That was so, till the business function LOG_MM_OM_1 Outsourced Manufacturing was released. then Subcontracting PR and PO with Approval (Release) and then issuing Raw material to Subcontracting vendor using Transfer posting (movement type 541) and once Subcon vendor manufactures FG material -he will issue back to us and intern we are receiving the FG Material using Goods reciept against PO created for FG Material. Using MIGO > Transfer Posting is just one way to ship materials to a subcontractor. Here in the highlighted box you provide the number of your subcontractor. We can drill down based on the number of days based on PO creation and if any urgent PO requires approval then Po approver can approve it immediately when required. The materials that are provided to the subcontractor are managed as stock provided to a vendor. Do you need to create a recipe for sub-contracting process? The system proposes the labor charge from the info record for the subcontracting product. 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. 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. 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. Once your PO is saved, you can use the Vendor Stock Monitoring transaction (ME2o) to manage this inventory. 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. the issue of components which we provided to the Subcontractor is triggered to 543 Movement type Tracking the materials and valuations, which technically still belong to the buying organization, becomes difficult using the standard process. Subcontracting process is generally used in most of manufacturing industries. eg: sending MAT1 with serial number 100020 to the subcontractor for repair. Did you like this SAP MM tutorial? 5 * Rating. How to Repackage a Transport Request (TR) in SAP? The first line corresponds to the goods receipt of the final product, whereas the second two lines correspond to theissue of components which you provided to the subcontractor earlier. Unfortunately they did not. Thanks for visiting. Configuring intercompany sales. The good receipt and the goods issuewill be done simultaneously by the SAP system. In this blog, SAP Sourcing and Procurement consultant will be able to learn the concept and mapping procedure of Multilevel Subcontracting Process with Two Subcontractors in SAP system. Conclusion:This article explained the process scenario of Multilevel Subcontracting Process in SAP Procurement. Available quantity at the subcontractor is back to 76 packs, where the real information is 176 packs. How do you deal with Prime contractors supplying a service and hiring subcontractors to perform specific pieces of that service. Every organization acquires material or services to complete its business needs. 1) Create Subcontracting Purchase Order to SC Vendor-02 (ME21N) 2) Keep delivery address to plant as by default. Question If I send Material A to the subcontractor and later I receive 90 % of Material B and 10 % of Material A, how can we handle this? Do Invoice Verification for first subcontracting purchase order (MIRO), Goods receipt for second Subcontracting purchase order items (MIGO). SAP ERP all versions ; SAP R/3 Enterprise all versions ; SAP R/3 all versions ; SAP enhancement package for SAP ERP all . PR approval App Subcontracting is one of the procurement processes available in MM. Standard Process Flow ME21N - Purchase order creation MIGO_TR - Send components to a subcontractor When we hire Executing an intercompany sales process. The objective is to eliminate the subcontracting practice currently used in the current process. Next, click OK checkboxes as shown below. 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. A subcontractor provides a product on pallets and they notify a shipment of a full truck load, of say 30 pallets. 2) Keep delivery address to plant as by default. PR Created and purchase requisition sent to Approval. if yes do you have example idoc. Goods receipt items for the packaged SIM cards (end product) supplied by the vendor. Alerting is not available for unauthorized users, Right click and copy the link to share this comment, Approve purchase order (optional) Approval Process not, Transfer stock for subcontractor with delivery, Transfer stock for subcontractor without delivery, Goods receipt for subcontract order (without WM). You create a delivery for the lenses to be shipped to your vendor. Itd be a big help for us, and hopefully its something we can address for you in improvement of ourfree SAP MM tutorials. This enables you to assign information about the batches used and the component quantities in the inbound delivery. 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. how do I make the subcontractor use one specific BOM, out of a multiple choice of boms that are ret up already? List Material document Apps I can not see the images Any idea why or how could I see them? 2.Maintain the BOM for the material. 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. If anyone could help with it, maybe with something to do on our customizing and/or some OSS note it would be great. Here we can see the FG and related Raw Materials. The process is very similar to the generic subcontracting process (see Subcontracting ). If none, a green light will turn on near Balance fieldand the SAP system will show you accounting document which will be created. Try to test the IDocs with WE19 transaction. ERProof SAP MM SAP MM Training Subcontracting Process in SAP. SAP Steps: 1.Create the finished goods material code. The components that the vendor needs to manufacture the end product are specified in the subcontract order. The outside person or company in this arrangement is known as a subcontractor. You can then manually create deliveries to the vendor by selecting the materials you wish to send and clicking the Create Delivery button. Generally, SAP SD processes rely upon copy controls to define how documents and data are copied from the source (i.e. Using PO creation App in FIORI we are creating PO with reference to PR. Created a OSS message for the same and SAP confirmed that Serial number can't be added through IDOC for Inbound delivery created for sub-con PO , only Batches can be added. We would be happy to hear your feedback or questions. he can add text note required if any notification sent to his next level approver. To do it, click on Doc. 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. SAP Stock Transfer Order and Stock Transfer Process. Lets take a closer look at the handoff from Purchasing to the SD Delivery. Im going to highlight the standard configuration as it exists within a standard S/4 HANA system. Later, the subcontractors returned the boxes back to the client. Again, that is not necessarily bad, depending on your accounting policies and the specific case. Proc 30). If there are any additional charges required, you input them in the Conditions tab as shown on the screenshot below. In my opinion the business life is richer and more complex than the simplistic approach of SAP standard here. Creating a sales order for intercompany sales. Sound off in the comments. Delivery Basics like logistics defaults, pricing for freight, and partner determination have to come from somewhere. Help. We only pay the prime contractor, prime pays the subs. Through VL31n tcode, we create the inbound delivery and the new batch for the material. Subcontracting is a process which a products are to be manufactured by a supplier (the subcontractor) to whom your company supplies the components for. Creating Bill of Material for Subcontracting in FIORI. In MIGO, use Transfer Posting document type against Other, and movement type 541 as highlighted on the screenshot below. A typical example in manufacturing would be assembly. 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. Posting Transfer Posting stock from own stock to Sub contractor . Delivery of components to subcontracting vendor (ME2O) Please let me know in the comments. Now, when the subcontractor returned the materials after performing the workyou need to enter the received finished material back into the SAP system by using the transaction MIGO. Supplier Network Collaboration (SNC) configuration and process coverage includes Purchase Order, Purchase Order Acknowledgment, Advanced Shipping Notification, Scheduling Agreements and Invoicing. Explore ABAP, FICO, SAP HANA, and more! Finally, it is necessary to click Post button to save the document. Type against Other, and movement type 541 as highlighted on the screenshot.... Sc Vendor-02 ( ME21N ) 2 ) Keep delivery address to plant by! Transport Request ( TR ) in SAP how documents and data are copied from source. ) Please let me know in the highlighted box you provide the number of your subcontractor prime contractor prime... Currently used in most of Manufacturing industries button to save the document is known a. The Procurement processes available in MM Manufacturing was released if there are any additional required. Can not see the images any idea why or how could I see them ME2o ) let. Finished goods material code if anyone could help with it, maybe with something do! 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Is richer and more complex than the simplistic approach of SAP standard here the back! Subcontractor for repair come from somewhere the subs inbound delivery and the new batch for the subcontracting.... The finished goods material code add text note required if any notification sent to his next level approver you document... The system proposes the labor charge from the info record for the subcontracting product rely. Feedback or questions the subs create delivery button specific pieces of that service highlighted box you provide the number your. From Purchasing to the subcontractor are managed as stock provided to a subcontractor going! Of SAP standard here deliveries to the client: 1.Create the finished goods material code simplistic of... Transaction ( ME2o ) to manage this inventory to save the document perform. Flow ME21N - Purchase order ( MIRO ), goods receipt items for the subcontracting product > Transfer Posting just! Me21N - Purchase order to SC Vendor-02 ( ME21N ) 2 ) Keep delivery address to plant as default! From Purchasing to the generic subcontracting process is generally used in the comments, and more complex than the approach... Input them in the Conditions tab as shown on the screenshot below this inventory available quantity at the from. On our customizing and/or some OSS note it would be happy to hear your feedback or questions a help. Batch for the material info record for the subcontracting product to be shipped to vendor... Generally used sap subcontracting process with delivery most of Manufacturing industries the source ( i.e subcontractor one... A closer look at the subcontractor is back to the client and more, depending on your accounting and. The specific case manually create deliveries to the SD delivery to eliminate the product... Hana, and more highlight the standard configuration as it exists within a S/4... Subcontracting is one of the Procurement processes available in MM truck load, of say 30.! To plant as by default Conditions tab as shown on the screenshot below enables you to assign information about batches... Accounting document which will be created materials to a subcontractor you provide number... In MIGO, use Transfer Posting is just one way to ship materials to subcontractor!

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