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Subcontracting scenario

v_s6
Participant
0 Kudos

Hi All,

My client is a subcontractor which receives some material from the customer on which they do some operations and send back the material, charging the customer only for the services rendered.

Please let me know how this can be handled in SAP?

We have a scenario where we receive some steel plates from the customer which we only drill and send back to the customer.Similar such steel plates are manufactured by our cpmpany as well.

How to identify plates received from the customer and plates manufactured internally?

Best Regards,

V S

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

One possible way is to have non valuated materials as the customer's material, you can do a GR wit 511 movement and send it back via delivery.

Regards,

Aroop

Answers (1)

Answers (1)

Former Member
0 Kudos

Hi VS,

To handle the above Scenario.

. Define all the materials in your plant (subcontracting and packaging etc).

2. In the material master MRP 4 view there is one field in which you can mention that this material is not relevant to MRP planning, use this field for subcontracting material so that it will not be planned in MRP runs ( generally use this field for re-order point planning).

3. In the BOM for the subcontracting material put the special procurement key as Subcontracting and do not keep relevance for costing.

4. If you're using packaging material of your company and want to capture the cost of these materials in the subcontracting production order then put relevance for cost.

5. Define alternate BOMs for each customer.

6. Generally the routing will be the same but materials will change, define different prodcution versions for each alternate BOM and assign to the routing.

7. Define the activite types for packing and mixing in the work center and assign them to the cost center, use these for your routing.

8. Whenever you recive a sub-contracting order, use the relevant production version depending on the customer.

_________________________________________________________________________________

o create a subcontracting scenario you need following settings:

1. Create a transportation lane between plant and subcontractor, for this you need to select subcontracting radio button for lane between plant as source and subcontractor as destination.

2. Create a return lane between subcontractor as source and plant as destination with, this is a normal lane i.e Standard

3. Define all the products i.e. parent and child components at subcontractor and parent product at plant depending on requirement.

4. Define proper procurement type 'F' for parent product at plant and E at subcontractor location.

5. Procurement type should be F for child component if you are procuring from outside at subcontracting location.

6. Define PPM at subcontractor location.

If you are CIFing the product from R/3 you need to manually create products at the subcontracting location in APO.

If you are running SNP heuristic in background select check box "take into account found component"

I think these are the basic settings required for subcontracting scenario.