Skip to Content
author's profile photo Former Member
Former Member

Sub contract

Dear All,

Will anybody explain me abt the full subcontract cycle in SAP ??

thanks in advance

Add a comment
10|10000 characters needed characters exceeded

Related questions

2 Answers

  • Best Answer
    author's profile photo Former Member
    Former Member
    Posted on Apr 09, 2008 at 08:39 AM

    (1) You have a material that can be procured externally, and you have maintained BOM with components. Any waste generated and received during subcontracting process can be maintained as component with negative quantity.

    (2) You create a subcontracting PO (PO with Item Category L). You can also maintain Purchase Info Record for Subcontract category for material and subcontractor.

    (3) You make a transfer posting to issue components for SC PO. Material is sent to subcontractor. As material remains under your ownership, system does not make any value entry. But quantity is shown as "Material Provided to Vendor"

    (4) You receive finished material against SC-PO. You also specify components consumed in manufacturing of finished goods. Additionally, if you have negative components in BOM, now you'll also receive subcontracting by-products. There are three events, so three accounting entries are generated:

    DR FG Stock/ SC By-Product Stock

    CR Change in Stock (FG/ SC By-Product )

    (for finished goods received)

    DR Subcontracting Charges

    CR GR/IR Clg

    (for moneys payable to Subcontractor)

    DR Consumption (Components)

    CR Change in Stock (FG/ SC By-Product )

    (material provided to Vendor is now charged to expense)

    (5) You do the IV for SC Invoice, and the process is complete.

    Add a comment
    10|10000 characters needed characters exceeded

  • author's profile photo Former Member
    Former Member
    Posted on Apr 09, 2008 at 08:46 AM

    You will Provide Raw Materials or Semi Finished Materials to a vendor to make it as a Finished Product. This is what Sub-Contracting.

    for this you need to create Parent(Finished) and Child(Semi) Materials. This are Bill Of Materials (BOM).

    1.Create Materials MM01

    2.Create BOM CS01 ( with yesterday's date)

    3.Upload Child Materials MB1C (561 Mvt. type)

    4.Create Sub-con. Info record ME11

    5.Create PO for Parent ME21N (with Item Category L)

    6.Send Child Mat. to Vendor ME2O

    7.Receive Finished Material MIGO

    8.Do Invoice Verification MIRO

    Add a comment
    10|10000 characters needed characters exceeded

Before answering

You should only submit an answer when you are proposing a solution to the poster's problem. If you want the poster to clarify the question or provide more information, please leave a comment instead, requesting additional details. When answering, please include specifics, such as step-by-step instructions, context for the solution, and links to useful resources. Also, please make sure that you answer complies with our Rules of Engagement.
You must be Logged in to submit an answer.

Up to 10 attachments (including images) can be used with a maximum of 1.0 MB each and 10.5 MB total.