How to setup a Subcontracting Scenario

[Former Member]

Guys,

I would really appreciate if you can help me setup a subcontracting scenario. I have already setup master data ( vendor, subcontracting location, and a DC ). I like to know how I should create my transportation lanes relationships and where to put demand in this simple model.

Thank you for your help.

Syed

[Former Member · Accepted solution]

Hi,

To create a subcontracting scenario you need following settings:

1. Create a transportation lane between plant and subcontractor, for this you need to select subcontracting radio button for lane between plant as source and subcontractor as destination.

2. Create a return lane between subcontractor as source and plant as destination with, this is a normal lane i.e Standard

3. Define all the products i.e. parent and child components at subcontractor and parent product at plant depending on requirement.

4. Define proper procurement type 'F' for parent product at plant and E at subcontractor location.

5. Procurement type should be F for child component if you are procuring from outside at subcontracting location.

6. Define PPM at subcontractor location.

If you are CIFing the product from R/3 you need to manually create products at the subcontracting location in APO.

If you are running SNP heuristic in background select check box "take into account found component"

I think these are the basic settings required for subcontracting scenario.

Thanks,

Sanjog

[Former Member · Accepted solution]

Sanjog/Srinivas,

Thank you for your reply. I did setup the data (transportation lanes and demand elements) but I do not see system creating a purchase requisition of subcontracting type. It creates purchase requisition at the location.

By the way, I am not using components as we have recursive BOM on R/3. May be that is what is missing.

regards,

Syed.

[Former Member · Accepted solution]

Hi,

Are you planning this run on a standard planning book or you are using planning book for subcontracting.

If you are using your customized planning book have you included key figures for subcontracting.

Also while defining lane you should take care that the lane from plant to the subcontractor only should be a "Subcontracting" lane and the return lane should be "standard" lane.

Thanks,

Sanjog

[Former Member · Accepted solution]

Sanjog,

Thank you again for responding to my query.

May be I have setup my subcontracting location incorrectly.

Currently my subcontracting location points to a DC location and Vendor. That are setup in the system and that is all. I am not referring the plant/vendor in my selection criteria.

But when I run SNP heuristics using planning book/DV 9ASNPSBC/subcontracting, I am executing location heuristics with just Source and Subcontracing location.

Let me know if you have any suggestions.

Thank you.

[Former Member · Accepted solution]

Hi Hassan,

Please, check if you set-up all master data correctly as it is described here:

http://help.sap.com/saphelp_scm41/helpdata/en/71/78573da974c729e10000000a11402f/frameset.htm

[Former Member · Accepted solution]

Thank you all for your help.

[srinivas_krishnamoorthy]

Make sure you have the subcontracting check box ON in the transportation lane and these transportation lanes are assigned in the External Procurement Relationship.(Inforecord of subcontracting type needs to be CIFed from R/3 which will automatically create the subcontracting type T Lane) If you put demand on the Destination location that is subcontracting to a vendor, it should be possible to see the purchase reqs picking up a T Lane that was defined with subcontracting checkbox.