Subcontracting with Third-Party Provision of Components in SNP - Vendor Location Type

[former_member215376]

Hi Experts,

Good day!

We are about to implement the functionality of Subcontracting with Third-Party Provision in APO SNP but want to ask the importance of Vendor Location Type. As I checked, this is one of the important prerequisites that we must follow.

Business partners involved	Representation in SAP R/3	Representation in SAP APO
Customer	Plant/Location	Location – type plant 1001
Vendor	Vendor	Location – type vendor 1011
Subcontractor	Vendor	Location – type vendor 1011

In the above table, I don't have any problem for Customer (type 1001) and Subcontractor (type 1011) as I can change their location types in APO. However, the Vendor (should be type 1011) was setup as 1001 originally. Do we have really to change the location type of the 'Vendor'? What will happen if we don't change it? Will it violate certain rules in the functionality? What can be the alternative solution for that? Thank you.

Regards,

AA

[Former Member]

Hi, 

As per the Requirements for Subcontracting with Third-Party Provision in APO SNP, the Vendor location is to be of the type 1011.  The reason is not specified, and it may be normal not to have reasons explained for each and every requirements specified for any of the scenarios.

I think the problem will happen in SNP multilevel heuristic. We expect to have SNP planning to be done at the vendor location after it is done at the subcontractor location.

The sequence of planning in the multilevel heuristic is defined by so called low level codes and the heuristic run will happen in a sequence…. Customer Location i.e. 1010 >> DC(1002) >> Plant(1001) >> Subcon Location( 1011) … ( as an example where all these 4 location types are used).

In your scenario, the low level codes should ensure that location Subcontractor is planned before the Vendor. However, with the Vendor being defined as Plant i.e. 1001 type location, the heuristics will happen first at Vendor location and then at Subcontractor location, which you may not want. Therefore the planning may be inaccurate to some extent.

If you are not doing multi level heuristics, then the it needs to be analyzed as to how you think the sequence of planning will take place.

I think  as a good practice, without waiting for any unknown implications, if the situation can be corrected at the earliest, then it should be done.

Regards

Datta

[former_member215376]

Thanks Datta. Will do some simulations and check if it will work.