Subcontracting with Third-Party Provision of Components in SNP - Vendor Location Type

Hi Experts,

Good day!

We are about to implement the functionality of Subcontracting with Third-Party Provision in APO SNP but want to ask the importance of Vendor Location Type. As I checked, this is one of the important prerequisites that we must follow.

Business partners involved

Representation in SAP R/3

Representation in SAP APO

Customer

Plant/Location

Location – type plant 1001

Vendor

Vendor

Location – type vendor 1011

Subcontractor

Vendor

Location – type vendor 1011

In the above table, I don't have any problem for Customer (type 1001) and Subcontractor (type 1011) as I can change their location types in APO. However, the Vendor (should be type 1011) was setup as 1001 originally. Do we have really to change the location type of the 'Vendor'? What will happen if we don't change it? Will it violate certain rules in the functionality? What can be the alternative solution for that? Thank you.

Regards,

AA