operation subcontracting

[Former Member]

Hi all,

There r so many answers regarding this in SDN, but still I m confused which should I follow and which one not.

my scenario is like this

we have 5 operation in that 3rd operation is subcontract for which the material has to be send to vendor and after completion of operation have to receive from vendor and scrap also has to be captured.

I dont want it to make std process bcoz only when there is a capacity bottleneck subcontracting will be done otherwise that operation will be done in house.

I want it to be done through Production order screen by deleting the operation from the routing and inserting the subcontracting operation , confirming the operation which is before subcontracting operation etc

please provide your views how to map this.

Regards

Kumar

[Former Member · Accepted solution]

dear A kumar

Follow the following step

Create production order . in that 3rd operation is sub c. or you can insert sub c. opertion .

Assign PP02 external operation Key in routing or production order make it othe setting.

Create 2 dummy material if required, assign one dummy material to operation 30, so once you release the production order, auto. you wil get PR for dummy1 material

Send the components and dummy material to vendor againist PO

then do GR for dummy2 material once you do GR ,system auto . confirm your 30 operation no need to confirm this operation.

[sundaresan_velayudam · Accepted solution]

1) Create a routing with group counter 1 with normal production process, and 2 with exeternal subcontracting process.

2) and create a 2 Production version one for In house and other for external processing

3)In normal - system will take PV1 while converting planned order to production order.

4)If You find capacity of in house production is not sufficient, read the master data with PV2 in process order.

5)While releasing the order system will create a PR if U assigned the control key PP02

6)In The PR assign the scrap material with -ve qty in the components and assign a dummy materia( its should be non valauated material)l if u want subcontracting challan, reconcillation( with out material you can't create a PO)

7) send a dummy material with movemnt type 541

😎 when u do GR for that order, system will reduce the stock of dummy material and receipt of the scrap material is updated

9) confirm the operation 30

[Former Member]

to some extent

[former_member196530]

Dear ,

1.Create Routing with 3rd Operation having Control Key -PP02( External Operation ) in CA01

2.Create Production Order or Generate Production Order -CO01, having external sub contracting operation ( Sub-contracting shold be marked ,Purchasing Org , Purcahsing Group , Price etc ) .

3.Assign a non-valuaded material -XXXYYZZ in external operation

4.Release Production Order in CO02 ancd check the PR genreated in External Tab processing in Operation .

5.You can maintain -ve qty for Scarp material in the same PR or else ytpou can captured the same in CO11N in different manner for scrap handeling.

6.Now relase the PR and send the PO to vendor against movement type 541

7.Once the job done at vedor location , recieve the PO as another dummy material ( there will be value addtion due to external operation ) .

8.Perform CO11N for that operation and here you can hadel the scrap also .Check :

Regarding Capacity Issue : You need to maintain 2 production version and based on the available capacity at Work Centre , you can change the Production Version , Routing Operation Control Key .

Hope this is clear

Regards

JH

[Former Member]

Thanks to all of you for your valuable suggestion.

still it is not solved. what I did is .....

created info record

In the Production order I confirmed the first 2 operation in co11n and insert the 3rd operation subcontracting with control key pp02 and external operation. deleted the operation which was not required.

when I saved the production order automatically PR got generated.

created PO with Ref to PR

Send the material to vendor by ME2O

Now I want to receive the material from vendor for that I m using MIGO mov type 101. but ERROR is coming

Fld selectn for mvmt type 543 / acct 82601000 differs for Asset retirement (016)

my point is if I do some changes for mov type 543 whether it will effect 101 also bcoz as far as I know once u do 101, 543 automatically gets updated.

how to solve this error.

Regards

Kumar

[Former Member]

Is it possible to elaborate, how you have created Info Record, is it without material, what kind of Sort key is needed?

Thanks!!

[sundaresan_velayudam]

>

> Is it possible to elaborate, how you have created Info Record, is it without material, what kind of Sort key is needed?

you can create a info record in ME11, by giving vendor and purchasing organisation and give the material group,SORt key Isa text to Indentify while selection, For opeartion subcontracting, U Need to create a Inforecord with out material i.e with material group

[Former Member]

Hi ,

In addition to that MATERIAL No is not coming in Pur Req only description text is coming and I cant give it manually also bcoz the field is greyed out. I want the material which has to be send to vendor should come automatically in pur req .

Regards

Kumar

[sundaresan_velayudam]

check in ComponentIn Master data of operation subcontracting, if you maintained a material to send to vendor In The BOM and assigned the material in routing, Based on that production order is created means, the component will come automatically in PR- Master data tab component.

[former_member228481]

Hi,

You can only get description of Operation in PR /PO, and not material code.

Well this is probably acceptable if business is not in India. But Here you need Material Code in PR and quantity of it.

It is also help full in case of tracing stock. Since you don not want to make this as Standard Process, But You need to create two material codes. One which is coming form Operation 2 in Order 10010 u can create material code of mat Type (UNBW) Ex: OP20_10010. And Other material Code as OP30_10010.

OP20_10010 will go to Vendor and OP30_10010 will come in. So Your PO will be for OP30_10010, Containing OP20_10010 and scrap material code and quantity.

as other experts suggested the basic master data req, Control Key and Info Record WITHOUT MATERIAL. must be there in Production Order Routing.

Now If in Your case, only Operation 3 is liable for subcontracting, then You should Create Production Versions suitable for you.

PV1 - Contains Normal Production Master Data

PV2- Contains Combination of BOM containing (OP20_10010 & OP30_10010) & routing with Control Key and Info record assigned to it.

You can change PVs while converting them Planned Orders to production orders.

Hope this can Help

Regards

Raghu

[Former Member]

Thanks for your input. Sort Key Text can it be material description, what is the length of this field.

Thanks

siddu

[sundaresan_velayudam]

length of field 10

[Former Member]

Thanks to all ,

following all your suggestion I m now at the end of this subcontracting process.

I have done MIGO for receiving the material from vendor through migo 101 mov type. in the production order I have assigned the by product also in -ve quantity in the processing component screen , bcoz in puchase order main screen system was not allowing to give the -ve quantity. but after confirming the operation I m not able to find these by product in the stock which has to be updated in the stock through backflush. I m not finding the main material also in the stock through MIGO.

how to check this or I have made any mistake.

I have send the material to vendor through ME2O.

Regards

Kumar

[sundaresan_velayudam]

I have done MIGO for receiving the material from vendor through migo 101 mov type. in the production order I have assigned the by product also in -ve quantity in the processing component screen , bcoz in puchase order main screen system was not allowing to give the -ve quantity.

You can assign the by product material In PO, In item screen, Material data fab,click the component, there by U can assign the material.

but after confirming the operation I m not able to find these by product in the stock which has to be updated in the stock through backflush. I m not finding the main material also in the stock through MIGO.

for 101, the GR is with out material, but u can find the material document movement in MB51 based on posting date

R U done By product receipt in MIGO?, IF u done, U can able to see the byproduct materialin same material document

[Former Member]

Hi Suderesan,

yes now I have assigned the by product (-ve) in the processing component screen and I m able to do GR also. but the problem is I am not able to locate the material.it should update the storage location stock and the by product should go to the st loc automatically but none of these is happening. In MB51 it is showing the mov. I have confirmed the operation also.

In MIGO storage loc field is greyed out so I cant give the storage loc .

Regards

Kumar

[sundaresan_velayudam]

1) When you do the GR for Operation sub contracting( with out material) system will post 101. But it won;t update in Inventory( because GR with out material

2) for by product material maintain production storage location, and storage loc for EP in mRP 2 view, system will automatically trigger the storage location in the storage location field

[Former Member]

hi,

i have faced same problem but there is on FG. can u explain the steps, how can i manage FG material for subcontracting.

BOM -->   X material comes after completion

Component -->(FG material, dyes & chem, packing material).

These material has to be sent to the vendor for dying.

please help us.

regards

Deepak

[Former Member]

Hi

what is the header of this SubCon BOM? Same FG or different FG?

Rgds,

Bhaskar

[Former Member]

same FG

[Former Member]

Hi Since it is difficult to maintain pre-requisites in Material Master of FG like that, I would suggest you to go for External Operation in Routing of the FG. Assign your components for External Processing to that specific Operation.

Hope this is helpful

Regards,

Bhaskar

[Former Member]

hi, thanks for valuable reply,

please explain me the step.

[Former Member]

Hi Deepak,

Before we go to the external operation, I would like to have a few insights into the process:

I am not sure about the scenario but from the thread it appears to me that FG you are stating is sold both with and without Sub Con process and hence inventory of both these materials are necessary.

The best possible option in these cases are having two separate materials because of valuation and Costing. The same FG cannot have two different cost estimate with and without sub-con

However if you say that the current FG (i.e. FG without Sub Con) always goes for sub-con process then again the difficulty is recognizing this current FG in the system as FG. It's then predictably SFG. And the outcome of SubCon process is FG. In case you don't wish to recongnize the SFG as a separate Material, then External Operation is a good option. The Pros of this option is you can manage the sub-con process through an additional operation in Routing. The Con is intermediate SFG is not recognized in the system as a separate material (As the Outcome of a single operation is not recognized in SAP as we are not inventorizing it)

To me Three options are feasible and based on your business requirment, you can decide best which one to go for:

1. Both FG without Subcon and wwith Sub Con are not same Materials becasue of costing and valuation perspective and hence must be stated as two different materials. This will solve all the problems of inventory etc and you can do it simply by maintaining a Sub-Con BOM of FG without routing and maintaining the MRP2 view with Sub-Con key

2. Go for Manual process: create Sub COn PO for the FG and create a separate alternate BOM for FG and explode that specific alternate BOM in Sub Con PO. Follow the porcess of Sub Contracting. No need for two different FG Material codes, however valuation issue remains.

3. Go for External Operation in the FG routing. Add one more operation with Control Key that enables External Processing. Refer this SAP Help for details and Components to be sent to vendor

http://help.sap.com/saphelp_46c/helpdata/en/b1/c04ae2439a11d189410000e829fbbd/content.htm

As you know the sub-con process, When ever you create an order (check OPL8) the system will generate pur req for external opeation with ref to info record and it wil be always send to the vendor which you have maintained in info record

Here also you won't have to maintain two Materials and there will be no costing or valuation inconsistencies but at the same time you won't be able to recognize the current FG in the system and it will always be the FG which come out of Sub Con Process.

I have provided these options based on some assumptions and would request you to check your requirement and decide as you know better.

Hope this helps

Regards

Bhaskar

[Former Member]

hello mitra sir,

thanks for helping me.

i will go thru with scenario 2 as mention above but there is some changing the scenario, create diff material but type is fg. create BOM for that material. and create subcon PO and explode that specific BOM. but i m confused when i will done GR then cost of that new material FG will update/not.

after GR FI person want the cost of FG is included all the components cost. how it possible. in this case:-

FG                       100+     to be    FG+CONV CHAR+DYES & CHEM = 114

gr/ir                           10 -                                                                         

cogm subc fg           100-

conv chr fg                 10+

fg                           100+

consu of fg sub        100-

dy & chem-dome         4+

chem consu-dome      4 -

please advice me, how we can sort out the same.

thanks,

regards,

Deepak