How to manage serialized material for subcontracting repair? Have you had to do much with your default SAP STO Delivery Setup configuration? Subcontracting in SAP APO is modeled with the help of two orders. This is possible with or without creating a delivery. If you elected to plan without MRP areas, you werent able to use the full functionality around lot sizing and were only able to order full lot sizes. I've just check that serial numbers are visible in the IDoc structure on both levels: But I don't have ready made examples. Now, during unloading you realize that 3 pallets are missing. Im a career-long IT specialist with a focus on SAP for over 18 years. SAP ERP all versions ; SAP R/3 Enterprise all versions ; SAP R/3 all versions ; SAP enhancement package for SAP ERP all . Option- 2 User without login to each and every Individual PO -he/she can approve directly form FIORI Home page -Inbox part. We will do our best to consider your request. 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. SAP MM - Procurement Process. Thanks for your reply. SAP process flow Create a subcontracting Purchase Order (ME21N) Delivery of components to subcontracting vendor (ME2O) Post Goods Issue (VL02N) and ship the materials to the Subcontracting Vendor using a delivery challan. 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. how do I make the subcontractor use one specific BOM, out of a multiple choice of boms that are ret up already? Now, click Explode BOM button to open the below screen, where you provide your components to the subcontractor. Thanks for the question, Kumar. Please let me know in the comments. This material stock is posted in our plant storage location. Sound off in the comments. 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. It brought: Subcontracting Components in Inbound Deliveries. You order the end product using a subcontract order. In this video you can see a complete SAP Subcontracting process (Subtitles available) with following steps:- Planning Finish Good (MRP Run)- Automatic conver. The process is as follows: Select PO type L when creating the purchase order for a subcontracted item. The system proposes the labor charge from the info record for the subcontracting product. What do you think? However, with SAP S/4HANA, a subcontracting MRP area is the default option for subcontracting planning. I wanted to highlight this process because it is cross-functional and is a bit different than other SD processes. As mentioned previously, the STO keys off of a Purchase Order. (here material and components are MAT1 only). Thanks for reading. The components are posted to the stock of materials provided to the vendor. 2.Maintain the BOM for the material. When we hire
Once again thanks a lot for all your efforts. How to edit personnel no. 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 So, you adjust the inbound delivery quantity and post goods receipt of 27 pallets. Lets start with discussing the steps that are involved in the subcontracting process in SAP. The good receipt and the goods issue will be done simultaneously by the SAP system. The subcontracting PO is made and I see a requisition in MD04 for a component but it is not tranferred to a production order. 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. I hope this will be more thrill and give happiness when working in FIORI. Also how to reverse the Cenvat Credit.And how cmplete/reconcile the challan. Posting an incoming supplier invoice. Create/Change/Display Bill of material (BOM) App 4) In the item detail tab,Material data click on components and Explode BOM 2, Goods receipt for first subcontracting purchase order items (MIGO), 1) This is generally done when SC Vendor-01 has sent confirmation of sending the goods to SC Vendor-02, As we have maintain delivery address of SC Vendor-02 in the delivery tab of first purchase order. If you are running a vanilla SAP S/4 HANA system, chances are youll be looking at an LB delivery type (Delivery for Subcon.). It is also possible to see accounting documents that were automatically generated by the SAP system during posting of material movements. A planned order in the subcontractor location produces the material in that location and a stock transfer requisition transfers the material from the subcontractor location to the demand location. Proc 30) ME2O, Subcontracting PO, VGPOS, VGBEL, RM06ELLB , KBA , LE-SHP-DL , Delivery Processing , Problem. | The provision is a transfer posting from the unrestricted use stock to the stock of material provided to a vendor. A good explanation of Subcontracting process for 2 level. 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. 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. Thats about it. Steps to perform subcontracting: Create subcontracting Info record (Optional) - T Code - ME11 We would be happy to hear your feedback or questions. Finally, you save the subcontracting purchase order. This often is used as justification by finance and other stakeholders on the buyer side for setting up phantom plants to represent the supplier and then moving and tracking the materials in these plants. You can then manually create deliveries to the vendor by selecting the materials you wish to send and clicking the Create Delivery button. 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. 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. Great blog. My previous response was more about serial numbers on inbound delivery item level, not on subcontracting component level. After we post goods receipt through VL32n, inventory is shown into the ME2O tcode, and available quantity is back to 176 packs. If the material is already available in the client own stock, it will be issued from the unrestricted use stock to the vendor. Maintain subcontracting MRP areas for all subcontracting suppliers requiring provision stocks to be planned separately from requirements. 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. The outside person or company in this arrangement is known as a subcontractor. Its being processed by subcontracting vendor, convert it to semi-finish material and deliver back. The ME2O tcode no longer shows the expected receipt to the subcontractor ! Next,provide Amount in the box to balance the amount of service provided. Create/Change/ Display material App 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. In previous versions of SAP ERP, component materials to be provided to the subcontractor could be planned as a separate stock. Sub contracting Info Record Created in FIORI. Tracking the materials and valuations, which technically still belong to the buying organization, becomes difficult using the standard process. 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. Not the perfect solution but better than nothing. Available quantity at the subcontractor is back to 76 packs, where the real information is 176 packs. Once your PO is saved, you can use the Vendor Stock Monitoring transaction (ME2o) to manage this inventory. 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. its plants), or indirectly (using another of its suppliers). Theme: Baskerville 2 by Anders Noren. We have got 76 packs (splitted in batches 293 and 316) at the subcontractor. 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. 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. 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. If a purchase info record has been maintained, the service charges are defaulted into the purchase order. Some components also come from our warehouses. Subcontracting is a critical process for many organizations, and from an SD consultants perspective its quite unique. Get unlimited access to all SAP PRESS books! I am a husband and father. The subcontractors charged the company for their services rendered per box. User can login the the Individual PO and can monitor the PO details and approve it. You create a subcontract order, following the standard procedure. 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. You create a delivery for the lenses to be shipped to your vendor. Thanks a lot. For a premium experience please use an alternative browser. I'm a career-long IT specialist with a focus on SAP for over 18 years. Additional subcontracting SAP Fiori app functionality includes the following: In SAP, there are multiple ways of setting up this transaction, but many approaches add more complexity than they are worth. 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. SAP Stock Transfer Order and Stock Transfer Process. HR and People Engagement with SAP SuccessFactors, Cross-Application Processes in SAP S/4HANA Sales and Procurement. Against each subcontracted item the system copies the material components that are to be provided to the vendor from the bill of material (BOM). Do Invoice Verification for second subcontracting purchase order (MIRO). 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. Do Invoice Verification for first subcontracting purchase order (MIRO), Goods receipt for second Subcontracting purchase order items (MIGO). I can not see the images Any idea why or how could I see them? Start it and selectDisplay against Material Documentwhile inputting thedocument number as shown below and click Enter. Are involved in the client own stock, it will be more thrill and give happiness when in! 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