Click on Simulate button which will notify you of any errors. Next,click on Check button to check whether the document is OK. They charged the company for their services rendered. After saving this document system posts this material stock as stock provided to vendor. In SAP Advanced Planning and Optimization (SAP APO), you can plan the subcontracting process in Production Planning and Detailed Scheduling (PP/DS) and in Supply Network Planning (SNP). The invoice is posted. Subcontracting components in an inbound delivery via DESADV IDoc Context Subcontracting purchasing with inbound deliveries used to be a paint due to problems with components provided to vendor processing - see the notes: 645119 - Problems for subcontracting using delivery Read More LE (Logistics Execution)MM PurchasingSAP ERPSAP S/4HANA 9 Alerting is not available for unauthorized users, Right click and copy the link to share this comment. In SAP HR after hiring Hi, There's no e-books or any course materials about the QM module. This is done when SC Vendor-02 sent finished product to our warehouse. Some supplier relationships require you as the purchasing organization to provide the supplier with the components used in their part of the value creation. HR and People Engagement with SAP SuccessFactors, Cross-Application Processes in SAP S/4HANA Sales and Procurement. For subcontracting with the
if they are ok with the PO then they can approve it else deny the PO. The components are posted to the stock of materials provided to the vendor. Not using Migo or MB1B and 542 movement type. It will open the screenshot shown below. Such that the item attaches the cost of Vendor Bs service to the line item? 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. This tutorial will provide detailed guidance about working with subcontracting in SAP ERP system. That is confirmed by the note 1397948 Subcontracting: Components cannot be provided using IDoc /SPE/IDOC_INPUT_DESADV1. I found a solution for this as we have to select Subcontracting Type 1 at item level. Subsequent goods entry is booked automatically with these entries. Do Invoice Verification for second subcontracting purchase order (MIRO). 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. Now, click Explode BOM button to open the below screen, where you provide your components to the subcontractor. Once PR is approved by Purchasing department top level authority. I am a husband and father. The vendor performs its service and delivers the ordered material (the end product). If anyone could help with it, maybe with something to do on our customizing and/or some OSS note it would be great. You can have it without BOM by entering all the components manually. Required fields are marked *. The next step of subcontracting process in SAP isto do posting of invoice receiptagainst the purchase orderusing the transaction MIRO. I've just check that serial numbers are visible in the IDoc structure on both levels: But I don't have ready made examples. At the time of receipt, the raw materials for each order item will be determined and the system will create a goods issue accounting entry item for each raw material. Account Assignment and Item Category are usually blank in a subcontracting PO. If there are any additional charges required, you input them in the Conditions tab as shown on the screenshot below. Subcontracting with multiple production versions is supported. Creating Bill of Material for Subcontracting in FIORI. Maintain these BOM in production version (Material master MRP 4 view) of respective header material. What is S/4HANA? So, you adjust the inbound delivery quantity and post goods receipt of 27 pallets. (here material and components are MAT1 only). user will convert to PO. but here the difference we are using FIORI UI instead of GUI Interface. 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. I am a husband and father. Goods receipt items for the packaged SIM cards (end product) supplied by the vendor. Posting the goods receipt for a third-party purchase order. Also in previous versions of SAP ERP, you could check subcontracting stocks by supplier by running reports from a specific IMG menu path. We are currently setting up the subcontracting process in our SAP system. (Movement TYpe 101). 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. Raw Material (SUBCON-RM02) (ROH), Subcontract material (SUBCON_FINAL) (FERT) (Sp. 5.Receive the material against the PO with movement type 101. Does this sound familiar? Next, click OK checkboxes as shown below. Easily understood and completed my Sub-contracting entry. And, of course, your Master Data must be setup: Assignment of the STO Delivery Type (LB) to the Delivering Plant, Assignment of the Default (Dummy) Sales Order Type (DL) to the STO Delivery Type, Configuration of the Default Order Type Setup (DL), Assignment of Copy Control Settings between the Sales Order (DL) and the Delivery (LB). with regards to the following during MIGO Subcontracting within Sourcing & Procurement in SAP S/4HANA: What it Is and How to Upgrade, Subcontracting POs, commitments, and supplier contact information now visible. Subcontracting process is generally used in most of manufacturing industries. This is my first blog on SCN and I want to share my knowledge on Multilevel Subcontracting Process. eg: sending MAT1 with serial number 100020 to the subcontractor for repair. 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. 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. 2.Maintain the BOM for the material. Thank you, helped a lot. This blog post will be more useful to new consultants in S/4HANA EM -Streamlined Procurement & Sourcing. You can then manually create deliveries to the vendor by selecting the materials you wish to send and clicking the Create Delivery button. Every organization acquires material or services to complete its business needs. Im going to highlight the standard configuration as it exists within a standard S/4 HANA system. The good receipt and the goods issuewill be done simultaneously by the SAP system. Thanks and Regards, Sapmm user Find us on Privacy Terms of Use It would have been nice if SAP had provided a BAdI enhancement here. For a premium experience please use an alternative browser. 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. How to manage serialized material for subcontracting repair? This improves batch tracking for the sold-to party. Vendor shall process the item / use the item provided & supply the final item. Below are the steps involved in this process. As mentioned previously, the STO keys off of a Purchase Order. Posting Invoice verification using Create Supplier Invoice Apps in FIORI. The setup should already be done for you; these are all standard configuration settings which are typically pre-delivered. Also, you need to provide Material, Quantity, Delivery Date, Plant, and Price. Activating PR & PO Approval Notification. 5 * Rating. Hit enter to search. Create/Change/ Display material App Your comprehensive guide to SAP S/4HANA sourcing and procurement is here! See the future of sourcing and procurement! 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. The customizing entry in the supplier master is sufficient to trigger stock transfers and reservations from the plant to the subcontracting MRP area. Theme: Baskerville 2 by Anders Noren. For the MRP to pick up the subcontracting order correctly, you must maintain a subcontracting entry for the associated material in its MRP area assignment, an MRP-relevant source of supply/quota agreement with the subcontracting setting (again, source lists are not supported in SAP S/4HANA before version 1709 for MRP, so you would need to use a quota agreement as a workaround in these versions), and a BOM containing the components. the issue of components which we provided to the Subcontractor is triggered to 543 Movement type
Finally, click on Post button to post the document. Subcontracting refers to the process of entering a contractual agreement with an outside person or company to perform a certain amount of work. Im a career-long IT specialist with a focus on SAP for over 18 years. 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. Use the IMG path below for this piece of the config: The only field worth mentioning is that Default Order Type field; the rest of this is standard delivery setup. SAP process: 1.Create the finished goods material code. Configuring intercompany sales. Steps to perform subcontracting: Create subcontracting Info record (Optional) - T Code - ME11 They are summarized below: A material BOM needs to be created before any subcontracting order can be placed. 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. You create a subcontract order, following the standard procedure. 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. Serial number is in warehouse only. Procurement should be done in such a way that materials are ordered in correct quantity, with a proper value at the proper time. The requisition for subcontracting must contain the item category L which is used for subcontracting in the SAP system. Essentially, this order type is the stand-in for what would be a normal order type in a standard OTC scenario. On the start screen of MIROchoose Invoicetransaction, enterInvoice Date and Purchase Order number and click Enter on the keyboard. Thanks for the question, Kumar. Now, during unloading you realize that 3 pallets are missing. 4.Issue material to vendor with movement type 541. Material document posted and stock is placed in our location. Can I do transfer posting the material to vendor before rise the subcontracting Po. The liability created will only be of the amount charged by the vendor for processing and does not include the material component value. 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) PR creation through FIORI Apps- Create PR apps. We use ME2O, check the box next to the material then click on create delivery. Save my name, email, and website in this browser for the next time I comment. To receive material against the purchase order, SIM cards and packaging materials need to be issued to the subcontractor. Sub contracting Info Record Created in FIORI. I showed how the STO process has a default delivery type per plant, how that delivery type contains a default (dummy) sales document type, and how those two objects are connected through the standard Order/Delivery Copy Control. 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