Skip to Content

Third party and subcontracting

Hello,

We are using SAP sales item category TADS to implement third party process where the product being sold is manufactured by subcontractor using our raw materials. SAP documentation of the process below.

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=3&cad=rja&uact=8&ved=0CDEQFjAC&url=http%3A%2F%2Fhelp.sap.com%2Fsaap%2Fsap_bp%2FBBLibrary%2FDocumentation%2F252_ERP605_Process_Overview_EN_XX.ppt&ei=5NauVNLbGdiQuATNt4KACg&usg=AFQjCNGFN_Hglf0AImLrs_cnf6rcuzcHrA&sig2=SP4NHJtJ9NqMqgbhtbKGvA&bvm=bv.83339334,d.c2E

From logistics perspective, this works fine.

However when we try to perform customer billing, SAP pulls in only PO price (which is in this case subcontracting fees only) as cost on the sales billing.

It should pull in cost of raw materials as well since the customer would be charged raw materials + subcontracting fees.

Additionally at the time of GR, SAP put the entire offset ( subcontracting fees + RM inventory) to the same COGS account.

If the billing does not include RM cost, there will be un-cleared balance in the COGS

This same problem was raised in this post but without any conclusion.

Is there a standard SAP setting to pull in cost of raw materials in this case in addition to the PO price for this scenario?

Thanks.

Add comment
10|10000 characters needed characters exceeded

  • Get RSS Feed

1 Answer

  • Jan 13, 2015 at 12:49 PM

    Does anyone have any experience with this scenario?

    Add comment
    10|10000 characters needed characters exceeded