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sap subcontracting process

Hello All,

I have a question regarding subcontracting process.

My company procures subcontract material A from vendor. Material A is made up of Material B which is a phantom material.

Material B is inturn made from material C.Company provides mateial C to vendor and vendor returns material A.

When a subcontract PO is created i see components B and C in the PO. Where as we send only one component C to vendor.

How should this be setup?


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Message was edited by: Jürgen L

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3 Answers

  • Posted on Dec 08, 2013 at 03:09 AM

    Why are you giving the component Material B and C both for material A in PO?

    You business scenario is like that

    From material C to Material B

    Then material B to Material A.

    You have sent the material C to vendor and you are receiving material A from vendor.

    The same issue discussed in a recent thread

    Please read the thread and if you have any doubt, then share with us.

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  • Posted on Dec 08, 2013 at 03:37 AM


    If you dont want to track material B, no need to include the same in BOM. Create BOM for the material A with material C as the component and maintain the quantity accordingly. If you are using material B for in case of inhouse production, then maintain 2 BOM for the material A.

    1. BOM for material A with B & C components (Multi level BOM with components for inhouse prod)

    2. Alternate BOM for material A with C as component (Single lvel BOM with component C for external procurement)

    If you are dealing with multiple subcontract vendors, you may check the thread:



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  • Posted on Dec 08, 2013 at 08:10 AM


    As per your business process, Component will "C" & Final Receive material will "A"

    No need to include item "B", as there is no need to keep track of it in Subcontract Order.

    Make Subcontract PO with Header Item-"A" & Item component-"C" & issue the same-"C" to vendor.

    So that during GR, C will consume from your stock & A will come to your stock.



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