Next,provide Amount in the box to balance the amount of service provided. Legal Disclosure | The next step of subcontracting process in SAP isto do posting of invoice receiptagainst the purchase orderusing the transaction MIRO. (Movement TYpe 101). Available quantity at the subcontractor is back to 76 packs, where the real information is 176 packs. Am I right or wrong? During the MRP run, the system explodes the BOM requirements and classifies dependent subcontracting elements as such. First, well start with. Make sure to implement the note 1397948 - Subcontracting: Components cannot be provided using IDoc /SPE/IDOC_INPUT_DESADV1 if you work with subcontracting components in DESADV IDocs. Your usage of this website signifies your agreement with our terms and conditions. Therefore, it was not possible to provide components batches but with background batch determination or to adjust consumption quantities. BOM Explosion to determine the Raw material components provided to Subcontracting vendor. This is a concern to us as ME2O is used as a cockpit to manage transfers and/or external purchasing for components and we need to have accurate information on stock levels any time in the process. What is S/4HANA? Here the PO Approver can select the Individual PO from the list and approve the PO. Thats about it. Create/Change/ Display material App Can you explain how to do this process without BOM?? I hope this will be more thrill and give happiness when working in FIORI. The good receipt and the goods issuewill be done simultaneously by the SAP system. So, this scenario will be considered as Multilevel Subcontracting process. Thanks. You need at least three confirmed participants to register and SAP will add it to your schedule. The customizing entry in the supplier master is sufficient to trigger stock transfers and reservations from the plant to the subcontracting MRP area. Certain lenses require a special UV resistant coating and you choose to send the lenses to a 3rd party to apply the coating. Easily understood and completed my Sub-contracting entry. Now, lets display thedocument that we have just created. Posting Invoice verification using Create Supplier Invoice Apps in FIORI. The PPM consists of components and operations. Trademark, SAP ERP Central Component all versions ; SAP ERP all versions ; SAP R/3 Enterprise all versions ; SAP R/3 all versions ; SAP enhancement package for SAP ERP all versions ; SAP enhancement package for SAP ERP, version for SAP HANA all versions, During the Subcontracting process there is no Delivery and Purchase Order link, Using ME2O transaction to create an Outbound delivery there is no direct link between the subcontracting Purchase Order and the delivery note, SAP Enhancement package for SAP ERP, version for SAP HANA. That is confirmed by the note 1397948 Subcontracting: Components cannot be provided using IDoc /SPE/IDOC_INPUT_DESADV1. Again, that is not necessarily bad, depending on your accounting policies and the specific case. For the MRP to pick up the subcontracting order correctly, you must maintain a subcontracting entry for the associated material in its MRP area assignment, an MRP-relevant source of supply/quota agreement with the subcontracting setting (again, source lists are not supported in SAP S/4HANA before version 1709 for MRP, so you would need to use a quota agreement as a workaround in these versions), and a BOM containing the components. 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. Against each subcontracted item the system copies the material components that are to be provided to the vendor from the bill of material (BOM). SAP Menu Path to ME21N Transaction In ME21N transaction, you need to select a Document Type and provide a Vendor as shown on the below screenshot: Therefore the 27 pallets received will be 10% more expensive than planned. It is likely to slip through tests and bite you only down the road. For example, assume you create a subcontract order for the assembly of 10 engines. The good receipt and the goods issue will be done simultaneously by the SAP system. ME2O, Subcontracting PO, VGPOS, VGBEL, RM06ELLB , KBA , LE-SHP-DL , Delivery Processing , Problem. List Material document Apps Subcontracting refers to the process of entering a contractual agreement with an outside person or company to perform a certain amount of work. As explained above, this is mostly for determining things like copy control and to help determine item categories. it again depends on the user decision. 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. 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. Also how to reverse the Cenvat Credit.And how cmplete/reconcile the challan. Finally, it is necessary to click Post button to save the document. Did you like this SAP MM tutorial? We will do our best to consider your request. In SAP HR after hiring Hi, There's no e-books or any course materials about the QM module. Plastic boxes were provided to subcontractorsand they did required printing on these boxes. Alerting is not available for unauthorized users, Right click and copy the link to share this comment, Approve purchase order (optional) Approval Process not, Transfer stock for subcontractor with delivery, Transfer stock for subcontractor without delivery, Goods receipt for subcontract order (without WM). Essentially, this order type is the stand-in for what would be a normal order type in a standard OTC scenario. Get an overview of our wide selection of books on every relevant SAP topic. Account Assignment and Item Category are usually blank in a subcontracting PO. Thanks for your reply. the issue of components which we provided to the Subcontractor is triggered to 543 Movement type Process flow of basic subcontracting process with deliveries 1 - ME21N - Making Subcontracting Purchase Orders In order to create a subcontracting purchase order it is necessary to choose an item type 'Subcontracting': 'L' as highlighted in the screen below. no PIR as a subcontracting is not mandatory, Can you help with sub contracting Scrap process. If there are any additional charges required, you input them in the Conditions tab as shown on the screenshot below. Please also include accounting-entries screenshots. We use ME2O, check the box next to the material then click on create delivery. Sales Order) to the destination (i.e. Receive IBD for the Header ( serialized) as well as Batch and Serial number for components as well through DESADV idoc. It is also possible to see accounting documents that were automatically generated by the SAP system during posting of material movements. Thx. In previous versions of SAP ERP, component materials to be provided to the subcontractor could be planned as a separate stock. Subsequently, the IDoc inbound scenario DESADV / DELVRY07 was enhanced to support subcontracting components in inbound deliveries communicated electronically the note 1397948 Subcontracting: Components cannot be provided using IDoc /SPE/IDOC_INPUT_DESADV1, The problem with the above solution is that subcontracting components quantities transferred with DESADV / DELVRY07 message get fixed in the inbound delivery. We want to receive back MAT1-100020. 3) Enter Net Price (Processing cost) 4) In the item detail tab,Material data click on components and Explode BOM 2 Goods receipt for first subcontracting purchase order items (MIGO) SAP Training Shop is not currently supported on Internet Explorer. Does this sound familiar? However, the integration with an SAP ERP system requires at least SAP ERP 2005 with Enhancement Pack 03. A subcontractor provides a product on pallets and they notify a shipment of a full truck load, of say 30 pallets. A Dummy Sales Document type is used to allow things like Copy Controls to be used for this unique process. The procuring entity may provide these components to the subcontractor either directly (using one of 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. 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. I've been blogging about SAP and various other interests since 2013. Steps to perform subcontracting: Create subcontracting Info record (Optional) - T Code - ME11 External subcontracting in procurement Create purchase order Approve purchase order (optional) - Approval Process not Transfer stock for subcontractor with delivery Process deliveries and picking Transfer stock for subcontractor without delivery Goods receipt for subcontract order (without WM) Record results Record usage decision Verify invoice 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). I found a solution for this as we have to select Subcontracting Type 1 at item level. They charged the company for their services rendered. This differs from classic SAP ERP for subcontracting, in which you could plan either with or without MRP areas. The invoice is posted. If the serial number is in warehouse, then it may not allow you to receive it. We use the ME2O transaction to manage inventory at the subcontractor, and we use inbound deliveries on all our purchasing processes (inbound deliveries are used through VL06i to provide the subcontractor a report with incoming receptions, and to create batches). Required fields are marked *. A subcontracting purchase order is placed by converting the subcontracting requisition into a purchase order. Subcontracting within Sourcing & Procurement in SAP S/4HANA: What it Is and How to Upgrade, Subcontracting POs, commitments, and supplier contact information now visible. Lets take a closer look at the handoff from Purchasing to the SD Delivery. For example, you can choose to create plants that are technically the suppliers locations and track your inventory as you move it to these locations for finishing. This material stock is posted in our plant storage location. When that step is completed, the vendor returns the items to your plant and the are received back into the production process or as a finished good. Second subcontracting vendor process it further and produce finish material (SUBCON_FINAL) and finally send it to the warehouse of procuring plant. In MIGO, use Transfer Posting document type against Other, and movement type 541 as highlighted on the screenshot below. PR Created and purchase requisition sent to Approval. Subsequent goods entry is booked automatically with these entries. If you chose the MRP area route, material data on an MRP area was required for all components. This improves batch tracking for the sold-to party. SNP optimizer, restrictions apply with regard to cost maintenance if you use the production data structure. The system will open a window with the list of documents in accounting. 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