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Former Member
Apr 15, 2010 at 10:58 AM

Planning for subcontracting

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Dear Consultants,

We are having a manufacturing location treated as PLANT "P001".

Our FGs are manufactured at Plant P001. Same FGs are also manufactured at our Subcontractors.

Now we have several Sales outlets / branches treated as Plants in SAP say S001, S002, S003, S004.

Manufactured finished goods are sent to sales outlets via stock transport orders.

There are few finished goods which are manufactured at our subcontractors location. However, We do not follow standard Subcontracting process instead we sell the components which will be used for production to our subcontractors from our Plant P001. Then we purchase the FGs from the same subcontractors. This practice is followed for availing sales tax benefit.

Our Subcontractors deliver the material directly to sales offices S001, S002, S003, S004. This is via purchase orders process.

We create planned ind requirement at FG level for the Plant P001 and source the entire material then the materal is sourced, processed and distributed.

Kindly suggest how the above subcontracting activities can be planned in R/3.

Thanks & Regards

Edited by: sagar g on Apr 15, 2010 1:46 PM