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Former Member

Subcontracting Component Dropship

Hi,

Here is my scenario:

1. Finished Product M requires components X, Y and Z.

2. Vendor A provides component X and ships it directly to subcontractor B.

3. On this PO, on the Delivery address tab we have entered subcontractor B as the vendor and set the 'SC vend' checkbox.

4. When the GR for the drop-ship PO is performed, the quantity is rightly posted to 'stock provided to subcontractor B'.

5. Components Y and Z are shipped to B from existing inventory via regular subcontract PO.

The problem is, when GR for the subcontract PO is performed, the system does not post an automatic goods issue for component X (this is not surprising since component X is not entered as a component on the subcontract PO). As a result component X stays in 'stock provided to subcontractor'... and the value of component X does not get included in the value of the finished product M when the GR for it is posted.

What am I missing? Should the drop-ship PO be linked to the subcontract PO somehow? How does the system know that component X also needs to be issued when the GR for the subcontract PO is performed?

Please advise.

Thanks!

Anisha.

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2 Answers

  • Best Answer
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    Former Member
    May 21, 2009 at 07:03 AM

    hello

    the work around which I feel is

    your BOM structure should be like this

    M- fully assembled

    M1- assemebly of <prod name>

    Component X - Qty 1

    Component Y - Qty 1

    Component Z - Qty 1

    You create a subcon PO on vendor B for Part M1

    when vendor A send component X- Mvt 541 say 10

    you send component Y and Z from you rinventory - then Y- 541- say 10 and Z-541-10

    your vendor B assemble X + Y+ Z and send you 10 assmebled part on part number M1

    you make the GR for M1 for 10 ea.

    all X , Y and Z will have 543 for 10 ea

    and then you can make a program to convert M1 into M which your BOM component

    Hope this logic / process helps you in fixing the issue.

    thanks

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    • Read the description in the header of ME2O transaction. It is not called delivery due list, it is named subcontract stock monitoring vendor.

      In other words it is the MMBE per vendor.

      Once you do the MIGO for the dropshipment, the number in ME2O will change.

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    Former Member
    May 21, 2009 at 07:08 AM

    You add X also as a component in the BOM.

    As at the time of GR anyway your X will show under Stock with Subcon Vendor.

    When you will do the GR for the whole finished goods with 543 it will consume.

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