Vendor Subcontracting

[Former Member]

Dear All,

Here is the scenario, I am sending a material (stator) to my vendor, vendor is using his own material to rewind the stator and we need to pay to the vendor for the services he given to us ( for rewinding ) and also for the material he is using. Now my doubt is to know how do we map this in sap MM .

Regards

GSG

[Former Member · Accepted solution]

Hi,

You order finished product from a subcontractor, order also contains entries about the component to be provided to the vendor.

The subcontractor supplies his services and delivers the mfg. good , GR is posted for the finish good.

Maintain the pricing for Service rendered and Raw material provided by vendor Purchasing Info. Record.

Hope you find this useful.

Regards,

Reetesh

[Former Member]

You will make a subcontracting order with all the components tht part to be shipped from the stock and the parts that vendor uses

1. You can either make two purchase orders one Subcontracting PO with Finished good and raw material say stator and wire. Other PO will be Normal Po with delivery to subcontracting vendor for the material that vendor used.

or

1. You can make one purchase order with two line items, 1st one for subcontracting with item cateogry L and subcomponents and other line item for the material that vendor uses in this case wire.

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

3. For subcontracting Po/ or line item 1 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

[Former Member]

Hi ,

Thanks for the earliest reply , but when i did the process as per your suggestion . after GR , the stock of the material is shown in the stock provided to vendor. and the value of the stock is showing in our inventory , but in my case the material does not come to our inventory it is directly used into the finished product.

Regards

gsg

[Former Member]

did you check the material MMBe after you had done the GR for both the PO, (material and Sub contracting).

Once you do the GR against sub-contracting PO, the material is automatically consumend and will not show in inventory.

Pl verify and get back.

[Former Member]

Hi Dear,

Rather then doing it in this way why dont you put in another line item in your sub contracting Order for the Wire with the Account Assignment Category, so that when you are doing the GR for the PO the material will be consumed and also your Sub contracting will be done

Remembar that you have to issue the stator as the component for the Subcontracting line item, so maintain it also.

Hope it helps you.

Regards,

Yawar Khan

[former_member564225]

Hi GSG,

If your vendor is using his own material for the processing, say 50 Meters of wire (not provided by you) then you need to calculate manually how much material he is using for the material plus the service charges for the process for example, if you send 1 stator and he is using 50 M wire of say 100 Rs and his winding charges are 50 Rs, then you should enter Rs. 150 in the PO and complete the process. In the cases where you need to provide your own material you need to maintain the PIR for the same and process.

Regards

Shiva