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Sub contracting process in SAP PP

former_member184737
Active Contributor
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Hello Guru's

       Can anyone share the settings document for subcontracting process in PP module.It's an manufacturing industry, which is the best procedure to follow for both Assembly subcontracting and Operation subcontracting. Wants to know about the process steps with IMG settings too..

Thanks

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Answers (5)

Answers (5)

former_member184737
Active Contributor
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Hello PP guru's

    Can anyone share the process flow document and configuration setting for subcontracting process in PP?

Thanks

former_member184737
Active Contributor
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Hello All,

     Any document or thread link in this regards?

Thanks

former_member184737
Active Contributor
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Hello PP Guru's

         Some times the item send to vendor for job work, some times the operation perform in internally. How to configure this scenario for sub contracting. what all are the settings are needed to meet this requirement.

Thanks

former_member186193
Active Contributor
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Hi,

Like Consignment and Third party, Subcontracting is also one of the special procurement types that exist in the R/3 System. The Business or Company creates a purchase order on the vendor widely known as a subcontractor. This purchase order is different from all other types of purchase orders. Here we need to order the end product or final product, which is being manufactured/assembled of other components. These components which are required to manufacture the end product are also listed in the purchase order

Steps for Subcontracting

1.  Define all the materials in your plant (subcontracting and packaging etc).

2.  In the material master MRP 4 view there is one field in which you can mention that this material is not relevant to MRP planning, use this field for subcontracting material so that it will not be planned in MRP runs ( generally use this field for re-order point planning).

3.  In the BOM for the subcontracting material put the special procurement key as Subcontracting and do not keep relevance for costing.

4.  If you're using packaging material of your company and want to capture the cost of these materials in the subcontracting production order then put relevance for cost. To Define Subcontracting Cost Center : Goto - ca02 - double click operation number.  It is at the section call External Processing.  (Subcontracting will be tick).

5.  Define alternate BOMs for each customer.

6.   Generally the routing will be the same but materials will change, define different prodcution versions for each alternate BOM and assign to the routing.

7.   Define the activite types for packing and mixing in the work center and assign them to the cost center, use these for your routing.

8.  Whenever you recive a sub-contracting order, use the relevant production version depending on the customer.

In my place all the palnts belong to the same client in sap and they want to use the same material code in both plants, so I think my subcontracting scenario might be different from yours but it give you some ideas to go about it.

Regards,

Alok Tiwari

former_member184737
Active Contributor
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Hi,

     Thanks for your reply. I'm not much familiar with this process, SO could you please explain with what all are the process we want to follow( specify t code also) and the settings in IMG. Can anyone share the document in this regards.

* I don't want to create separate material and also BOM.

* Item not related to MRP, User wants to make SCon PR,SCon PR,Material Transfer, return material from vendor.

* If subcontracting process is an in between operation ( Operation sub contracting ), then once the material returned from the vendor it will be updated with linked with related planned order or production order.

* If it's an assembly sub contract, the whole process will be carry out in vendor end and return back the material to plant, that time related production order/PO will be closed and move that material to despatch area

* Sometimes vendor return back job worked material with scrap material. how come it will be accountable .

* what about the costing calculation for job work for both operation and assembly subcontracting.

If anyone have detailed document in this regards kindly share it here.

Thanks

svs_sap
Active Contributor
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Hi

Check the thread http://scn.sap.com/thread/2006247

BR

Sharat