Contract Manufacturing in Sales

[Former Member]

Hello Gurus,

I'm about to start the Design Phase in a pharma company.

We have a customer who send us the components of its finished product and we manufacture the Finished Goods (it is contract manufacturing). I have 2 main questions:

1) Should I use a special sales order type for this scenario?

2) How can I enter the components to my warehouse?

I don't need an exact answer (it will be great), I'll be happy if can send me some links about this scenario.

Helpful answers will be rewaerded with points.

Best Regards

-Italo

[Former Member · Accepted solution]

Hi Hugo !!!

Since u r getting the semi finished products (which is a raw material for ur company) from ur customer & then u process it & making as a finished product for ur customer, there are two ways to map it in SAP

1) U can go for sub contracting

2) U can first treat the products supply by ur customer just like ur procurement process from a vendor & then sell it to ur customer & adjust the invoice with incoming invoice from ur vendor.

Since u said it is a contract manufacturing so u should go for sub contracting.

sub contracting is purely MM peoples job.

In this case u will charge ur customer for ur sub contracting job u did for ur customer.

hope it will help u.

thanks

Dibya