Sub Contracting Process

[former_member183818]

Hi,

I am working for a cement industry. We have a new requirement for sub contracting our end product (Cement).

Requirement:

We will be supplying 1 raw material to a vendor for producing finished product Cement ( Two raw materials are required. 1 we will be supplying and the remaining 1 the vendor will add from their side).

After converting to FG vendor will return us cement based on a mutually agreed ratio. Ex: for 1000 TON of raw material we supplied they will return us 600 KG of FG Cement, remaining 400 KG will be their charge.

How to include this process in SAP kindly guide.

Thanks

[eduardo_hinojosa · Accepted solution]

Hi

See SAP Note 205454 - Documentation on subcontracting. It contains an useful attachment. Related notes are useful too.

This [article|http://www.sdn.sap.com/irj/scn/index?rid=/library/uuid/d0dbde93-6fa4-2c10-edb9-e477fa85b232] by Prakash H. Ayer will help you.

I hope this helps you

Regards

Eduardo

[Lakshmipathi]

You can follow the normal MM process. In fact, this should have been posted in MM forum.

For the raw material which is being sent to vendor, create a sub-contract PO against which, you send the material to vendor.

Inward the finished product with a different material code while doing MIGO. Dont forget to maintain input output norms. Check with your MM colleague if you have any doubt in this.

thanks

G. Lakshmipathi