Subcontracting Process

[Former Member]

Hi Experts,

   In Subcontracting if the material is outsourced to the Same Vendor for 2  different operations , After the 1st operation  the material is not physically received from the vendor but GR is entered and again we release the same material is released to the vendor for 2nd operation . Then Again GR is entered. Is there any possibility to refrain posting GR Twice.

Appreciate your Valuable Inputs.

Thanks,

Vivek

[raven_sap]

Hello Vivek,

For one of the operations can you have a service line item. As and when GRN is done for the first operation, you can pay for the second one as Service.

Regards,

Rajveer Singh

[Former Member]

HI,

How to maintain the Production order Operations??

if you Remove Operation 1 in Production order, I.e You are sending material to vendor.

Show Both Operations in Single Operation(New Operation)?

Maintain the BOM, for Single Operation(New Operation).Create Subcontract PO with Ref Account Assignment F-Order(Production order), Components are picked in PO as per BOM.

Please check it.

Impacts:

1.FI-team Need Each Operation wise Cost? this Solution is not Applicable, Do your current Process.

2. Subcontract Material(F.G), Maintain Assailable value More  (include the Operation 1 cost) J1iD. in 4.5.A challan we will get the value.

[Former Member]

Thank you for your response Dev & Jurgen.

Two Different contracts are maintained for 2 different operations with the same vendor.

Can we maintain Storage Locations to the vendor for 2 operations say AA and BB ??.

Initially we will move the material to AA and after the first process then move to BB

Or

Is it Possible to have one contract to the same vendor for 2 different operation??.

Any other Alternative solutions.

Thanks

Vivek

[Former Member]

2 lines are certainly possible in a single contract. You can create 2 lines in your PO referring to these 2 contract lines.

[former_member183424]

Yes, you can create two different contract for same vendor.

I think you should think about your Purchase order. Contract is just a short term agreement to vendor.

You can utilize contract for the process.

But How the business process will be about the payment process.

How you will give subcontracting charges for your two process ?

It is also well possible to maintain two process in your SAP system.

As per my example, of you want to maintain material A, B, C all in your SAP system, then it is also possible by creating two subcontracting process.

You can use the delivery address as vendor code for your first subcontracting process in PO (when material A becomes material B), so the material will goes again to same vendor (it will not come to your storage location).

Then second process is normal subcontracting process.

You can test the scenario in your practice client and revert back if you have any problem.

[JL23]

Is there any reason to record a receipt after the first process step?

Is this needed for quality analysis, or because that there will be some quantity from this process left and not used in the second process step?

If this is not the case, then I would try to avoid this step entirely. You can well have different bill of materials for subcontracting than you use for inhouse production. The main steps that you need are sending the components to the subcontractor and receiving the final material. Everything in between is usually not needed from procurement and costing point of view

[former_member183424]

What will be your payment portion ?

I mean do you want to give payment for twice or in a single document.

As there you can see, you have two subcontracting process and you want to merge the process.

Do you want to create two POs or one PO ?

Material A goes to vendor X, vendor X procures the material as material B, then again same vendor procures the material as Material C.

Material C will come to your warehouse. Right ?

Do you want to show the material B in your SAP system ?

Are you sending material A to vendor X ?