Subcontracting is a process where in which you give ur material to the vendor for making some process(like assembling/packing/finishing..etc) and you will pay vendor for the process performed.
For this the process starts in this way,
PO is raised with item category "L" and correspondingly u have give the BOM for which you want to subcontracing to be done.
Then need to issue the goods(Transfer Posting) to subcontractor(note : this will be our stock only, valuated at our valuation area, you can check the stock in MMBE as special stock)
Now vendor will perform the required operation and send the material back to customer.Now we will do GR for the received material, simuntaneously materials provided to vendor will back flushed once you receive the product from vendor.
(Special case:If you have bye products , then you need to reverse the GR for the bye products to visible in your stock)
Once is GR, vendor will be paid for his services via LIV
Pls click on this link, you can get more details.
http://www.sap-img.com/materials/sub-contracting-cycle.htm
Reward points..
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