In a typical subcontracting process, a manufacturing company provides raw materials / components (say material A and B) to a subcontracting vendor. The vendor in turn processes these materials to turn them into an end product (say material C). This product (if not a finished product) is then used by the manufacturing company to carry out the rest of the operations to turn it into a finished product.
Standard SAP supports this process. To achieve this, a subcontracting purchase order for material C is created. Material A and B which constitute the Bill of Material (BOM) of material C are then delivered to the subcontracting vendor. Finally a Goods Receipt is posted when material C is received from the vendor.
SAP process flow:
1. 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.
- Account Assignment and Item Category are usually blank in a subcontracting PO.
- Enter selection parameters like vendor and plant and click on Execute.
- Select the desired line, click on Create Delivery and a delivery will be created.
- The movement type is usually 541.
5. Logistics Invoice Verification (MIRO)
Master Data Setting:
1. Material Master (MM01)
- Maintain special procurement key for subcontracting in MRP 2 view.
- If a material needs to be returned by the vendor after the subcontracting process is complete, it should be entered as a negative quantity in the Bill of Material (BOM).
1. A material can be sent for subcontracting at any stage in the manufacturing process
2. Material to be received after subcontracting should have a different material code, than the components issued.
3. Routing can be used for external processing but not subcontracting.
4. MIGO – Transfer Posting (Mvt type 542) can be used to transfer scrap component back to the manufacturing location.
53 comments:
very comprehensive & precise
item category will be blank for sub-con PO ????
Item category should be L for subcontracting PO
Yes Item Category is L for subcontracting
PO subcont there are 2 different vendors and different PO, when PO subcont received whether the status of the stock in a separate in TCODE MMBE ?
thank you
NICE DOCUMENT FOR UNDERSTNING
thank you
What about the transaction key...?
Can anybody tell that T.keys
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where the account postings will be ?
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MRP Views in Material Master SAP
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