Sub Con planning, procurement type "X"

[former_member2091]

Hi, In our scenario(for some products) We choose to outsource them or produse in house based on resource availability.

I planned for a solution with Proc type "X" and generate planned order then user can convert plan order to either Process order or PR for external procurement BUT PR converted from here is not with item category "L" and if I maintain Spcl PK(30) in material master than system does not let me convert plan order into Process order.

How can we achieve this type of scenario?

Also, for standard cost estimate when I am producing In house I have BOM cost and utility cost from recipe but what about Sub con charges that will paid to vendor, do we update them in Info record and if yes, how will they come up in standard cost estimate?

Also, I was looking at a solution where in both cases we make a process order but one with control key PI04 and maintain SUB CON charges there but PR generated in this way does not have material number in it.

Please let me know if I was able to explain the issue else Ill share more details.

[rupesh_brahmankar3 · Accepted solution]

Hello,

Special procurement type will be given a higher priority over procurement type provided no quota arrangement.

So it is working as per system design. Either you have to use quota arrangement or user has to maintain item category L ,manually while converting planned orders to Preqs.

Anyway business itself taking an discussion when they have to do it in-house or subcontracting. So there is no input to system to create it a in-house or subcontracting. For such a manual planning needs a manual intervention like maintain item category L while conversion.

Or use BAdI MD_PURREQ_CHANGE is called during the conversion Method CHANGE_BEFORE_SAVE_CONV here you can implement your logic to have item category L for subcon.

Best Regards,

R.Brahmankar

[former_member2091 · Accepted solution]

Hey,

This sounds like perfect. For now we have decided to manually maintain L but I will try to work with suggested BADI in the mean time.

Thanks a lot Brahmankar !!

[AsifHabib]

Hi,

Have you maintained routing settings too?

subcon.png

[former_member2091]

Hello Asif,

Yes, I did but it will only have an impact when plan order will get converted into Process order.

Also, Can you let me know difference in checking Sub con indicator in routing setting. I tried with indicator check and unchecked both and they both create PR but with no material(service PR)

[rupesh_brahmankar3]

Hello,

Please refer useful SAP help document on it

Procurement Type and Special Procurement Type

If both in-house production and external procurement are defined for the material via the material type (indicator X in Procurement type field), then you can set the procurement type as follows:

• By overwriting the indicator in the material master
• By converting the planned order either into a production order or a purchase requisition
• By using quota arrangements, in that you define that a certain percentage of the material is to be procured via in-house production and the rest via external procurement (see Quota Arrangements ).

Note

If you leave the indicator X for both procurement types in the material master record, and you have not maintained any quota arrangements, the system automatically switches to in-house production. The planned order therefore firstly creates planned orders, which you can then convert into production orders or purchase requisitions.

If you use the Procurement Type X or E with Special Procurement for External Procurement like 30 Subcontracting then you can have option to convert to planned order or purchase requisition, only you need to select an item category as L for subcontracting PR in this case.

Converting Planned Orders to Subcontracting Purchase Requisitions

Best Regards,

R.Brahmankar

[former_member2091]

Hi Brahmankar,

I tried both options present above

1. Maintained X in master, plan order created and user can convert that into either Process order or PR but PR created here is not of category L. User can change it into L category though manually.

2. Maintained Spcl key as 30 but then system does not let us convert into process order. This type of plan order can only be converted into PR.

[rupesh_brahmankar3]

Hello,

In standard SAP there is concept of mixed costing,

A mixed cost estimate allows you to calculate a mixed price. You can update the mixed price as a standard price.

You need to be defined mixing ratios for the procurement alternatives in the application as based on the quantity structure type.

Please consult your CO person.

Please refer useful SAP help documents on it

Mixed costing SAP help

Mixed Costing Blog

Best Regards,

R.Brahmankar

[former_member2091]

Hello Brahankar,

Thanks again for pointing in this direction but ill come back to my initial query.

Since we cant use Quota arrangement, what is the best work around for this scenario? I was hoping procurement type "X" is given by SAP to map these kind of situations only.

[former_member2091]

Hello Brahmankar,

Thank you, was waiting for your valuable inputs.

We are using Quota arrangements for products that have planned percentage of In house and O/S. It wont suit us for this particular requirement.

Also, Can you please comment on part 2 and 3 of my query.

Thanks again.

[rupesh_brahmankar3]

Hello,

In this case if there is a fixed percentage of material subcontracted, you may define a quota arrangement to distribute the quantities between In-house and sub contracting. On the quota arrangement is is also possible to define the procurement type and special procurement.

For more details refer SAP note 1508647

Best Regards,

R.Brahmankar

[former_member2091]

Hello Brahmankar,

Thank you, was waiting for your valuable inputs.

We are using Quota arrangements for products that have planned percentage of In house and O/S. It wont suit us for this particular requirement.

Also, Can you please comment on part 2 and 3 of my query.

Thanks again.