Can any one explain me the step by step procedures of Subcontracting Out Bound Delivery, I have created the purchase order with the finished and the components, the components has to be to be moved to the subcontractor with outbound delvivery, following are the settings i have maintained, 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), 3) i am using only ME2O(NOT ZERO) Transaction for the Outbound delviery, 4)when i am pressing the create delivery in the ME2o report, Essential transfer parameters are missing in record: 000001:Message no. Create/Change/Display Procurement Info record App 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. The labor charge is JPY 2,000 per piece. (It is already delivered). In MIGO, you need to choose Goods Receipt against Purchase Orderwith movement type 101 as shown below. Please elaborate little confuse about details. Explore ABAP, FICO, SAP HANA, and more! Through Screen shots process is self explanatory. 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. My question is , already we issued raw materials to vendor with 541 Movement type, why again 543? SAP Menu Path to ME21N Transaction In ME21N transaction, you need to select a Document Type and provide a Vendor as shown on the below screenshot: After we post goods receipt through VL32n, inventory is shown into the ME2O tcode, and available quantity is back to 176 packs. Create/Change/ Display material App Really its very useful for content. Now, lets display thedocument that we have just created. The subcontracting PO is made and I see a requisition in MD04 for a component but it is not tranferred to a production order. Please also include accounting-entries screenshots. 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. Thanks a lot. Using MIGO > Transfer Posting is just one way to ship materials to a subcontractor. Also in previous versions of SAP ERP, you could check subcontracting stocks by supplier by running reports from a specific IMG menu path. Do you need to create a recipe for sub-contracting process? Unfortunately they did not. Thanks a lot!!!! Therefore the 27 pallets received will be 10% more expensive than planned. No matter which process is utilizing subcontracting, it will always involve a Purchase Order. This blog is independent and NOT affiliated with SAP SE (the company behind SAP ERP system). Depending on the case it may be correct or not. Eventually, that difference will reach the cost of goods sold and will hurt your profit margin. Get step-by-step instructions to configure sourcing, invoicing, supplier management and evaluation, and centralized procurement. Theme: Baskerville 2 by Anders Noren. if yes do you have example idoc. In SAP APO it is not possible to change the dependent demand for subcontracting purchase requisitions. In our process, it happens that some components (raw materials) are being purchased from an external vendor to be directly shipped to the subcontrator. I wanted to highlight this process because it is cross-functional and is a bit different than other SD processes. Thanks and Regards, Sapmm user Find us on Privacy Terms of Use It appears that you are limited to only one default Delivery Type per Plant. Did you like this SAP MM tutorial? I'm a career-long IT specialist with a focus on SAP for over 18 years. 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. Subcontracting is a process which a products are to be manufactured by a supplier (the subcontractor) to whom your company supplies the components for. Invoices will be entered in the system against the purchase order. Any one help me to this query ASAP? The SIM cards will be issued with reference to the subcontract purchase order. 1) Post Goods Issue according to the Purchase Order number (4500000863) above. The system proposes the labor charge from the info record for the subcontracting product. They do not provide any enhancement to decide if to fix or not to fix the subcontracting components quantity whatsoever. Create Subcontracting vendor in FIORI. Online Help Keyboard Shortcuts Feed Builder What's new Keep up-to-date with SAP information and training. Procurement Overview page Apps. Visit SAP Support Portal's SAP Notes and KBA Search. Imagine the following, quite typical scenario. In subcontracting process, raw materials are provided to subcontracting vendor. 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. Activating PR & PO Approval Notification. SAP process: 1.Create the finished goods material code. Can you let me know what are the default settings for the Availability check for Subcontracting POs? it again depends on the user decision. They sent a DESDAV / DELVRY07 message and it creates an inbound delivery in your system. If none, a green light will turn on near Balance fieldand the SAP system will show you accounting document which will be created. Is this possible? the issue of components which we provided to the Subcontractor is triggered to 543 Movement type Participants will also learn about the associated customizing settings for the selected cross- application business processes. -SUBCONTRACT-01(HALB) (Sp. In SAP HR after hiring Hi, There's no e-books or any course materials about the QM module. Proc 30) Thanks for visiting. Later, the subcontractors returned the boxes back to the client. This is my first blog on SCN and I want to share my knowledge on Multilevel Subcontracting Process. For example, assume you create a subcontract order for the assembly of 10 engines. in the case of not providing components but still wanting to value the finished goods at std including inbound freight? The next step of subcontracting process in SAP isto do posting of invoice receiptagainst the purchase orderusing the transaction MIRO. In previous versions of SAP ERP, component materials to be provided to the subcontractor could be planned as a separate stock. The liability created will only be of the amount charged by the vendor for processing and does not include the material component value. 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. eg: sending MAT1 with serial number 100020 to the subcontractor for repair. The most straightforward way to support subcontracting processes is to use the standard subcontracting approach in the system. Proc 30) A subcontractor provides a product on pallets and they notify a shipment of a full truck load, of say 30 pallets. If the material is managed with batches, a batch number will be shown as well. Finally, it is necessary to click Post button to save the document. This can be doneeither manually or through the use ofa BOM. 3.Create PO with item category as "L" . 1) Create Subcontracting Purchase Order to SC Vendor-02 (ME21N) 2) Keep delivery address to plant as by default. Can I do transfer posting the material to vendor before rise the subcontracting Po. 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). its plants), or indirectly (using another of its suppliers). The bill of materials (BOM) is a formally structured list of the components that make up a product. Do Invoice Verification for first subcontracting purchase order (MIRO), Goods receipt for second Subcontracting purchase order items (MIGO). (Movement TYpe 101). When we hire
Please explain detail steps and Tcode. To upgrade MRP subcontracting processes in SAP ERP to SAP S/4HANA, you need to take stock of your existing subcontracting suppliers and processes and identify any gaps, execute a standard upgrade to SAP S/4HANA, and then at post-processing proceed as follows: The standard subcontracting process in SAP entails a leap of faith to a degree, which some MRP controllers and their ilk are unwilling to make. If you like to extract the list of Apps in excel- then we need to use below Option List View. 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) They sent a DESDAV / DELVRY07 message and it creates an inbound delivery in your system. Very useful content , Thanks for sharing with us. Thank you, helped a lot. Goods issue items for the SIM cards (components). Help. It can also be done through via MIGO transaction. See the future of sourcing and procurement! In ME21N transaction, you need to select a Document Type and provide a Vendor as shown on the below screenshot: In the Item Overview screen, you need to use Item Category L which is used for subcontracting documents. So, how does SAP know when and how to copy data between these two objects? The procuring entity may provide these components to the subcontractor either directly (using one of
Posting Transfer Posting stock from own stock to Sub contractor . I am a husband and father. Identifying the process steps of an intercompany sales process. A good explanation of Subcontracting process for 2 level. 3.Create PO with item category as "L" . 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? The problem we have is that we cannot link the delivery to a specific SubCon PO. How to edit personnel no. Below are the steps involved in this process. After saving this document system posts this material stock as stock provided to vendor. Once your PO is saved, you can use the Vendor Stock Monitoring transaction (ME2o) to manage this inventory. 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. 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. 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. 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. if they are ok with the PO then they can approve it else deny the PO. Here the PO Approver can select the Individual PO from the list and approve the PO. 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. They are summarized below: A material BOM needs to be created before any subcontracting order can be placed. Your comprehensive guide to SAP S/4HANA sourcing and procurement is here! Delivery Basics like logistics defaults, pricing for freight, and partner determination have to come from somewhere. Simple and in an easy language. I can not see the images Any idea why or how could I see them? Searching PR creation apps in Apps Finder in FIORI screen. 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). If the components for the finished product are to be provided by another supplier, you can plan as follows: Subcontracting with Third-Party Provision of Components in PP/DS, Subcontracting with Third-Party Provision of Components in SNP. Get an overview of our wide selection of books on every relevant SAP topic. Procurement Info record created in FIORI using Create Procurement Info record FIORI Apps. As the components quantities are fixed by SAP standard DESADV processing logic, the goods receipt of 27 pallets consumes the components of the entire 30 pallets!!! What is the process to create a RMA for a subcontract purchase order? Sales Order) to the destination (i.e. It is likely to slip through tests and bite you only down the road. The SAP PRESS Blog is designed to provide helpful, actionable information on a variety of SAP topics, from SAP ERP to SAP S/4HANA. Great blog. Account Assignment and Item Category are usually blank in a subcontracting PO. Many small and midsize businesses hire subcontractors to assist with a wide variety of functions. Creating a third-party purchase order. You need at least three confirmed participants to register and SAP will add it to your schedule. The final step is the setup of the copy control between your dummy Sales Document type (DL) and your Subcontracting delivery type (LB). Im a career-long IT specialist with a focus on SAP for over 18 years. You create a delivery for the lenses to be shipped to your vendor. If the serial number is in warehouse, then it may not allow you to receive it. It's a very good blog - thank you! The Latest ERP from SAP. the process is same as the ECC subcontracting Process. The rates quoted by the vendor for labour charges are mentioned in the purchase order line items. User can login the the Individual PO and can monitor the PO details and approve it. We would love to hear your feedback in the comments section below. 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