Cross company production with subcontracting

[Former Member]

Hello Experts,

I have two company codes say C1 & C2. When I get the requirement of 1000 nos of FG X, all material will be procured in C1 & 1st operation will be performed in C1. Due to capacity issue, 2nd operation have 1 production line in C1 & 1 production line in C2. So the 2nd operation for 700 nos will be carried out in C1 & 300 nos will be carried out in C2. All materials required on prod line in C2 will be send by 57F4.

How to go for this scenario?

Regards,

Sagar

[Former Member · Accepted solution]

Hi Sagar,

Create 2 level of BoM in C1 like FG = X and SFG = Y.

Here, the output of SFG = Y will be called Input for FG in Plant C1 and as an Input again for Plant C2.

Say you need 1000 SFG to manufacture 1000 FG. You have got capacity constraints for producing 1000 FG in Plant C1, the please follow the below process,

1. Create, Release, Issue RMs and GR a Production/ Process order for SFG for 1000 in Plant C1.

2. Create, Release, Issue SFG and other required RM and GR a Production/ Process order for FG for 700 in Plant C1. Here you will consume 700 SFG.

3. Create a subcontracting PO for 300 FG. With the Subcontracting PO transfer 300 SFG to Plant C2. You need to show Sales Purchase for SFG 300.

4. Create, Release, Issue SFG and other required RM and GR a Production/ Process order for FG for 300 in Plant C2. Here you will consume 300 SFG.

I think the decision of how much to be transferred to Plant C2 is totally depedant upon capacity available in Plant C1. The Production Planner or the Line Scheduler is the right person to decide how much quantity to be subcontracted to Plant C2.

The SD and MM processes are pretty straight but as far as Excise configuration and requirements are concern the composite meetings and decision by PP, MM, SD and CO team would really help you.

Regards,

Shoyeb

Edited by: Shoyeb A on Dec 12, 2011 12:55 PM

Edited by: Shoyeb A on Dec 12, 2011 1:03 PM

[Former Member · Accepted solution]

Hi Shoyeb,

Thanks for the information, I will try this....

But as both plants belongs to different company code, is it ok????

Regards,

Sagar

Edited by: SAGAR GOLIWAR 226 on Dec 13, 2011 12:00 PM

[Former Member]

Hi SAGAR,

try to create special proc key similar to 80 but use special procurement as "P" and Procurement type "E"

And select "Direct Production"

[Former Member]

Hi Jigar,

Both plants belongs to different company codes & Some production is carried out in C1 & remaining production is carried out in C2. So how to use direct procurement key. Please elaborate.

Regards,

Sagar

[Former Member]

Go to SPRO->Production->Material req planning--->master data-->define sp. procurement type.

create new one by coping 80 for your plant.

Now change following.

special procurement From "E" to "P"

Give plant name from where you want to create PR.

and click on as direct production in "as COM component tab"

assign this key to the material you want to check and test.

Thanks