Thanks and Regards, Sapmm user Find us on Privacy Terms of Use If you take a look at the delivery type defined in step (1), youll notice a setting in the Order Reference area called Default ord.ty.. Required fields are marked *. Procurement Overview page Apps. Terms of use |
If you are running a vanilla SAP S/4 HANA system, chances are youll be looking at an LB delivery type (Delivery for Subcon.). Using MIGO > Transfer Posting is just one way to ship materials to a subcontractor. Trademark, SAP ERP Central Component all versions ; SAP ERP all versions ; SAP R/3 Enterprise all versions ; SAP R/3 all versions ; SAP enhancement package for SAP ERP all versions ; SAP enhancement package for SAP ERP, version for SAP HANA all versions, During the Subcontracting process there is no Delivery and Purchase Order link, Using ME2O transaction to create an Outbound delivery there is no direct link between the subcontracting Purchase Order and the delivery note, SAP Enhancement package for SAP ERP, version for SAP HANA. Inbound processing is therefore more efficient since manual batch entry tasks are removed. Also, you need to provide Material, Quantity, Delivery Date, Plant, and Price. It would have been nice if SAP had provided a BAdI enhancement here. Nice docs. (ls_comp-fmeng = abap_true). For a premium experience please use an alternative browser. Post it on our FORUM here --> SAP FORUM! Simple and in an easy language. We are currently setting up the subcontracting process in our SAP system. Some components also come from our warehouses. if yes do you have example idoc. When the manufacturing process has been completed, the subcontractor delivers the ordered product (incorporating the components provided) to the ordering party. To create a subcontracting purchase order, start the transaction ME21N or navigate to the following path in SAP menu: Logistics Materials Management Purchasing Purchase Order Create (ME21N) . I suspect, however, that the issue is that perhaps the status of the serial number is not being updated properly. Delivery Basics like logistics defaults, pricing for freight, and partner determination have to come from somewhere. Raw Material (SUBCON-RM01) (ROH) The subcontracting requisition lists the finished material that is to be procured in a subcontract item. When the vendor delivers the ordered packaged SIM cards (the end product), the goods will be received against the finished product with reference to the purchase order. -SUBCONTRACT-01(HALB) (Sp. It will open the screenshot shown below. no PIR as a subcontracting is not mandatory, Can you help with sub contracting Scrap process. However, there is no copy control from an STO PO to an SD Delivery. This can be doneeither manually or through the use ofa BOM. They are summarized below: A material BOM needs to be created before any subcontracting order can be placed. Next, click OK checkboxes as shown below. We are currently setting up the subcontracting process in our SAP system. Below are the steps involved in this process. Unfortunately they did not. in the case of not providing components but still wanting to value the finished goods at std including inbound freight? The bill of materials (BOM) is a formally structured list of the components that make up a product. 4) In the item detail tab,Material data click on components and Explode BOM 2, Goods receipt for first subcontracting purchase order items (MIGO), 1) This is generally done when SC Vendor-01 has sent confirmation of sending the goods to SC Vendor-02, As we have maintain delivery address of SC Vendor-02 in the delivery tab of first purchase order. Depending on the case it may be correct or not. Finally, click on Post button to post the document. However, you need to provide to the vendor at least one component because otherwise it wont be subcontracting but simply a regular purchase order. You can have it without BOM by entering all the components manually. Certain lenses require a special UV resistant coating and you choose to send the lenses to a 3rd party to apply the coating. Delivery of components to subcontracting vendor (ME2O) Use the IMG path below for this piece of the config: The only field worth mentioning is that Default Order Type field; the rest of this is standard delivery setup. That is confirmed by the note 1397948 Subcontracting: Components cannot be provided using IDoc /SPE/IDOC_INPUT_DESADV1. However, the integration with an SAP ERP system requires at least SAP ERP 2005 with Enhancement Pack 03. The subcontractors charged the company for their services rendered per box. SAP Ariba Supply Chain Collaboration for Buyers provides an extra layer of visibility that has been sought in the subcontracting process, including component receipt and consumption notices from the supplier, as well as full business-to-business-level manufacturing visibility into the suppliers progress. Alerting is not available for unauthorized users, Right click and copy the link to share this comment. For example, assume you create a subcontract order for the assembly of 10 engines. Adding this value will open up the Components button located on the item Material Datatab. 3) Enter Net Price (Processing cost) 4) In the item detail tab,Material data click on components and Explode BOM 2 Goods receipt for first subcontracting purchase order items (MIGO) Posting the goods receipt for a third-party purchase order. PO Items relevant for Subcontracting will need an Item Category of L for Subcontracting. Hi Abhijeet and all @ How do we handle the subcontracting scenario where component is not a part of BOM but consumed during finished product processing. There are relatively few logistics-related fields. Create/Change/Display/manage/ My Purchase requisitions App Next,click on FI Documents button to display FI document created for goodsreceipt and goodsissue. One of the workarounds was to decouple subcontracting goods receipt and components consumption with the modification from the note 654613 Batches and goods receipt for inbound delivery for provision of materials for subcontract order. SAP MM Procure To Pay Architect (must be good in PP too) Starts 3/13 (or 3/15); duration: 3 + months Location: remote and onsite in Denver, CO - MST hours (local or west coast candidates preferred) Make sure to implement the note 1397948 - Subcontracting: Components cannot be provided using IDoc /SPE/IDOC_INPUT_DESADV1 if you work with subcontracting components in DESADV IDocs. In ME21N transaction, you need to select a Document Type and provide a Vendor as shown on the below screenshot: In the Item Overview screen, you need to use Item Category L which is used for subcontracting documents. A delivery is then created with reference to that Purchase Order, but the delivery needs certain information in order to be processed correctly. If a purchase info record has been maintained, the service charges are defaulted into the purchase order. SAP Menu Path to ME21N Transaction In ME21N transaction, you need to select a Document Type and provide a Vendor as shown on the below screenshot: 1) Create Subcontracting Purchase Order to SC Vendor-02 (ME21N) 2) Keep delivery address to plant as by default. 4.Issue material to vendor with movement type 541 5.Receive the material against the PO with movement type 101. If you chose the MRP area route, material data on an MRP area was required for all components. You create a delivery for the lenses to be shipped to your vendor. Visit SAP Support Portal's SAP Notes and KBA Search. Also in previous versions of SAP ERP, you could check subcontracting stocks by supplier by running reports from a specific IMG menu path. It is likely to slip through tests and bite you only down the road. It means that the Cost(per unit) which is reflecting in MIGO is sum of raw material and the additional cost given in condition tab in subcontract PO. Please let me know in the comments. The fixed quantity indicator is always set automatically for all components, so that no correlation occurs for the component quantities when changes are made to the inbound delivery quantity. Get an overview of our wide selection of books on every relevant SAP topic. The labor charge is JPY 2,000 per piece. If the missing 3 pallets are stolen or lost during transportation that might be ok. Proudly powered by WordPress I hope this will be more thrill and give happiness when working in FIORI. As the components quantities are fixed by SAP standard DESADV processing logic, the goods receipt of 27 pallets consumes the components of the entire 30 pallets!!! Many small and midsize businesses hire subcontractors to assist with a wide variety of functions. Create/Change/Display Procurement Info record App The vendor will be billed only for items delivered. Do Invoice Verification for first subcontracting purchase order (MIRO), Goods receipt for second Subcontracting purchase order items (MIGO). Really its very useful for content. Also it might be quite hard to spot at the first glance. System automatically selects movement type 101 O (GR to SC Vendor). I am a husband and father. What do you think? Now, lets display thedocument that we have just created. Double click on Accounting Document. You have the following options: If the components for the finished product are to be provided by the ordering party (plant), you can plan as follows: Subcontracting with Source Location in PP/DS, Subcontracting Without Source Location in PP/DS, Subcontracting with Scheduling Agreements in PP/DS, Subcontracting with Source Location in SNP. the issue of components which we provided to the Subcontractor is triggered to 543 Movement type Create/ Change/Display Supplier App Online Help Keyboard Shortcuts Feed Builder What's new The customizing entry in the supplier master is sufficient to trigger stock transfers and reservations from the plant to the subcontracting MRP area. Invoices will be entered in the system against the purchase order. Executing an intercompany sales process. Mapping procedure of a given scenario in SAP system. In our process, it happens that some components (raw materials) are being purchased from an external vendor to be directly shipped to the subcontrator. Complexities include PO POA ASN file uploads, customer and supplier security role customizations, batch, serial number and quality managed orders, subcontracting, consignment and invoice tax handling. I can not see the images Any idea why or how could I see them? 2.Maintain the BOM for the material. You require the subcontracting process in SAP when a companyoutsources parts of itsmanufacturing to subcontractors. Identifying the process steps of an intercompany sales process. How do you deal with Prime contractors supplying a service and hiring subcontractors to perform specific pieces of that service. Subcontracting in SAP APO is modeled with the help of two orders. Create/Change/Display Bill of material (BOM) App PR creation through FIORI Apps- Create PR apps. Later, the subcontractors returned the boxes back to the client. If you elected to plan without MRP areas, you werent able to use the full functionality around lot sizing and were only able to order full lot sizes. A subcontracting purchase order is placed by converting the subcontracting requisition into a purchase order. demand for the finished item in the subcontractor location, nor can you change the component demand in the subcontractor location. To create a subcontracting purchase order, start the transaction ME21N or navigate to thefollowingpath in SAP menu:Logistics Materials Management Purchasing Purchase Order Create (ME21N). The SAP PRESS Blog is designed to provide helpful, actionable information on a variety of SAP topics, from SAP ERP to SAP S/4HANA. Also how to reverse the Cenvat Credit.And how cmplete/reconcile the challan. How to manage serialized material for subcontracting repair? Steps to perform subcontracting: Create subcontracting Info record (Optional) - T Code - ME11 Implementation of "External Material Processing using Production Orders": Develop a process in SAP to support all efforts related to External Processing using Production Orders as the method for subcontracting. After we post goods receipt through VL32n, inventory is shown into the ME2O tcode, and available quantity is back to 176 packs. using GR for Purchase order with Movement type 101. Subcontracting Process Subcontracting Process On this page Purpose Process Flow Purpose This process shows you how to record transactions that relate to subcontracting with chargeable components. A typical example in manufacturing would be assembly. Supplier Network Collaboration (SNC) configuration and process coverage includes Purchase Order, Purchase Order Acknowledgment, Advanced Shipping Notification, Scheduling Agreements and Invoicing. Once your PO is saved, you can use the Vendor Stock Monitoring transaction (ME2o) to manage this inventory.
The most straightforward way to support subcontracting processes is to use the standard subcontracting approach in the system. Save my name, email, and website in this browser for the next time I comment. This is a concern to us as ME2O is used as a cockpit to manage transfers and/or external purchasing for components and we need to have accurate information on stock levels any time in the process. Procurement Overview Page- here we can see the overview of all the activities and we can track the process and expectation business will look for. The components are posted to the stock of materials provided to the vendor. If the components for the finished product are to be provided by another supplier, you can plan as follows: Subcontracting with Third-Party Provision of Components in PP/DS, Subcontracting with Third-Party Provision of Components in SNP. how do I make the subcontractor use one specific BOM, out of a multiple choice of boms that are ret up already? The SIM cards supplier will be instructed to deliver the raw material at the subcontractors premises. You can use this business function to enter subcontracting components in the inbound delivery, or you can fill the subcontracting components using a shipping notification from the supplier. View all posts by Michael. Do you need to create a recipe for sub-contracting process? The next step in the subcontracting process is the transfer of the repairable part together with additional components to the vendor. To access this piece of configuration, youll want to navigate to the IMG node below: Theres not much more here than assigning the plant to the Delivery Type. As the worlds leading SAP publisher, SAP PRESS goal is to create resources that will help you accelerate your SAP journey. Billing the customer. Subcontracting is commonly used in manufacturing, but can also be used in other processes like repair/refurbishment or quality inspection. A good explanation of Subcontracting process for 2 level. Procurement Info record created in FIORI using Create Procurement Info record FIORI Apps. In this process, components are shared to vendor to get the final product. Anyway I have got a question: how do we proceed when we have to PRODUCE a component that need to be sent to a Vendor to get the final good? Editors note: This post has been adapted from a section of the book Sourcing and Procurement with SAP S/4HANA by Justin Ashlock. Process Flow. Next,click on Check button to check whether the document is OK. The most straightforward way to support subcontracting processes is to use the standard subcontracting approach in the system. Ive been blogging about SAP and various other interests since 2013. Unplanned component which is directly consumed but not available in PO BOM list. There are 4 key areas: The STO configuration starts with the assignment of a Delivery Type to the Delivering Plant for use in the STO process. 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