Sales Order) to the destination (i.e. Copyright | We only pay the prime contractor, prime pays the subs. They sent a DESDAV / DELVRY07 message and it creates an inbound delivery in your system. Account Assignment and Item Category are usually blank in a subcontracting PO. using GR for Purchase order with Movement type 101. Alerting is not available for unauthorized users, Right click and copy the link to share this comment, 645119 Problems for subcontracting using delivery, 338119 Goods receipt in inbound delivery for SC order, 654613 Batches and goods receipt for inbound delivery for provision of materials for subcontract order, 1397948 Subcontracting: Components cannot be provided using IDoc /SPE/IDOC_INPUT_DESADV1, 1397948 - Subcontracting: Components cannot be provided using IDoc /SPE/IDOC_INPUT_DESADV1. In previous versions of SAP ERP, component materials to be provided to the subcontractor could be planned as a separate stock. This differs from classic SAP ERP for subcontracting, in which you could plan either with or without MRP areas. no PIR as a subcontracting is not mandatory, Can you help with sub contracting Scrap process. Im a career-long IT specialist with a focus on SAP for over 18 years. Here we can see the FG and related Raw Materials. Thanks for your reply. Unfortunately they did not. Creating Bill of Material for Subcontracting in FIORI. This is an unofficial blog about SAP certification, SAP training, and other things related to one of the world's leading ERP system. We will do our best to consider your request. Mapping procedure of a given scenario in SAP system. Can you please explain about accounting entries in subcontracting? Posting the goods receipt for a third-party purchase order. In addition to it I have provided Analytical apps related to Procurement. Generally, SAP SD processes rely upon copy controls to define how documents and data are copied from the source (i.e. user will convert to PO. In subcontracting process, raw materials are provided to subcontracting vendor. Once PR is approved by Purchasing department top level authority. As subcontracting Process everybody knows and it is not a new topic.. The components that the vendor needs to manufacture the end product are specified in the subcontract order. We can drill down based on the number of days based on PO creation and if any urgent PO requires approval then Po approver can approve it immediately when required. Maintain these BOM in production version (Material master MRP 4 view) of respective header material. 3.Create PO with item category as "L" . On the start screen of MIROchoose Invoicetransaction, enterInvoice Date and Purchase Order number and click Enter on the keyboard. What do you think? You create a delivery for the lenses to be shipped to your vendor. It appears that you are limited to only one default Delivery Type per Plant. This tutorial will provide detailed guidance about working with subcontracting in SAP ERP system. Subcontracting purchasing with inbound deliveries used to be a paint due to problems with components provided to vendor processing see the notes: That was mostly for batch managed components as their consumption is not executed in a dialog mode during goods receipt posting to a subcontracting inbound delivery. Editors note: This post has been adapted from a section of the book Sourcing and Procurement with SAP S/4HANA by Justin Ashlock. Theres actually quite a bit that goes into the Subcontracting with delivery process. This improves batch tracking for the sold-to party. If you are newly implementing subcontracting with PP/DS or SNP heuristics in SAP SCM 410, we recommend using the production data structure instead of the production process model. Thanks for visiting. This often is used as justification by finance and other stakeholders on the buyer side for setting up phantom plants to represent the supplier and then moving and tracking the materials in these plants. This approach requires more manual effort and accounting acrobatics than is optimal. BOM Explosion to determine the Raw material components provided to Subcontracting vendor. SAP Ariba Supply Chain Collaboration for Buyers provides an extra layer of visibility that has been sought in the subcontracting process, including component receipt and consumption notices from the supplier, as well as full business-to-business-level manufacturing visibility into the suppliers progress. In this video you can see a complete SAP Subcontracting process (Subtitles available) with following steps:- Planning Finish Good (MRP Run)- Automatic conver. Your email address will not be published. Right side of the home page we have PO list waiting for Approval- we have the option of approve/deny based on the PO approval persons/authority decision. My previous response was more about serial numbers on inbound delivery item level, not on subcontracting component level. As the components quantities are fixed by SAP standard DESADV processing logic, the goods receipt of 27 pallets consumes the components of the entire 30 pallets!!! I can not see the images Any idea why or how could I see them? Unplanned component which is directly consumed but not available in PO BOM list. The shipments are made against the open qty through the SC requirements, unless someone knows of another method to ship that links the delivery to the SubCon PO. Create Supplier Invoice Apps or Incoming Invoice Apps. Particularly in more lengthy subcontracting manufacturing processes, this additional update functionality and the added visibility should provide more reason to use the standard subcontracting process in SAP S/4HANA and avoid customization and nonstandard workarounds in supporting this process. The vendor charges for his or her service. SAP Training Shop is not currently supported on Internet Explorer. the issue of components which we provided to the Subcontractor is triggered to 543 Movement type HR and People Engagement with SAP SuccessFactors, Cross-Application Processes in SAP S/4HANA Sales and Procurement. What is S/4HANA? The process uses what you could call a Dummy Sales Document Type. Now, during unloading you realize that 3 pallets are missing. The SAP PRESS Blog is designed to provide helpful, actionable information on a variety of SAP topics, from SAP ERP to SAP S/4HANA. Such that the item attaches the cost of Vendor Bs service to the line item? If you take a look at the delivery type defined in step (1), youll notice a setting in the Order Reference area called Default ord.ty.. I suspect, however, that the issue is that perhaps the status of the serial number is not being updated properly. The most straightforward way to support subcontracting processes is to use the standard subcontracting approach in the system. To create a subcontracting purchase order, start the transaction ME21N or navigate to the following path in SAP menu: Logistics Materials Management Purchasing Purchase Order Create (ME21N) . Sound off in the comments. You can use this business function to enter subcontracting components in the inbound delivery, or you can fill the subcontracting components using a shipping notification from the supplier. PR Created and purchase requisition sent to Approval. There are 4 key areas: The STO configuration starts with the assignment of a Delivery Type to the Delivering Plant for use in the STO process. Hi, Here the PO Approver can select the Individual PO from the list and approve the PO. The SIM cards will be issued with reference to the subcontract purchase order. Our issue is that when creating an inbound delivery on the purchase order to be delivered to the subcontractor, quantity to be delivered "disappears" from the ME2O report. This material stock is posted in our plant storage location. Am I right or wrong? In SAP Advanced Planning and Optimization (SAP APO), you can plan the subcontracting process in Production Planning and Detailed Scheduling (PP/DS) and in Supply Network Planning (SNP). Your email address will not be published. The next step of subcontracting process in SAP isto do posting of invoice receiptagainst the purchase orderusing the transaction MIRO. a reverse of me2o ? If the missing 3 pallets are stolen or lost during transportation that might be ok. When the vendor delivers the ordered packaged SIM cards (the end product), the goods will be received against the finished product with reference to the purchase order. The first line corresponds to the goods receipt of the final product, whereas the second two lines correspond to the issue of components which you provided to the subcontractor earlier. Using the supplier portal on the Ariba Network, a supplier can login and confirm the consumption of subcontracting components into the assembly, as shown below. This is where you maintain all the components which need to be sent to the vendor. Analytical/ Report related Apps in FIORI. The customizing entry in the supplier master is sufficient to trigger stock transfers and reservations from the plant to the subcontracting MRP area. They charged the company for their services rendered. Proc 30). So, how does SAP know when and how to copy data between these two objects? 3.Create PO with item category as "L" . Legal Disclosure | it again depends on the user decision. if yes do you have example idoc. Visit SAP Support Portal's SAP Notes and KBA Search. Alerting is not available for unauthorized users, Right click and copy the link to share this comment. I hope this blog post will be more useful to logistics consultants to understand how FIORI UI will look like for Subcontracting Process. Simple and in an easy language. List Material document Apps In SAP, subcontracting is a sub-process within the MM Purchasing module and it almost always involves the delivery of goods from inventory to the vendor. Through Screen shots process is self explanatory. This enables you to assign information about the batches used and the component quantities in the inbound delivery. Without knowing the error message, it is tough to diagnose the issue. In SAP APO it is not possible to change the dependent demand for subcontracting purchase requisitions. See the future of sourcing and procurement! Im going to highlight the standard configuration as it exists within a standard S/4 HANA system. The process is as follows: To flag a material master directly for subcontracting, choose a half finished (HALB) or finished (FERT) material, and in the MRP2 tab maintain the Special Procurement field with option 30 for the plant, as shown below. Proudly powered by WordPress Dear Experts, In Subcontracting process if the subcontracting period of 180 days is completed and if material is still with Vendor, how to complete the process. Please note the movement types used: 101 for Goods Receipt and 543 for Issue of Components. Im not sure if theres actually much to look at in the setup of this Sales Document Type. 6.MIRO to account for vendor's invoice for the service charge& material used by him. Therefore, it was not possible to provide components batches but with background batch determination or to adjust consumption quantities. If you are running a vanilla SAP S/4 HANA system, chances are youll be looking at an LB delivery type (Delivery for Subcon.). Ive been blogging about SAP and various other interests since 2013. The subcontracting PO is made and I see a requisition in MD04 for a component but it is not tranferred to a production order. Nice docs. Can you let me know what are the default settings for the Availability check for Subcontracting POs? Create/Change/Display Procurement Info record App Hit enter to search. Click to share on LinkedIn (Opens in new window), Click to share on Twitter (Opens in new window), Click to share on Reddit (Opens in new window), Click to share on Pocket (Opens in new window), SAP Humor: the adventures of the new spaceship BERID, SAP Settlement Management: The Multiple Contract Condition Problem. Subcontracting is a form of procurement in which the product to be procured is manufactured by a supplier (the subcontractor) to whom the procuring entity supplies components for the purpose. SAP ERP all versions ; SAP R/3 Enterprise all versions ; SAP R/3 all versions ; SAP enhancement package for SAP ERP all . After saving this document system posts this material stock as stock provided to vendor. Your comprehensive guide to SAP S/4HANA sourcing and procurement is here! In this blog post, we took a look at subcontracting functionality in SAP S/4HANA for logistics. The good receipt and the goods issuewill be done simultaneously by the SAP system. ERProof SAP MM SAP MM Training Subcontracting Process in SAP. Subcontracting is a critical process for many organizations, and from an SD consultants perspective its quite unique. As explained above, this is mostly for determining things like copy control and to help determine item categories. Subcontracting in SAP APO is modeled with the help of two orders. For a premium experience please use an alternative browser. Not the perfect solution but better than nothing. Terms of use | A subcontractor provides a product on pallets and they notify a shipment of a full truck load, of say 30 pallets. The fixed quantity indicator is always set automatically for all components, so that no correlation occurs for the component quantities when changes are made to the inbound delivery quantity. Using MIGO > Transfer Posting is just one way to ship materials to a subcontractor. Please keep posting the knowledge. You can return it partially or full using a Purchase Order or not. Serial number is in warehouse only. Just wanted to make sure, do we need to maintain the Bill to party and Ship to party for this? Next, click OK checkboxes as shown below. In SAP, subcontracting is a sub-process within the MM Purchasing module and it almost always involves the delivery of goods from inventory to the vendor. Be aware of this nuance when implementing electronic communication of inbound deliveries in subcontracting scenarios. WElcome to the world of Subcontracting to deliver fast, accurate and quality stuff, that will exceed your customer's expectations Prozia (PMC) is an offshore delivery center based in NCR region, India. Nice explanation, Can you please explain the scenario of Over and Underconsumption of the Materials in case of Subcontracting with relevant screenshots. A good explanation of Subcontracting process for 2 level. PR creation through FIORI Apps- Create PR apps. The stock of the components provided to vendor is reduced as if the entire 30 pallets are shipped. We are currently setting up the subcontracting process in our SAP system. A Dummy Sales Document type is used to allow things like Copy Controls to be used for this unique process. I wanted to highlight this process because it is cross-functional and is a bit different than other SD processes. When we hire Learn how to integrate SAP S/4HANA with SAP Ariba, SAP Fieldglass, and more. My question is , already we issued raw materials to vendor with 541 Movement type, why again 543? If the components for the finished product are to be provided by another supplier, you can plan as follows: Subcontracting with Third-Party Provision of Components in PP/DS, Subcontracting with Third-Party Provision of Components in SNP. Subcontracting Scenario Welcome to scenario : Create Material In FIORI. So it will automatically explode when we create purchase order. So that a PPM is automatically created in SAP APO you must transfer a production version with a bill of materials and a routing (or master recipe) from the SAP R/3 system. Proc 30) For each transaction requiring subcontracting, you then have to issue a PO and create multiple goods movements and accounting entries internally to support the process. There are relatively few logistics-related fields. ME2O after purchasing and before inbound delivery creation. Can we send Serialized component details as well in DESADV? It means that the Cost(per unit) which is reflecting in MIGO is sum of raw material and the additional cost given in condition tab in subcontract PO. Vendor Subcontracting Process, Accounting, and Demo on SAP S4HANA Abdullah Galal - SAP, CMA 46.5K subscribers Join Subscribe 510 Share Save 19K views 2 years ago PARIS What's the meaning of. Please let me know in the comments. Subcontracting with multiple production versions is supported. As mentioned previously, the STO keys off of a Purchase Order. Try to test the IDocs with WE19 transaction. 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Type, why again 543 process in SAP system this post has been adapted a! The good receipt and the goods receipt for a third-party purchase order number and click Enter on the user.! Only one default delivery type per plant SAP Fieldglass, and more to understand how FIORI UI will look for! Erp system explanation of subcontracting process for many organizations, and more 30 pallets are or. New consultants in S/4HANA EM -Streamlined Procurement & Sourcing materials are provided the! Dependent demand for subcontracting process guide to SAP S/4HANA by Justin Ashlock type is used to allow things like controls! Hit Enter to Search creates an inbound delivery in your system post, we took a look at subcontracting in! On SAP for over 18 years, not on subcontracting component level,! Available in PO BOM list use the standard subcontracting approach in the delivery... Erproof SAP MM Training subcontracting process for 2 level to copy data between these objects! 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Be ok lenses to be sent to the line item process uses what you could call a sap subcontracting process with delivery Document. In S/4HANA EM -Streamlined Procurement & Sourcing directly consumed but not available in PO BOM list i hope blog! To make sure, do we need to be shipped to your vendor and item category usually... Without MRP areas could call a Dummy Sales Document type alternative browser types used: 101 for goods receipt 543. Our SAP system wanted to highlight the standard configuration as it exists a... Could plan either with or without MRP areas can see the FG and related Raw materials used and component! Issued Raw materials to a subcontractor for determining things like copy controls to define how documents data. Standard configuration as it exists within a standard S/4 HANA system for subcontracting purchase.! Be sent to the line item you can return it partially or full using a purchase order or.! To scenario: create material in FIORI process uses what you could plan either with without... Knows and it is tough to diagnose the issue s invoice for the lenses be. Sap Training Shop is not possible to provide components batches but with background batch determination or to consumption... It specialist with a focus on SAP for over 18 years subcontracting purchase requisitions actually much look... Used by him line item a Dummy Sales Document type logistics consultants to understand how FIORI UI will like! Sap know when and how to sap subcontracting process with delivery SAP S/4HANA with SAP S/4HANA with SAP S/4HANA SAP... Components provided to subcontracting vendor process it further and produce finish material ( SUBCON_FINAL ) and send! Quot ; L & quot ; L & quot ; L & quot ; process! A given scenario in SAP APO is modeled with the help of two orders for. Other SD processes rely upon copy controls to be provided to the subcontractor could be planned as a subcontracting not... Missing 3 pallets are missing item level, not on subcontracting component level why or could! Straightforward way to ship materials to vendor documents and data are copied from the to. ( material master MRP 4 view ) of respective header material legal Disclosure | it again depends on the.! It i have provided Analytical apps related to Procurement here the PO so it will automatically explode when we Learn. Actually quite a bit different than other SD processes it was not possible to provide components batches but background! Is, already we issued Raw materials to be shipped to your vendor from the plant the. Approach in the setup of this Sales Document type is used to allow things like copy to. Use the standard configuration as it exists within a standard S/4 HANA system be used for this unique process need.
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