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Production Subcontracting

Hi Gurus,

we have already gone through threads available on SDN but still having some query due to confusion.

we have scenario which consists three operations out of that second operation is subcontracting operation.

we have maintained control PP02. system is generating PR for vendor which contains text of operation in line item.

now the requirement is like we want to generate PR with a material in line item and one component should be there as it's BOM component.

how can we map this in SAP ?

Thanks in Advance.

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2 Answers

  • Best Answer
    Posted on Mar 06, 2013 at 05:42 AM

    Hi DJ,

    1) Assign Control key PP02 to second operation.

    2. create a purchase info record for sub-contracting without a material

    tx is ME11. The scheduling for this external operation will happen based on the

    planned delivery time you have mentioned in the purchase info record.

    3.

    Please mark(tick mark) the operation as external operation in operation deatails

    screen in your routing.

    3. Please assign the info record to this external

    operation in the operation details.

    4. Once a production order is in place a

    purchase requisiton will be created the number of which you will be able to see

    in the production order operations overview.

    5. Please use tx ME58 to convert

    this purhase requisiton to purchase order. At this point the BOM components get

    assigned to the purchase order. You are able to view, change & explode the

    BOM attached to this purchase order. If I am not mistaken the components are

    issued to the purchase order by movement type 541.

    6. When you do the MIGO

    for this purchase order you will realise that the operation status is changed

    from released to external operation delivered. Till this point you will not see

    the material quantity in the store because it is the service cost that is posted

    on your production order. Also remember that the control key used for external

    operation cannot have a confirmation done on it.

    7. If at all quality checks

    are involved you will need to create another operation before your last

    operation which will have control key with confirmation in it so that the

    material is posted in the restricted area. After your quality releases the

    material only then it will be available for issue to the next operation. Even if

    quality checks are not you still need to see this material in the tx MMBE, hence

    you need to use another operation with confirmation control key which you need

    to confirm so that material is in the system to be available for the next

    operation.

    8. Remember this scenario what I have explained here is SAP best

    practice for PP-Subcontracting. That

    means the procurement type for the material in MRP2 view is "E" that is inhouse.

    Hence can be used for finished and semi-finished goods. Or else for material

    with procurement type 'F" which is externaly procured for which you will have to

    use MM-Subcontracting SAP best practice.

    Regds,

    Amit Kataria

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    • Hi DJ,

      I completely agree with Anupam. There are two types of subcontracting given by standard SAP.

      1. Assembly subcontracting (Covered in Anupam's post)
      2. Operation subcontracting

      As you have mentioned, now you are following operation subcontracting in which you will send a WIP material (in your case it is after operation 0010) to the vendor (for performing operation 0020) which doesn't actually have a material code in SAP. This is the reason system is creating a PR without material. This is a standard process.

      Explain this to the client and ask them for a valid reason why they are asking for a material in operation subcontracting PR.

      Revert back in case of queries

      Regards,

      Krishna Chandra

  • Posted on Mar 06, 2013 at 07:30 AM

    Hi,

    In that case you need to go for MM subcntracting in in which Component parts are transfered to vendor through 541 mvt type and Subcontracting challan is made, and after receiving goods thorugh 101 movement other reconcillation is done.

    You need to divide the whole process in two materials first is produced after operation 10 and second opertaion is done by vendor with MM subcontracting with the material produced at opn 10 as component and then received material as another input to final product.

    Check and revert.

    Regards

    Anupam Sharma

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