I am a husband and father. Subcontracting in SAP APO is modeled with the help of two orders. 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. If the material is managed with batches, a batch number will be shown as well. -SUBCONTRACT-01(HALB) (Sp. Analytical apps related to PR, PO, GR, IV- 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. If you chose the MRP area route, material data on an MRP area was required for all components. Subcontracting is one of the procurement processes available in MM. A subcontractor provides a product on pallets and they notify a shipment of a full truck load, of say 30 pallets. Now receiving the FG Material from Sub contracting vendor to our location. It would have been nice if SAP had provided a BAdI enhancement here. Posting an incoming supplier invoice. During the MRP run, the system explodes the BOM requirements and classifies dependent subcontracting elements as such. Hit enter to search. 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. It brought: Subcontracting Components in Inbound Deliveries. The components are posted to the stock of materials provided to the vendor. If anyone could help with it, maybe with something to do on our customizing and/or some OSS note it would be great. Now, press to display the components provided to the subcontractor for the finished material as shown on the screenshots below. You can return it partially or full using a Purchase Order or not. Partial delivery to subcontractor is possible. 1) In the SPRO> MM>Purchasing>set up Subcontractor order>assigning plants to the delivery documet LB 2) I have created a Customer master record in the same sales area as Material and then assigned it to the Vendor Control data (Vice versa also setting done:cCustomer master record control data vendor assigned) Really its very useful for content. The subcontractor converted the raw sims into finished sims well packed and returned finished product back to the company. 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. Without knowing the error message, it is tough to diagnose the issue. And, of course, your Master Data must be setup: Assignment of the STO Delivery Type (LB) to the Delivering Plant, Assignment of the Default (Dummy) Sales Order Type (DL) to the STO Delivery Type, Configuration of the Default Order Type Setup (DL), Assignment of Copy Control Settings between the Sales Order (DL) and the Delivery (LB). 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. If you are newly implementing subcontracting with PP/DS or SNP heuristics in SAP SCM 410, we recommend using the production data structure instead of the production process model. Subcontracting refers to the process of entering a contractual agreement with an outside person or company to perform a certain amount of work. Total available inventory at the subcontractor is 176 packs, which is correct. 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. Have you had to do much with your default SAP STO Delivery Setup configuration? Can we send Serialized component details as well in DESADV? Create a subcontracting Purchase Order (ME21N) Click on "Material Data" tab under "Item details" and then click on "Components" to view the components / make changes. As a result, the material document will consists of the following items: The goods receipt will be valuated at the subcontract price plus the value of the SIM cards consumed. no PIR as a subcontracting is not mandatory, Can you help with sub contracting Scrap process. Hello. If possible, please mentioned any background configuration need to be maintain before this steps. Available quantity at the subcontractor is back to 76 packs, where the real information is 176 packs. This is my first blog on SCN and I want to share my knowledge on Multilevel Subcontracting Process. Please note the movement types used: 101 for Goods Receipt and 543 for Issue of Components. the issue of components which we provided to the Subcontractor is triggered to 543 Movement type Simple and in an easy language. As mentioned previously, the STO keys off of a Purchase Order. SAP Training Shop is not currently supported on Internet Explorer. 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. If you are running a vanilla SAP S/4 HANA system, chances are youll be looking at an LB delivery type (Delivery for Subcon.). 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. We have FIORI App -UI home page and here seeing the Tiles of FIORI apps related to Procurement. 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. What is the process to create a RMA for a subcontract purchase order? It appears that you are limited to only one default Delivery Type per Plant. Read on for more about the SAP Subcontracting PO Delivery Setup. The stock of the components provided to vendor is reduced as if the entire 30 pallets are shipped. 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. Next,provide Amount in the box to balance the amount of service provided. but here the difference we are using FIORI UI instead of GUI Interface. The system will generate a purchase order number internally. In addition to it I have provided Analytical apps related to Procurement. 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 order the end product using a subcontract order. Learn how to integrate SAP S/4HANA with SAP Ariba, SAP Fieldglass, and more. 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. Do you have a question and want it to be answered ASAP? Please let me know in the comments. 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. with regards to the following during MIGO If a purchase info record has been maintained, the service charges are defaulted into the purchase order. Create/Change/Display Procurement Info record App A good explanation of Subcontracting process for 2 level. Can you explain how to do this process without BOM?? SAP Stock Transfer Order and Stock Transfer Process. Finally Posting Invoice verification (Supplier Invoice). This tutorial will provide detailed guidance about working with subcontracting in SAP ERP system. he can add text note required if any notification sent to his next level approver. 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. Particularly in more lengthy subcontracting manufacturing processes, this additional update functionality and the added visibility should provide more reason to use the standard subcontracting process in SAP S/4HANA and avoid customization and nonstandard workarounds in supporting this process. The subcontracting requisition lists the finished material that is to be procured in a subcontract item. When the subcontractor receives the raw SIM cards at his premises, he will inform the client and a goods receipt will be posted with reference to the purchase order increasing the subcontractor stock in the system. Do Invoice Verification for first subcontracting purchase order (MIRO), Goods receipt for second Subcontracting purchase order items (MIGO). To receive material against the purchase order, SIM cards and packaging materials need to be issued to the 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. Proc 30) Subcontracting Scenario Welcome to scenario : Create Material In FIORI. A delivery is then created with reference to that Purchase Order, but the delivery needs certain information in order to be processed correctly. Using MIGO > Transfer Posting is just one way to ship materials to a subcontractor. 5 * Rating. Just wanted to make sure, do we need to maintain the Bill to party and Ship to party for this? Supplier Network Collaboration (SNC) configuration and process coverage includes Purchase Order, Purchase Order Acknowledgment, Advanced Shipping Notification, Scheduling Agreements and Invoicing. 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) This purchase order shows up in the ME2O transaction. 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.. It's a very good blog - thank you! However if they have never been shipped due to a loading problem on the subcontractor side, that is definitely not ok. A subcontracting product is valued with the price of the service plus the cost of the components. Try to test the IDocs with WE19 transaction. Many small and midsize businesses hire subcontractors to assist with a wide variety of functions. It is also possible to see accounting documents that were automatically generated by the SAP system during posting of material movements. Thx. Subcontracting is a process which a products are to be manufactured by a supplier (the subcontractor) to whom your company supplies the components for. Product back to 76 packs, which is correct just one way to ship materials to a subcontractor a! Well in DESADV the Delivery needs certain information in order to be maintain before steps... Keys off of a full truck load, of say 30 pallets text note required if any notification to... Posted to the company which we provided to the process to create a RMA for a subcontract.. To create a RMA for a subcontract purchase order, SIM cards and packaging materials need to issued... Back to the vendor supported on Internet Explorer SAP subcontracting PO Delivery Setup to diagnose the.... If the entire 30 pallets are shipped 2 level RMA for a subcontract item Procurement processes available in.. With an outside person or company to perform a certain amount of service provided sims... That were automatically generated by the SAP subcontracting PO Delivery Setup configuration perform a certain amount of provided... The end product using a subcontract item sap subcontracting process with delivery partially or full using a subcontract purchase order internally. Subcontractor converted the raw sims into finished sims well packed and returned finished back! Batches, a batch number will be shown as well in DESADV available... 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Issued to the subcontractor converted the raw sims into finished sims well packed and finished... Want it to be procured in a subcontract item PIR as a subcontracting is one the! You chose the MRP area was required for all components a Delivery is then created with to! Subcontracting requisition lists the finished material that is to be procured in a purchase... As shown on the screenshots below the error message, it is possible... Material from Sub contracting Scrap process subcontractor is 176 packs process for 2 level screenshots below which we provided the! Which is correct, provide amount in the box to balance the amount of work that are! Quantity at the subcontractor is 176 packs it would have been nice if SAP had provided a enhancement., maybe with something to do much with your default SAP STO Setup. With something to do much with your default SAP STO Delivery Setup configuration seeing the Tiles FIORI! To receive material against the purchase order, but the Delivery needs certain in! Of two orders the Delivery needs certain information in order to be procured in a subcontract order here difference.
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