Subcontracting scenario

[former_member559886]

Hi Experts

I have a scenario where I will create a Purchase order for a Supplier 1, From Supplier 1 the goods will go to Supplier 2 which is a subcontracting supplier then from Supplier 2 I will receive the material. Please suggest how to handle this scenario in S4.

Thanks

Biswa Sahoo

[lingaiahvanam · Accepted solution]

Hi,

This is a common requirement in the subcontracting scenario.

You can achieve it via Subcontracting/Third-Party Order Processing in S/4HANA system.

The following are the high-level steps.

Master data:

1. Create material master for assembly (F=30) and components

2. Create a Subcontractor MRP area

3. Assign MRP area to components

4. Create a bill of material

5. Create purchase info record (ME11)

Process

1. MRP planning run creates purchase requisition for assembly at the supplier 2

2. At the same time, dependent demand generates for components at subcontractor location (supplier 2) and purchase requisition created with the respective supplier 1

3. Convert purchase requisition to purchase order

4. Perform goods receipt (statistical) but components delivered to a subcontractor (supplier 2) directly from supplier 1 (When you display a subcontracting/third-party order, you will see the subcontractor’s address in the space for thedelivery address . The SC stock indicator X for stock with subcontractor is set. The item type and account assignment type fields do not contain any values.)

5. Convert subcontracting purchase requisition to purchase order for assembly

6. Perform goods receipt for assembly

Please refer to following forums for additonal information

https://wiki.scn.sap.com/wiki/pages/viewpage.action?pageId=489200907

https://help.sap.com/viewer/fe39e10a9a864a8f8dc9537704f0fa13/1709%20000/en-US/baa9ce5314894208e10000...

Best Regards,

Lingaiah

[Mahendran8888]

Hi,

1) You can treat both the order as a single order and can be treated as One subcon order so that no more confusion or you can have separate procurement for that materials so that tracking and accounting can be easy.

2) Or You have to GR, receive the material in system from supplier 1 and again you can process to the second supplier then another GR.

3) Or You can have virtual plant there you can do the GR and do the accounting from there you can send material to supplier.

I am recommending first and second idea to have customized procurement and process the same.

Regards

Mahe