sap subcontracting process with deliverymhairi black partner

demand for the finished item in the subcontractor location, nor can you change the component demand in the subcontractor location. PR Created and purchase requisition sent to Approval. The problem we have is that we cannot link the delivery to a specific SubCon PO. Proc 30). Some components also come from our warehouses. The process is very similar to the generic subcontracting process (see Subcontracting ). Raw Material (SUBCON-RM01) (ROH) 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remote and onsite in Denver, CO - MST hours (local or west coast candidates preferred) Your email address will not be published. Double click on Accounting Document. 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. It is likely to slip through tests and bite you only down the road. So, this scenario will be considered as Multilevel Subcontracting process. The subcontracting PO is made and I see a requisition in MD04 for a component but it is not tranferred to a production order. ERProof SAP MM SAP MM Training Subcontracting Process in SAP. Editors note: This post has been adapted from a section of the book Sourcing and Procurement with SAP S/4HANA by Justin Ashlock. Hello is it possible to add a Service from vendor B (say inspection) to vendor As Material PO line item using the subcontractor process? A delivery is then created with reference to that Purchase Order, but the delivery needs certain information in order to be processed correctly. eg: sending MAT1 with serial number 100020 to the subcontractor for repair. 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 Lets start with discussing the steps that are involved in the subcontracting process in SAP. 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. When we hire We use ME2O, check the box next to the material then click on create delivery. . ME2O, Subcontracting PO, VGPOS, VGBEL, RM06ELLB , KBA , LE-SHP-DL , Delivery Processing , Problem. Can you please explain about accounting entries in subcontracting? Process Flow. How do you deal with Prime contractors supplying a service and hiring subcontractors to perform specific pieces of that service. Explore ABAP, FICO, SAP HANA, and more! For example, one company that manufactured batteries needed specialized printing services which were outsourced to subcontractors. Theme: Baskerville 2 by Anders Noren. a reverse of me2o ? As mentioned previously, the STO keys off of a Purchase Order. Vendor shall process the item / use the item provided & supply the final item. Subcontracting will appear under the general plant stock if there is no MRP area maintained for the supplier. System will allow to receive same serial number after subcontracting. You only have to maintain entries in the material masters if special situations exist for lot sizing, purchase requisitions/orders, and/or third-party order processing. Certain lenses require a special UV resistant coating and you choose to send the lenses to a 3rd party to apply the coating. Subcontracting process is generally used in most of manufacturing industries. System automatically selects movement type 101 O (GR to SC Vendor). If you like to extract the list of Apps in excel- then we need to use below Option List View. Therefore the 27 pallets received will be 10% more expensive than planned. I wanted to highlight this process because it is cross-functional and is a bit different than other SD processes. Second subcontracting vendor process it further and produce finish material (SUBCON_FINAL) and finally send it to the warehouse of procuring plant. However, there is no copy control from an STO PO to an SD Delivery. This blog post will be more useful to new consultants in S/4HANA EM -Streamlined Procurement & Sourcing. PR creation through FIORI Apps- Create PR apps. 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. Info button. 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.. Your comprehensive guide to SAP S/4HANA sourcing and procurement is here! user can view the list of the transactions he/she used recently in left side of the home page.using Edit option they can customize i mean arrange the FIORI apps tiles based on their requirement. The labor charge is JPY 2,000 per piece. Next,provide Amount in the box to balance the amount of service provided. Subsequent goods entry is booked automatically with these entries. Posting Invoice verification using Create Supplier Invoice Apps in FIORI. This is an unofficial blog about SAP certification, SAP training, and other things related to one of the world's leading ERP system. 2. In this blog post, we took a look at subcontracting functionality in SAP S/4HANA for logistics. ME2O after purchasing and before inbound delivery creation. Creating a sales order for intercompany sales. Tracking the materials and valuations, which technically still belong to the buying organization, becomes difficult using the standard process. 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. Adding this value will open up the Components button located on the item Material Datatab. Proc 30) A typical example in manufacturing would be assembly. Have any questions or comments? Therefore, it was not possible to provide components batches but with background batch determination or to adjust consumption quantities. Please contact in case of any queries and clarifications. It is also possible to see accounting documents that were automatically generated by the SAP system during posting of material movements. Also, you need to provide Material, Quantity, Delivery Date, Plant, and Price. Thanks and Regards, Sapmm user Find us on Privacy Terms of Use Very easy to understand now. We would be happy to hear your feedback or questions. In SAP HR after hiring Hi, There's no e-books or any course materials about the QM module. Partial delivery to subcontractor is possible. The consumption of the components is posted. 4.Issue material to vendor with movement type 541. No matter which process is utilizing subcontracting, it will always involve a Purchase Order. The next step in the subcontracting process is the transfer of the repairable part together with additional components to the vendor. Once PR is approved by Purchasing department top level authority. Again that is confirmed by the note 1397948 Subcontracting: Components cannot be provided using IDoc /SPE/IDOC_INPUT_DESADV1: If, contrary to the standard design, you want an automatic correlation, this is only possible by making a modification in the class CL_SHP_LECOMP_CONTROL, method IF_EX_SHP_DESADV_IN~PROCESS_SEGMENT. 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. The most straightforward way to support subcontracting processes is to use the standard subcontracting approach in the system. Do Invoice Verification for second subcontracting purchase order (MIRO). Goods receipt items for the packaged SIM cards (end product) supplied by the vendor. 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 is more useful apps. I believe the serial number records track whether the item is in warehouse or somewhere else. Executing an intercompany sales process. This transaction is now available as an app, Display Subcontracting Stocks by Supplier, in SAP S/4HANA, as shown here: In SAP S/4HANA, MRP areas have to be created for every subcontractor; if MRP areaspecific material master records dont exist, MRP uses default planning parameters. The outside person or company in this arrangement is known as a subcontractor. The process is as follows: To flag a material master directly for subcontracting, choose a half finished (HALB) or finished (FERT) material, and in the MRP2 tab maintain the Special Procurement field with option 30 for the plant, as shown below. This tutorial will provide detailed guidance about working with subcontracting in SAP ERP system. Easily understood and completed my Sub-contracting entry. If none, a green light will turn on near Balance fieldand the SAP system will show you accounting document which will be created. Another example of the subcontracting process in SAP is whena company provided raw sims and packaging materials to a subcontractor. During the MRP run, the system explodes the BOM requirements and classifies dependent subcontracting elements as such. The components are then supplied to the vendor. 1) Post Goods Issue according to the Purchase Order number (4500000863) above. The subcontractors charged the company for their services rendered per box. In MIGO, you need to choose Goods Receipt against Purchase Orderwith movement type 101 as shown below. Proc 30) The process of buying materials and obtaining services from vendors or dealers is called procurement. In this scenario as shown in below structure, two raw materials (SUBCON-RM01 & SUBCON-RM01) are provided to first subcontracting vendor (SC Vendor-01). What is S/4HANA? How I need to set up the process and BOM? 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. Click on Simulate button which will notify you of any errors. 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. Once your PO is saved, you can use the Vendor Stock Monitoring transaction (ME2o) to manage this inventory. Hi, Try to test the IDocs with WE19 transaction. Such that the item attaches the cost of Vendor Bs service to the line item? Legal Disclosure | Required fields are marked *. Here in the highlighted box you provide the number of your subcontractor. Very useful content , Thanks for sharing with us. 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. I believe, It will be helpful and will provide sufficient information to the readers. This is possible with or without creating a delivery. We are currently setting up the subcontracting process in our SAP system. See the future of sourcing and procurement! Create Supplier Invoice Apps or Incoming Invoice Apps. Depending on the case it may be correct or not. Do you have a question and want it to be answered ASAP? I've just check that serial numbers are visible in the IDoc structure on both levels: But I don't have ready made examples. Get an overview of our wide selection of books on every relevant SAP topic. 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). with regards to the following during MIGO Privacy | 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. 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. Subcontracting is a process which a products are to be manufactured by a supplier (the subcontractor) to whom your company supplies the components for. This is my first blog on SCN and I want to share my knowledge on Multilevel Subcontracting Process. Is this possible? Simple and in an easy language. Online Help Keyboard Shortcuts Feed Builder What's new Also it might be quite hard to spot at the first glance. How to receive additional components left after making finished product. Then, expertly run your system after go-live with predictive analysis and machine learning. (Movement TYpe 101). SAP Training Shop is not currently supported on Internet Explorer. If the serial number is in warehouse, then it may not allow you to receive it. Thanks a lot. 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. Thanks for your reply. To receive material against the purchase order, SIM cards and packaging materials need to be issued to the subcontractor. Is there a process to bring components back from the Subcontractor . 3.Create PO with item category as "L" . Great blog. This can be doneeither manually or through the use ofa BOM. If the missing 3 pallets are stolen or lost during transportation that might be ok. Please explain detail steps and Tcode. Post Goods receipt for PO & Good Movement App 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). 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!!! Analytical apps related to PR, PO, GR, IV- The subcontracting requisition lists the finished material that is to be procured in a subcontract item. 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. If possible, please mentioned any background configuration need to be maintain before this steps. Some components also come from our warehouses. Sales Order) to the destination (i.e. We want to receive back MAT1-100020. If a purchase info record has been maintained, the service charges are defaulted into the purchase order. The SIM cards supplier will be instructed to deliver the raw material at the subcontractors premises. could you please add by product and co product scenarios in subcontracting process, If subcontractor not consumed all the components/ who need more subcomponents against same order , then how to issue additional components System throws error message and wont allow to receive same serial number. I am a husband and father. Subcontracting is commonly used in manufacturing, but can also be used in other processes like repair/refurbishment or quality inspection. They do not provide any enhancement to decide if to fix or not to fix the subcontracting components quantity whatsoever. In this blog, SAP Sourcing and Procurement consultant will be able to learn the concept and mapping procedure of Multilevel Subcontracting Process with Two Subcontractors in SAP system. Plastic boxes were provided to subcontractorsand they did required printing on these boxes. When the manufacturing process has been completed, the subcontractor delivers the ordered product (incorporating the components provided) to the ordering party. The transaction shows the requirements for materials from the specified vendor and displays a color coded status in green if the vendor has sufficient quantities of the components, in red if the vendor does not. Here the PO Approver can select the Individual PO from the list and approve the PO. Available quantity at the subcontractor is back to 76 packs, where the real information is 176 packs. I hope this blog post will be more useful to logistics consultants to understand how FIORI UI will look like for Subcontracting Process. PR to PO Conversion/ Create PO/Change PO/Display PO/manage PO/My Purchase order App. 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? Im not sure if theres actually much to look at in the setup of this Sales Document Type. Start it and selectDisplay against Material Documentwhile inputting thedocument number as shown below and click Enter. Subcontracting Scenario Welcome to scenario : Create Material In FIORI. Im a career-long IT specialist with a focus on SAP for over 18 years. Invoices will be entered in the system against the purchase order. 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. SNP optimizer, restrictions apply with regard to cost maintenance if you use the production data structure. Copyright | In SAP APO it is not possible to change the dependent demand for subcontracting purchase requisitions. Later, the subcontractors returned the boxes back to the client. 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). Hit enter to search. Procurement Info record created in FIORI using Create Procurement Info record FIORI Apps. The materials that are provided to the subcontractor are managed as stock provided to a vendor. You can have it without BOM by entering all the components manually. 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) . But SAP does not give here any flexibility. Therefore no need to transfer the material through ME2O. Be more useful to logistics consultants to understand how FIORI UI will look like subcontracting! Information to the vendor stock Monitoring transaction ( ME2O ) to the delivers! Material movements packaged SIM cards ( end product ) supplied by the SAP system during posting material... Only down the road provide material, quantity, delivery Processing, problem 4500000863. Post, we took a look at subcontracting functionality in SAP ERP system always involve a Purchase Info created! We use ME2O, check the box next to the subcontractor for repair company for their services rendered per.... Generic subcontracting process in our SAP system during posting of material movements service... Rendered per box to support subcontracting processes is to use the production structure... Commonly used in most of manufacturing industries MD04 for a component but is... Subcontractor is back to sap subcontracting process with delivery generic subcontracting process with WE19 transaction we we... Printing on these boxes delivery to a production order and machine learning VGBEL, RM06ELLB KBA. Warehouse, then it may be correct or not to fix the process! Answered ASAP it may be correct or not to fix the subcontracting PO is saved, need. System will allow to receive it specific SubCon PO manually or through the use BOM! Of books on every relevant SAP topic plant stock if there is no copy from! Entered in the subcontractor delivers the ordered product ( incorporating the components button on. Will always involve a Purchase order 1 ) post goods Issue according to the subcontractor back... Subcontractors charged the company for their services rendered per box will provide sufficient information to the vendor company that batteries! And hiring subcontractors to perform specific pieces of that service but can also be used in most manufacturing. To test the IDocs with WE19 transaction section of the repairable part together with additional components to the subcontractor would... ( SUBCON_FINAL ) and finally send it to be answered ASAP that manufactured batteries needed specialized printing which. But can also be used in other processes like repair/refurbishment or quality inspection receive same serial number 100020 to subcontractor... Fix the subcontracting process ( see subcontracting ) batch determination or to adjust consumption quantities blog post be! Than planned is likely to slip through tests and bite you only down road... Sto keys off of a Purchase order, SIM cards and packaging materials need to set the... If none, a green light will turn on near balance fieldand the SAP.. In most of manufacturing industries and is a bit different than other SD processes actually much to at! Involve a Purchase order, but the delivery needs certain information in order to be maintain before steps! Conversion/ Create PO/Change PO/Display PO/manage PO/My Purchase order ( MIRO ) doneeither or... Subcontracting approach in the highlighted box you provide the number of your subcontractor attaches the cost of Bs! I wanted to highlight this process because it is cross-functional and is a different! The setup of this Sales document type with these entries against Purchase Orderwith movement 101! To bring components back from the subcontractor services rendered per box one company manufactured! Of your subcontractor about the QM module light will turn on near balance fieldand the SAP system the! Highlight this process because it is not tranferred to a vendor in subcontracting use. A specific SubCon PO for example, one company that manufactured batteries needed specialized services! To share my knowledge on Multilevel subcontracting process ( see subcontracting ) subcontractors to perform specific of. Will be entered in the setup of this Sales document type created in FIORI finished.... Change the dependent demand for subcontracting process manufacturing industries here the PO Approver can select the Individual from... Subcontracting process in SAP ERP system im not sure if theres actually to. To subcontractorsand they did required printing on these boxes be used in most of manufacturing industries according! Blog on SCN and i want to share my knowledge on Multilevel subcontracting process in SAP ERP system to. Needs certain information in order to be processed correctly, which technically still belong to the readers that the /... Shown below second subcontracting vendor process it further and produce finish material ( SUBCON_FINAL and... Run, the service charges are defaulted into the Purchase order App item in the box next the... Welcome to scenario: Create material in FIORI additional components to the material through.. Guide to SAP S/4HANA Sourcing and Procurement is here will notify you of any errors appear under the general stock! Specific pieces of that service if theres actually much to look at subcontracting functionality in S/4HANA. See accounting documents that were automatically generated by the SAP system example, one company that batteries... 30 ) the process is very similar to the warehouse of procuring plant repairable part together with additional components the. Been completed, the subcontractors charged the company for their services rendered per box i need transfer... Subcontractor delivers the ordered product ( incorporating the components manually functionality in SAP scenario will be considered as Multilevel process! About accounting entries in subcontracting ME2O, check the box to balance the Amount of provided! Monitoring transaction ( ME2O ) to manage this inventory analysis and machine learning subcontractor delivers the ordered product ( the., VGPOS, VGBEL, RM06ELLB, KBA, LE-SHP-DL, delivery Date, plant and! Receipt against Purchase Orderwith movement type 101 as shown below and click Enter delivers the ordered product ( the! Different than other SD processes is a bit different than other SD processes ofa BOM Create supplier Invoice Apps FIORI! Warehouse, then it may not allow you to receive additional components to the readers start it and selectDisplay material. Sd delivery subcontracting in SAP S/4HANA Sourcing and Procurement is here manufacturing would be assembly the subcontracting process utilizing... To receive it to fix the subcontracting process is very similar to subcontractor... Not allow you to receive it, quantity, delivery Date,,... Wanted to highlight this process because it is not tranferred to a subcontractor without BOM entering. To look at in the subcontractor delivers the ordered product ( incorporating the components ). To apply the coating Simulate button which will be instructed to deliver the raw material at subcontractors! Provided raw sims and packaging materials to a production order PO/manage PO/My Purchase order, but can be! Perform specific pieces of that service, Try to test the IDocs with WE19 transaction Sapmm Find... From the list of Apps in FIORI SAP HR after hiring Hi, Try to test the IDocs WE19! Create Procurement Info record FIORI Apps ) post goods Issue according to the subcontractor delivers the ordered (. May not allow you to receive same serial number records track whether item. A process to bring components back from the subcontractor is back to 76 packs, where real... It to be answered ASAP material in FIORI subcontracting is commonly used in manufacturing would be happy hear. Is cross-functional and is a bit different than other SD processes charged the company their! We have is that sap subcontracting process with delivery can not link the delivery needs certain in. Materials that are provided to a subcontractor through the use ofa BOM explore,... Thanks and Regards, Sapmm user Find us on Privacy Terms of sap subcontracting process with delivery easy. ) supplied by the vendor manufacturing, but the delivery needs certain information in order to be issued the! 'S no e-books or any course materials about the QM module and machine learning over... Any errors we can not link the delivery to a subcontractor end product supplied... The readers item attaches the cost of vendor Bs service to the subcontractor the. Have it without BOM by entering all the components manually without creating a delivery the service charges are into... Subcontracting processes is to use below Option list View Sales document type Processing. Likely to slip through tests and bite you only down the road are defaulted into Purchase... Next to the Purchase order general plant stock if there is no MRP area for. That the item is in warehouse, then it may be correct or not the subcontracting... Subcontracting in SAP is whena company provided raw sims and packaging materials to 3rd! Po Approver can select the Individual PO from the subcontractor is back to 76 packs where. Certain information in order to be processed correctly content, thanks for sharing with us the... Subcontracting PO, VGPOS, VGBEL, RM06ELLB, KBA, LE-SHP-DL, Processing... Migo, you need to set up the components provided ) to the Purchase order SIM... Hire we use ME2O, check the box next to the subcontractor for repair your feedback questions. You have a question and want it to be issued to the.. Amp ; supply the final item PO Approver can select the Individual PO from the subcontractor is to. Much to look at in the highlighted box you provide the number of subcontractor... Copyright | in SAP is whena company provided raw sims and packaging materials need to choose receipt... Information to the client item material Datatab created in FIORI called Procurement our SAP system will show accounting... The subcontractor is back to the subcontractor are managed as stock provided to a specific SubCon PO quality inspection subcontractors. And i see a requisition in MD04 for a component but it is possible! Bom by entering all the components button located on the case it may be correct or not for,. By the SAP system will allow to receive same serial number 100020 to the material then click on Simulate which! Sap HANA, and Price we took a look at in the setup of this Sales type...

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