Subcontracting - By Product sent direct to Vendor

[Former Member]

Hi Guys,

I have a scenario;

We buy 10 tonnes of material from a farmer

This does not come to us.

It is delivered to another vendor to screen the material and remove unwanted stuff.

9 tonnes will be clean and returned to us.

The remainder tonne does not be delivered to us.

Half a tonne is sent straight to another Vendor as it is used in an Animal feed product

The other half a tonne is scrapped by the Vendor after screening

Is there any standard process that can be used for this i.e BOM set up etc

Can you set up a subcontracting PO where you can goods receipt by product to another Vendor, which will be part of another sub-contracting process

The scrap part seems straight forward

[Prasoon · Accepted solution]

Hi,

  Yes....it is possible. In Subcontracting po delivery tab, tou have to mark as "SC vendor" and the vendor name. Then the new vendor address will be copied as delivery address.

Now during GR, the stock will be posted to the new vendor given in the delivery address tab of PO.

Then in MMBE, system will show the finished product as the stock provided to vendor, that is the stock provided to the vendor mentioned in delivery address tab of PO.

Hope its helpful.

Regards,

AKPT

[Former Member · Accepted solution]

Hi AKPT,

Thanks for the reply

I was aware of this functionality

This would cover a small part part of my scenario below;

"We buy 10 tonnes of material from a farmer

This does not come to us.

It is delivered to another vendor to screen the material and remove unwanted stuff.

This vendor will send us the screened material.

But this Vendor also sends by-product from the screening process direct to another Vendor.

This Vendor then consumes this by-product as a component of another Finished good.

The finished good is then delivered to us.

[Prasoon · Accepted solution]

Hi,

   In this case, let material A is the final product from first sub contracting vendor say V1, which is in turn supplied to another vendor say V2, through the settings explained in my previous comment. Now create a BOM for the screened material, say B, with components material A and biproduct.

   Create a subcontracting po for material B for vendor V2. You can directly receive the material B from the vendor since there is stock provided to vendor v2 for material A. now create a po for the biproduct with delivery address as the new vendor, say v3. post the GR against the PO (movement 101 O).

  Create a BOM for the final finished product say C, with the biproduct of B and other required components. Create subcontracting  PO for material C. Receive it as normal subcontracting GR.

Hope its helpful.

Regards

AKPT