Subcontracting with ref to Production Order

[Former Member]

Hi Experts,

We are having more than 4000 products and for those single level BOMs are created. In case of routing there are maximum 20-25 operations among that only 5 operations are considered for confirmation as milestone operations (because of limited licenses). Because there are many variaties of prouducts hence we have not created operation wise semi-finished (HALB) materials. We have created some non-valuated materials for subcontracting purpose. That is not relevant to any product or order, we just use that non-valuated materials to know the stock in terms of qty and billing will be done by using already created purchase order of that non-valuated materials. Also we are using MTS scenario and production order created by using CO01 tcode. Now issues are;

1. How to make subcontracting with reference to production order?

a) To know production order wise stock at vendor end.

b) After external operation GR/MIGO link with respective production order

c) MRP run

2. We have not taken MRP up to now, what things are required to do that?

-- Anil Bhamere

[Former Member]

Hi,

Material field will be blank in the purchase requisition which will created for that operation. Short text of material will be copied from the operation text.

The GR will be created with reference to the purchase order. Since no material is assigned, you will not be able to see it in MB51 and such. The GR of the production order will be carried out just the same. It is independent of the GR of the purchase order, however dependent to the confirmation of the operation. So GR of the purchase order must be followed by the confirmation of the operation, and some user specific controls can be developed here.

In the external operation data of the operation you have to enter a cost element by which the costs of the purchse order will be transferred to the production order.

Regards.

[Former Member]

Hi,

By using control key PP02, certain operations of the production order, which are carried out outside the company, can be tracked. System automatically creates purchase requisitions for these operations wrt the values you maintain in operations. External operations are carried out with the help of the purchase requisitions. Production order is related to the purchase requisitions through account determination.

[madlercm]

Hi Anil,

You have confused me so far; I was not able to understand most of the things that you are doing already. Could you explain a bit more?

I guess that you are aware of the two types of subcontracting in SAP, which are the purchasing (item category "L") and production order with externally processed operation. Which one do you employ?

[Former Member]

Hi Mario,

Thanks for attending the issue.

Trying to explain the issue in detail.

One of finished good say 'FG123' have bill of material as;

FERT ROH

FG123 ---RM123

and routing as;

Opr-1 Inhouse operation

Opr-2 External operation

Opr-3 Inhouse operation

Opr-4 Inhouse operation

Opr-5 Inhouse operation

No HALB/Semi-finished material codes are created so far.

We know that for Opr-2, which want to be done externally, have to change control key so that purchase requisition will be created for that operation.

Issue is that, the purchase requisition which will created for that operation have which material code because there is no intermediate/semi-finished material codes created for that finished good (FG123).

Also after completion of the external operation, how GR will be created and further operations carried out?

Hope you understood the issue. Please suggest.

--Anil Bhamere

[madlercm]

Hi Anil,

What Ozgen wrote is correct. I just want to add that this type of subcontracting (external operation in routing) does not provide for delivery documents in stock, since, as you already understand, there's no material ID involved and no stock movements.