former Member · Accepted solution]

Dear Arvind

As I understand from your below post. For better understanding I will list it down.

1 - PR is generated during MRP - this is from the BOM

2 - While converting Planned order for header material into Production order you are getting another PR - this is generated from the Routing where you have maintained the operation control key configuration as externaly processed.

Am I correct on Point No : 2?

If yes then is the PR generated for the material or based on the text maintained in Routing (Ex.Painting of Vessel)??

As per my experience Externally processed operation's PRs are generated only after we convert the planned order into produciton order and this will have the text of the Operation maintained in Routing.

If the above isnt the case then better to raise a OSS message. I might have repeated the same questions because I am trying to understand the issue better.

Hope the above helps.

Edited by: Addy on Apr 7, 2010 9:40 AM

[former_member196530 · Accepted solution]

Dear ,

For any external operation , PR will be generated when you will convert the header material Planned Order to Production Order

I have checked in OMJJ-534 E -GI issue sls ord.st.If you have any missing parts in Production Order , it will generate PR.

Did you check the Cheking Rule defined in OMJJ-543-E movement type ? This rule defines the checking procedure to be used for the availability check (or in Inventory Management, the missing parts check) in individual applications like Production Order .

Regards

JH

[Former Member · Accepted solution]

JH,

The system is by default assigning 543 movement type at the component level. There is no availability check maintained for this movement type in OMJJ. Any suggestions on the availability type. I tried looking for SAP Help on availability check for movement types but couldn't find anything. Can you give me some idea on this aspect of availability check.

Thanks in advance,

Arivnd

[Former Member]

Hi,

Please can you check is there any PIR existing in the DM for the header material.

With Regards

Mari Muthu

[Former Member]

No PIR for header material. I am using Strategy 20 for header and 50 for the component material

[Former Member]

Hi,

Please can you let me know is the purchase requistion is getting generated for the subcontracting operation or not.Is that the issue.Can you check whether the component B is being used in any other apart from A.

To create a purchase requisition for the operation you have assign a control key with a external processing active and the subcontracting vendor should be created for the operation.

with Regards

Mari Muthu