third party & subcontracting combine

[Former Member]

Dear Experts,

I am having the following scenarios:

Customer C1 send the PO for Material F1 that i am not producing.

So i send the Raw Material M1 reqd for F1 to Vendor V1 that he directly ship to Customer C1 and invoice to me. Accordingly i bill to Customer.

So it is a scenario of third party & subcontracting combine.

Please tell me how to handle such scenario along with all the accounting & excise effects.

Plz suggest

Thanks

[Former Member · Accepted solution]

Hi,

you cannot use both functionalities together, because SAP puts both into the item category (quite a big lack of functionality in SAP).

Since subcontracting is more complex (automatic background postings), you should use item category for subcontracting and manually (or user exit) change the delivery address to that of the customer so that the vendor physically ships direct to the customer. Technically in SAP you need to post normal GR plus delivery and GI to the customer as if it would go through your warehouse.

Regards,

Kay

[pankaj_singh9]

Hi,

Follow the below process;

1. VA01 - Create Sales order for material F1 and Customer C1

2. As a result of this a Subcontracting PR will get generated automatically. (For this take help of SD Consultant, it is controlled by Schedule Line category in VOV6, take copy of CS and change Item category to 3 i.e. Subcontracting)

3. ME21N - Subcontracting PO w.r.t. PR (Considering BOM is in place). In PO under "Delivery Address" Tab, maintain the Customer Code as C1. As a result of this, vendor will get information that stock is to be dispatched to Customer C1.

4. MB1B - Transfer Posting of raw materials via 541

5. J1IF01 - Create Subcontracting Challan w.r.t. TP mat. doc.

6. MIGO - GR w.r.t. PO (Here it will update stock of the material F1 via 101 and auto consumption of components via 543 O). Refer Subcontracting Challan.

7. J1IFQ - Challan Reconciliation

8. J1IF13 - Challan COmpletion

9. MIRO - LIV w.r.t. Subcontracting PO

10. VL01N - Create Delivery w.r.t. Sales Order to write-off the stock of material F1

11. VF01 - Create Billing Document on Customer C1

12. J1IIN - Outgoing Excise Invoice (I think, it is not required)