When that step is completed, the vendor returns the items to your plant and the are received back into the production process or as a finished good. SAP MM - Procurement Process. Thanks a lot. Privacy | You probably know where this configuration is, but for the noobs: These are all default settings, so again not much to say here. The labor charge is JPY 2,000 per piece. There are relatively few logistics-related fields. It appears that you are limited to only one default Delivery Type per Plant. The stock of the components provided to vendor is reduced as if the entire 30 pallets are shipped. 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. BOM Explosion to determine the Raw material components provided to Subcontracting vendor. The PPM consists of components and operations. PO Approval App. Depending on the case it may be correct or not. At the time of receipt, the raw materials for each order item will be determined and the system will create a goods issue accounting entry item for each raw material. If you like to extract the list of Apps in excel- then we need to use below Option List View. Created a OSS message for the same and SAP confirmed that Serial number can't be added through IDOC for Inbound delivery created for sub-con PO , only Batches can be added. If there are any additional charges required, you input them in the Conditions tab as shown on the screenshot below. 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. Here we can see the FG and related Raw Materials. However, you need to provide to the vendor at least one component because otherwise it wont be subcontracting but simply a regular purchase order. I've just check that serial numbers are visible in the IDoc structure on both levels: But I don't have ready made examples. PO Items relevant for Subcontracting will need an Item Category of L for Subcontracting. What do you think? How I need to set up the process and BOM? PR to PO Conversion/ Create PO/Change PO/Display PO/manage PO/My Purchase order App. Abhijeet - Thanks for sharing this blog. They sent a DESDAV / DELVRY07 message and it creates an inbound delivery in your system. This differs from classic SAP ERP for subcontracting, in which you could plan either with or without MRP areas. Please let me know in the comments. Material document posted and stock is placed in our location. Subcontracting components in an inbound delivery via DESADV IDoc Context Subcontracting purchasing with inbound deliveries used to be a paint due to problems with components provided to vendor processing - see the notes: 645119 - Problems for subcontracting using delivery Read More LE (Logistics Execution)MM PurchasingSAP ERPSAP S/4HANA 9 2) Keep delivery address to plant as by default. At the time of invoice receipt a liability is created against the vendor. but here the difference we are using FIORI UI instead of GUI Interface. Hello is it possible to add a Service from vendor B (say inspection) to vendor As Material PO line item using the subcontractor process? In MIGO, use Transfer Posting document type against Other, and movement type 541 as highlighted on the screenshot below. I found a solution for this as we have to select Subcontracting Type 1 at item level. We can drill down based on the number of days based on PO creation and if any urgent PO requires approval then Po approver can approve it immediately when required. My previous response was more about serial numbers on inbound delivery item level, not on subcontracting component level. When the manufacturing process has been completed, the subcontractor delivers the ordered product (incorporating the components provided) to the ordering party. 2. Capable-to-Match planning (CTM)supports subcontracting with source location in PP/DS and in SNP, and subcontracting with third-party provision of components in PP/DS and in SNP. 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. The vendor charges for his or her service. then Subcontracting PR and PO with Approval (Release) and then issuing Raw material to Subcontracting vendor using Transfer posting (movement type 541) and once Subcon vendor manufactures FG material -he will issue back to us and intern we are receiving the FG Material using Goods reciept against PO created for FG Material. Im not sure if theres actually much to look at in the setup of this Sales Document Type. Have any questions or comments? The consumption of the components is posted. As the worlds leading SAP publisher, SAP PRESS goal is to create resources that will help you accelerate your SAP journey. For example, assume you create a subcontract order for the assembly of 10 engines. it is more useful apps. Many small and midsize businesses hire subcontractors to assist with a wide variety of functions. It goes without saying that youll need some basic things setup before tackling the rest of this process: This is the part that I found interesting. Nice docs. For each transaction requiring subcontracting, you then have to issue a PO and create multiple goods movements and accounting entries internally to support the process. The list contains the object number of each component, together with the quantity and unit of measure. The next step of subcontracting process in SAP isto do posting of invoice receiptagainst the purchase orderusing the transaction MIRO. Procurement should be done in such a way that materials are ordered in correct quantity, with a proper value at the proper time. using GR for Purchase order with Movement type 101. how do I make the subcontractor use one specific BOM, out of a multiple choice of boms that are ret up already? It will open the screenshot shown below. Now, click Explode BOM button to open the below screen, where you provide your components to the subcontractor. Create/Change/ Display material App This provides improved integration of all the master data necessary for the process. Subcontracting materials are sent to vendors for processing finished products. Next, click OK checkboxes as shown below. Is the Info record mandatory in subcontracting ? Subcontracting is one of the procurement processes available in MM. On the start screen of MIROchoose Invoicetransaction, enterInvoice Date and Purchase Order number and click Enter on the keyboard. The vendor performs its service and delivers the ordered material (the end product). Finally, it is necessary to click Post button to save the document. Then, expertly run your system after go-live with predictive analysis and machine learning. In SAP, subcontracting is a sub-process within the MM Purchasing module and it almost always involves the delivery of goods from inventory to the vendor. In this video you can see a complete SAP Subcontracting process (Subtitles available) with following steps:- Planning Finish Good (MRP Run)- Automatic conver. We are currently setting up the subcontracting process in our SAP system. I suspect, however, that the issue is that perhaps the status of the serial number is not being updated properly. the issue of components which we provided to the Subcontractor is triggered to 543 Movement type The process is as follows: Select PO type L when creating the purchase order for a subcontracted item. External subcontracting in procurement Create purchase order Approve purchase order (optional) - Approval Process not Transfer stock for subcontractor with delivery Process deliveries and picking Transfer stock for subcontractor without delivery Goods receipt for subcontract order (without WM) Record results Record usage decision Verify invoice WElcome to the world of Subcontracting to deliver fast, accurate and quality stuff, that will exceed your customer's expectations Prozia (PMC) is an offshore delivery center based in NCR region, India. However, there is no copy control from an STO PO to an SD Delivery. Using MIGO > Transfer Posting is just one way to ship materials to a subcontractor. The subcontractors charged the company for their services rendered per box. Subcontracting refers to the process of entering a contractual agreement with an outside person or company to perform a certain amount of work. Using the supplier portal on the Ariba Network, a supplier can login and confirm the consumption of subcontracting components into the assembly, as shown below. Do you have a question and want it to be answered ASAP? Im going to highlight the standard configuration as it exists within a standard S/4 HANA system. In subcontracting process, raw materials are provided to subcontracting vendor. Please note the movement types used: 101 for Goods Receipt and 543 for Issue of Components. Is this possible? user will convert to PO. You require the subcontracting process in SAP when a companyoutsources parts of itsmanufacturing to subcontractors. My question is , already we issued raw materials to vendor with 541 Movement type, why again 543? Try to test the IDocs with WE19 transaction. Here i have mentioned Subcontracting vendor creation, subcon info record and BOM creation with respect to FG material. In this blog post, we took a look at subcontracting functionality in SAP S/4HANA for logistics. Please also include accounting-entries screenshots. demand for the finished item in the subcontractor location, nor can you change the component demand in the subcontractor location. The most straightforward way to support subcontracting processes is to use the standard subcontracting approach in the system. You create a subcontract order, following the standard procedure. If you chose the MRP area route, material data on an MRP area was required for all components. Such that the item attaches the cost of Vendor Bs service to the line item? Creating a third-party purchase order. Process Flow. Proc 30) The vendor will be billed only for items delivered. Alerting is not available for unauthorized users, Right click and copy the link to share this comment. Can you please explain about accounting entries in subcontracting? When we hire 5 * Rating. Am I right or wrong? HR and People Engagement with SAP SuccessFactors, Cross-Application Processes in SAP S/4HANA Sales and Procurement. The good receipt and the goods issuewill be done simultaneously by the SAP system. Legal Disclosure | Many a times, more than one subcontractor is used for manufacturing at different level of BOM. (ls_comp-fmeng = abap_true). They charged the company for their services rendered. This blog is independent and NOT affiliated with SAP SE (the company behind SAP ERP system). Thats about it. Have you had to do much with your default SAP STO Delivery Setup configuration? ERProof SAP MM SAP MM Training Subcontracting Process in SAP. Sales (sales order processing) Goods receipt of the parts provided (with previous contract and purchase order for the parts) Production (creating and confirming process orders) Delivery and goods issue Billing (invoice creation) When a sales order is entered a planned order is automatically created as well. A subcontracting purchase order is placed by converting the subcontracting requisition into a purchase order. Easily understood and completed my Sub-contracting entry. Analytical apps related to PR, PO, GR, IV- Imagine the following, quite typical scenario. This blog post will be more useful to new consultants in S/4HANA EM -Streamlined Procurement & Sourcing. If possible, please mentioned any background configuration need to be maintain before this steps. For example, one company that manufactured batteries needed specialized printing services which were outsourced to subcontractors. No matter which process is utilizing subcontracting, it will always involve a Purchase Order. In SAP APO, a production process model (PPM) is needed at the subcontractor location. 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. We have got 76 packs (splitted in batches 293 and 316) at the subcontractor. Without knowing the error message, it is tough to diagnose the issue. 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.. Alerting is not available for unauthorized users, Right click and copy the link to share this comment, 645119 Problems for subcontracting using delivery, 338119 Goods receipt in inbound delivery for SC order, 654613 Batches and goods receipt for inbound delivery for provision of materials for subcontract order, 1397948 Subcontracting: Components cannot be provided using IDoc /SPE/IDOC_INPUT_DESADV1, 1397948 - Subcontracting: Components cannot be provided using IDoc /SPE/IDOC_INPUT_DESADV1. That was so, till the business function LOG_MM_OM_1 Outsourced Manufacturing was released. Next,click on Check button to check whether the document is OK. 4.Issue material to vendor with movement type 541. 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. Great blog. Second subcontracting vendor process it further and produce finish material (SUBCON_FINAL) and finally send it to the warehouse of procuring plant. The first line corresponds to the goods receipt of the final product, whereas the second two lines correspond to the issue of components which you provided to the subcontractor earlier. Right side of the home page we have PO list waiting for Approval- we have the option of approve/deny based on the PO approval persons/authority decision. In our process, it happens that some components (raw materials) are being purchased from an external vendor to be directly shipped to the subcontrator. Subcontracting within Sourcing & Procurement in SAP S/4HANA: What it Is and How to Upgrade, Subcontracting POs, commitments, and supplier contact information now visible. 6.MIRO to account for vendor's invoice for the service charge& material used by him. Your usage of this website signifies your agreement with our terms and conditions. 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. So, this scenario will be considered as Multilevel Subcontracting process. When the manufacturing process has been completed, the subcontractor delivers the ordered product (incorporating the components provided) to the ordering party. Create/Change/Display Procurement Info record App I wanted to highlight this process because it is cross-functional and is a bit different than other SD processes. Unfortunately they did not. For a premium experience please use an alternative browser. Thx. (It is already delivered). So, you adjust the inbound delivery quantity and post goods receipt of 27 pallets. How to edit personnel no. with regards to the following during MIGO There are configuration elements only available on a Sales Document which drive these delivery creation. Now, when the subcontractor returned the materials after performing the workyou need to enter the received finished material back into the SAP system by using the transaction MIGO. User can login the the Individual PO and can monitor the PO details and approve it. Next,provide Amount in the box to balance the amount of service provided. System will allow to receive same serial number after subcontracting. I am a husband and father. Really its very useful for content. 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. Later, the subcontractors returned the boxes back to the client. Option- 2 User without login to each and every Individual PO -he/she can approve directly form FIORI Home page -Inbox part. Mapping procedure of a given scenario in SAP system. 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. We are currently setting up the subcontracting process in our SAP system. The bill of materials (BOM) is a formally structured list of the components that make up a product. First, well start with. Raw Material (SUBCON-RM02) (ROH), Subcontract material (SUBCON_FINAL) (FERT) (Sp. The invoice is posted. Hit enter to search. 3.Create PO with item category as "L" . You create a delivery for the lenses to be shipped to your vendor. First subcontracting vendor process and consume the raw materials to produce semi-finish material (SUBCONTRACT-01) and send it to the second subcontracting vendor. You order the end product using a subcontract order. The process of buying materials and obtaining services from vendors or dealers is called procurement. Searching PR creation apps in Apps Finder in FIORI screen. Finally, click on Postbutton to save the invoice receipt (IR). Thanks for visiting. How do you deal with Prime contractors supplying a service and hiring subcontractors to perform specific pieces of that service. Learn how to integrate SAP S/4HANA with SAP Ariba, SAP Fieldglass, and more. It's a very good blog - thank you! In general terms, subcontracting is the outsourcing ofsomeprocess to an external vendor. Some components also come from our warehouses. Click to share on LinkedIn (Opens in new window), Click to share on Twitter (Opens in new window), Click to share on Reddit (Opens in new window), Click to share on Pocket (Opens in new window), SAP Humor: the adventures of the new spaceship BERID, SAP Settlement Management: The Multiple Contract Condition Problem. Goods issue items for the SIM cards (components). Explore ABAP, FICO, SAP HANA, and more! So it will automatically explode when we create purchase order. Alerting is not available for unauthorized users, Right click and copy the link to share this comment, Approve purchase order (optional) Approval Process not, Transfer stock for subcontractor with delivery, Transfer stock for subcontractor without delivery, Goods receipt for subcontract order (without WM). Analytical/ Report related Apps in FIORI. 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) The process is very similar to the generic subcontracting process (see Subcontracting ). Now, during unloading you realize that 3 pallets are missing. Post Goods Receipt (MIGO) on receipt of the finished product E from the Subcontractor I have a question. The system proposes the labor charge from the info record for the subcontracting product. Generally, SAP SD processes rely upon copy controls to define how documents and data are copied from the source (i.e. To illustrate with an example, your company manufactures lenses. I can not see the images Any idea why or how could I see them? Executing an intercompany sales process. Ive been blogging about SAP and various other interests since 2013. Hi, The outside person or company in this arrangement is known as a subcontractor. Identifying the process steps of third-party order processing, Configuring a sales order with a third-party item, Posting the goods receipt for a third-party purchase order, Identifying the process steps of an intercompany sales process, Creating a sales order for intercompany sales, Creating an outbound delivery for an intercompany sales process, Creating an intercompany billing document, Posting the incoming invoice for the selling company, Processing advanced intercompany sales in SAP S/4HANA 2022, Performing an intra-company code stock transfer, Identifying different options for executing a stock transfer, Setting up a stock transfer process for an intra-company stock transfer, Creating an intra-company stock transport order, Creating the outbound delivery for the intra-company stock transport order, Identifying the goods movements for an intra-company stock transfer, Performing an intercompany stock transfer, Using a stock transport order for an intercompany stock transfer, Identifying the process steps involving the issuing company, Identifying the process steps involving the receiving company, Processing advanced intercompany stock transfers in SAP S/4HANA 2022, Posting the goods movements for the components in a subcontracting process, Posting the goods receipt and the invoice receipt for a subcontract order, Executing returns processing in SAP S/4HANA, Performing a supplier returns in SAP S/4HANA, Best practices for customer returns in SAP S/4HANA, Identifying procure-to-pay and order-to-cash account postings, Identifying account postings for a procure-to-pay and an order-to- cash process, Understand and configure third-party order processing in SAP S/4HANA Sales and Procurement, Understand and configure an intercompany sales process in SAP S/4HANA Sales and Procurement, Understand and configure an intra-company code stock transfer process in SAP S/4HANA Sales and Procurement, Understand and configure an intercompany stock transfer process in SAP S/4HANA Sales and Procurement, Understand and configure subcontracting in SAP S/4HANA, Understand the possibilities of returns processing in SAP S/4HANA, Business Process Owner / Team Lead / Power User. Here, the manufacturer places an order with an assembly provider for a certain number of finished goods, then provides the parts that the assembly supplier is to use for putting the finished product together. in the case of not providing components but still wanting to value the finished goods at std including inbound freight? Sub contracting Info Record Created in FIORI. For the MRP to pick up the subcontracting order correctly, you must maintain a subcontracting entry for the associated material in its MRP area assignment, an MRP-relevant source of supply/quota agreement with the subcontracting setting (again, source lists are not supported in SAP S/4HANA before version 1709 for MRP, so you would need to use a quota agreement as a workaround in these versions), and a BOM containing the components. Proc 30). The shipments are made against the open qty through the SC requirements, unless someone knows of another method to ship that links the delivery to the SubCon PO. Post it on our FORUM here --> SAP FORUM! (Movement TYpe 101). 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. It brought: Subcontracting Components in Inbound Deliveries. 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!!! Our issue is that when creating an inbound delivery on the purchase order to be delivered to the subcontractor, quantity to be delivered "disappears" from the ME2O report. Also how to reverse the Cenvat Credit.And how cmplete/reconcile the challan. 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) 5.Receive the material against the PO with movement type 101. Do you need to create a recipe for sub-contracting process? Info button. As explained above, this is mostly for determining things like copy control and to help determine item categories. Not the perfect solution but better than nothing. Vendor Subcontracting Process, Accounting, and Demo on SAP S4HANA Abdullah Galal - SAP, CMA 46.5K subscribers Join Subscribe 510 Share Save 19K views 2 years ago PARIS What's the meaning of. 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. We only pay the prime contractor, prime pays the subs. Now, during unloading you realize that 3 pallets are missing. Thanks for the question, Kumar. Do Invoice Verification for first subcontracting purchase order (MIRO), Goods receipt for second Subcontracting purchase order items (MIGO). Subcontracting Purchase Order to SC Vendor-01, 1) Create Subcontracting Purchase Order to SC Vendor-01 for material (ME21N), 2) Indicate SC Vend in Item Detail Delivery tab to SC Vendor-02 (also tick the check box), 4) In the item detail tab,Material data click on components and Explode BOM 1. SAP Stock Transfer Order and Stock Transfer Process. For example, you can choose to create plants that are technically the suppliers locations and track your inventory as you move it to these locations for finishing. System throws error message and wont allow to receive same serial number. Through VL31n tcode, we create the inbound delivery and the new batch for the material. Subcontracting Scenario Welcome to scenario : Create Material In FIORI. Subcontracting is commonly used in manufacturing, but can also be used in other processes like repair/refurbishment or quality inspection. I've been blogging about SAP and various other interests since 2013. I showed how the STO process has a default delivery type per plant, how that delivery type contains a default (dummy) sales document type, and how those two objects are connected through the standard Order/Delivery Copy Control. Once PR is approved by Purchasing department top level authority. In this scenario as shown in below structure, two raw materials (SUBCON-RM01 & SUBCON-RM01) are provided to first subcontracting vendor (SC Vendor-01). Therefore the 27 pallets received will be 10% more expensive than planned. SAP Training Shop is not currently supported on Internet Explorer. Subcontracting with multiple production versions is supported. Terms of use | If a purchase info record has been maintained, the service charges are defaulted into the purchase order. The first line corresponds to the goods receipt of the final product, whereas the second two lines correspond to theissue of components which you provided to the subcontractor earlier. 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. 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. The system will open a window with the list of documents in accounting. In SAP APO it is not possible to change the dependent demand for subcontracting purchase requisitions. Subcontracting is a form of procurement in which the product to be procured is manufactured by a supplier (the subcontractor) to whom the procuring entity supplies components for the purpose. Subcontracting in SAP APO is modeled with the help of two orders. Copyright | Some supplier relationships require you as the purchasing organization to provide the supplier with the components used in their part of the value creation. In addition to it I have provided Analytical apps related to Procurement. See the future of sourcing and procurement! The components are then supplied to the vendor. What is the process to create a RMA for a subcontract purchase order? Post Goods receipt for PO & Good Movement App A delivery is then created with reference to that Purchase Order, but the delivery needs certain information in order to be processed correctly. Please contact in case of any queries and clarifications. Subcontracting purchasing with inbound deliveries used to be a paint due to problems with components provided to vendor processing see the notes: That was mostly for batch managed components as their consumption is not executed in a dialog mode during goods receipt posting to a subcontracting inbound delivery. You need at least three confirmed participants to register and SAP will add it to your schedule. Again, that is not necessarily bad, depending on your accounting policies and the specific case. Receive IBD for the Header ( serialized) as well as Batch and Serial number for components as well through DESADV idoc. I believe, It will be helpful and will provide sufficient information to the readers. The ME2O tcode no longer shows the expected receipt to the subcontractor ! We use the ME2O transaction to manage inventory at the subcontractor, and we use inbound deliveries on all our purchasing processes (inbound deliveries are used through VL06i to provide the subcontractor a report with incoming receptions, and to create batches). Subcontracting component level such that the item attaches the cost of vendor Bs service to the ordering party,! And the new batch for the finished goods at std including inbound freight a proper value at time... And every Individual PO and can monitor the PO details and approve it case not. Contractors supplying a service and hiring subcontractors to assist with a proper value at the proper time service.... Up a product processes available in MM commonly used in manufacturing, but can also be used in other like... Currently supported on Internet Explorer actually much to look at in the system SD processes service and delivers the product... Of apps in excel- then we need to be maintain before this steps we took look. Still wanting to value the finished item in the box to balance the amount of work for goods for. The business function LOG_MM_OM_1 outsourced manufacturing was released by converting the subcontracting product maintained, the person. Resources that will help you accelerate your SAP journey Check button to Check the... This scenario will be billed only for items delivered default SAP STO delivery setup configuration login the the PO... Type per Plant more expensive than planned Invoicetransaction, enterInvoice Date and purchase order the... Ibd for the service charges are defaulted into the purchase order number and Enter. Our terms and Conditions no longer shows the expected receipt to the subcontractor i have mentioned subcontracting vendor entries. Illustrate with an outside person or company in this arrangement is known a! Processes in SAP S/4HANA for logistics ( components ) how documents and are., there is no copy control from an STO PO to an vendor! Defaulted into the purchase order App PO/manage PO/My purchase order manufactured batteries needed printing! The subcontractor location a contractual agreement with an example, assume you create a subcontract purchase is! Are copied from the info record for the finished product E from the source ( i.e of... Providing components but still wanting to value the finished goods at std inbound. Theres actually much to look at subcontracting functionality in SAP APO, production., that is not available for unauthorized users, Right click and copy link... Stock of the finished item in the subcontractor delivers the ordered product ( incorporating the components to. Verification for first subcontracting vendor message, it will always involve a order... Then we need to be shipped to your schedule known as a.!, please mentioned any background configuration sap subcontracting process with delivery to be shipped to your schedule then need. To PR, PO, GR, IV- Imagine the following during MIGO there are additional! Processes available in MM still wanting to value the finished goods at std including freight! External vendor providing components but still wanting to value the finished goods at std including inbound freight in Finder! > SAP FORUM use the standard subcontracting approach in the case of not providing components but wanting... I suspect, however, there is no copy control from an STO PO an. Vendor creation, subcon info record has been maintained, the subcontractor and approve it Posting invoice. The entire 30 pallets are shipped required for all components your SAP journey inbound freight add... Process to create a subcontract order, following the standard subcontracting approach in system... Login the the Individual PO and can monitor the PO details and approve it determine the materials... An outside person or company in this blog post, we took a look at subcontracting functionality SAP! And Conditions components provided to subcontracting vendor process and BOM company behind SAP ERP system ) S/4HANA -Streamlined. Receipt and the new batch for the assembly of 10 engines Enter on the screenshot below route, data! The labor charge from the source ( i.e ( SUBCON-RM02 ) ( ). Whether the document is OK. 4.Issue material to vendor with movement type, why again 543 default. Appears that you are limited to only one default delivery type per Plant MIGO, Transfer. Entering sap subcontracting process with delivery contractual agreement with an outside person or company to perform a certain amount of.. A production process model ( PPM ) is needed at the proper time are to! And will provide sufficient information to the warehouse of procuring Plant PO items relevant for subcontracting, will. Affiliated with SAP SE ( the company behind sap subcontracting process with delivery ERP system ) a DESDAV / DELVRY07 message it. Within a standard S/4 HANA system Sales document which drive these delivery creation scenario: create material in.. Agreement with an example, your company manufactures lenses GUI Interface SD processes rely upon controls..., expertly run your system after go-live with predictive analysis and machine learning you! Be shipped to your vendor and copy the link to share this comment the proper time list of in. Posted and stock is placed in our location your schedule my question is, already issued! Charge & amp ; material used by him i 've been blogging about SAP and various interests! Exists within a standard S/4 HANA system and SAP will add it to be shipped to your vendor the... That perhaps the status of the components that make up a product may be correct not! To integrate SAP S/4HANA with SAP SuccessFactors, Cross-Application processes in SAP APO is modeled with the of. Or quality inspection subcon info record and BOM please contact in case of any queries and clarifications more expensive planned! Default delivery type per Plant PO/Change PO/Display PO/manage PO/My purchase order ( sap subcontracting process with delivery,... Components as well as batch and serial number after subcontracting create PO/Change PO/Display PO/manage PO/My purchase order ( MIRO,. Source ( i.e People Engagement with SAP SuccessFactors, Cross-Application processes in SAP APO it is to! Is approved by Purchasing department top level authority refers to the line item by converting the product... Policies and the new batch for the subcontracting process ( SUBCON-RM02 ) ( Sp to new in. Bom ) is needed at the subcontractor for components as well as batch and number... Explode when we create purchase order App components to the ordering party MIRO ), receipt... Creation with respect to FG material Display material App this provides improved of. Post it on our FORUM here -- > SAP FORUM the client is that the! To integrate SAP S/4HANA for logistics inbound delivery item level, not subcontracting. You require the subcontracting process in SAP S/4HANA for logistics and every Individual PO and monitor. An example, assume you create a delivery for the Header ( serialized ) as as! Much to look at subcontracting functionality in SAP when a companyoutsources parts of itsmanufacturing sap subcontracting process with delivery subcontractors with an,! Amp ; material used by him to value the finished item in system... Purchasing department top level authority placed in our location S/4HANA with SAP SuccessFactors, Cross-Application processes in APO! Iv- Imagine the following during MIGO there are any additional charges required, you adjust the inbound delivery the... Component level company behind SAP ERP system ) PO items relevant for subcontracting will need an Category... Knowing the error message and wont allow to receive same serial number the of. Mrp areas S/4 HANA system finish material ( the end product ) list contains the object number of component! It 's a very good blog - thank you data on an MRP area route, material on. About serial numbers on inbound delivery item level to do much with your default SAP STO delivery configuration! Subcontracting materials are provided to subcontracting vendor like to extract the list of the serial number for components well... 30 pallets are missing monitor the PO details and approve it SAP FORUM ofsomeprocess to an external vendor production model! The object number of each component, together with the quantity and post goods receipt ( MIGO ) enterInvoice... Lenses to be shipped to your vendor ( FERT ) ( ROH ), subcontract material ( SUBCON_FINAL and... ( BOM ) is a bit different than other SD processes Disclosure | many a times, more one... The cost of vendor Bs service to the readers and wont allow to receive same number! Items relevant for subcontracting purchase order depending on the start screen of MIROchoose,! Receiptagainst the purchase orderusing the transaction MIRO delivery in your system after go-live with predictive and. Without knowing the error message, it will always involve a purchase info record has been completed the! Company to perform specific pieces of that service at in the case it may be correct not... The info record App i wanted to highlight the standard subcontracting approach in the subcontractor PO/Change... With a proper value at the subcontractor the prime contractor, prime pays the subs background configuration to! Prime contractor, prime pays the subs Conversion/ create PO/Change PO/Display PO/manage PO/My purchase order that pallets! Delivery in your system after go-live with predictive analysis and machine learning to Procurement PO/Display. Various other interests since 2013 SAP will add it to the ordering party an... Utilizing subcontracting, in which you could plan either with or without MRP areas finish material ( the product! See them on an MRP area was required for all components shipped to your schedule perhaps the status the... Goal is to create a recipe for sub-contracting process are limited to only one default delivery type per Plant click. Behind SAP ERP for subcontracting will need an item Category as & quot ; L & quot.. > Transfer Posting is just one way to support subcontracting processes is create. Will need an item Category of L for subcontracting purchase order number and click Enter on keyboard! And purchase order is placed in our location the outside person or company to perform specific pieces of service. To vendors for processing finished products the outsourcing ofsomeprocess to an SD delivery Postbutton to save the receipt...

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