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Subcontracting: delivery of components directly to subcontractor

Former Member
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Dear experts,

I have the following process at my client:

Via a purchasing process, my client orders components at a vendor. This vendor delivers the components directly to the subcontractor who performs certain activities before sending the new assembled goods towards my client.

The problem I have with this process is how to handle the good receipt of the purchase order and how to make sure the stock is afterwards issued towards the subcontractor?

The subcontracting process is set up as a specific purchase order.

I'm sure you have come accross a similar process in your past. Could you please shed some light on this topic?

It's much appreciated!

M

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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When you place a PO to the component supplier, on the delivery address tab at itelm level enter your subcontractor vendor number in the field vendor and check "SC Vendor' indicator. This will ensure that when you post virtual Goods receipt for components, components will be automatically delivery to your sub-contracting vendor in the system. Also the component PO delivery address will automatically change to your sun contract vendor address.

Hope this is useful

Former Member
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Thanks for the feedback:

so to be clear:

I make a normal PO for the component that is to be delivered at the subcontractor at delivery from the vendor. On the specific line (item level) I set up the vendor number and SC vend box. This will make sure that upon arrival of the goods at the subcontractor, a virtual goods receipt can be posted. This means that the goods will be receved and directly issued to the subcontractor vendor. Correct?

Consequently, the above means that when setting up the subcontracting order, that this order will only contain the parts that are to be shipped from stock (and not the parts that are ordered at another vendor and delivered at the subcontractor). Correct?

Thanks!

JL23
Active Contributor
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not fully correct.

it is not a logical receipt, it is a physical receipt.

The subcontractor has to inform you what he received from your vendor. you then post the receipt with MIGO. Based on the SC flag in the PO, the receipt is directly posted into special stock O at subcontractor.

The goods issue (consumption) from this stock is an extra step which is done when you receive the manufactured goods from your subcontractor.

Former Member
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Ok, but then I do have another question:

When I create the subcontracting order, with underneath it, a list of all components to be delivered at the subcontractor, I have to create a delivery in order to pick and transfer the goods towards the subcontractor (and issue the stock). How can I integrate this with the above, as you state that the goods are directly posted into the subcontractor-stock and is still to be issued?

Thanks,

M

JL23
Active Contributor
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the components list in the PO is used for the goods issue when you receive the ordered material.

it is further used in the stock/requirements list for subcontractor stock, ME2O, which should be the basis to deliver components to a sub contractor.

delivery of components is not done in reference to a PO, there is no technical link between PO and delivery, you can even use ME2O before you create a PO.

any component that is ordered at another vendor who shall delivery directly to the sub contractor does not need to be delivered by yourself.

former_member187989
Active Contributor
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you state that the goods are directly posted into 
the subcontractor-stock and is still to be issued?

Components directly delivered to subcontractor is issued(543 0) according to BOM consumption on goods receipt of final product(101 movement).

For more details,you can refer sap help documentation,

[Provision of Components |http://help.sap.com/saphelp_erp60_sp/helpdata/en/4d/4b9036dfe4b703e10000009b38f889/frameset.htm]

Former Member
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Regarding your query, " Consequently, the above means that when setting up the subcontracting order, that this order will only contain the parts that are to be shipped from stock (and not the parts that are ordered at another vendor and delivered at the subcontractor). Correct?"

This is not correct as You will make a subcontracting order with all the components tht part to be shipped from the stock and the parts that are ordered at another vendor and delivered at the subcontractor.

1. You have two purchase orders one Normal Po with delivery to subcontracting vendor and other subcontracting PO.

2. On doing Goods Receipt for normal Po it will take movement type as 101 O that is stock provided to vendor.

3. For subcontracting Po you will do MB1b or ME2o for the parts to be provided to the vendor that is 541.

4. On doing Goods Receipt for subcontracting PO the part provided by the vendor will get consumed with 543 O and that provided from your own stock with movement type 543.

Regards

Sangeeta

Answers (1)

Answers (1)

csaba_szommer
Active Contributor
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The stock can be posted directly to SC Vendor if field vendor (CMMDA-EMLIF) and checkbox SC Vendor (CMMDA-LBLKZ) are filled on "Delivery address" tab of subcontracting PO.

The fields will be populated automatically if they are set in the contract from which you create the PO.

If you use MRP areas, you can create one for your sc-vendor and solve the problem via it.

http://help.sap.com/erp2005_ehp_05/helpdata/EN/c4/106953ae8a11d1a6720000e83235d4/frameset.htm