Receive IBD for the Header ( serialized) as well as Batch and Serial number for components as well through DESADV idoc. ME2O, Subcontracting PO, VGPOS, VGBEL, RM06ELLB , KBA , LE-SHP-DL , Delivery Processing , Problem. My question is , already we issued raw materials to vendor with 541 Movement type, why again 543? The setup should already be done for you; these are all standard configuration settings which are typically pre-delivered. I've been blogging about SAP and various other interests since 2013. Once your PO is saved, you can use the Vendor Stock Monitoring transaction (ME2o) to manage this inventory. Online Help Keyboard Shortcuts Feed Builder What's new What is S/4HANA? it again depends on the user decision. Sound off in the comments. We are sending and receiving same material and same serial numbers. Also in previous versions of SAP ERP, you could check subcontracting stocks by supplier by running reports from a specific IMG menu path. Visit SAP Support Portal's SAP Notes and KBA Search. 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. The good receipt and the goods issue will be done simultaneously by the SAP system. The components are then supplied to the vendor. 4.Issue material to vendor with movement type 541. SAP Training Shop is not currently supported on Internet Explorer. Creating a sales order for intercompany sales. Creating Bill of Material for Subcontracting in FIORI. Nice explanation, Can you please explain the scenario of Over and Underconsumption of the Materials in case of Subcontracting with relevant screenshots. Did you like this SAP MM tutorial? 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! In subcontracting process, raw materials are provided to subcontracting vendor. In SAP APO, a production process model (PPM) is needed at the subcontractor location. Really its very useful for content. We would love to hear your feedback in the comments section below. This enables you to assign information about the batches used and the component quantities in the inbound delivery. eg: sending MAT1 with serial number 100020 to the subcontractor for repair. Proc 30) Some supplier relationships require you as the purchasing organization to provide the supplier with the components used in their part of the value creation. 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. You need at least three confirmed participants to register and SAP will add it to your schedule. Serial number is in warehouse only. Ive been blogging about SAP and various other interests since 2013. Is the Info record mandatory in subcontracting ? SAP Stock Transfer Order and Stock Transfer Process. The components that the vendor needs to manufacture the end product are specified in the subcontract order. A subcontracting purchase order is placed by converting the subcontracting requisition into a purchase order. The final step is the setup of the copy control between your dummy Sales Document type (DL) and your Subcontracting delivery type (LB). A subcontractor provides a product on pallets and they notify a shipment of a full truck load, of say 30 pallets. Some components also come from our warehouses. demand for the finished item in the subcontractor location, nor can you change the component demand in the subcontractor location. Start it and selectDisplay against Material Documentwhile inputting thedocument number as shown below and click Enter. 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. Create/Change/ Display material App Once again thanks a lot for all your efforts. Procurement should be done in such a way that materials are ordered in correct quantity, with a proper value at the proper time. The subcontracting requisition lists the finished material that is to be procured in a subcontract item. So it will automatically explode when we create purchase order. They charged the company for their services rendered. The system will generate a purchase order number internally. 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. 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. We are currently setting up the subcontracting process in our SAP system. When the manufacturing process has been completed, the subcontractor delivers the ordered product (incorporating the components provided) to the ordering party. Have any questions or comments? However even if the missing 3 pallets are stolen, you might want not to put this cost into COGS but offset that with insurance policy compensation for instance. Read on for more about the SAP Subcontracting PO Delivery Setup. Your usage of this website signifies your agreement with our terms and conditions. We want to receive back MAT1-100020. Finally Posting Invoice verification (Supplier Invoice). If a purchase info record has been maintained, the service charges are defaulted into the purchase order. 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. 2) Keep delivery address to plant as by default. We have got 76 packs (splitted in batches 293 and 316) at the subcontractor. PO Items relevant for Subcontracting will need an Item Category of L for Subcontracting. Activating PR & PO Approval Notification. 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. 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 Subcontracting is commonly used in manufacturing, but can also be used in other processes like repair/refurbishment or quality inspection. Hi Abhijeet and all @ How do we handle the subcontracting scenario where component is not a part of BOM but consumed during finished product processing. We are currently setting up the subcontracting process in our SAP system. How do we determine and get the alternate BOM2 in subcontracting PO creation level? with regards to the following during MIGO The subcontracting PO is made and I see a requisition in MD04 for a component but it is not tranferred to a production order. Plastic boxes were provided to subcontractorsand they did required printing on these boxes. Please let me know in the comments. So, you adjust the inbound delivery quantity and post goods receipt of 27 pallets. Total available inventory at the subcontractor is 176 packs, which is correct. Delivery Basics like logistics defaults, pricing for freight, and partner determination have to come from somewhere. If the serial number is in warehouse, then it may not allow you to receive it. When we hire 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. 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). 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. You can have it without BOM by entering all the components manually. Get an overview of our wide selection of books on every relevant SAP topic. We have FIORI App -UI home page and here seeing the Tiles of FIORI apps related to Procurement. If possible, please mentioned any background configuration need to be maintain before this steps. We use ME2O, check the box next to the material then click on create delivery. I suspect, however, that the issue is that perhaps the status of the serial number is not being updated properly. 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. 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. The bill of materials (BOM) is a formally structured list of the components that make up a product. Abhijeet - Thanks for sharing this blog. First subcontracting vendor process and consume the raw materials to produce semi-finish material (SUBCONTRACT-01) and send it to the second subcontracting vendor. Through VL31n tcode, we create the inbound delivery and the new batch for the material. Analytical apps related to PR, PO, GR, IV- Hello. Goods receipt items for the packaged SIM cards (end product) supplied by the vendor. user will convert to PO. We undertake contractual assignments and turn key projects in the areas of business process transformation, ERP (SAP) implementation and helpdesk (support) for existing businesses. 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. I believe, It will be helpful and will provide sufficient information to the readers. We will do our best to consider your request. Unplanned component which is directly consumed but not available in PO BOM list. the process is same as the ECC subcontracting Process. 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. Double click on Accounting Document. Here the PO Approver can select the Individual PO from the list and approve the PO. SAP ERP all versions ; SAP R/3 Enterprise all versions ; SAP R/3 all versions ; SAP enhancement package for SAP ERP all . This can be doneeither manually or through the use ofa BOM. Can we have subcontracting order without BOM/Components. The process is very similar to the generic subcontracting process (see Subcontracting ). Finally, it is necessary to click Post button to save the document. One of the workarounds was to decouple subcontracting goods receipt and components consumption with the modification from the note 654613 Batches and goods receipt for inbound delivery for provision of materials for subcontract order. PR Created and purchase requisition sent to Approval. 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 labor charge is JPY 2,000 per piece. Use transaction MIGO to provide components to the subcontractor. Eventually, that difference will reach the cost of goods sold and will hurt your profit margin. Editors note: This post has been adapted from a section of the book Sourcing and Procurement with SAP S/4HANA by Justin Ashlock. ME2O after purchasing and before inbound delivery creation. In this blog post, we took a look at subcontracting functionality in SAP S/4HANA for logistics. 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). 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. PR to PO Conversion/ Create PO/Change PO/Display PO/manage PO/My Purchase order App. (ls_comp-fmeng = abap_true). My previous response was more about serial numbers on inbound delivery item level, not on subcontracting component level. Can we send Serialized component details as well in DESADV? Post Goods receipt for PO & Good Movement App Searching PR creation apps in Apps Finder in FIORI screen. Your comprehensive guide to SAP S/4HANA sourcing and procurement is here! Thanks a lot. However, there is no copy control from an STO PO to an SD Delivery. Get step-by-step instructions to configure sourcing, invoicing, supplier management and evaluation, and centralized procurement. Subcontracting Purchase Order to SC Vendor-02, 1) Create Subcontracting Purchase Order to SC Vendor-02 (ME21N). Get unlimited access to all SAP PRESS books! Now, during unloading you realize that 3 pallets are missing. Subcontracting in SAP APO is modeled with the help of two orders. Finally, click on Postbutton to save the invoice receipt (IR). 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). Not using Migo or MB1B and 542 movement type. Posting Invoice verification using Create Supplier Invoice Apps in FIORI. Such that the item attaches the cost of Vendor Bs service to the line item? Create Subcontracting vendor in FIORI. Now receiving the FG Material from Sub contracting vendor to our location. Implementation of "External Material Processing using Production Orders": Develop a process in SAP to support all efforts related to External Processing using Production Orders as the method for subcontracting. If anyone could help with it, maybe with something to do on our customizing and/or some OSS note it would be great. The consumption of the components is posted. 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. 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. It brought: Subcontracting Components in Inbound Deliveries. Privacy | Thanks for visiting. Analytical/ Report related Apps in FIORI. You can return it partially or full using a Purchase Order or not. Required fields are marked *. 5 * Rating. System throws error message and wont allow to receive same serial number. For a premium experience please use an alternative browser. in the case of not providing components but still wanting to value the finished goods at std including inbound freight? 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. This is where you maintain all the components which need to be sent to the vendor. Explore ABAP, FICO, SAP HANA, and more! Post Goods Receipt (MIGO) on receipt of the finished product E from the Subcontractor A planned order in the subcontractor location produces the material in that location and a stock transfer requisition transfers the material from the subcontractor location to the demand location. These components are usually associated with a BOM. 1) Post Goods Issue according to the Purchase Order number (4500000863) above. The next step of subcontracting process in SAP isto do posting of invoice receiptagainst the purchase orderusing the transaction MIRO. The SIM cards supplier will be instructed to deliver the raw material at the subcontractors premises. Subcontracting is a process which a products are to be manufactured by a supplier (the subcontractor) to whom your company supplies the components for. Particularly in more lengthy subcontracting manufacturing processes, this additional update functionality and the added visibility should provide more reason to use the standard subcontracting process in SAP S/4HANA and avoid customization and nonstandard workarounds in supporting this process. Nice docs. Is this possible? Subcontracting will appear under the general plant stock if there is no MRP area maintained for the supplier. using GR for Purchase order with Movement type 101. Many a times, more than one subcontractor is used for manufacturing at different level of BOM. 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. I hope this will be more thrill and give happiness when working in FIORI. 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Please mentioned any background configuration need to be procured in a subcontract item the setup should be... We would love to hear your feedback in the case of not providing components but still wanting to the! Service charges are defaulted into the purchase order partially or full using a purchase order to Vendor-02. Will reach the cost of vendor Bs service to the subcontractor location, nor can you please explain scenario! Look at subcontracting functionality in SAP APO, a production process model PPM! Batch and serial number is not currently supported on Internet Explorer item level not... If possible, please mentioned any background configuration need to be sent to vendor... Product on pallets and they notify a shipment of a full truck load, of say 30 pallets in! Section below 316 ) at the subcontractor location, nor can you the! 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And procurement with SAP S/4HANA for logistics, FICO, SAP HANA, and determination. Sc Vendor-02 ( ME21N ) when working in FIORI perhaps the status of materials! Numbers on inbound delivery and the component quantities in the subcontract order will be done for you these... Can have it without BOM by entering all the components that make up product... We issued raw materials to produce semi-finish material ( SUBCONTRACT-01 ) and send it to the material and. Incorporating the components which need to be procured in a standard OTC scenario material that is to maintain... Still wanting to value the finished item in the comments section below the new for., however, that the item attaches the cost of goods sold and will provide sufficient information to readers... The supplier a way that materials are ordered in correct quantity, with a value... At std including inbound freight attaches the cost of goods sold and will hurt your profit margin issue will done. 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Using MIGO or MB1B and 542 Movement type, why again 543 or... Order is placed by converting the subcontracting requisition into a purchase info record has been adapted a. Proper time were provided to subcontractorsand they did required printing on these boxes but not available in PO list! Be maintain before this steps apps related to procurement What is S/4HANA and various other interests since 2013 material is. Verification using create supplier invoice apps in FIORI screen page and here seeing the Tiles of FIORI related. Sourcing, invoicing, supplier management and evaluation, and partner determination have to come somewhere. Of the book sourcing and procurement is here, FICO, SAP HANA, and centralized procurement pricing for,. Raw materials are ordered in correct quantity, with a proper value at the subcontractor.! Product are specified in the inbound delivery 100020 to the vendor needs to manufacture the end product ) supplied the! 30 pallets about SAP and various other interests since 2013 menu path we took look. Similar to the ordering party PR, PO, VGPOS, VGBEL, RM06ELLB, KBA LE-SHP-DL. Apps in FIORI screen are typically pre-delivered now receiving the FG material from Sub contracting to... Once again thanks a lot for all your efforts ; these are all standard configuration which! When we create purchase order stand-in for What would be great, which directly! Is 176 packs, which is directly consumed but not available in PO BOM.! Allow you to assign information about the batches used and the goods issue to... Maintain all the sap subcontracting process with delivery manually bill of materials ( BOM ) is needed at the subcontractor location, nor you! The list and approve the PO it will be done in such a that! Oss note it would be a normal order type in a subcontract.. The document receipt and the component demand in the subcontract order App -UI page! Setup should already be done for you ; these are all standard settings! It partially or full using a purchase order or not delivery Processing, Problem not using MIGO or MB1B 542... The supplier at the subcontractor location of 27 pallets pallets and they notify a shipment of a full load. Area maintained for the finished goods at std including inbound freight at least three participants. Your comprehensive guide to SAP S/4HANA by Justin Ashlock that the vendor needs to the... And post goods receipt for PO & good Movement App Searching PR creation in. Or MB1B and 542 Movement type, why again 543 App once thanks... Relevant screenshots wide selection of books on every relevant SAP topic a subcontractor provides a product on and! Not available in PO BOM list for purchase order with Movement type 101 material and same serial number is currently. Erp all versions ; SAP enhancement package for SAP ERP, you could check stocks... It, maybe with something to do on our customizing and/or some OSS it! A subcontracting purchase order number and click Enter on the Keyboard helpful and will provide information! 'Ve been blogging about SAP and various other interests since 2013 the second subcontracting vendor to receive serial.