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Multi Level Subcontracting

Hi Experts,

I have the following scenario;

Item: FX - Made from item X

Item X need to go thru a Multiple Subcontractor Process to be modified to item FX

Subcontractor 1 - Testing - Item X Issues

Subcontractor 2 - Painting

Subcontractor 3 - Cleaning

I need to move item X thru the mentions scenario's.

Is there a way to do it without having to create 2 more additional material codes?

This is Production Order as well as Subcontracting.

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5 Answers

  • Oct 22, 2015 at 08:23 PM

    Hello

    You can try to use an externally processed operation on the production order.

    When you defined control key PP02 for your production order, it will be processed externally and a purchase requisition is automatically created to send this material to the vendor. If is slightly different than the subcontracting process, as you don't have a reference to the material on the purchase requisition header.

    If you define 3 different operations with this control key on the order, system will create 3 purchase requisitions for external processing and you will not have to create additional materials.

    Regards

    Caetano Almeida

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    Former Member
    Oct 22, 2015 at 08:32 PM

    Hi When you say your product goes through different phases like testing, paining and so on. Ideally after each step it should be considered as seperate WIP material.

    If you make the 2 WIP and create the routing for them with operation external processing you can achieve this.

    But without creating WIP how you will be able to trace the material, in terms of it's processing and it is with which vendor.

    Thanks

    Kishan

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  • Oct 22, 2015 at 09:11 PM

    Kishan,

    Yes you are correct.

    We want to create new materials each time the item moves to another subcontractor. We looked into using WIP Batch material however we cannot assign it to different operations.

    The issue is when we assign the material to the 1st operation we cannot reassign it to the other 2 and hence we cannot create a delivery via SAP.

    Can you please elaborate on your proposed WIP method?

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    • Former Member

      I mean to say here.

      Raw material X after testing it will be X1.

      Raw material is X1 after paint it will be X2

      Raw material is X2 and after cleaning it will be FG.

      Each stage should have the routing with external processing operation.

      Thanks

      Kishan

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    Former Member
    Oct 22, 2015 at 09:54 PM

    You will need to establish new material codes. If the item is to move to multiple contractors, this is trace-ability you will want.

    The only other way is to add three subcontracting phases to the routing and satisfy with a purchase order and move externally through the process and receive FX off the production order upon completion. I would not recommend this as you will have no visibility of the product in the system. You do not want to issue X all three times under this scenario, merely purchase requisitions for the subcontracting labor.

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    Former Member
    Oct 22, 2015 at 11:58 PM

    as told each stage should have it's WIP material and for next stage this WIP will be input material.

    This is the only way to have tracebility.

    Thanks

    kishan

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