intercompany subcontracting in APO (PP/DS)

[Former Member]

Hi all,

We have an intercompany subcontracting process for which we have to find a solution for in APO as well.

I will try to briefly describe it here:

Company Code A

Plant X

Company Code B

Plant Y

CC A and B are using the same SAP & APO system landscape.

Plant Y will produce finished product 1 (FP1) for plant X - as a subcontracting location for plant X - using component 1 (CP1) from plant X. It is therefore required that CP1 should be a nonvaluated material on plant Y, and valuated in plant X. So plant X creates a subcontracting PO for FP1, and plant Y should see the corresponding demand from the subcontracting PO, create a planned order automatically and therefore calculate dependent demand for CP1, get it from Plant X, etc.

Now this whole process works on the APO side using the "Subcontracting with Source Location in PPDS" solution (I have tested it). Problem is - at least to my knowledge so far - that APO does not recognize Plant Y as the subcontracting plant (or the source location), rather it recognises the vendor code for it sent over from R/3. And therefore since APO takes the vendor location as the source location (and not the plant that is linked to it in R/3), the whole planning on the source location on the APO side is not visible / trackable in R/3 simply because the location code is not recognized as a plant in R/3.

So the APO solution is designed for a subcontracting concept in which the subcontractor is an external vendor - or so I have been able to test so far...

That makes the whole thing impossible to work with since the idea here is that both sides (plant X and plant Y) have a control over planning / scheduling and conversion to production orders, creation of purchase requisitions, etc. Plus we cannot plan on 2 different locations where the 2 are actually one and the same...The really interesting thing about this is that I see on the MRP side in R/3 (MD04) that this works - at least I can see subcontracting demand on plant Y side  - but not in APO.

Anybody have any ideas? I have a strong feeling that I could be missing something here; maybe a field which links the APO subcontracting location to the plant (Plant Y)....Would be really good to hear solution proposals:)

Best regards,

Ozgur

[sudhakar_padam]

HI All

Please help in the below query, bit urgent urgent.

Today we faced an issue with ECC system that purchase requisition  generating for unconfirmed qty for the sale order. Hence customer moved the solution to APO.

Salepack product having BOM with proc.type: "X" and moved PDS to APO.

Make to order case:  Sale order confirmed against component availability ( Multi level ATP check), but in RRP3 we are getting Planned Order instead of PR.

Info records are moved to APO, All master data is present in APO and t-lane exist for vendor and Plant.

What else settings i need to do for getting purchase requisition  in RRP3 after heuristic run in APO.

Please share your valuable thoughts.

Regrads

Sudhakar

[Former Member]

Hi,

I think you need intercompany subcontracting and not stock transfer due to financial requirement or tax benifits. Normally here are the options

1. You need to create receipe or routing in plant X but you wll use workcenters/resources from Plant Y(Subcontracting Plant)  this way you can ensure inventory is owned by plant X and only process happens at plant X you need to check integration aspects with FI/CO

2. Second approch invovles lot of enhancement in CIF and at execution side Here  while cifing you change location of stock, PO from plant X to Plant y. Planned order is created in Plant y it is converted to Process order during release of process order you can create automaticaly subcon POat plant x and sales order at plant Y

Regards,

Santosh

[Former Member]

Hi Ozgur

Did you figured out how to solve your scenario?

I have almost the same problem, but in my case with only one ECC System connected to APO.

I have the external procurement relationship created, but as you mention, referenced to a vendor location instead of the 1001-type location.

Any comment would be very appreciated.

Regards

Rubo

[Former Member]

Ozgur,

Did you tried updating the location at external procurement relationship table?

Try with Tr SM30, table /SAPAPO/TPSRC

I updated, and the external procurement relationship now shows the correct location number (the plant).

Also, update the Transportation Lanes related to your products/start location/destination, here be careful selecting the correct "Form of procurement" as "Subcontracting" and also the "External procurement relationship" (InfoRecord number).

Let me know if you found it useful,

Regards,

Rubo

[wilian_segatto]

Hi Ozgur!

What you are trying to achieve is not subcontracting.

There are two solutions to easily accomplish your scenario.

a) Stock Transport Order

Maintain a Special Procurement Key for Stock Transport Order from Plant Y to Plant X in this SPRO Path:

Production

Material Requirements Planning

Master Data

Define Special Procurement Type

Then assign it to your Material in /MM02, Tab MRP2.

Make sure the Procurement Type is set to F or X.

Then don't forget to assign the document type UB for the transfer from Plant Y to X here:

/SPRO

Materials Management

Purchasing

Purchase Order

Set up Stock Transport Order

Assign Document Type, One-Step Procedure, Underdelivery Tolerance

Re-CIF the Material to APO and check the Transportation Lane that should be already created at /SAPAPO/SCC_TL1.

Plant Y will appear as a Source of Supply for Plant X for this Material.

b) Production in another Plant

Go to this SPRO path and maintain a Special Procurement Type like shown below.

Production

Material Requirements Planning

Master Data

Define Special Procurement Type

Plant: X

Sp.Pr.Type: 80  Production in Plant Y

Procurement Type: E

Special procurement: P (Prod. other plant)

Plant: Y

Add this Procurement Type to your Material, re-CIF the material and transfer the PDS for this Material. The PDS will be sent to APO and the Planning and Production plants will be mapped in the PDS. Check /SAPAPO/CURTO_SIMU.

I believe the first scenario will suit your requirements.

Best regards,

Will

[m_manimaran]

Hi Ozgur,

As per my understanding, you dont need to setup this scenario as the sub-contracting scenario.

You can easily handle this as a simple stock transfer scenario.

At Plant X, for the finished product 1 (FP1), maintain the special procurement type as 'stock transfer from Plant Y'.

At Plant Y, for the component 1 (CP1), maintain the special procurement type as 'stock transfer from Plant X'.

Maintain the BOM in Plant Y for the finished product 1 (FP1) for in-house production.

When there is a  requirement for the finished product 1 (FP1) at Plant X, it will be passed as a stock transfer requirement to Plant Y, where the BOM explosion will happen. This will create the requirement for the Component CP1 at Plant Y and this will pass the Stock transfer requirement for CP1 at plant X.

Do you have any specific reason to design this as the subcontracting with source location? Otherwise the above method should be implemented, since your subcontracting Plant Y is part of your Planning and production supply chain.

Regards,

Manimaran M.

[hubert_spohn]

Hi,

have you mapped the vendor number in table /sapapo/loc_ali to the location ?

(transaction to do this is /sapapo/locali )

Regards.

Hubert

[Former Member]

Hi Hubert,

It looks like a useful table, I did not know this. Have been trying this today, I tried several setups in this table, deactivated/reactivated CIF, created new subcon PO's etc, has not worked so far. Also, did some research, looks like this one is used in cases where you have 2 plants from different SAP systems and a stock transfer or SO-PO scenario in between. Our case is that we have 1 SAP system, and plant X and Y are in the same SAP system. And the whole thing works in MD04  (MRP) in R/3, but not in APO...So I see the subcontracting PO on plant X and the demand from subocontracting PO on plant Y in MD04. But not in product view in APO....

So do you know if this would work for such a system landscape - scenario? Actually, right now what I would just like to have is the demand coming from the subcontracting PO on plant Y in APO, the rest will be based on a development on R/3 side (too complicated to describe here). Reason that I would like to have the demand on plant Y in APO is that then PPDS is supposed to run based on that with own PDS (not the subcontracting one), etc...

So right now, the whole point comes down to somehow transferring the subcontracting PO demand (as category conrel probably?) to plant Y...