Intercompany Subcontracting Process

[kljf_wiee]

Hi

The environment is S/4Hana.

I'm trying to map a complicated business model to standard SAP process where intercompany subcontracting purchasing and third party sales are both in the picture. Detailed steps are described in the flow chart below.

company A is the sales company and B is the production/logistics facility. A purchases raw material (ROH) and have the vendor deliver to plant B so that production can be executed at B. Then the sales order is created with shipping point B. I'm considering a process without dummy goods in and out (virtual storage locations). For example when plant A asks the vendor to deliver ROH to B, how can I update the stock at plant B?

Is there any standard solution for this process? Thanks in advance.

klif

[kljf_wiee]

Thanks Jurgen, it's you again. Really appreciated. I'm still trying to figure out how the stock movements should be posted. Considering a direct goods receipt at plant B because physically there is no goods movement in plant A. Further, if I post GR at plant A, how can I transfer the goods quantity to plant B without transferring the ownership? I assume we have to consume the stock from plant A with a normal subcontracting PO and receive stock in plant B (with movements like 501 but non-valuated). The sales part should be doable with intercompany sales process.

[JL23]

You are just looking at one side of your process, kindly consider what the other side has to do. A subcontract purchase order is for external vendors but can also be used to order at your sister companies who are not yet working in SAP.

But once they work in SAP they also have to do their tasks in SAP.

The components will be consumed by backflushing when you post the goods receipt against the subcontract order.

But how does your sister plant record what they have done? Or do you want them to do such productions outside SAP?

Where do they post their working time too? Where the hours for the machines?

[kljf_wiee]

Sorry for the late response. Have been so busy for a while... so the only way is using STO between plants and the material is non-valuated at plan B? You mentioned about APO, it's possible to do intercompany subcontracting with APO?

[JL23]

you can only post the receipt into the plant that is in your purchase order.

If you order for plant A then you have to receive in plant A, even you asked the vendor to deliver to B

How you move the material is SAP from A to B is not the problem of your vendor. And also a delivery address is not another plant in the sense of SAP enterprise structure. It is just a delivery address to let your vendor know to where he has to send the goods.

Also if your sister plant is a subcontractor to you they are probably using your SAP system, and hence they want to plan their production and consume the raw materials and post the receipt of the finished product, like they do it for any other finished product too. So they use production orders.

Hence there is no subcontracting between plants in the same system, you have to go with stock transfers between your 2 plants.

Subcontracting between plants is an APO process