sub contracting process

[Former Member]

Hi,

we issue components ( material ) to a sub-contarctor for preparation of final product with 541 mvt,

and receive it through 101 mvt ,

when we are issuning is there any accounting doc generated ?

how do we maintain that components ( material ) as consumption ?

after GR what is the process to maintain how much quantity is consumed ?

rgds

[Former Member · Accepted solution]

hi,

you are sending components to the vendor say ( materials X and Y )

X -- 20 units

Y -- 20 units

and vendor returns you Z -- 20 units ( to make Z, one component of X and one component of Y is required.)

In the subcontracting PO --> in the item details you are order for Z -- 20 units and you are providing materials X and Y ( 20 units each).

now in MMBE :

you can check for Material X -- it shows 20 units provided to vendor

also for Y -- it shows 20 units provided to vendor,

when ever you do goods receipt against PO and you recieve Z - 20 units, Then

for X and Y in stock overview you can see the 20 units consumed.

hope this may help you,

Regards,

srinivas

[Former Member · Accepted solution]

hi sreenivas,

thanks,

we issue X and Y to vendor with 541 mvt,

we create sub-contracting PO for Z,

we received Z with 101 mvt at GR,

ok, if BOM is not there what happened ?

can we post X , Y to consumption account amnually after GR ?

if yes, what is the mvt type for that ?

rgds

[csaba_szommer · Accepted solution]

Dear LR,

Please understand that when you create subcon-PO (item cat: 'L'), SAP generates a component list to it (assign components to it). It is very similar to a PrdOrd.

As I wrote you can check the assigned componets if you click on the 'components' icon on material tab.

When you receive the goods in MIGO, MVT 101 ('Z') and consumption (MVT 543, 'X' and 'Y') take place at the 'same' time!

If you don't have BOM and no component are assigned to your PO nothing will be consumed.

The component list is assigned to your PO. When the GR takes place SAP doesn't use the BOM, it uses the component list.

To post the components anually is very strange. You won't have exact information in SAP about accurate stock levels (concerning the components). Financial and information flow will not be in harmony with the real procedure (real material flow).

Please create a subcon-PO and examine the process.

BR

Csaba

[Former Member]

System will trigger automatically 541 mvt type along with your final product.when you are doing GR(101).Also BOM is mandatory for a sub contracting PO either automatically or manually.

Regards

venkadesh

[Former Member]

Not mandatory to maintain BOM .But if u maintain system will automatically upload all the child material in subcon PO.

If u will not maintain BOM then u have to add components manually in PO

[Former Member]

Hi,

how the system knows how much quantity is consumed ?

can we manually enter 543 mvt or system will trigger it at the GR ( with or without BOM )

rgds

[Former Member]

hi,

in sub contracting process, generally we will issue the goods a, b, c. and we will recieve the finished product d. for this we will create the BOM for the finished product 'd'. for this components are a, b, c.

go through these steps:

Process of Subcontract in MM

Sub-contract business process:

You want to buy material from the supplier (processed material/ assembled item) , but for some reason (quality of certain item / price ) you will give some component to vendor .

Vendor shall process the item / use the item provided & supply the final item.

SAP process:

1.Create the finished goods material code.

2.Maintain the BOM for the material.

3.Create PO with item category as "L" .

4.Issue material to vendor with movement type 541

5.Receive the material against the PO with movement type 101.

6.MIRO to account for vendor's invoice for the service charge& material used by him.

hope this may help you,

Regards,

Srinivs

[Former Member]

Hi,

When you are doing GR against PO, raw material is consumed & finished material qty is increased.

This relation we can defined in BOM.To produce one header material how much item qty is need that detail defined in this.

Use tcode MMBE to see the stock of ROH & FERT both plant & subcontract.

Use MB52 to see the consumption of material.

Regards,

Dharma

[csaba_szommer]

Hi Lakshmi,

1. You issue components via MVT 541 to your subcontractor (in MB1B with or w/o PO reference; ME2O). No accounting documnet will be created since the materials get to your own (special) stock.

2. You receive the raw material (subcon-goods) made by your SC vendor via MVT 101 and you consume the before mentioned components via MVT 543. All these movements happen (generally) when you receive the goods in MIGO against your PO.

3. Generally you have to maintain a BOM and SAP uses this BOM + order qty to calculate the amount of goods to be consumed. You can check this in ME23N on 'material' tab > 'components' icon. (you can change the components in ME22N clicking on this icon)

You can change this (when you create the PO, when you receive the raw material in MIGO, or you can use MB04 [subsequent adjustment] for this purpose. You have to set the qty of components according to the real consumption - the better you do this when you receive the subcontracting-goods in MIGO).

http://help.sap.com/saphelp_46c/helpdata/en/4d/2b909643ad11d189410000e829fbbd/frameset.htm

BR

Csaba

[Former Member]

Hi all,

thanks for replies,

Is it necessary to maintain a BOM for sub-contractng PO ?

rgds

[csaba_szommer]

Hi,

You can do it and assign components manually after having created the PO.

But in the long run I think a BOM would be necessary. If the component-qty varies you can adjust it when you have the info - when the PO is ready you can change the qty to the amount you want or when receiving the goods you can set it (or later in MB04)

Normal procedure is to set the material master of the subcon-good (procurment type 'F' + special procurement type '30') and then create a BOM.

BR

Csaba

[former_member227232]

Hi,

When you receive the goods automatically system triggers Movement type 543.

T.code MBLB will provide the Stock at sub contractor.

Reward if found useful.

Vengat

[Former Member]

1)There is no accounting document generated after u issue out components by movement type 541.

2)The components come into PO automatically by explosion of BOM.

3)When u do GR components gets automatically consumed by movement type 543.

4)Consumption of components occur and that time (GR of FG 101 mvt type) an accounting doc gets generated.

Following accounting entries takes place:

Dr. stock account FG

Cr. GR/IR account

change in stock account

service account

stock account of raw material

consumption account of raw material