Third party and subcontracting
We are using SAP sales item category TADS to implement third party process where the product being sold is manufactured by subcontractor using our raw materials. SAP documentation of the process below.
From logistics perspective, this works fine.
However when we try to perform customer billing, SAP pulls in only PO price (which is in this case subcontracting fees only) as cost on the sales billing.
It should pull in cost of raw materials as well since the customer would be charged raw materials + subcontracting fees.
Additionally at the time of GR, SAP put the entire offset ( subcontracting fees + RM inventory) to the same COGS account.
If the billing does not include RM cost, there will be un-cleared balance in the COGS
This same problem was raised in this post but without any conclusion.
Is there a standard SAP setting to pull in cost of raw materials in this case in addition to the PO price for this scenario?