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Sub contracting process in P

Dear All

Please any one explain what is process for the subcontracting in PS For Ex when the client is sending the material for external work to outside through Projectsystem PR. or PO and what are movement types involved in the process

Please any one explain me sir.

Regards

Raj

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3 Answers

  • avatar image
    Former Member
    Aug 31, 2009 at 06:32 AM

    Dear,

    Go to link:

    subcontract

    Subcontracting In SAP PS/PP

    Below are the steps of subcontracting:

    1. For a production material (1001), one raw material (2001) is assigned.

    2. Production process of 1001 is having four operations 10, 20, 30 and 40.

    3. In this 10, 30, and 40 are internal operations and 20 is external operation (sub-contracting).

    4. To address this, we created a dummy material (non-valuated) and named as 1001-20 (Finished product number + Operation to be performed).

    5. This 1001-20 should form part of the component in BOM of 1001. That is BOM of 1001 will have components as raw material 2001 and this dummy material 1001-20. In routing, assign this dummy material 1001-20 to operation 20.

    6. During BOM creation, you should remove costing relevancy for the item 1001-20.

    7. In routing, operation 20 is created with a work center (which is external operation work center) with exteranl operation control key.

    8. In operation details, for external processing, assign the info record of external processing.

    9. Info record of external processing has to be created for vendor with relevance to the operation to be performed externally with vendor. (We are using material group field in the external processing in routing operation).

    10. When create production order with above set up, system will create Purcha Req for external operation. This has to be converted to purchase order.

    11. Now, this dummy material should be kept as 5000 or 6000 in stock using 561. When Purchase order is raised, required quantity has to be moved to vendor using 541. When we do goods receipt the stock with vendor shall come down. With this, we can monitor the material (with dummy material number) stock with vendor (please note we can see only quantity and not value) .

    12. When we do GR for external purch order, we receive only the operation performed. (So, coversion cost to vendor shall be paid).

    13. After ensuring GR is done, order confirmatin of operation 0020 has to be done. (here we capture the quanttiy and also the valuation of material in production order).

    Sukhveer.

    Edited by: Sukhveer Singh on Aug 31, 2009 8:33 AM

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    Former Member
    Aug 31, 2009 at 08:05 AM

    Hi Raj,

    We can use sub-contracting scenairo through Project Stock-Q. Steps: - 1. Maintain BOM for Final material with the sending material as child component. Maintain Special procurement with 30 (Suncontracting) in MRP-2 view and Individual Requirements in MRP-4 for finish material. 2. Assign Finish Material to Activity and Generate PR for project with Item Cat-L and Procurement Type - Pur.Req + Res for WBSE. 3. Check the Account Ass.Cat and Item Categories settings for Sub-contracting scenario with the help of MM Consultant. 4. You can explode the BOM in PO. 5. Now transfer Child component material from project Stock to project stock but different Storage Location as mentioned in the below points. 6. Regarding Subcontracting Challan: - Go to OMJJ, select the field "movement type" and press enter Enter movement type "311" and double click on "Field selection (Enjoy)" under Dialog Structure on left side. here "New Entries" and add field "LIFNR" (Vendor) Now in MIGO, at the time of transfer posting of components using movement type "311 Q", specify the vendor code of the Subcontracting PO (i.e. Subcontractor) Now create Subcontracting Challan in J1IF01 for material document of 311 Q movement type. Also check in SPRO > Logistics - General > Tax on Goods Movements > India > Business Transactions > Subcontracting > Maintain Movement Type Groups > here for Movement Type Group "0001", Movement Type "311 Q" should be maintained. 7. Then do GR against PO and refer the Subcontracting Challan here. And then do reconciliation in J1IFQ for the GR Document against Subcontracting Challan. Also check in SPRO > Logistics - General > Tax on Goods Movements > India > Business Transactions > Subcontracting > Maintain Movement Type Groups > here for Movement Type Group "0002", Movement Type "543 Q" should be maintained. Follow the below mentioned process; Process Steps: - 1. OX09 - Create Storage Location as "9999" for Subcontractor Location 2. MB1B - Do Transfer Posting of material from RM Warehouse to this Storage Location via movement type "311 Q" (Instead of doing 541) 3. Now go to J1IF01 - here use material document of movement type "311 Q" and create Subcontracting challan. (If required) Prerequisite: - In SPRO > Logistics - General > Tax on Goods Movements > India > Business Transactions > Subcontracting > Maintain Movement Type Groups > Here for Movement Type Group "0001" (For issues), maintain movement type "311 Q" also along with 541. Rest all; refer subcontracting challan during GR and then reconciliation and completion, etc... Will be same as usual. Note: - At the time of GR, consume components from storage location "9999" (for 543 movement type). Take the help of MM Consultant for the above settings.

    Hope this helps you !!

    Br

    Hari

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  • Jan 12, 2010 at 09:20 AM

    i had done the process explined above itw working

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