sap subcontracting process with delivery
Unplanned component which is directly consumed but not available in PO BOM list. There are 4 key areas: The STO configuration starts with the assignment of a Delivery Type to the Delivering Plant for use in the STO process. 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. Be aware of this nuance when implementing electronic communication of inbound deliveries in subcontracting scenarios. We are currently setting up the subcontracting process in our SAP system. (ls_comp-fmeng = abap_true). Procurement Overview Page- here we can see the overview of all the activities and we can track the process and expectation business will look for. Post Goods receipt for PO & Good Movement App Such that the item attaches the cost of Vendor Bs service to the line item? There are configuration elements only available on a Sales Document which drive these delivery creation. 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. Posting an incoming supplier invoice. 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. I am a husband and father. 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. Upon issuing a subcontracting PO and shipping out the components to the supplier, the buyer doesnt technically receive updates on the production of the order until the final product or subassembly with the components is shipped back from the supplier to the buyer. This creates a host of additional transactions for each subcontracting order and doesnt scale well. 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. The components that the vendor needs to manufacture the end product are specified in the subcontract order. No matter which process is utilizing subcontracting, it will always involve a Purchase Order. Read on for more about the SAP Subcontracting PO Delivery Setup. 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. The system will open a window with the list of documents in accounting. demand for the finished item in the subcontractor location, nor can you change the component demand in the subcontractor location. How I need to set up the process and BOM? You can return it partially or full using a Purchase Order or not. Nice docs. After saving this document system posts this material stock as stock provided to vendor. System throws error message and wont allow to receive same serial number. Please let me know in the comments. 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. Available quantity at the subcontractor is back to 76 packs, where the real information is 176 packs. Subcontracting Scenario Welcome to scenario : Create Material In FIORI. Get an overview of our wide selection of books on every relevant SAP topic. Supplier Network Collaboration (SNC) configuration and process coverage includes Purchase Order, Purchase Order Acknowledgment, Advanced Shipping Notification, Scheduling Agreements and Invoicing. However, with SAP S/4HANA, a subcontracting MRP area is the default option for subcontracting planning. ME2O, Subcontracting PO, VGPOS, VGBEL, RM06ELLB , KBA , LE-SHP-DL , Delivery Processing , Problem. Do you have a question and want it to be answered ASAP? 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. it again depends on the user decision. User can login the the Individual PO and can monitor the PO details and approve it. Material Master setting for Subcontracting Materials (MM01), Subcontract material SUBCONTRACT-01(HALB) (Sp. Subsequently, the IDoc inbound scenario DESADV / DELVRY07 was enhanced to support subcontracting components in inbound deliveries communicated electronically the note 1397948 Subcontracting: Components cannot be provided using IDoc /SPE/IDOC_INPUT_DESADV1, The problem with the above solution is that subcontracting components quantities transferred with DESADV / DELVRY07 message get fixed in the inbound delivery. 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. Create/Change/Display/manage/ My Purchase requisitions App The consumption of the components is posted. Finally Posting Invoice verification (Supplier Invoice). 2.Maintain the BOM for the material. Therefore no need to transfer the material through ME2O. 4.Issue material to vendor with movement type 541. using GR for Purchase order with Movement type 101. 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. In this video you can see a complete SAP Subcontracting process (Subtitles available) with following steps:- Planning Finish Good (MRP Run)- Automatic conver. You probably know where this configuration is, but for the noobs: These are all default settings, so again not much to say here. This is a concern to us as ME2O is used as a cockpit to manage transfers and/or external purchasing for components and we need to have accurate information on stock levels any time in the process. As mentioned previously, the STO keys off of a Purchase Order. I am a husband and father. 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. You create a subcontract order, following the standard procedure. Thanks. Many a times, more than one subcontractor is used for manufacturing at different level of BOM. Theme: Baskerville 2 by Anders Noren. Subcontracting will appear under the general plant stock if there is no MRP area maintained for the supplier. We will do our best to consider your request. Copyright | The next step in the subcontracting process is the transfer of the repairable part together with additional components to the vendor. 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. in the case of not providing components but still wanting to value the finished goods at std including inbound freight? 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. If there are any additional charges required, you input them in the Conditions tab as shown on the screenshot below. In our process, it happens that some components (raw materials) are being purchased from an external vendor to be directly shipped to the subcontrator. Create/ Change/Display Supplier App 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. 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. Create/Change/Display Bill of material (BOM) App Here in the highlighted box you provide the number of your subcontractor. Create/Change/Display Procurement Info record App A subcontracting purchase order is placed by converting the subcontracting requisition into a purchase order. This material stock is posted in our plant storage location. Required fields are marked *. Great blog. PO Items relevant for Subcontracting will need an Item Category of L for Subcontracting. Total available inventory at the subcontractor is 176 packs, which is correct. Go to next lesson: Vendor Consignment Process in SAP, Go to previous lesson: SAP Stock Transfer Order and Stock Transfer Process, Go to overview of thecourse: SAP MM Training. 5.Receive the material against the PO with movement type 101. 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! Thanks a lot!!!! A good explanation of Subcontracting process for 2 level. So, you adjust the inbound delivery quantity and post goods receipt of 27 pallets. Your comprehensive guide to SAP S/4HANA sourcing and procurement is here! I hope this blog post will be more useful to logistics consultants to understand how FIORI UI will look like for Subcontracting Process. So that a PPM is automatically created in SAP APO you must transfer a production version with a bill of materials and a routing (or master recipe) from the SAP R/3 system. Once again thanks a lot for all your efforts. Searching PR creation apps in Apps Finder in FIORI screen. Subcontracting with multiple production versions is supported. SNP optimizer, restrictions apply with regard to cost maintenance if you use the production data structure. This is where you maintain all the components which need to be sent to the vendor. Proc 30) HR and People Engagement with SAP SuccessFactors, Cross-Application Processes in SAP S/4HANA Sales and Procurement. 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. Can I do transfer posting the material to vendor before rise the subcontracting Po. Really its very useful for content. Thank you, helped a lot. The process of buying materials and obtaining services from vendors or dealers is called procurement. Sound off in the comments. The problem we have is that we cannot link the delivery to a specific SubCon PO. he can add text note required if any notification sent to his next level approver. Option- 2 User without login to each and every Individual PO -he/she can approve directly form FIORI Home page -Inbox part. My question is , already we issued raw materials to vendor with 541 Movement type, why again 543? 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. You can then manually create deliveries to the vendor by selecting the materials you wish to send and clicking the Create Delivery button. To do it, click on Doc. Many small and midsize businesses hire subcontractors to assist with a wide variety of functions. Very easy to understand now. Delivery Basics like logistics defaults, pricing for freight, and partner determination have to come from somewhere. System automatically selects movement type 101 O (GR to SC Vendor). Very useful content , Thanks for sharing with us. But SAP does not give here any flexibility. You can have it without BOM by entering all the components manually. Executing an intercompany sales process. Is there a process to bring components back from the Subcontractor . 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: Display Material document App The PPM consists of components and operations. As the worlds leading SAP publisher, SAP PRESS goal is to create resources that will help you accelerate your SAP journey. However, the integration with an SAP ERP system requires at least SAP ERP 2005 with Enhancement Pack 03. Lets start with discussing the steps that are involved in the subcontracting process in SAP. It is likely to slip through tests and bite you only down the road. Also, you need to provide Material, Quantity, Delivery Date, Plant, and Price. If anyone could help with it, maybe with something to do on our customizing and/or some OSS note it would be great. Please note the movement types used: 101 for Goods Receipt and 543 for Issue of Components. Next,provide Amount in the box to balance the amount of service provided. SAP Steps: 1.Create the finished goods material code. (here material and components are MAT1 only). Material document posted and stock is placed in our location. Inbound processing is therefore more efficient since manual batch entry tasks are removed. In MIGO, use Transfer Posting document type against Other, and movement type 541 as highlighted on the screenshot below. There are relatively few logistics-related fields. Maintain subcontracting MRP areas for all subcontracting suppliers requiring provision stocks to be planned separately from requirements. Get step-by-step instructions to configure sourcing, invoicing, supplier management and evaluation, and centralized procurement. It can also be done through via MIGO transaction. 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. 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 Thanks and Regards, Sapmm user Find us on Privacy Terms of Use Therefore the 27 pallets received will be 10% more expensive than planned. 3) Enter Net Price (Processing cost) 4) In the item detail tab,Material data click on components and Explode BOM 2 Goods receipt for first subcontracting purchase order items (MIGO) Now, during unloading you realize that 3 pallets are missing. -SUBCONTRACT-01(HALB) (Sp. Use transaction MIGO to provide components to the subcontractor. Sales (sales order processing) Goods receipt of the parts provided (with previous contract and purchase order for the parts) Production (creating and confirming process orders) Delivery and goods issue Billing (invoice creation) When a sales order is entered a planned order is automatically created as well. Without knowing the error message, it is tough to diagnose the issue. Post Goods Receipt (MIGO) on receipt of the finished product E from the Subcontractor Make a request for us to schedule training around what works for you? Now, lets display thedocument that we have just created. Trademark, SAP ERP Central Component all versions ; SAP ERP all versions ; SAP R/3 Enterprise all versions ; SAP R/3 all versions ; SAP enhancement package for SAP ERP all versions ; SAP enhancement package for SAP ERP, version for SAP HANA all versions, 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, SAP Enhancement package for SAP ERP, version for SAP HANA. Maintained for the finished item in the subcontractor posted and stock is posted in our SAP system you change component... All the components which need to be planned separately from requirements by converting the subcontracting requisition into a Purchase or! The line item SAP journey receipt for PO & Good movement App Such that the item the! 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Of documents in accounting there is no MRP area is the transfer of the components manually Good of... Are involved in the subcontract order a host of additional transactions for each subcontracting order and scale. Be done through via MIGO transaction create material in FIORI screen ) App here in the is... The Problem we have is that we can not link the delivery to a SubCon. In SAP type 101 scale well with 541 movement type, why again 543 delivery quantity and goods. Is where you maintain all the components which need to transfer the material vendor... System automatically selects movement type 541 as highlighted on the screenshot below by selecting the you! In accounting are removed it to be planned separately from requirements or dealers is called procurement and partner determination to! Movement types used: 101 for goods receipt and 543 for Issue of components of. Vendor needs to manufacture the end product are specified in the subcontractor is for! Will appear under the general plant stock if there is no MRP area maintained for supplier! With discussing the steps that are involved in the subcontract order, following the standard....