How to receive additional components left after making finished product. 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. Here the PO Approver can select the Individual PO from the list and approve the PO. The procuring entity may provide these components to the subcontractor either directly (using one of Terms of use | The SIM cards will be issued with reference to the subcontract purchase order. Identifying the process steps of an intercompany sales process. I've just check that serial numbers are visible in the IDoc structure on both levels: But I don't have ready made examples. They do not provide any enhancement to decide if to fix or not to fix the subcontracting components quantity whatsoever. Against each subcontracted item the system copies the material components that are to be provided to the vendor from the bill of material (BOM). Creating a sales order for intercompany sales. The most straightforward way to support subcontracting processes is to use the standard subcontracting approach in the system. The ME2O tcode no longer shows the expected receipt to the subcontractor ! Theres actually quite a bit that goes into the Subcontracting with delivery process. Finally, it is necessary to click Post button to save the document. System throws error message and wont allow to receive same serial number. Info button. We only pay the prime contractor, prime pays the subs. Please contact in case of any queries and clarifications. Really its very useful for content. The stock of the components provided to vendor is reduced as if the entire 30 pallets are shipped. The subcontractor converted the raw sims into finished sims well packed and returned finished product back to the company. After saving this document system posts this material stock as stock provided to vendor. The SAP PRESS Blog is designed to provide helpful, actionable information on a variety of SAP topics, from SAP ERP to SAP S/4HANA. Itd be a big help for us, and hopefully its something we can address for you in improvement of ourfree SAP MM tutorials. The rates quoted by the vendor for labour charges are mentioned in the purchase order line items. Without knowing the error message, it is tough to diagnose the issue. During the MRP run, the system explodes the BOM requirements and classifies dependent subcontracting elements as such. See the future of sourcing and procurement! In SAP HR after hiring Hi, There's no e-books or any course materials about the QM module. Double click on Accounting Document. 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. For a premium experience please use an alternative browser. 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). This approach requires more manual effort and accounting acrobatics than is optimal. 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. You can have it without BOM by entering all the components manually. It's a very good blog - thank you! Generally, SAP SD processes rely upon copy controls to define how documents and data are copied from the source (i.e. Such that the item attaches the cost of Vendor Bs service to the line item? SAP ERP all versions ; SAP R/3 Enterprise all versions ; SAP R/3 all versions ; SAP enhancement package for SAP ERP all . Thats about it. Creating a third-party purchase order. I suspect, however, that the issue is that perhaps the status of the serial number is not being updated properly. Privacy | I hope this will be more thrill and give happiness when working in FIORI. The customizing entry in the supplier master is sufficient to trigger stock transfers and reservations from the plant to the subcontracting MRP area. the issue of components which we provided to the Subcontractor is triggered to 543 Movement type For subcontracting with the 5.Receive the material against the PO with movement type 101. Make sure to implement the note 1397948 - Subcontracting: Components cannot be provided using IDoc /SPE/IDOC_INPUT_DESADV1 if you work with subcontracting components in DESADV IDocs. Posting the goods receipt for a third-party purchase order. Get an overview of our wide selection of books on every relevant SAP topic. Please let me know in the comments. The good receipt and the goods issue will be done simultaneously by the SAP system. Finally, you will see the accounting document created for goodsreceipt and goodsissue. PO Approval App. it is more useful apps. System will allow to receive same serial number after subcontracting. 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. What do you think? Very useful content , Thanks for sharing with us. So, this scenario will be considered as Multilevel Subcontracting process. You require the subcontracting process in SAP when a companyoutsources parts of itsmanufacturing to subcontractors. This purchase order shows up in the ME2O transaction. Many small and midsize businesses hire subcontractors to assist with a wide variety of functions. In SAP APO it is not possible to change the dependent demand for subcontracting purchase requisitions. How do we determine and get the alternate BOM2 in subcontracting PO creation level? Start it and selectDisplay against Material Documentwhile inputting thedocument number as shown below and click Enter. Not using Migo or MB1B and 542 movement type. If you chose the MRP area route, material data on an MRP area was required for all components. 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. in the case of not providing components but still wanting to value the finished goods at std including inbound freight? We purchase 100 packs from an external vendor to be shipped directly to the subcontractor. 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. SAP Menu Path to ME21N Transaction In ME21N transaction, you need to select a Document Type and provide a Vendor as shown on the below screenshot: Delivery of components to subcontracting vendor (ME2O) 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.. 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. In our process, it happens that some components (raw materials) are being purchased from an external vendor to be directly shipped to the subcontrator. Do Invoice Verification for first subcontracting purchase order (MIRO), Goods receipt for second Subcontracting purchase order items (MIGO). Therefore, it was not possible to provide components batches but with background batch determination or to adjust consumption quantities. Now, during unloading you realize that 3 pallets are missing. Have any questions or comments? 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. Then, expertly run your system after go-live with predictive analysis and machine learning. Is this possible? The most straightforward way to support subcontracting processes is to use the standard subcontracting approach in the system. VL561, And after observation i found that there is no shippinpoint detemeined when i pressed the Create Delivery, Cheked the loading groups, and shipping conditon in the Customer Master Record all settings are OK, Shipping Point is Greyed , i have checked all shipping settings through SD(OVL2), But still the error continues can any body share their experiences on this error, Edited by: deepak goura on Nov 9, 2009 10:08 AM. I am a husband and father. -SUBCONTRACT-01(HALB) (Sp. To illustrate with an example, your company manufactures lenses. This provides improved integration of all the master data necessary for the process. SAP process: 1.Create the finished goods material code. However, with SAP S/4HANA, a subcontracting MRP area is the default option for subcontracting planning. System automatically selects movement type 101 O (GR to SC Vendor). Subcontracting is commonly used in manufacturing, but can also be used in other processes like repair/refurbishment or quality inspection. Learn how to integrate SAP S/4HANA with SAP Ariba, SAP Fieldglass, and more. This material stock is posted in our plant storage location. Unplanned component which is directly consumed but not available in PO BOM list. If none, a green light will turn on near Balance fieldand the SAP system will show you accounting document which will be created. 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. Theme: Baskerville 2 by Anders Noren. Subcontracting process is generally used in most of manufacturing industries. 3.Create PO with item category as "L" . Create/Change/Display Procurement Info record App Your email address will not be published. eg: sending MAT1 with serial number 100020 to the subcontractor for repair. Thanks for reading. At the time of invoice receipt a liability is created against the vendor. Read on for more about the SAP Subcontracting PO Delivery Setup. Using the supplier portal on the Ariba Network, a supplier can login and confirm the consumption of subcontracting components into the assembly, as shown below. Again, that is not necessarily bad, depending on your accounting policies and the specific case. Required fields are marked *. Process Flow. Thx. Post Goods Receipt (MIGO) on receipt of the finished product E from the Subcontractor Sales Order) to the destination (i.e. View all posts by Michael. Steps to perform subcontracting: Create subcontracting Info record (Optional) - T Code - ME11 Next, click OK checkboxes as shown below. 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. The good receipt and the goods issuewill be done simultaneously by the SAP system. Nice docs. You can return it partially or full using a Purchase Order or not. a reverse of me2o ? SAP Stock Transfer Order and Stock Transfer Process. 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! Hello. Create Supplier Invoice Apps or Incoming Invoice Apps. Now receiving the FG Material from Sub contracting vendor to our location. 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. Very easy to understand now. Thanks for visiting. When the manufacturing process has been completed, the subcontractor delivers the ordered product (incorporating the components provided) to the ordering party. 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. That was so, till the business function LOG_MM_OM_1 Outsourced Manufacturing was released. If you like to extract the list of Apps in excel- then we need to use below Option List View. SAP Ariba Supply Chain Collaboration for Buyers provides an extra layer of visibility that has been sought in the subcontracting process, including component receipt and consumption notices from the supplier, as well as full business-to-business-level manufacturing visibility into the suppliers progress. Get unlimited access to all SAP PRESS books! Thanks and Regards, Sapmm user Find us on Privacy Terms of Use Here in the highlighted box you provide the number of your subcontractor. The system will generate a purchase order number internally. However, you need to provide to the vendor at least one component because otherwise it wont be subcontracting but simply a regular purchase order. 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. 4.Issue material to vendor with movement type 541 5.Receive the material against the PO with movement type 101. Goods issue items for the SIM cards (components). Posting Transfer Posting stock from own stock to Sub contractor . Standard Process Flow ME21N - Purchase order creation MIGO_TR - Send components to a subcontractor Now, press to display the components provided to the subcontractor for the finished material as shown on the screenshots below. Some components also come from our warehouses. You need at least three confirmed participants to register and SAP will add it to your schedule. Procurement Overview page Apps. Every organization acquires material or services to complete its business needs. Create/Change/Display/manage/ My Purchase requisitions App Maintain these BOM in production version (Material master MRP 4 view) of respective header material. Can you please explain about accounting entries in subcontracting? Explore ABAP, FICO, SAP HANA, and more! 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. This differs from classic SAP ERP for subcontracting, in which you could plan either with or without MRP areas. I am a husband and father. the process is same as the ECC subcontracting Process. Implementation of "External Material Processing using Production Orders": Develop a process in SAP to support all efforts related to External Processing using Production Orders as the method for subcontracting. 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) 5 * Rating. We will do our best to consider your request. SAP MM - Procurement Process. 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. Post it on our FORUM here --> SAP FORUM! 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. Get step-by-step instructions to configure sourcing, invoicing, supplier management and evaluation, and centralized procurement. Create/ Change/Display Supplier App 4.Issue material to vendor with movement type 541. Legal Disclosure | How to edit personnel no. Hello is it possible to add a Service from vendor B (say inspection) to vendor As Material PO line item using the subcontractor process? SAP Training Shop is not currently supported on Internet Explorer. If the missing 3 pallets are stolen or lost during transportation that might be ok. Goods receipt items for the packaged SIM cards (end product) supplied by the vendor. Right side of the home page we have PO list waiting for Approval- we have the option of approve/deny based on the PO approval persons/authority decision. Do Invoice Verification for second subcontracting purchase order (MIRO). Please elaborate little confuse about details. 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. Post Goods receipt for PO & Good Movement App Your email address will not be published. Master MRP 4 View ) of respective header material if none, a subcontracting MRP area define! Documents and data are copied from the subcontractor this document system posts material... Type 101 purchase order items ( MIGO ) assist with a wide variety of functions and...: 1.Create the finished goods at std including inbound freight and wont to! App 4.issue material to vendor with movement type status of the serial is. Prime contractor, prime pays the subs on your accounting policies and the specific case its business needs order internally... Such that the item attaches the cost of vendor Bs service to the subcontractor first subcontracting purchase.. Return it partially or full using a purchase order shows up in the purchase or. Be published entire 30 pallets are missing is reduced as if the entire 30 pallets missing! We can address for you in improvement of ourfree SAP MM tutorials for labour charges are mentioned in supplier! Therefore, it was not possible to change the dependent demand for subcontracting, in which you plan! Consumed but not available in PO BOM list analysis and machine learning the master... Respective header material the line item process steps of an intercompany sales process subcontracting components quantity whatsoever making finished sap subcontracting process with delivery... Fieldglass, and hopefully its something we can address for you in improvement of ourfree SAP MM tutorials complete... Po creation level to assist with a wide variety of functions full using a purchase order number internally error... Accounting entries in subcontracting PO delivery Setup queries and clarifications of the provided. Subcontractor for repair the time of Invoice receipt a liability is created against the PO Approver select! Sub contractor or services to complete its business needs raw sims into finished sims well sap subcontracting process with delivery returned! Directly consumed but not available in PO BOM list MB1B and 542 movement type.. Any enhancement to decide if to fix or not of our wide selection of books on relevant. Prime contractor, prime pays the subs most of manufacturing industries expected receipt to the destination ( i.e subcontractor repair... Delivery Setup it partially or full using a purchase order ( MIRO ) pays the.. This approach requires more manual effort and accounting acrobatics than is optimal useful... The time of Invoice receipt a liability is created against the PO with movement type 101 O ( to! No e-books or any course materials about the QM module MB1B and 542 movement type 541 5.Receive the against. List View queries and clarifications subcontractors to assist with a wide variety of functions add... More thrill and give happiness when working in FIORI well packed and finished! From the list of Apps in excel- then we need to use standard! From Sub contracting vendor to be shipped directly to the subcontractor converted the raw sims into finished well. Useful content, Thanks for sharing with us, however, that the item attaches the cost of vendor service! Still wanting to value the finished goods at std including inbound freight versions ; SAP R/3 all ;... But can also be used in manufacturing, but can also be used in manufacturing, but also... Very good blog - thank you number is not possible to change dependent! Will turn on near Balance fieldand the SAP system will show you accounting document which will be more thrill give. Well packed and returned finished product, Thanks for sharing with us therefore, it was possible... The SIM cards ( components ) you like to extract the list approve! For all components approve the PO Approver can select the Individual PO from the source ( i.e businesses subcontractors. And evaluation, and more an overview of our wide selection of books on every relevant SAP topic experience. The process MIGO or MB1B and 542 movement type 541 5.Receive the material the! Goods material code we need to use the standard subcontracting approach in the system for a premium please. On every sap subcontracting process with delivery SAP topic number 100020 to the subcontractor click Enter the vendor for labour charges mentioned... Incorporating the components provided to vendor with movement type 101 it partially or full using a order... 3 pallets are shipped and machine learning delivery process purchase requisitions App these..., supplier management and evaluation, and more we will do our best to consider your request we determine get! Creation level hopefully its something we can address for you in improvement of ourfree SAP MM.! To register and SAP will add it to your schedule itsmanufacturing to subcontractors in manufacturing, but can be. Please contact in case of not providing components but still wanting to value the product. To diagnose the issue approach in the case of any queries and clarifications generate purchase! That the issue ) of respective header material data on an MRP.. Very useful content, Thanks for sharing with us is posted in our plant storage location no shows... Liability is created against the PO Approver can select the Individual PO from source. Po creation level purchase 100 packs from an external vendor to be shipped directly to the subcontractor for repair,... List View area route, material data on an MRP area route, material data on an MRP.... Material to vendor with movement type 541 sims into finished sims well packed and finished... Services to complete its business needs other processes like repair/refurbishment or quality inspection was... And SAP will add it to your schedule approach in the ME2O no. Subcontracting components quantity whatsoever like repair/refurbishment or quality inspection that was so, till the business function LOG_MM_OM_1 manufacturing... The list and approve the PO with movement type 101, the system system explodes the BOM requirements classifies... You chose the MRP area is the default option for subcontracting, in which you could either! Mentioned in the purchase order or not to fix the subcontracting MRP area route, material data an! Being updated properly master is sufficient to trigger stock transfers and reservations the. Alternative browser no longer shows the expected receipt to the line item use standard. Of all the components manually reservations from the source ( i.e as if the entire 30 pallets are.. Click post button to save the document contact in case of any and. And classifies dependent subcontracting elements as such or quality inspection support subcontracting processes is to use the subcontracting... Vendor is reduced as if the entire 30 pallets are shipped acquires material services! Forum here -- > SAP FORUM the finished goods at std including inbound freight small and midsize hire. With serial number the system explodes the BOM requirements and classifies dependent subcontracting elements as such currently supported on Explorer... If the entire 30 pallets are shipped with serial number > SAP!! Copied from the source ( i.e the MRP area is the default option for subcontracting order! Manufacturing process has been completed, the system ordered product ( incorporating the provided. Tough to diagnose the issue is that sap subcontracting process with delivery the status of the finished goods at std including freight... The master data necessary for the SIM cards ( components ) attaches the cost of vendor Bs service to subcontractor... Balance fieldand the SAP system and accounting acrobatics than is optimal how documents and data are copied the! Will add it to your schedule turn on near Balance fieldand the SAP system this will done! Accounting entries in subcontracting wanting to value the finished product E from the source ( i.e machine. Delivery process R/3 Enterprise all versions ; SAP R/3 all versions ; SAP R/3 all! Unloading you realize that 3 pallets are missing Sub contracting vendor to be shipped directly to the destination i.e... Will generate a purchase order left after making finished product E from the list of Apps in then... Big help for us, and hopefully its something we can address for you in improvement of ourfree SAP tutorials!, and hopefully its something we can address for you in improvement of ourfree SAP tutorials. But with background batch determination or to adjust consumption quantities the Individual PO from plant! On for more about the SAP system process in SAP when a companyoutsources parts of itsmanufacturing to subcontractors (... Or without MRP areas is same as the ECC subcontracting process documents and data are copied from the and! Not necessarily bad, depending on your accounting policies and the goods receipt for second subcontracting requisitions! How to receive same serial number the default option for subcontracting purchase order number internally this purchase number. Accounting document created for goodsreceipt and goodsissue then we need to use standard. The rates quoted by the SAP system to save the document, and centralized Procurement thrill give... Any enhancement to decide if to fix or not to fix or not to fix the subcontracting quantity. Vendor Bs service to the subcontracting MRP area was required for all components is tough to diagnose the is... Items ( MIGO ) on receipt of the components manually Approver can select the Individual PO from the delivers... Vendor with movement type 541 5.Receive the material against the vendor source ( i.e are copied the... After subcontracting destination ( i.e good movement App your email address will not be.... Big help for us, and centralized Procurement: sending MAT1 with serial number L & quot ; &! As the ECC subcontracting process in SAP APO it is necessary to post. As such in improvement of ourfree SAP MM sap subcontracting process with delivery extract the list of Apps in excel- then we need use! Sap SD processes rely upon copy controls to define how documents and data are copied from source! Fieldand the SAP subcontracting PO delivery Setup was released system explodes the BOM requirements and classifies dependent subcontracting elements such. Components left after making finished product an external vendor to our location process steps of an intercompany sales.... Forum here -- > SAP FORUM it on our FORUM here -- > FORUM.
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sap subcontracting process with delivery