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PPDS Subcontracting Process

Former Member
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Hello Experts,

I am trying to replicate the subcontracting process through PP/DS run.

Business case: Handover the components from the destination location (DEST) to the subcontracting vendor (SUBV) to manufacture the finished goods. There is absolutely no operation that we do related to this. Subcontracting vendor provides us back the finished goods and we sell it.

Steps I followed:

1. For the finished goods product, I have created the BOM which includes the components which we handover to subcontracting vendor.

2. I have defined the finished goods product as procurement type X and Special Procurement key as 30 (Subcontracting)

3. The PDS is created. With production line as Subcontracted workcenter. Routing set up as N.

4. On the APO system, I have created a handling resource and assigned to model 000 and then assigned this Inbound handling resource for the location DEST. Please note that SUBV is not part of our supply chain, we are planning without source location.

5. Inforecord is created as a subcontracting inforecord and Production version is assigned at this Inforecord.

6. SUBV is CIFfed, Part is CIFfed, PDS is CIFfed, Subcontracting Inforecord is CIFfed and it created the transportation lane as well and default means of transport is assigned (and not product specific means of transport). Also there is no transportation resource assigned to this means of Transport.

7. Now when I ran the PP/DS Heuristics, it creates a Planned order. At this point, there is no subcontracting purchase req or order created on ERP system. And we don't CIF the planned order as well to ERP.

8. Now I trigger the convert planned order to production order manually by setting the conversion indicator. At this moment, a production order of type PP01 is created on ERP system. And this production order is also visible on APO system.

But the issue is still there is no Subcontracting purchase requisition or Subcontracting purchase order created in the ERP system. Is there something else like a basic settings which I am basically missing? Or is there anything wrong in my steps?

Thanks,

Suresh

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Hi Suresh,

You can check the below which will indicate if settings in ECC are rightly CIFed to APO

  1. Can you see the PDS for the materials at vendor location in /SAPAPO/CURTO_SIMU ?
  2. For the planned order that is created after PPDS run,if you right click on the order and select source of supply,do you see the vendor available as source of supply ?
Former Member
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Hi Shankar,

Yup, I can see the PDS. And regarding the second point, planned order is created as Inhouse. And it doesn't choose the subcontracting PReqs. I see the following error message, if I try to change the source of supply as Externally procured. I have maintained the Inbound Handling resource on DEST location. But I haven't maintained any transportation resource. Is there anything I am doing wrong?

Subcontracting PurchReq from location SUBV to loation DEST not created

Message no. /SAPAPO/RRP156

Diagnosis

The following causes are possible:

  • No handling resource has been specified in one of the locations involved.
  • No transportation resource has been specified in the transportation lane between the locations.

These resources must be available for subcontracting since the system executes detailed scheduling for the relevant orders on the basis of the resource calendar. (The relevant orders are a purchase requisition in your own location and a planned order at the subcontractor's location. The orders are linked by a cross-order relationship.)

System Response

The system cannot create the subcontracting purchase requisition.

Procedure

Enter the resources required in the location or in the transportation lane.

Thanks,

Suresh

Former Member
0 Kudos

Hi Experts,

After I did the following, the PR is created. But it doesn't create under the Subcontracting purchase requisition type on the ERP system. Instead it creates a normal Purchase Requisition.

Any idea?

- I have created the Product at the SUBV location on APO system

- I have assigned the transportation lane between SUBV and DEST on the means of Transport

- I have assigned the handling resource on the Inbound handling resource of DEST location

But these settings don't make any logical connection to me. Because for Assembly subcontracting, why should I establish the part at SUBV location, if I have a valid External Procurement relationship that tells where to procure from. Why should I maintain the Handling resource or transportation resource? Because the Product Version maintained at the Subcontracting Inforecords holds the information related to Routing. Any other experts who can clarify on this?

Thanks,

Suresh

jeremy_peckham
Explorer
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In one method of subcontracting, it is necessary to create the material in the subcontracting location using /SAPAPO/MAT1

Former Member
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Hi Jeremy,

Any idea which method? I am using assembly subcontracting and not the operational subcontracting scenario.

Thanks,

Suresh

jeremy_peckham
Explorer
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In the methods I have seen, both the subcontracted material and the required BOM components need to be extended to the subcontracting location.   The variation in methods is whether the vendor is used as the subcontracting location name or a subcontracting location is created that is specific to both the consuming plant and vendor. 

I am curious about your reasoning for using procurement type X instead of F.  Is this item sometimes produced in-house?   If it is always procured from the vendor, I would expect F. 

On step #7, did you generate the planned order in the consuming plant or in the subcontracting vendor location?

Thanks,

Jeremy

Former Member
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Hi Jeremy,

No. This item is always subcontracted. We provide items to the Subcontracting vendor and he provides us the finished goods. On Step 7, the planned order is generated in the DEST location and not in the SUBV (subcontracting vendor) location.

That's my doubt. I expect the system to raise a purchase requisition to the SUBV (Subcontracting vendor) location. Why should I create the Product at the SUBV location in the APO system? I have the External procurement relation which says that this item is purely a subcontracting type. And also, the Transportation lane says the transportation time. But why should I have to maintain the Transportation resource in the means of transport? Also, why should I create the handling resource? Or where should I create this handling resource - Subcontracting vendor location or the consuming plant? And should it be inbound or Outbound?

jeremy_peckham
Explorer
0 Kudos

The reason you would create the material and components in the vendor location in APO is because a planned order will be needed in the vendor location to generate the necessary subcontracting requirements.  A transportation lane, means of transport and transportation resource is necessary to define the transportation time from the vendor to the plant.  I am not familiar with a requirement to create a handling resource specifically for subcontracting.

former_member244427
Active Contributor
0 Kudos

Hi Suresh

I am facing the same error

Subcontracting PurchReq from location SUBV to loation DEST not created

Message no. /SAPAPO/RRP156

Were you able to solve this issue. Please let me know how was it solved.

Regards,

Abhishek Rai

Answers (0)