Subcontracting process

[Former Member]

Dear Expert,

Pease explain me the overall process of subcontracting with all required T-codes.

Thanks in advance.

Phalgun patel

[Former Member]

Hi,

There are tow types of subcontracting process can be mapped in SAP

1. Production subcontracting,

You can assign a subdcontracting process in the Routing with the control key (PP02), then once you release the order system will create a PR for subcontracting, then you can convert it to PO. THIS IS ONLY TO CAPTURE THE COST. No mateiral movements is possible (like issuing the material to subcontractor and GR from Subcontractor).

Pl go thro the link for configuration settings, process flow Transcation codes etc.

http://help.sap.com/saap/sap_bp/BBLibrary/HTML/150_EN_US.htm

2. MM Subcontracting

Here you can have BOM for the materials which consists of the materials to be given to the vendor, then you can have a special procurement key 30 in MRP2 .

Then if any requiements come then PR will be triggered by SAP, then you can convert to PO, then you can issue material to the subcontractor and you can also see the stock in suncontractor and also you can recieve GR from subcontractor.

Pl check the link for Config and process flow.

http://help.sap.com/saap/sap_bp/BBLibrary/HTML/138_EN_US.htm

thanks,

JK

[Former Member]

please go through below steps:---

Steps:-

1)Before creating Schedule agrrement/ purchase order please create info record for that material(header) with subcon type.

2) create Schld Agree / PO with item category"L" for subcontracting type.in it maintain agreement validity dates.

3) Transaction code for Sch Agreement is ME31 and for PO is Me21n

4) maintain BILL OF MATERIAL in cs01 for that plant.

5) You can explode BOM in material tab in purchase order.

.

6) in case of scheduling agreement give schedule in ME38 , here you can explode BOM and also you can change it.You can give schedule days,months .

7) view all bom components in me38 for scheduling agreement.

8)make it sure that subcon material doesn't exist in J1ID for chapter ID's and CENVAT determination.It is this source from where excise tab comes in MIGO.

9)make material transfer to vendor through MB1B or ME2O transactions.

10) you can check stock at vendor by MBLB transaction.

11)Create Subcon Challan by J1IF01.

12)perform MIGO , if any subsequent adjustment is there you can carry it out in MIGO or by mb04.

13) print subcon challan through J1IF11.

14)perform reconcilliation of Subcon challan by J1IFQ.

15)Completion of Subconclhallan by J1IF13

16)rep[ort of annexure IV by J1IFR.....

[Former Member]

Hi,

Read below link to understand subcontracting process. These two link give a picture on subcontracting.

http://wiki.sdn.sap.com/wiki/display/SCM/Subcontracting+Process

http://www.sdn.sap.com/irj/scn/index?rid=/library/uuid/d0dbde93-6fa4-2c10-edb9-e477fa85b232

Regards / US

[former_member186193]

Dear,

Like Consignment and Third party, Subcontracting is also one of the special procurement types that exist in the R/3 System. The Business or Company creates a purchase order on the vendor widely known as a subcontractor. This purchase order is different from all other types of purchase orders. Here we need to order the end product or final product, which is being manufactured/assembled of other components. These components which are required to manufacture the end product are also listed in the purchase order

Steps for Subcontracting

1. 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. To Define Subcontracting Cost Center : Goto - ca02 - double click operation number. It is at the section call External Processing. (Subcontracting will be tick).

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.

In my place all the palnts belong to the same client in sap and they want to use the same material code in both plants, so I think my subcontracting scenario might be different from yours but it give you some ideas to go about it.

Regards,

Alok Tiwari