Third party Scenario

[Former Member]

Hi All,

We have typical 3rd party scenario. The details are following:

We have a selling plant and a manufacturing plant.

The selling plant receives export orders( the sales order usually contains hundreds of line items. Each Sales order is called as LOT). This plant in turn prepares a STO on the manufacturing plant w.r.t. to a Purchase requisition.

The manufacturing plant procures the material from various vendors or manufactures the material depending upon the material needed.Manufacturing plant sends the material to a third party, whose job is to pack the material and send it back to the manufacturing plant.

Since the material which is sent to the vendor as individual pieces and we receive the material as a kit, it becomes difficult to exactly map as to what has been given to the vendor and against which sales order the kit has been prepared , what are the damaged materials as also if the material is damaged how do we handle the reversal process and how do we make vendor payments.We cannot use the serial number profile as the materials are of low value and are huge in quantity.

We want to have clear relation between the sales order, STO, and the material sent to the vendor.

Request you all to provide your valuable thoughts as to how we should proceed with the process design such that we have a clear understanding at each step about the material vis a vis the sales order.

Thanks in advance.

Best wishes,

Sadik

[former_member182378 · Accepted solution]

Sadik,

1. Movement of goods:

What is the movement of goods specificially from where (which entity) to customer?

2.

a) Sales order > STO (po)

In STO the field reference # could be used to give the sales order number.

b) STO > vendor (for packaging)

What process, in SAP is used for this?

Can you use the Sub-contracting process?

This shall give you better "process" visibility.

[Former Member · Accepted solution]

Hi TW,

Thanks for your reply.

1. The details of movements is as follows:

Sales plant to customer: 601.

Mfg plant to Sales plant 641.

However we are not sure what should be the movement for sending the materials to  vendor for packing

and then receiving it back to our mfg plant.

2. We are implementing this process for the first time in our company. So there is no reference.

Also, as far as subcontracting is concerned, can you please help me understand as to how we need to proceed.

Our requirement is that the tracking of the materials right from the sales order from sales plant till the materials are despatched to the customer should be possible.

Appreciate your support. Thanks.

Best Regards,

sadik

[jpfriends079 · Accepted solution]

sadik

the tracking of the materials right from the sales order from sales plant till the materials are despatched to the customer should be possible.

Try Batch Management functionality for the tracking of material for process of procure - subcontract - sales.

For details, how you would handle thie subcontracting process on SAP system, you can refer following link for

- Direct Subcontracting Process (SAP SD & MM)

With best wishes for new year,

JP

[former_member182378 · Accepted solution]

Jyoti, Sadik,

Sadik wrote:

We cannot use the serial number profile as the materials are of low value and are huge in quantity.

If serial number profile can not be used, could batch management be used? (taking in to consideration low value material)

Since the material which is sent to the vendor as individual pieces and we receive the material as a kit,

Could you please explain (with business process knowledge) could KIT material be made combining two different batches?

In those cases, would batch management help?

However we are not sure what should be the movement for sending the materials to  vendor for packing
and then receiving it back to our mfg plant.

The above issues can be understood by reading the theory of Subcontracting process.

[former_member184065]

Hi,

Please follow the Process .I hope this will fulfill your requirement .

Pleas,have a look into ,how to make that scenario below but this thread will not give full pledged way. 

http://scn.sap.com/thread/3222694

Side Comment : If you search in Google the you can get a lot of threads on this scenario.Before processing ,just ask your concern MM Consultant to what movement types they were using .

If you have any doubts please let me know.

Thanks,

Naren