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subcontracting with vendor furnished material

Hello everyone,

I hope you can help me with that:

We have several items that are produced by our vendors according our design/specifications. Through a purchase order we send them the BOM component (standard 541 mov) and we receive the final assembly. So far so good.

It gets complicated when we have vendor furnished material.

- If we put them in the BOM it happens that the MRP plans their requirement (purchase/production whatever) and those are expected to be sent to the vendor.

- If we do not put them in the BOM it works fine with subcontracting but it is not properly correct.

What my colleagues did was: create a BOM for production (1) to use in subcontracting and create a BOM for cost calculation (6) that contains all the item

Is there another way to identify and plan accordinly the vendor furnished material ?

I read few post about duplicating the material version and specify it in the purchase info record.

I thought we could have one BOM for internal production with all the data and one BOM for subcontracting that exclude the vendor material, but I am not sure it is ok for cost calculation... unfortunately I am not a PP expert and I am afraid I am missing something.

thanks everyone in advance!


Former Member


There is nothing wrong to have two BOM different BOM for the same product,one for in-house production and the second for sub-contracting.

Create two different BOM and two production version,one for in-house by combining the BOM and the routing and the second production version containing only the BOM.later the production version can be assigned in the sub contracting purchase info record in ME11.

If you want to have a same BOM defined material provision indicator in BOM component for subcontracting BOM

So in-house production, no material provision indicator MRP will plan all components.

If set material master with subcontracting , Components with Matl Provision Indicator L , will not be planned by MRP.

Best Regards,


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