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.. if yes do you have example idoc. Can you please explain about accounting entries in subcontracting? I can not see the images Any idea why or how could I see them? Here i have mentioned Subcontracting vendor creation, subcon info record and BOM creation with respect to FG material. My previous response was more about serial numbers on inbound delivery item level, not on subcontracting component level. Can you explain how to do this process without BOM?? If the material is already available in the client own stock, it will be issued from the unrestricted use stock to the vendor. Subcontracting materials are sent to vendors for processing finished products. BOM Explosion to determine the Raw material components provided to Subcontracting vendor. What do you think? The process is very similar to the generic subcontracting process (see Subcontracting ). You can have it without BOM by entering all the components manually. Thanks and Regards, Sapmm user Find us on Privacy Terms of Use Goods receipt items for the packaged SIM cards (end product) supplied by the vendor. 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. Posting the goods receipt for a third-party purchase order. They are summarized below: A material BOM needs to be created before any subcontracting order can be placed. Thanks. Double click on Accounting Document. using GR for Purchase order with Movement type 101. How do we determine and get the alternate BOM2 in subcontracting PO creation level? 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. Now, lets display thedocument that we have just created. Editors note: This post has been adapted from a section of the book Sourcing and Procurement with SAP S/4HANA by Justin Ashlock. 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 sent a DESDAV / DELVRY07 message and it creates an inbound delivery in your system. 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. The materials that are provided to the subcontractor are managed as stock provided to a vendor. Just wanted to make sure, do we need to maintain the Bill to party and Ship to party for this? Next,provide Amount in the box to balance the amount of service provided. It is likely to slip through tests and bite you only down the road. When delivery papers are needed, a delivery should be created. If the material is managed with batches, a batch number will be shown as well. Participants will also learn about the associated customizing settings for the selected cross- application business processes. 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? When we hire That is confirmed by the note 1397948 Subcontracting: Components cannot be provided using IDoc /SPE/IDOC_INPUT_DESADV1. Unfortunately they did not. 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. Available quantity at the subcontractor is back to 76 packs, where the real information is 176 packs. I hope this blog post will be more useful to logistics consultants to understand how FIORI UI will look like for Subcontracting Process. If there are any additional charges required, you input them in the Conditions tab as shown on the screenshot below. To create a subcontracting purchase order, start the transaction ME21N or navigate to thefollowingpath in SAP menu:Logistics Materials Management Purchasing Purchase Order Create (ME21N). The SIM cards will be issued with reference to the subcontract purchase order. Please contact in case of any queries and clarifications. The bill of material refers to the end product that the vendor will deliver. It would have been nice if SAP had provided a BAdI enhancement here. Any one help me to this query ASAP? Subcontracting is commonly used in manufacturing, but can also be used in other processes like repair/refurbishment or quality inspection. Is there a process to bring components back from the Subcontractor . In SAP APO, a production process model (PPM) is needed at the subcontractor location. 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). Have any questions or comments? Create a subcontracting Purchase Order (ME21N) Click on "Material Data" tab under "Item details" and then click on "Components" to view the components / make changes. Please keep posting the knowledge. I'm looking forward for the next ones , Thanks for sharing. The PPM consists of components and operations. Required fields are marked *. Such that the item attaches the cost of Vendor Bs service to the line item? Im going to highlight the standard configuration as it exists within a standard S/4 HANA system. This is possible with or without creating a delivery. Lets start with discussing the steps that are involved in the subcontracting process in SAP. Online Help Keyboard Shortcuts Feed Builder What's new For example, assume you create a subcontract order for the assembly of 10 engines. How to manage serialized material for subcontracting repair? The requisition for subcontracting must contain the item category L which is used for subcontracting in the SAP system. Now, during unloading you realize that 3 pallets are missing. Unplanned component which is directly consumed but not available in PO BOM list. Activating PR & PO Approval Notification. Creating a sales order for intercompany sales. 2.Maintain the BOM for the material. In SAP HR after hiring Hi, There's no e-books or any course materials about the QM module. Standard Process Flow ME21N - Purchase order creation MIGO_TR - Send components to a subcontractor Use transaction MIGO to provide components to the subcontractor. We only pay the prime contractor, prime pays the subs. 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. A good explanation of Subcontracting process for 2 level. The consumption of the components is posted. 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) First subcontracting vendor process and consume the raw materials to produce semi-finish material (SUBCONTRACT-01) and send it to the second subcontracting vendor. Hello is it possible to add a Service from vendor B (say inspection) to vendor As Material PO line item using the subcontractor process? 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. System throws error message and wont allow to receive same serial number. Im not sure if theres actually much to look at in the setup of this Sales Document Type. 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. Hello. A subcontractor provides a product on pallets and they notify a shipment of a full truck load, of say 30 pallets. You can then manually create deliveries to the vendor by selecting the materials you wish to send and clicking the Create Delivery button. This enables you to assign information about the batches used and the component quantities in the inbound delivery. 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. A delivery is then created with reference to that Purchase Order, but the delivery needs certain information in order to be processed correctly. Plastic boxes were provided to subcontractorsand they did required printing on these boxes. SAP MM Procure To Pay Architect (must be good in PP too) Starts 3/13 (or 3/15); duration: 3 + months Location: remote and onsite in Denver, CO - MST hours (local or west coast candidates preferred) In this scenario as shown in below structure, two raw materials (SUBCON-RM01 & SUBCON-RM01) are provided to first subcontracting vendor (SC Vendor-01). 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. Simple and in an easy language. I've been blogging about SAP and various other interests since 2013. Mapping procedure of a given scenario in SAP system. Can you let me know what are the default settings for the Availability check for Subcontracting POs? Post Goods receipt for PO & Good Movement App Help. Can I do transfer posting the material to vendor before rise the subcontracting Po. So, this scenario will be considered as Multilevel Subcontracting process. Create Supplier Invoice Apps or Incoming Invoice Apps. Get step-by-step instructions to configure sourcing, invoicing, supplier management and evaluation, and centralized procurement. Create Subcontracting vendor in FIORI. Executing an intercompany sales process. This is where you maintain all the components which need to be sent to the vendor. 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. Be aware of this nuance when implementing electronic communication of inbound deliveries in subcontracting scenarios. If a purchase info record has been maintained, the service charges are defaulted into the purchase order. 2.Maintain the BOM for the material. Its being processed by subcontracting vendor, convert it to semi-finish material and deliver back. In subcontracting process, raw materials are provided to subcontracting vendor. 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