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Former Member
Jul 05, 2007 at 09:56 PM

Subcontracting PO u0096 BOM and component setup


i posted this in and am posting it here since i think it applies to both sections.

Currently a finished good is setup to receive at a DC from a Vendor as follows;

We procure all of the components.

The finished good is setup in making Vendor plant 0006 and the DC.

Components of the finished good are setup in Vendor 0006 and receiving DC 07.

BOM exists in making plant 0006 and BOM exist in DC 07.

BOM in the DC has a special procurement field (ITSOB) set as 76 – procure from 0006.

A PO is created with ME21N to receive the finished good in DC 07 that Vendor 0006 makes. This is set as a subcontracting item category “L” The BOM explodes the correct components.

The PO is received via MIGO or RF and stock is backflushed from Vendor 0006 stock to receive the finished good in DC 07.

This works OK.

From a business practice standpoint, is it necessarily a good idea to create all these components of the finished good in the DC’s? It’s kind of silly because we could receive this finished good from the Vendor in up to 4 or 5 DC’s. Why can you not just create a BOM in the vendor 0006 plant only? Having to create all these materials in the DC has caused problems. It is time consuming and purchasing has trouble keeping up with the components that are not necessarily active in a DC but have to exist for the BOM. Is the system capable of exploding the Vendor 0006 BOM components for a subcontracting PO that is created to receive at DC 07?