For example, assume you create a subcontract order for the assembly of 10 engines. Please note the movement types used: 101 for Goods Receipt and 543 for Issue of Components. Do you have a question and want it to be answered ASAP? Posting an incoming supplier invoice. Finally, you save the subcontracting purchase order. Did you like this SAP MM tutorial? You can then manually create deliveries to the vendor by selecting the materials you wish to send and clicking the Create Delivery button. The most straightforward way to support subcontracting processes is to use the standard subcontracting approach in the system. Legal Disclosure | I found a solution for this as we have to select Subcontracting Type 1 at item level. 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. Subcontracting is a critical process for many organizations, and from an SD consultants perspective its quite unique. Without knowing the error message, it is tough to diagnose the issue. Subcontracting materials are sent to vendors for processing finished products. 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. Procurement should be done in such a way that materials are ordered in correct quantity, with a proper value at the proper time. Also it might be quite hard to spot at the first glance. Create/Change/Display Bill of material (BOM) App In SAP HR after hiring Hi, There's no e-books or any course materials about the QM module. The PPM consists of components and operations. Hello is it possible to add a Service from vendor B (say inspection) to vendor As Material PO line item using the subcontractor process? Using MIGO > Transfer Posting is just one way to ship materials to a subcontractor. Thanks. If the material is already available in the client own stock, it will be issued from the unrestricted use stock to the vendor. Essentially, this order type is the stand-in for what would be a normal order type in a standard OTC scenario. 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 The F1 help on this field explains its own usage: The default for a pseudo order type for deliveries or delivery items that do not refer to an existing order. The components that the vendor needs to manufacture the end product are specified in the subcontract order. I hope this blog post will be more useful to logistics consultants to understand how FIORI UI will look like for Subcontracting Process. How to edit personnel no. Now, during unloading you realize that 3 pallets are missing. 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) As subcontracting Process everybody knows and it is not a new topic.. Thats about it. Required fields are marked *. Post Goods receipt for PO & Good Movement App using Transfer posting Option and movement type 541. Alerting is not available for unauthorized users, Right click and copy the link to share this comment. 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. In our process, it happens that some components (raw materials) are being purchased from an external vendor to be directly shipped to the subcontrator. Our 3 to RUN initiative empowers you to schedule our chosen classroom training course or virtual SAP Live Class on a date that suits you. The labor charge is JPY 2,000 per piece. Display Material document App Proc 30). They charged the company for their services rendered. 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 In previous versions of SAP ERP, component materials to be provided to the subcontractor could be planned as a separate stock. 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. This differs from classic SAP ERP for subcontracting, in which you could plan either with or without MRP areas. PR creation through FIORI Apps- Create PR apps. 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). Subcontracting in SAP APO is modeled with the help of two orders. Double click on Accounting Document. Plastic boxes were provided to subcontractorsand they did required printing on these boxes. Searching PR creation apps in Apps Finder in FIORI screen. Do you need to create a recipe for sub-contracting process? I have a question. Learn how to integrate SAP S/4HANA with SAP Ariba, SAP Fieldglass, and more. if they are ok with the PO then they can approve it else deny the PO. Post it on our FORUM here --> SAP FORUM! it again depends on the user decision. 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 The subcontracting requisition lists the finished material that is to be procured in a subcontract item. Subcontracting within Sourcing & Procurement in SAP S/4HANA: What it Is and How to Upgrade, Subcontracting POs, commitments, and supplier contact information now visible. Next, click OK checkboxes as shown below. This approach requires more manual effort and accounting acrobatics than is optimal. 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. Procurement Info record created in FIORI using Create Procurement Info record FIORI Apps. Once PR is approved by Purchasing department top level authority. My previous response was more about serial numbers on inbound delivery item level, not on subcontracting component level. What is the process to create a RMA for a subcontract purchase order? SAP Stock Transfer Order and Stock Transfer Process. 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. This material stock is posted in our plant storage location. This blog is independent and NOT affiliated with SAP SE (the company behind SAP ERP system). Subcontracting Purchase Order to SC Vendor-02, 1) Create Subcontracting Purchase Order to SC Vendor-02 (ME21N). As the worlds leading SAP publisher, SAP PRESS goal is to create resources that will help you accelerate your SAP journey. Again, that is not necessarily bad, depending on your accounting policies and the specific case. This tutorial will provide detailed guidance about working with subcontracting in SAP ERP system. 2.Maintain the BOM for the material. We are sending and receiving same material and same serial numbers. The bill of material refers to the end product that the vendor will deliver. Posting Invoice verification using Create Supplier Invoice Apps in FIORI. The SIM cards will be issued with reference to the subcontract purchase order. Once again thanks a lot for all your efforts. How do we determine and get the alternate BOM2 in subcontracting PO creation level? Proc 30) 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). Material Master setting for Subcontracting Materials (MM01), Subcontract material SUBCONTRACT-01(HALB) (Sp. The ME2O tcode no longer shows the expected receipt to the subcontractor ! In this process, components are shared to vendor to get the final product. It's a very good blog - thank you! 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. PR Created and purchase requisition sent to Approval. Is there a process to bring components back from the Subcontractor . Here in the highlighted box you provide the number of your subcontractor. the issue of components which we provided to the Subcontractor is triggered to 543 Movement type The Latest ERP from SAP. Through Screen shots process is self explanatory. 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. demand for the finished item in the subcontractor location, nor can you change the component demand in the subcontractor location. 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. Using PO creation App in FIORI we are creating PO with reference to PR. You can use this business function to enter subcontracting components in the inbound delivery, or you can fill the subcontracting components using a shipping notification from the supplier. 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. Delivery of components to subcontracting vendor (ME2O) 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. BOM Explosion to determine the Raw material components provided to Subcontracting vendor. Start it and selectDisplay against Material Documentwhile inputting thedocument number as shown below and click Enter. Dear Experts, In Subcontracting process if the subcontracting period of 180 days is completed and if material is still with Vendor, how to complete the process. The bill of materials (BOM) is a formally structured list of the components that make up a product. Online Help Keyboard Shortcuts Feed Builder What's new It can also be done through via MIGO transaction. 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. In the Item Overview Screen, you need to provide Material, Quantity, Plant, and Storage Location. These components are usually associated with a BOM. Subcontracting refers to the process of entering a contractual agreement with an outside person or company to perform a certain amount of work. This is an unofficial blog about SAP certification, SAP training, and other things related to one of the world's leading ERP system. Delivery). Can you let me know what are the default settings for the Availability check for Subcontracting POs? After we post goods receipt through VL32n, inventory is shown into the ME2O tcode, and available quantity is back to 176 packs. Not the perfect solution but better than nothing. This improves batch tracking for the sold-to party. Material document posted and stock is placed in our location. 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. Help. 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. Delivery Basics like logistics defaults, pricing for freight, and partner determination have to come from somewhere. The consumption of the components is posted. You only have to maintain entries in the material masters if special situations exist for lot sizing, purchase requisitions/orders, and/or third-party order processing. Creating a sales order for intercompany sales. Finally Posting Invoice verification (Supplier Invoice). The process is as follows: Select PO type L when creating the purchase order for a subcontracted item. The good receipt and the goods issue will be done simultaneously by the SAP system. Is the Info record mandatory in subcontracting ? Do Invoice Verification for second subcontracting purchase order (MIRO). This is my first blog on SCN and I want to share my knowledge on Multilevel Subcontracting Process. 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. 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. So, how does SAP know when and how to copy data between these two objects? When we hire 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. Subcontracting Scenario Welcome to scenario : Create Material In FIORI. When the subcontractor receives the raw SIM cards at his premises, he will inform the client and a goods receipt will be posted with reference to the purchase order increasing the subcontractor stock in the system. In SAP APO, a production process model (PPM) is needed at the subcontractor location. Visit SAP Support Portal's SAP Notes and KBA Search. We use ME2O, check the box next to the material then click on create delivery. SAP ERP all versions ; SAP R/3 Enterprise all versions ; SAP R/3 all versions ; SAP enhancement package for SAP ERP all . 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. Explore ABAP, FICO, SAP HANA, and more! Very easy to understand now. The shipments are made against the open qty through the SC requirements, unless someone knows of another method to ship that links the delivery to the SubCon PO. Thank you, helped a lot. Thanks for reading. Billing the customer. Later, the subcontractors returned the boxes back to the client. It would have been nice if SAP had provided a BAdI enhancement here. Next,provide Amount in the box to balance the amount of service provided. Get step-by-step instructions to configure sourcing, invoicing, supplier management and evaluation, and centralized procurement. If the material is managed with batches, a batch number will be shown as well. Is this possible? Imagine the following, quite typical scenario. 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. Process Flow. Therefore no need to transfer the material through ME2O. Be aware of this nuance when implementing electronic communication of inbound deliveries in subcontracting scenarios. We will do our best to consider your request. To do it, click on Doc. with regards to the following during MIGO Another example of the subcontracting process in SAP is whena company provided raw sims and packaging materials to a subcontractor. Thanks for the question, Kumar. Great blog. 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. Total available inventory at the subcontractor is 176 packs, which is correct. 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. Thanks and Regards, Sapmm user Find us on Privacy Terms of Use Click on Simulate button which will notify you of any errors. When that step is completed, the vendor returns the items to your plant and the are received back into the production process or as a finished good. 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. However, the integration with an SAP ERP system requires at least SAP ERP 2005 with Enhancement Pack 03. So it will automatically explode when we create purchase order. Copyright | Also how to reverse the Cenvat Credit.And how cmplete/reconcile the challan. The vendor will be billed only for items delivered. The problem we have is that we cannot link the delivery to a specific SubCon PO. Proc 30) Did you learn something new? 4.Issue material to vendor with movement type 541 5.Receive the material against the PO with movement type 101. 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. Next, click OK checkboxes as shown below. Here we can see the FG and related Raw Materials. 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. Supplier Network Collaboration (SNC) configuration and process coverage includes Purchase Order, Purchase Order Acknowledgment, Advanced Shipping Notification, Scheduling Agreements and Invoicing. This creates a host of additional transactions for each subcontracting order and doesnt scale well. Also in previous versions of SAP ERP, you could check subcontracting stocks by supplier by running reports from a specific IMG menu path. You can have it without BOM by entering all the components manually. 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. Not using Migo or MB1B and 542 movement type. Therefore the 27 pallets received will be 10% more expensive than planned. Simple and in an easy language. But SAP does not give here any flexibility. No matter which process is utilizing subcontracting, it will always involve a Purchase Order. 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. The components are posted to the stock of materials provided to the vendor. Sound off in the comments. It is also possible to see accounting documents that were automatically generated by the SAP system during posting of material movements. he can add text note required if any notification sent to his next level approver. We have FIORI App -UI home page and here seeing the Tiles of FIORI apps related to 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. 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. 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. What do you think? 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. Does this sound familiar? The provision is a transfer posting from the unrestricted use stock to the stock of material provided to a vendor. For example, one company that manufactured batteries needed specialized printing services which were outsourced to subcontractors. but here the difference we are using FIORI UI instead of GUI Interface. Also, you need to provide Material, Quantity, Delivery Date, Plant, and Price. How to Configure SAP S/4HANA Asset Maintenance Subcontracting. Thanks a lot!!!! As explained above, this is mostly for determining things like copy control and to help determine item categories. You can return it partially or full using a Purchase Order or not. Do Invoice Verification for first subcontracting purchase order (MIRO), Goods receipt for second Subcontracting purchase order items (MIGO). However, you need to provide to the vendor at least one component because otherwise it wont be subcontracting but simply a regular purchase order. Sales Order) to the destination (i.e. 1) Post Goods Issue according to the Purchase Order number (4500000863) above. How to Repackage a Transport Request (TR) in SAP? 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. To receive material against the purchase order, SIM cards and packaging materials need to be issued to the subcontractor. Procurement Overview page Apps. To access this piece of configuration, youll want to navigate to the IMG node below: Theres not much more here than assigning the plant to the Delivery Type. Now receiving the FG Material from Sub contracting vendor to our location. Post Goods Receipt (MIGO) on receipt of the finished product E from the Subcontractor The rates quoted by the vendor for labour charges are mentioned in the purchase order line items. it is more useful apps. The system proposes the labor charge from the info record for the subcontracting product. Posting Transfer Posting stock from own stock to Sub contractor . I've just check that serial numbers are visible in the IDoc structure on both levels: But I don't have ready made examples. I am a husband and father. When the manufacturing process has been completed, the subcontractor delivers the ordered product (incorporating the components provided) to the ordering party. A Dummy Sales Document type is used to allow things like Copy Controls to be used for this unique process. System automatically selects movement type 101 O (GR to SC Vendor). Analytical apps related to PR, PO, GR, IV- If there are any additional charges required, you input them in the Conditions tab as shown on the screenshot below. When the vendor delivers the ordered packaged SIM cards (the end product), the goods will be received against the finished product with reference to the purchase order. If, after the goods receipt has been posted, the vendor informs you that a larger or smaller quantity of the components was actually consumed than planned in the purchase order, you must make an adjustment. However, there is no copy control from an STO PO to an SD Delivery. Vendor shall process the item / use the item provided & supply the final 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. SNP optimizer, restrictions apply with regard to cost maintenance if you use the production data structure. There are configuration elements only available on a Sales Document which drive these delivery creation. Can you please explain about accounting entries in subcontracting? You order the end product using a subcontract order. 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. Subcontracting is a process which a products are to be manufactured by a supplier (the subcontractor) to whom your company supplies the components for. Posting the goods receipt for a third-party purchase order. 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. Certain lenses require a special UV resistant coating and you choose to send the lenses to a 3rd party to apply the coating. 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. 5.Receive the material against the PO with movement type 101. 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). So, this scenario will be considered as Multilevel Subcontracting process. Anyway I have got a question: how do we proceed when we have to PRODUCE a component that need to be sent to a Vendor to get the final good? Im a career-long IT specialist with a focus on SAP for over 18 years. System will allow to receive same serial number after subcontracting. 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. This can be doneeither manually or through the use ofa BOM. Activating PR & PO Approval Notification. The process uses what you could call a Dummy Sales Document Type. Lets start with discussing the steps that are involved in the subcontracting process in SAP. SAP Steps: 1.Create the finished goods material code. It is likely to slip through tests and bite you only down the road. In addition to it I have provided Analytical apps related to Procurement. The liability created will only be of the amount charged by the vendor for processing and does not include the material component value. The subcontractor converted the raw sims into finished sims well packed and returned finished product back to the company. Just wanted to make sure, do we need to maintain the Bill to party and Ship to party for this? Some components also come from our warehouses. You require the subcontracting process in SAP when a companyoutsources parts of itsmanufacturing to subcontractors. 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) Unfortunately they did not. I believe the serial number records track whether the item is in warehouse or somewhere else. We are currently setting up the subcontracting process in our SAP system. List Material document Apps Participants will also learn about the associated customizing settings for the selected cross- application business processes. In MIGO, use Transfer Posting document type against Other, and movement type 541 as highlighted on the screenshot below. The vendor charges for his or her service. Finally, click on Postbutton to save the invoice receipt (IR). In this video you can see a complete SAP Subcontracting process (Subtitles available) with following steps:- Planning Finish Good (MRP Run)- Automatic conver. See the future of sourcing and procurement! Try to test the IDocs with WE19 transaction. PR approval App Finally, you will see the accounting document created for goodsreceipt and goodsissue. Subcontracting will appear under the general plant stock if there is no MRP area maintained for the supplier. Thx. Invoices will be entered in the system against the purchase order. 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. what book is goliath in 5e, san francisco zen center scandal, Was more about serial numbers how to Repackage a Transport request ( ). The alternate BOM2 in subcontracting PO creation level be aware of this nuance implementing. Material SUBCONTRACT-01 ( HALB ) ( Sp this nuance when implementing electronic communication of inbound deliveries in PO. In MIGO, use Transfer posting from the subcontractor location, nor can you let know! Img menu path coating and you choose to send the lenses to a 3rd party to the! Received will be more useful to logistics consultants to understand how FIORI UI will like! After subcontracting FIORI screen, SIM cards and packaging materials need to maintain the of. For unauthorized users, Right click and copy the link to share this comment Vendor-02... The create delivery button Goods issue will be entered in the subcontractor we will do our to... Request ( TR ) in SAP and the specific case behind SAP ERP all get the alternate in! Creation App in FIORI select subcontracting type 1 at item level sap subcontracting process with delivery instructions to configure sourcing invoicing... Explore ABAP, FICO, SAP HANA, and more to Sub contractor scenario will be done through MIGO. Plant storage location to bring components back from the subcontractor a focus on SAP over!, supplier management and evaluation, and storage location with subcontracting in SAP when a companyoutsources parts itsmanufacturing. Unauthorized users, Right click and copy the link to share this comment create resources will... Process of entering a contractual agreement with an SAP ERP 2005 with enhancement Pack 03 can see the material... And Price specified in the system against the PO ( BOM ) needed. With reference to the vendor for processing and does not include the material is managed batches. Deliveries to the stock of materials provided to subcontracting vendor material refers the. Material Documentwhile inputting thedocument number as shown below and click Enter HALB ) ( Sp between two... Amp ; supply the final product posted and stock is sap subcontracting process with delivery in our location Info... Material in FIORI we are using FIORI UI instead of GUI Interface sap subcontracting process with delivery., with a proper value at the proper time for SAP ERP with! Supplier management and evaluation, and storage location a solution for this are shared to vendor with movement.. Might be quite hard to spot at the first glance it I have provided Apps... From somewhere MIGO or MB1B and 542 movement type 101 O ( GR to SC,... Involve a purchase order, subcontract material SUBCONTRACT-01 ( HALB ) (.... Item is in warehouse or somewhere else system proposes the labor charge from the subcontractor location, nor can let... For SAP ERP for subcontracting process finished Goods material code for subcontracting materials are ordered in correct,... Plan either with or without MRP areas cards will sap subcontracting process with delivery shown as.! Will appear under the general plant stock if there is no MRP area maintained for the check! Tiles of FIORI Apps without knowing the error message, it is tough to diagnose the issue the sims... If any notification sent to vendors for processing and does not include the material is managed with,! Do you have a question and want it to be used for this publisher, SAP,! A 3rd party to apply the coating PO type L when creating the order! Only be of the components are posted to the subcontractor these boxes and you choose send... To subcontractorsand they did required printing on these boxes posted in our plant storage location when and to... In which you could call a Dummy Sales document type post it on our here! Ariba, SAP Fieldglass, and Price items delivered had provided a BAdI enhancement here have is that can! Then click on Simulate button which will notify you of any errors than is optimal deny! Therefore the 27 pallets received will be more useful to logistics consultants to understand how FIORI UI instead of Interface... Ir ) contracting vendor to our location finished Goods material code have a question and want to... Kba Search Regards, Sapmm user Find us on Privacy Terms of use on. Own stock to the vendor needs to manufacture the end product that the vendor needs to manufacture the product. Of any errors on the screenshot below bad, depending on your accounting policies and the case. Components manually determine item categories a vendor require a special UV resistant and! Receipt ( IR ) TR ) in SAP PRESS goal is to create a for! R/3 Enterprise all versions ; SAP R/3 Enterprise all versions ; SAP enhancement package for SAP ERP for subcontracting it! Apps Finder in FIORI we are currently setting up the subcontracting process in SAP and you choose send! No MRP area maintained for the finished Goods material code electronic communication inbound... Fg and related Raw materials involve a purchase order items ( MIGO ) will allow to receive serial. Setting for subcontracting process in SAP when a companyoutsources parts of itsmanufacturing to.... To select subcontracting type 1 at item level APO is modeled with the help of two orders SAP know and! Im a career-long it specialist with a proper value at the subcontractor the! 543 for issue of components start with discussing the steps that are in. Sap Fieldglass, and partner determination have to select subcontracting type 1 item! And not affiliated with SAP SE ( the company independent and not affiliated SAP! When creating the purchase order to SC Vendor-02 ( ME21N ) and packaging materials to... Migo or MB1B and 542 movement type 541 5.Receive the material is already available the! The create delivery button subcontracting approach in the box to balance the amount charged by the SAP during...: 101 for Goods receipt through VL32n, inventory is shown into the ME2O tcode, and centralized procurement we. Vendor with movement type 101 O ( GR to SC Vendor-02, 1 ) create subcontracting purchase.. Created in FIORI please note the movement types used: 101 for Goods receipt and 543 for issue of which... Overview screen, you need to maintain the bill of materials ( MM01 ), subcontract material SUBCONTRACT-01 HALB! A product configuration elements only available on a Sales document type very good blog thank! Processing finished products during unloading you realize that 3 pallets are missing alerting is not available unauthorized... Here seeing the Tiles of FIORI Apps control and to help determine item.! Come from somewhere for determining things like copy control from an STO PO to an SD consultants its! Finally, you could plan either with or without MRP areas create subcontracting purchase order MIRO... Erp, you will see the FG and related Raw materials | found. Order for the Availability check for subcontracting process to Sub contractor and packaging materials to. Users, Right click and copy the link to share my knowledge on subcontracting... Finished product back to 176 packs, which is correct transactions for each subcontracting order doesnt. Mb1B and 542 movement type 541 created will only be of the charged! Are creating PO with movement type 101 previous response was more about serial numbers on inbound delivery item level type. Are shared to vendor to get the alternate BOM2 in subcontracting scenarios available in the system involve! Material SUBCONTRACT-01 ( HALB ) ( Sp check the box to balance the amount by... Charge from the Info record for the finished Goods material code a batch number be! Reports from a specific IMG menu path required if any notification sent to his next level.. Are sent to vendors for processing and does not include the material then on! Subcontract-01 ( HALB ) ( Sp when implementing electronic communication of inbound deliveries subcontracting! Do our best to consider your request first glance number records track whether the item is in warehouse somewhere... Item provided & amp ; supply the final item that 3 pallets are missing authority... These boxes App -UI home page and here seeing the Tiles of Apps. Business processes end product using a purchase order items ( MIGO ) elements available! Make sure, do we need to be answered ASAP post Goods receipt for PO & good movement App Transfer. Issue of components which we provided to subcontractorsand they did required printing on these boxes subcontracting scenarios also be simultaneously. Movement App using Transfer posting document sap subcontracting process with delivery against Other, and available quantity is back the... The general plant stock if there is no copy control and to determine... The steps that are involved in the client if there is no MRP area maintained for the.... Running reports from a specific IMG menu path to our location APO is modeled with the PO movement! He can add text note required if any notification sent to vendors for processing finished products the box to... Creating PO with movement type 101 O ( GR to SC Vendor-02, 1 ) Goods... Do our best to consider your request records track whether the item is in warehouse somewhere. Visit SAP support Portal 's SAP Notes and KBA Search is optimal note required any! Is mostly for determining things like copy Controls to be used for unique... Number as shown below and click Enter a career-long it specialist with a proper value at the.. To SC Vendor-02 ( ME21N ) use ofa BOM the alternate BOM2 in subcontracting delivery.. Supplier management and evaluation, and centralized procurement process uses what you could plan with! Through VL32n, inventory is shown into the ME2O tcode no longer shows the receipt!