Subcontracting

[rajesh_sutar2]

Hi Experts,

We have one product say item code 40000055. We manufacture SFG say item code 30000045 in house. We send this SFG material to vendor for external service on SFG & he return back FG product 40000055.

I have maintained master recipe in which I have maintained one operation which is external processing. i have maintained info record & all necessary field in master recipe.

I run subcontracting scenario as follow.

1. Create & release process order

2. Convert PR to PO.

3. Issue SFG material to vendor

4 Reciept FG material

5. Confirm process order

6. MIGO for FG material

MM consultant run this scenario as follow.

1. He diretly create subcontract PO

2. Issue SFG material to vendor

3. Recive FG material

I want to know what is difference between this two scenario & what is its impact on accounting.

We have maintained split valuation.

When I run scenario by process order wise standard price is updated for valuation type IM_OWNPROD & when MM consultant run this scenario MAP updated for valuation type IM_SUNCONT

[rupesh_brahmankar3 · Accepted solution]

dear,

You are doing a subcontracting process for a FG for which u r sending d vendor SFG.so it means u r purchasing FG.so ur FG material master must have purchasing view. Also you need suncontracting info record, source list FG. No need to create the process order for it.

So for FERT you need to active the purcasing view in OMS2.

If not then need prodution order, then you need SC PO, if you are using only one material, then this has to be done.

Please refer this link for the accounting entry,

http://www.sap-img.com/materials/sub-contracting-cycle.htm

Regards,

R.Brahmankar

[rajesh_sutar2 · Accepted solution]

Dear Brahmankar,

Is there need to maintain special procurement 30 in MRP 2 view in MMR.

What is difference between 20 (External procurement) & 30 (Subcontracting)

[rupesh_brahmankar3 · Accepted solution]

Dear,

Yes need to maintain for sub-contracting material if you want PR through MRP if manually creating PO then no need to maintain.

Procurement type F & Blank is = 20 and Procurement type F with 30 is =Subcontracting.

Regards,

R.Brahmankar

[rajesh_sutar2 · Accepted solution]

DearAll,

Thanks for your reply

[Former Member]

Hi Raja

1. What you are trying to run is External Process / Operation Sub-contracting and your MM guy runs Pure Sub-contracting Scenario.

Since the SFG has sent and it is converted as FG at the Vendor place and there is no further operation done on FG at your end, Pure Sub-contracting scenario is the solution for your requirement.

2. Impact on Accounting

When you do Pure sub-contracting, During the GR against PO Accounting documents will include stock Account also ( Stock Act - DR; GR/IR Act - CR ; Service Charges Act - DR; GR/IR Act - CR)

When you do External Processing, During the GR against PO Accounting documents will not include stock account ( Only External Service Charge Account will hit)

3. Valuation Type updation is based on the selection of Valuation type at the time of GR against PO.

Regards

Bala