In SAP HR after hiring Hi, There's no e-books or any course materials about the QM module. (ls_comp-fmeng = abap_true). Help. In subcontracting process, raw materials are provided to subcontracting vendor. The Latest ERP from SAP. If you chose the MRP area route, material data on an MRP area was required for all components. 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. Very useful content , Thanks for sharing with us. Create/Change/ Display material App However, there is no copy control from an STO PO to an SD Delivery. ME2O after purchasing and before inbound delivery creation. Option- 2 User without login to each and every Individual PO -he/she can approve directly form FIORI Home page -Inbox part. We have FIORI App -UI home page and here seeing the Tiles of FIORI apps related to Procurement. 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. Learn how to integrate SAP S/4HANA with SAP Ariba, SAP Fieldglass, and more. Depending on the case it may be correct or not. As explained above, this is mostly for determining things like copy control and to help determine item categories. The vendor will be billed only for items delivered. 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. 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. The vendor charges for his or her service. Imagine the following, quite typical scenario. This is possible with or without creating a delivery. Thanks and Regards, Sapmm user Find us on Privacy Terms of Use PR approval App HR and People Engagement with SAP SuccessFactors, Cross-Application Processes in SAP S/4HANA Sales and Procurement. To do it, click on Doc. Now receiving the FG Material from Sub contracting vendor to our location. The components that the vendor needs to manufacture the end product are specified in the subcontract order. Lets take a closer look at the handoff from Purchasing to the SD Delivery. Did you like this SAP MM tutorial? Posting the goods receipt for a third-party purchase order. Unfortunately they did not. In SAP Advanced Planning and Optimization (SAP APO), you can plan the subcontracting process in Production Planning and Detailed Scheduling (PP/DS) and in Supply Network Planning (SNP). Account Assignment and Item Category are usually blank in a subcontracting PO. Create/Change/Display/manage/ My Purchase requisitions App The labor charge is JPY 2,000 per piece. The process uses what you could call a Dummy Sales Document Type. I'm looking forward for the next ones , Thanks for sharing. The invoice is posted. In MIGO, use Transfer Posting document type against Other, and movement type 541 as highlighted on the screenshot below. How to edit personnel no. Please keep posting the knowledge. . The ME2O tcode no longer shows the expected receipt to the subcontractor ! I've been blogging about SAP and various other interests since 2013. SAP PRESS is the world's leading SAP publisher, with books on ABAP, SAP S/4HANA, SAP CX, intelligent technologies, SAP Business Technology Platform, and more! 2.Maintain the BOM for the material. I've just check that serial numbers are visible in the IDoc structure on both levels: But I don't have ready made examples. Terms of use | Inbound processing is therefore more efficient since manual batch entry tasks are removed. 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. PO Items relevant for Subcontracting will need an Item Category of L for Subcontracting. If the missing 3 pallets are stolen or lost during transportation that might be ok. Also it might be quite hard to spot at the first glance. Hit enter to search. Post Goods receipt for PO & Good Movement App PR creation through FIORI Apps- Create PR apps. 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. eg: sending MAT1 with serial number 100020 to the subcontractor for repair. The customizing entry in the supplier master is sufficient to trigger stock transfers and reservations from the plant to the subcontracting MRP area. Process flow of basic subcontracting process with deliveries 1 - ME21N - Making Subcontracting Purchase Orders In order to create a subcontracting purchase order it is necessary to choose an item type 'Subcontracting': 'L' as highlighted in the screen below. Required fields are marked *. Can you explain how to do this process without BOM?? This material stock is posted in our plant storage location. Read on for more about the SAP Subcontracting PO Delivery Setup. We are currently setting up the subcontracting process in our SAP system. We are sending and receiving same material and same serial numbers. 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. 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. In MIGO, you need to choose Goods Receipt against Purchase Orderwith movement type 101 as shown below. You cannot change the transfer Procurement Info record created in FIORI using Create Procurement Info record FIORI Apps. If the serial number is in warehouse, then it may not allow you to receive it. The objective is to eliminate the subcontracting practice currently used in the current process. It can also be done through via MIGO transaction. You order the end product using a subcontract order. In this course, participants will become familiar with the feautures and functionality provided for selected cross-application business processes in SAP S/4HANA Sales and Procurement. Just wanted to make sure, do we need to maintain the Bill to party and Ship to party for this? It is likely to slip through tests and bite you only down the road. 2) Keep delivery address to plant as by default. Posting an incoming supplier invoice. The process of buying materials and obtaining services from vendors or dealers is called procurement. The process is very similar to the generic subcontracting process (see Subcontracting ). 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. 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. Create Subcontracting vendor in FIORI. My question is , already we issued raw materials to vendor with 541 Movement type, why again 543? This differs from classic SAP ERP for subcontracting, in which you could plan either with or without MRP areas. 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). 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. The SIM cards supplier will be instructed to deliver the raw material at the subcontractors premises. Im a career-long IT specialist with a focus on SAP for over 18 years. Please note the movement types used: 101 for Goods Receipt and 543 for Issue of Components. How to receive additional components left after making finished product. To upgrade MRP subcontracting processes in SAP ERP to SAP S/4HANA, you need to take stock of your existing subcontracting suppliers and processes and identify any gaps, execute a standard upgrade to SAP S/4HANA, and then at post-processing proceed as follows: The standard subcontracting process in SAP entails a leap of faith to a degree, which some MRP controllers and their ilk are unwilling to make. During the MRP run, the system explodes the BOM requirements and classifies dependent subcontracting elements as such. 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. These two options are now combined into one driven by MRP areas, but it doesnt require material data on all components and can support full-lot sizing and sourcing functionality. Get unlimited access to all SAP PRESS books! Proc 30). For example, assume you create a subcontract order for the assembly of 10 engines. In general terms, subcontracting is the outsourcing ofsomeprocess to an external vendor. 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) . They are summarized below: A material BOM needs to be created before any subcontracting order can be placed. Click on Simulate button which will notify you of any errors. Nice explanation, Can you please explain the scenario of Over and Underconsumption of the Materials in case of Subcontracting with relevant screenshots. 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. Its being processed by subcontracting vendor, convert it to semi-finish material and deliver back. The components are posted to the stock of materials provided to the vendor. What is S/4HANA? So, you adjust the inbound delivery quantity and post goods receipt of 27 pallets. Now, lets display thedocument that we have just created. Lets start with discussing the steps that are involved in the subcontracting process in SAP. I'm a career-long IT specialist with a focus on SAP for over 18 years. Conclusion:This article explained the process scenario of Multilevel Subcontracting Process in SAP Procurement. Subcontracting is one of the procurement processes available in MM. Im going to highlight the standard configuration as it exists within a standard S/4 HANA system. Again, that is not necessarily bad, depending on your accounting policies and the specific case. 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. 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. I believe the serial number records track whether the item is in warehouse or somewhere else. Next, click OK checkboxes as shown below. 543 movement is use for reconciliation with vendor account- if we do not do 543 movement, Material stock always showing at vendor end in SAP system and it effects in MRP also- at the time of MRP run all components will consider, so its necessary to consume material from vendor location at the tome of subcontract GRN. Use | Inbound processing is therefore more efficient since manual batch entry tasks are removed since 2013 the in. Help determine item categories subcontract order subcontract order for the assembly of 10 engines dependent subcontracting elements such., lets Display thedocument that we have just created STO PO to an vendor. The Transfer Procurement Info record created in FIORI using Create Procurement Info created. Be instructed to deliver the raw material at the subcontractors premises the outsourcing to! Have just created is not necessarily bad, depending on your accounting policies the! 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